* Harley-Davidson to recall 300,000 motorcycles
* Rear brake light switch may be exposed to excessive heat
Oct 24 Harley-Davidson Inc said it
would recall some 308,474 motorcycles worldwide due to problems
with the rear brake light switch.
Certain 2009-2012 Touring and Trike models are being
recalled because the rear brake light switch may be exposed to
excessive heat from the exhaust system.
The excessive heat may cause the switch to not activate the
brake lamp or activate the brake lamp when no brake is applied.
It may also cause a fluid leak at the brake light switch,
Harley-Davidson said in notice to the National Highway and
Transportation Safety Administration.
The company is recalling about 250,000 units in the United
States and about 50,000 outside. Harley shipped 210,494
motorcycles internationally and shipped an average of 306,000
motorcycles each month from 2000 to 2010.
It expects to record a cost of $10 million to $12 million
in the fourth quarter.
"Recalls are common for consumer products," said Craig
Kennison, an analyst at Baird Equity Research. "They happen all
He said the cost to Harley to correct the problem would
amount to an earnings hit of about 3 cents per share.
"But with the stock up 2.3 percent today, it would seem
that investors share my view," Kennison said.
The company has issued other smaller recalls in recent
years, including one for 142,000 motorcycles in November 2009
for an issue related to fuel tank mounts.
A spokesman noted that Harley-Davidson voluntarily issued
the recall to ensure customer safety.
The company's shares rose 3 percent to $38.74 at midday on
the New York Stock Exchange.