The chaos in the automotive sector continues…
Shares of motorcycle manufacturer Harley-Davidson are set to plunge more than 10% on Thursday morning, after the company announced it would be suspending vehicle assembly and shipments for two weeks.
The decision to suspend assembly was "taken out of an abundance of caution", the company stated.
A third party supplier to the company warned Harley-Davidson of a "regulatory compliance matter relating to the supplier's component part," the company said in a Thursday morning press release.
Though it isn't immediately clear whether or not the suspension has a chance of becoming longer-term, it is yet another wrench in the gears of the automotive supply chain, coming at the worst possible time, with markets on edge thanks to hawkish Fed policy.
Recall, just hours ago, we noted that European auto sales continued their crash, falling for the 10th straight month. Domestic auto companies like Tesla and GM have also been stung by both Covid lockdowns in Asia, raw material cost increases and – like Harley Davidson – supply chain SNAFUs.
This story is developing and we will add information as it becomes available.