Sam Boughedda

Investing.com — Harley-Davidson Inc (NYSE:) stated on Thursday that the bike maker would halt all vehicle assembly and shipping for two weeks due to a components issue with a third-party supplier.

Its electric vehicle division will be exempt from the halt.

Harley was informed by the supplier about a regulatory compliance concern pertaining to a particular component. 

Harley-Davidson’s shares fell 9.23% on Thursday after its announcement.

Following the April announcement, the company revealed that it had reported that first quarter earnings were down because of supply chain issues. Production challenges and shortages of semiconductor chips caused a 16% drop in operating income. 

These supply chain problems caused North American production shortfalls, which in turn affected sales. The region’s overall decline in sales was 5%

Harley-Davidson reported in earnings that even though there are ongoing supply chain disruptions, the macro environment and its optimism for the second-half of the year, the company is positive. outlook remained positive, with revenue expected to increase 5% to 10%.