A total of 66,421 Touring and CVO Touring motorcycles from the 2014 model year are recalled because their front wheels can lock up without warning. These motorcycles with antilock brake system were built between July 1, 2013, and May 7, 2014.
Harley-Davidson says the front brake line can get pinched between the fuel tank and the frame. That could cause front brake fluid pressure to increase, raising the risk that the front wheel could lock up while riding. The company knows of 5 crashes and 2 minor injuries related to the defect which it discovered last fall through warranty claims. Harley-Davidson will notify owners later this month. Dealers will replace the brake line for free and attach straps to hold it in place.
The stock has risen over the last 12 months (+27.40%). as investors have generally rewarded the company for positive factors like impressive record of earnings per share growth (+ 22%) , revenue growth ($3.27 versus $2.71 in the prior year), good cash flow from operations (growth rate of 41.62% versus prior year), expanding profit margins (15.40%) significantly outperforming against the industry. We will know very soon if the stock (HOG) gets punished for such a massive recall.