Harley-Davidson reopening local plant on Monday following shut down due to supply chain issues

Corrinne Hess
Milwaukee Journal Sentinel
The Harley Davidson corporate office at 3700 W. Juneau Ave. in Milwaukee on Thursday, July 9, 2020. Harley-Davidson Inc. says it is eliminating 700 jobs this year as part of its comprehensive effort to rebuild the company. Mike De Sisti / Milwaukee Journal Sentinel

Harley-Davidson will resume production at its plants in Menomonee Falls and York, Pennsylvania, on Monday after closing for more than two weeks, according to the company.

On May 19, Harley suspended operations at its plants for two weeks “out of an abundance of caution” due to regulatory compliance with one of its suppliers.

The company did not name the supplier or provide details on the part or parts in question. Harley-Davidson's stock price to sank nearly 9% the day the shut-down was announced. 

The production suspension excluded Harley's new LiveWire electric bike.

More:Harley-Davidson's electric motorcycle business will become a publicly traded company

Harley's stock price opened at $35.06 Friday. Baird analyst Craig Kennison's rating for Harley remains at outperform.

Investors will be closely watching economic conditions and how they might impact Harley-Davidson going forward as consumers increasingly find their household finances stretched by soaring prices, especially for food and energy. 

Kennison said investors are balancing "macroeconomic concerns with continued demand for consumer leisure products and lean dealer inventories."

For the full year 2022, Harley-Davidson said in February that it expected revenue growth of 5% to 10% in its motorcycle division.

But the company said that at the time that it was being dogged by supply chain issues that constrained manufacturing.

Corrinne Hess can be reached at chess@gannett.com. Follow her @corrihess