Just in . . . and it includes a voluntary recall for some 2017 and 2018 models for clutch problems.
Harley-Davidson Inc. said it will recall 238,300 recent-model motorcycles worldwide
due to a clutch issue, an effort that will weigh on the company’s earnings this quarter.
Milwaukee-based Harley said it informed dealers of a voluntary safety recall 2017 and 2018
Touring, Trike and CVO Touring models and certain 2017 Softail models due to issues with their
hydraulic-clutch assemblies. The company expects the recall to cost $35 million and will take a
charge in that amount in the fourth quarter.
Harley also reported third-quarter results on Tuesday that beat revenue and profit
expectations, sending shares higher in pre-market trading. But the number of motorcycles the
manufacturer sold in the period fell again, highlighting the challenges it faces amid shifting
customer preferences.
Harley reported that world-wide it sold 59,226 bikes in the quarter, down almost 8% compared
with the year earlier. In the U.S., Harley’s largest market, sales were down 13% to 36,226
motorcycles. In all overseas markets, the company said sales rose 3% to 23,006 bikes.
As Harley’s core customer base ages and slows purchases, it is scrambling to attract younger
motorcycle riders who prefer bikes that are smaller and less expensive.
Sales at the Milwaukee-based company have declined the last three years. Harley faces other
challenges too, including higher costs on imported steel and aluminium due to tariffs
implemented by the Trump administration.