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.
So now M/C’s are following in the footsteps of the automotive industry ? Sure looks like it . In my opinion its the consequences of ever more complication and computerization ….. along with the plethora of 3rd World sourced parts thats at the very heart of the matter for both . All bets being … as GM is proving so well … it’ll only get worse way before it ever gets better . As to the effect on stock prices ? Wall Street no longer runs on common sense or reality .. so the only realistic answer to that one is …. who knows ?
2014. As known as the year of the massive recalls.
I read that a new Indian is coming. Please, Polaris, don’t follow Harley’s bad example. Take your time, do it right.
At this rate might as well just keep it at the dealership between rides =0.
I don’t think the stock will take a hit at all. Good on H-D for issueing the recall without hiding and covering it up for ten years!
No, the stock prices will not be affected. But, thanks for finding the negative in everything. +1 to BobS.
I would lean toward either poor engineering or assembly.
The question. Is the recall quick fix the answer to their problem .
It doesn’t make any differance where the parts are made.
The responsibility is within the motor company as to manufacture and install quality parts.
I recall when the Motor company had major issues with quality before import parts were used and pre AMF take over.
Stock Price is down 1.4% today (market down half a percent today). HOG has a beta near 1 which means it should track the market with near 100% correlation, so this news is definitely having a negative effect for today at least. This will probably be short-lived though. The cost to repair this item is small compared to sales.
This recall only affects touring models with ABS brakes. Makes you wonder if some bean counter thought that they could save thirty cents by deleting a bracket.
@ Bruce Reynard – If the M/C industry follows suit with the auto industry [ and they probably will ] … recalls will become rampant and epidemic thru out all the brands/manufactures before years end . Why is simple . All M/C’s have become excessively complex with most manufactures using the same 3rd World suppliers … albeit under different names … especially when it comes to the electronics .
Year of the Recall … indeed !
The stock should not take a hit. If other dealers are like mine, they don’t actually do the recalls, so no real expense to the company.
Fuji is right things like this happened decades ago but there was no recall.
Some times no warranty…lol
It seems to be hitting everyone including the once untouchables like Toyota.
Pressure to make profits, maintain margin and keep the price realistic is difficult.
Especially for the motor car manufacturers
HD need to keep their prices in line with Indian otherwise people will vote with their wallets.
I would like to buy a new Street Glide and could but the price is too high and the trade in at HD dealers too low. I wonder if there will be a price revaluation for 15.
I hope so other wise I will be privately importing a bike. As I did twice in the 80’s
Hope someone from HD is reading this because If I’m thinking this thousands of others are too
Since this is a brake related issue I am surprise that HD did not issue a DO NOT RIDE warning. A front brake lock up could easily endanger life. They have known about this since October yet they issue a recall in July after the selling season has peaked?? 2015s are released in about 30 days.
Stock prices drop now? No most likely not. Consumers thinking twice about laying down $ for a new bike? Most likely. There are consequences and rewards for everything that is done in business (as in life) that is why capitalism (I mean true free market capitalism, not the crony stuff you see today) always works. The consumers decide where and on what to spend their hard earned money. If people feel a product is not good or they fell they are unhappy with a product they do not buy it. If people feel someone has a better more reliable product they buy that one. Simple The best wins. As far as HD Good thing the shut down the Talladaga testing facility. These faulst probably NEVER would have been found by testing, only consumers could have found them. (for you geniuses in your underwear commenting-that was sarcasm)
Amazed there wasn’t a DO NOT RIDE warning as well. Unreal. I think some of this is unavoidable when you shorten product development cycles the way the MoCo did for Rushmore. Doubt any of this will impact stock price.
Again, the do not ride warning means as little as the recall. The recall and do not ride warning was issued for the brakes on the 2011 glides in 2912. That does not mean that dealers actually do it. Mine just has you make the round trip over and over until you quit trying to get it done.
Well … the stock did go down . Then again so did the whole market yesterday . So what caused the stock’s decline ? The recall … or the overall market ? Once again … thats anybody’s guess at best .
As to dealers not abiding by the Recalls and Do Not Ride mandates issued by the company ? That … is scary . So most dealerships think its perfectly fine to potentially and intentionally endanger the lives and well being of the very customers that keep them in business ?
Not only is that scary … but its stupid and bad for business as well . No wonder so many have left the fold of late . With behavior such as this … the competition’s looking better by the minute regardless of the price
Fuji is right, it is both poor engineering or the retainer bracket for the lines and poor assembly that let a few of the lines get pinched. The fix for most is a zip tie to hold lines in the bracket.
Agree with fuji & rmc115
It’s funny how these things happen when you convert / shrink your workforce
and make then go part-time or leave altogether.
Also when you “brag” about your plant in India is doing ????
Knowing the problem is more than half the battle,so take the tank off make sure everything is alined and zip tye it,what’s the problem?Chances are they were done in a factory where the workers were to short to reach it,so fix it!
Id like a recall on wheel bearings ,,, and an upgrade ,,,, please ,,,,,,,,,
The bottom line is if you own one of these bikes get it fixed right away.