Harley-Davidson, Inc. (HOG) recently announced two separate recalls. The first recall is for close to 126,000 motorcycles that may have problems in their clutches. As a result, the bikes can move forward even after being stopped. This can lead to a crash.
In fact, Harley-Davidson has reports of 19 low-speed accidents and three minor injuries due to the issue, although no serious injuries have been reported. The company said that dealers will rebuild the affected clutch master cylinders, free of charge. Harley-Davidson is recalling all 2014 Touring bikes, including the three-wheeled trikes and custom designed bikes due to the problem.
The second recall is for 1,384 Street bikes that have the possibility of a leak in the fuel tank. Dealers will inspect the recalled bikes and replace the fuel tanks if required. The 2015 XG500 and XG750 bikes are covered under this recall. However, no accidents or injuries were reported due to the fuel leak risk.
Harley-Davidson had also recalled some 2014 Touring motorcycles last October to fix the hydraulic clutch system. The company felt that the hydraulic clutch system may be unable to generate enough lift to disengage the clutch in some cases. In this situation, reducing the speed of the motorcycle or stopping it might be difficult, leading to an accident.
Currently, Harley-Davidson retains a Zacks Rank #4 (Sell). Better-ranked auto stocks worth considering include Tesla Motors, Inc. (TSLA), Nissan Motor Co. Ltd. (NSANY) and Tata Motors Ltd. (TTM). All these stocks have a Zacks Rank #1 (Strong Buy).
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