From Investopedia..........
http://www.investopedia.com/stock-analysis/071116/another-big-recall-ahead-harleydavidson-hog-pii.aspx?partner=YahooSA&yptr=yahooIs Another Big Recall Ahead for Harley-Davidson? By Investopedia | July 11, 2016 — 2:25 PM EDT
Not that any big recall is opportune for the company involved, but an investigation by the National Highway Transportation Safety Authority into some 430,000 motorcycles comes at a particularly bad time for Harley-Davidson (NYSE: HOG). The big bike maker is trying to pull itself out of a multi-year sales slide, and potential brake failure problems for bikes produced between 2008 and 2011 will hardly instill consumer confidence.
Harley-Davidson is already coming off two straight years of having to recall large numbers of motorcycles; an even larger one would damage its credibility with riders.
The NHTSA says it received 43 complaints regarding Harley's anti-lock braking system, which saw the front or rear brakes, or both, completely fail after the brake fluid absorbed moisture from the surrounding environment. While most of the problems are attributed to owner error -- Harley tells owners the brake fluid must be replaced every two years, a service that many apparently ignored -- the safety agency still found the complete failure of the braking system cause for concern. The motorcycle company says it's aware of the investigation and is cooperating.
Last year, Harley-Davidson initiated two recalls for a total of 55,000 bikes for problems with rear reflectors and the clutch. In 2014, it recalled 127,000 bikes for a different clutch issue and 66,000 to fix a problem with the front brakes.
Vehicle recalls are common; even rival Polaris Industries is facing several extensive recalls, though they are for its popular off-road RZR ATVs, not its motorcycles. Polaris' successful resurrection of the Indian Motorcycle marque has cut sharply into Harley's market share, though Harley still accounts for half of the big-bike market.
There was a time when it was said that Harley-Davidsons owners needed to buy two bikes -- one to ride and another for parts. (Another common joke from that period was that "90% of all Harley's are still on the road; the other 10% actually made it back home.") The big bike king has done a lot to erase those memories of poor quality in the ensuing years, but with another large recall potentially just down the road, Harley may find those jokes starting to make the rounds again, at it a particularly inopportune time.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
Read more: Is Another Big Recall Ahead for Harley-Davidson? | Investopedia
http://www.investopedia.com/stock-analysis/071116/another-big-recall-ahead-harleydavidson-hog-pii.aspx#ixzz4EFaXTgVL Follow us: Investopedia on Facebook