Statement from Harley-Davidson regarding production suspension

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MILWAUKEE, WI – June 13, 2023 – (Motor Sports NewsWire) – Harley-Davidson, Inc. (“Harley-Davidson” or the “Company”) (NYSE:HOG) was recently notified of a potential quality issue relating to brake hose assemblies provided by a tier-2 supplier, Proterial Cable America (“PCA”), a portfolio company of Bain Capital, to the Company’s tier-1 brake system suppliers. The recently launched 2023 CVO Road Glide and Street Glide motorcycles do not utilize these brake hose assemblies.

Following this notification, Harley-Davidson will be running limited motorcycle manufacturing operations at its York facility. This is a new supplier quality issue, separate from the matter that caused the production suspension in May 2022.

Based on the latest information provided by PCA, the Company now anticipates resuming full motorcycle manufacturing operations at its York facility on June 26, 2023. The Company does not expect its international production to be meaningfully impacted.

Jochen Zeitz, Chairman, President and CEO, Harley-Davidson: “While retail sales have improved in the quarter, as we had expected, we have a strong inventory position in the network to help us navigate through this situation – our teams are working very hard to minimize the impact on the business.”

About Harley-Davidson, Inc.

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. Harley-Davidson also has a controlling interest in Livewire, the first publicly traded all-electric motorcycle company in the United States. LiveWire is the future in the making for the pursuit of urban adventure and beyond. Drawing on its DNA as an agile disruptor from the lineage of Harley-Davidson and capitalizing on a decade of learnings in the EV sector, LiveWire’s ambition is to be the most desirable electric motorcycle brand in the world. Learn more at harley-davidson.com and livewire.com.

Cautionary Note Regarding Forward-Looking Statements

The Company intends that certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” “may,” “will,” “targets,” “intends,” “is on track,” “sees,” “feels,” or “estimates,” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance, or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Such risks and uncertainties include the following, among other factors: (i) uncertainties regarding the potential quality issue relating to brake hose assemblies provided by Proterial Cable America (“PCA brake hose assemblies”), including the nature and extent of the potential issue and the ability of the supplier to remedy the potential issue; and (ii) whether the Company will be successful in managing the effects that the production suspension caused by the potential quality issue relating to the PCA brake hose assemblies may have on its business, including on retail sales of new motorcycles. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Source: Harley-Davidson, Inc.

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