Harley-Davidson, Inc. was recently notified of a potential quality issue relating to brake hose assemblies provided by a tier-2 supplier, Proterial Cable America (“PCA”), a portfolio company of Bain Capital, to the company’s tier-1 brake system suppliers. The recently launched 2023 CVO Road Glide and Street Glide motorcycles do not utilize these brake hose assemblies.
Following this notification, Harley-Davidson will be running limited motorcycle manufacturing operations at its York, Pennsylvania, facility. This is a new supplier quality issue, separate from the matter that caused the production suspension in May 2022.
Based on the latest information provided by PCA, the company now anticipates resuming full motorcycle manufacturing operations at its York facility on June 26, 2023. The company does not expect its international production to be meaningfully impacted.
Jochen Zeitz, chairman, president and CEO of Harley-Davidson, said, “While retail sales have improved in the quarter, as we had expected, we have a strong inventory position in the network to help us navigate through this situation; our teams are working very hard to minimize the impact on the business.”