LiveWire Group Inc

9. Product Warranty and Recall Campaigns

The Company provides a limited warranty on new electric motorcycles for a period oftwo years, except for the battery which is covered forfive years. The Company also provides limited warranties on parts and accessories and electric balance bikes. The warranty coverage for the retail customer generally begins when the product is sold to the retail customer. The Company accrues future warranty claims at the time of sale by the Company using an estimated cost based primarily on historical Company claim information. In the case of both warranty and recall costs, as actual experience becomes available it is used to update the accruals.

Additionally, the Company may from time-to-time initiate certain voluntary recall campaigns. The Company records estimated recall costs when the liability is both probable and estimable. This generally occurs when the Company’s management approves and commits to a recall. The warranty and recall liability are included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets.

Changes in the Company’s warranty and recall liability were as follows (in thousands):

The liability for recall campaigns included in the above table was $34 thousand andzero as of June 30, 2024 and December 31, 2023, respectively.