Harley-Davidson took an unaccustomed skid on Wednesday after warning of lower-than-expected earnings and announcing a cut in production of its distinctive motorcycles.

Shares of the Milwaukee-based company were 17 per cent lower at $48.84 in New York at noon, pushing Harley's market value back below General Motors. Harley overtook the world's biggest carmaker last month after GM sharply lowered its profit estimates.