Harley-Davidson's Chip Shortage Resolved To Resume Production

JAKARTA - Short supply of semiconductor chips has forced Harley-Davidson to stop production. The manufacture of legendary motorcycles from the United States continues to seek other alternative sources for chip needs.

Now that it has improved, Harley-Davidson Inc. is determined to resume production of its motorcycles on June 6. According to a company spokesman told the Wall Street Journal quoted by Reuters, Sunday, June 5, this production is resumed after stopping for more than two weeks.

Thus, the suspension of production and shipments is 19 days, longer than the initial projection. As a result, Harley's shares fell about 2.2 percent or around Rp. 510 thousand.

Previously, Harley-Davidson announced it would stop producing motorcycles for two weeks. They said they would stop assembling and shipping motorcycles except for electric models because of problems with parts from suppliers.

The iconic motorcycle maker said an unnamed third-party supplier had regulatory compliance issues with the components.

In a recent 10-k filing, the company revealed that semiconductor shortages are affecting the production line and is looking for alternatives. They also noted that its suppliers could potentially be negatively impacted by changing legal or regulatory requirements.