CVO is then false advertising
Got a link to the ad you think is false? I haven't seen any ads in many years that refer to the CVO bikes as being hand assembled by a small team in a separate facility. If dealership sales flunkies tell you that stuff and you believe it, that's not Harley's fault.
The CVO program was NEVER about true custom motorcycles. Even the first year back in 1999 they cranked out 900 FXR2's and I believe the same number of FXR3's. Anything more than one is not "custom". The CVO lineup basically consists of standard models that have had many items from the parts and accessories catalog installed at the factory, a different and somewhat fancier paint job, and usually a larger Stage I engine. In other words, they are basically like a high end option package at your favorite auto dealer, like the "Limited" which in reality is not limited but is sold by the tens of thousands. The term "custom" may be misleading, but in modern marketing that's pretty much normal. Telling it stricly like it is will get a marketing guy fired in an instant these days, and unfortunately the courts have seen fit to allow stretching the truth to ridiculous levels in advertising.
Jerry