Feeds:
Posts
Comments

Archive for the ‘Events’ Category

Abernathy’s Harley-Davidson of Union City Tennessee came under intense fire last week for racist posts allegedly made by owner Russell “Tootie” Abernathy II.

Racist posts allegedly made by owner Russell “Tootie” Abernathy II

Abernathy’s family has owned the multi-line (Harley, Honda, Polaris and Brunswick) dealership for 60 years. The dealer was founded in 1955 when Russell Abernathy’s grandfather, the late Clarence Abernathy, began working with Harley-Davidson motorcycles in his garage. In addition, Abernathy’s sold boat brands Lowe and Lund including the engine brand Mercury Marine.

Abernathy stated to the media and on the company website that his social media account was hacked by a disgruntled employee who tried to make him look bad.

Polaris, which is based in Minnesota where the tragic death of George Floyd occured, didn’t pause to determine the nature or extent of the hack and on June 17 stated that Abernathy had agreed to cede ownership of his store. “Should that transfer not occur, Polaris will terminate the relationship with the current ownership.

Honda Statement

Brunswick Corporation terminated their contract with Abernathy’s last week as well.

Honda is taking a more determined approach and investigating the situation before taking immediate action.

A week after the Polaris announcement, Harley-Davidson decided to also cut ties with Abernathy, statingThe dealer owner in question will no longer be part of our dealer network and we are finalizing details on the dealer owner’s exit.”  Before any determination of an employee hack occurred, Harley-Davidson experienced some derision history with Abernathy which didn’t help his “I was hacked” alibi.

Harley-Davidson Statement

Back in 2015, Abernathy was at odds with the motor company over the Confederate flag. The dealer posted on social media that “As of today, we have been informed Harley-Davidson will no longer let any Dealership sell any T-shirts with the Confederate Battle Flag on the back.”  This was an issue for the Tennessee dealer and they made some social media noise about not liking the decision.

We know that small businesses are reeling by COVID-19 and the shut down of the economy.  Then came the last 6-weeks of protests across the country and businesses need to be proactive with more meaningful action against racism.

Abernathy’s “Hack” Statement

Debate is okay, but there is zero tolerance for disparaging racial posts by any employee.

Harley-Davidson stated on Twitter that if you see someone who works for the motor company spreading hate, please call their Customer Care Team at 1-800-258-2464 (Monday through Friday; 8am-7pm CDT). Or you can write to Harley-Davidson Customer Care at 3700 W. Juneau Avenue, Milwaukee, WI 53208.  Of course, social media is faster!

Next up for “Tootie” is a tell all book: The Complete Idiot’s Guide to Running a Motorcycle Dealership!

Photos courtesy of Twitter, Honda, Harley-Davidson and Abernathy’s.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

Sturgis City Council Release

The Sturgis City Council voted 8-1 last night to host the rally and announced today that the 80th Annual City of Sturgis Motorcycle Rally will move forward.

However, there will be significant changes designed to reduce the large crowd gatherings in the downtown core with the intent to “safeguard the community and residents.”

That there is a true definition of dichotomy.

The City Council decision, given most all other large outdoor events and indoor concerts around the U.S. have been canceled or rescheduled, is an interesting one. The annual rally will generate millions in revenues for the host city, but no mention of that trivia in the press release.

Buffalo Chip Email Blast

According to Sturgis Rally stats, in 2019 there were 490,000 rally visitors — at least 70 times the estimated 2019 population of Sturgis (6,500), according to the U.S. Census Bureau.  In other words, the Sturgis Motorcycle Rally attendees in 2019 were the equivalent to half of the state of South Dakota’s estimated 2019 population of 884,659.

Read the full City Council release HERE.

A few items known as of today that will be implemented at the event:

  • Attendees will be asked to practice social distancing and follow CDC guidelines.
  • Enhanced safety/sanitization protocols will be carried out in the downtown area.
  • City sponsored events including opening ceremonies, parades, B1 Flyover, and live music at Harley-Davidson Rally Point are cancelled.
  • Photo towers will NOT be installed.
  • Temporary vendors will be required to abide by state and federal protocols and guidelines related to COVID-19.

I’m not trying to “COVID Shame” anyone thinking about or planning to attend the motorcycle rally.  But, remember a long, long time ago when the freedom of riding across the U.S. and attending a rally didn’t bring this type of risk?

Images courtesy of City Council and Buffalo Chip.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

I grow restless. I must go. I need a road trip. It is not just me.

The nation feels like it is pulling itself apart.

There’s the coronavirus and ongoing spread. Skyrocketing unemployment. Concern for our livelihood.  Will our employer bring us back to work. Then there is the color of justice and the ethnic disparities of the criminal justice system. Not to mention, the behavior of individuals that boil over into violence, looting, and riots.  I’m not trivializing the protests because people who participate in these types of events do so for a real reason.

