Harley-Davidson looking at a profit shrink after production shutdown

Harley-Davidson had announced a two-week production shutdown beginning on May 19 this year. The two-week-long shutdown of production has impacted the order book of the iconic two-wheeler major, claims a Reuters report. This is impacting the full-year outlook of the motorcycle major. Harley-Davidson is expected to report a drop in its profit on lower revenue from product sales when it announces results on July 28, claims the report.

By: HT Auto Desk
| Updated on: 26 Jul 2022, 14:05 PM
Follow us on:
Follow us on:
Harley-Davidson is likely to post a decline in its revenue owing to a two-week-long production halt in May.
Harley-Davidson is likely to post a decline in its revenue owing to a two-week-long production halt in May.

Also Read : Hero MotoCorp launches Super Splendor Canvas Black Edition at 77,430

This suspension of assembly and shipments of motorcycles, excluding the LiveWire electric bikes, was limited to two of the company's manufacturing facilities in Wisconsin and Pennsylvania. The production suspension was announced owing to a regulatory compliance issue at a third-party parts supplier. The report claims that this production halt set back the schedule for the Milwaukee-based motorcycle brand to re-stock dealer inventories.

The report further stated that surging raw material costs and global chip shortages have clipped the automaker's gross margins, even as demand for its motorcycles remains strong. Analysts suspect the motorcycle maker would post a drop in the second-quarter profit of $164.35 million, slumping from $180.54 million a year ago. However, some analysts also believe the company is capable of making up the loss over the course of the next 12 months by increasing production. However, that would be difficult, stated the report.

Also check these Bikes

Find more Bikes
Harley-davidson Harley Davidson Street Bob (HT Auto photo)
₹ 15.99 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Explore your Vehicle
Harley-davidson Harley Davidson Street Glide Special (HT Auto photo)
₹ 31.99 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Harley-davidson Harley Davidson Bronx (HT Auto photo)
UPCOMING
₹ 12 Lakhs *Expected Price
View Details
Harley-davidson Harley Davidson Custom 1250 (HT Auto photo)
UPCOMING
₹ 15 Lakhs *Expected Price
View Details
Harley-davidson Harley Davidson Heritage Classic (HT Auto photo)
₹ 21.49 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Harley-davidson Harley Davidson Pan America 1250 (HT Auto photo)
₹ 16.90 - 19.99 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Another crucial challenge the motorcycle manufacturer has been facing is the shipments of its products. Shipments of motorcycles have been on a downturn since the last recession, said the report. Back in 2008, Harley-Davidson shipped more than 300,000 units of motorcycles, and in 2009 they shipped 223,000 units. It has continued to shrink from there, claimed the report.

First Published Date: 26 Jul 2022, 13:57 PM IST
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
1% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 98 Rs. 99
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999
68% OFF
PUNZONE Car Body Scratch Remover - Scratch Repair Polishing Wax Kit Sponge Body Compound Cream Wax, Car Body Compound Scratch Remover
Rs. 289 Rs. 898

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.