Written by Brenda Nakalema

Harley- Davidson Stock Drops as Vehicle Assembly Suspended for 2 Weeks

Harley-Davidson (ticker: HOG) stock dropped Thursday after the motorcycle maker announced its intention to suspend all vehicle assembly and shipments. …

Harley-Davidson (ticker: HOG) stock dropped Thursday after the motorcycle maker announced its intention to suspend all vehicle assembly and shipments. The announcement excluded the electric motorcycle LiveWire for at least two weeks.

Shares in the company dropped 9.3%, landing at $32.41 in midday trading on Thursday. The S&P 500and Dow Jones Industrial Average were down 0.5% and 0.9%, respectively.

“This decision, taken out of an abundance of caution, is based on information provided by a third-party supplier to Harley-Davidson late on Tuesday…concerning a regulatory compliance matter relating to the supplier’s component part,” said the company in a statement.

This isn’t much reassurance for investors, especially since the company statement didn’t detail the part of the compliance issue. At the company’s investor day on May 10, Harley talked about the problem of higher costs brought on by inflation and supply-chain issues. Despite this, there wasn’t much discussion about the shortages beyond the lack of semiconductors that have disrupted vehicle production for over a year.

According to automakers and part suppliers, a lack of chips in 2021 resulted in a reduced vehicle output worldwide by roughly eight million units.

By Thursday trading, Harley shares were down roughly 5% so far this year, while the S&P 500 was off by 18%.