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Harley-Davidson rides into focus with 178,000 bike recall

The recall covers 26 of the bike firm's models from the 2017 and 2018 years
Harley Davidson is recalling 178,000 machines

Motorcycle maker Harley-Davidson Inc  (NYSE:HOG) was back in the news as it revealed Tuesday it was recalling nearly 178,000 machines in the USA due to a clutch problem.

Shares are currently up 2.66% in New York to $37.49.

The recall covers 26 of the bike firm's models from the 2017 and 2018 years. Official documents reportedly state that the clutches can leak fluid internally so it does not have enough lift to disengage the bikes from gears. The safety agency says that can cause riders to lose control and increase the risk of a crash. Harley says in documents that it has reports of five crashes with no injuries. Harley dealers are set to install new equipment on bikes at no cost to owners. The recall is expected to start on November  5.

READ: Harley-Davidson revs up profit to highest level in two years, EPS and quarterly revenues race past estimates

Earlier this month, the firm posted its highest quarterly profit beat in two years, led by strong sales of its touring bikes in Europe.

The company said net income hit $113.86 million or $0.68 per share, almost double the $68.2 million or $0.40 in the year-ago level.

Revenue for the quarter climbed to $1.32 billion, against $1.15 billion and the consensus it would reach $1.07 billion.

Retail sales in the US, its biggest market, were down 13.3% to 36,220, the steepest quarterly decline in eight years. Worldwide retail sales decreased by 7.85%.


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