Harley-Davidson recall of 29,000 of the company’s much-hyped 2014 Project Rushmore models equates to about 11% of the total number of motorcycles Harley-Davidson expects to ship in 2013. Will it have a strong impact on consumers demand?
No, said President, Chairman and CEO Keith Wandell during yesterday Tuesday’s third-quarter earnings report. He believes that the company acted with integrity by deciding the voluntary recall, that the fix on the defective clutch will be done in a timely manner by dealers on bikes brought back by owners, and that the delay in shipment of the new 2014 motorcycles will not be more than one week.
Due to the recall Harley-Davidson will take a one-time $4.9 million charge in its fourth-quarter financial results. The largest Harley-Davidson recall was in 2011 when the company recalled 250,000 motorcycles because of a defective rear brake light switch.