Individually, each protester has logic, beliefs, and reasoning, but when a crowd becomes angered, tribal mentality often sets in and leads to a criminal mindset. It’s impossible to predict when a group will suddenly turn into a rioting horde. But, can we all agree that “protestors” shouldn’t destroy their communities?

I’ve digressed.

I’m itching to go for a long ride on the Harley. Clearly, these are frustrating times and a road trip is one of the last remaining fragments of the American dream. I cling to it like a splinter from the true cross. We may no longer be able to ride west to a land beyond fences but, for a little while longer at least, we remain mostly a nation without permanent, police roadblocks.  Although, I must admit that during the Laughlin River Run, the motorcycle road blocks set up by the Mojave County Sheriff in-and-out of Oatman really agitate me!

And, yet I still think about riding there. I don’t know why. Probably because I have already gone so many times. I recall the old days at the Flamingo, now the Aquarius, when there were patches everywhere from everywhere. The Hells Angels would put on a nightly show of bagger wheelies and motorcycle tricks for the riffraff. It was the PR classic image of the good ‘ol rowdy boys having fun. Now those good, old days are long gone. Everything changed after a “spontaneous” biker brawl between the Hells Angels and Mongols in 2002.

The old idea of freedom (to come and go as I please) seemed evident not long ago. I have yet to adjust to the many recent improvements in my country. I do not own a motorcycle with an electric plug and an estimated cruising range of 100 miles and doubt I ever will. I own a gasoline burning, American motorcycle that makes noise. As a result, I still think about the solitary desert Muse, two-lane black tops, cornfields and the vast landscape of 14,000 foot peaks.

The road trip has always been so essential and my personal restlessness has been boiling for a couple of months now.

Earlier in the year I was anxious to ride and it was all about calendar planning. I scribbled rallies and ride plans in boxes on a paper calendar. For several days I sat at my computer reviewing maps and motel locations with a calendar in one hand and my checkbook and a calculator in the other. My laptop browser had multiple travel sites open. When I started the planning process, I thought it would be as much fun planning the trip as going. It wasn’t and that was before traveling became a casualty of “The COVID.”

I am starved for rides this year and was aiming for Arizona Bike Week, Laughlin, Devils Highway (HOG), 80th Sturgis and Reno. I guess it is a good thing they cancelled Pendleton Bike Week and Hells Canyon or else I would be trying to fit that in, too.  To date, they’ve all been cancelled.

And it’s looking more like I might not need to be concerned about adding in the cost of the “World Famous Sirloin Tips” and a Budweiser at the Loud American Roadhouse on Main Street. The Sturgis City Council has prepared a set of protocols that will be used when making the decision to hold or cancel the 80th motorcycle rally.  They will assess the COVID situation again on June 15th and determine next steps.  I know that if I did go, I must return from Sturgis with a tee shirt and other crap I don’t need. Once I get there I can’t help myself.

There is freedom on the road. To point my front wheel towards the east, twist the throttle and leave the misleading news with click-bait headlines all behind. This year might be the year that a spontaneous day trip turns into a long distance solo motorcycle tour.

It’s time to see this great country!

Photos taken by author.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

#500 “First Strike” Edition LiveWire – United Way Auction

Harley-Davidson, in conjunction with Bonhams, is auctioning off a one-of-a-kind custom motorcycle and donating the proceeds to the United Way Worldwide’s COVID-19 Community Response and Recovery Fund.

The Milwaukee motor company has previously stepped up in times of crisis; it has contributed to both U.S. and international relief efforts consistently over the years, from support for 9/11 first responders to donations of motorcycles in the Haitian earthquake restructuring. Now with the current COVID-19 pandemic health crisis, H-D is chipping in to raise funds for this moment.

The motorcycle being auctioned is an exclusive version of Harley-Davidson’s electric machine, the LiveWire®, which is customized with a one-off paint scheme and unique graphics package.  This bike wears a full array of carbon fiber accessories including carbon fiber Speed Screen Blade, Tail Section Cowl, and Tank Trim. To mark the historical significance, the never-to-be-replicated motorcycle on auction is number 500 of the 500 “First Strike” edition LiveWire’s and will be signed by members of the Davidson family.

The motorcycle winning bidder and a guest will also be treated to a unique delivery experience and a “behind-the-scenes” tour of the Harley-Davidson Museum, which includes all travel and accommodations to Milwaukee as well as a private, one-of-kind walk-through of the museum.

The auction started yesterday and is being held digitally by Bonhams to follow the CDC’s social distancing guidelines, and will close on May 26 at 4:00pm (EDT).  Bidders can find more information about the auction and prize package at bonhams.com/LiveWire, which is available for participants from the United States.

Thank you Harley-Davidson!

Photo courtesy of Harley-Davidson.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

Q1’20 Harley-Davidson Retail Motorcycle Sales + Motorcycles and Related Products Segment Results

Let’s jump right to that impressive Q1’20 financial result:

  • Harley-Davidson (NYSE:HOG) posted earnings of $69.7 million compared with $127.9 million in the same period a year ago.
  • The dividend was slashed to 2 cents a share from 38 cents.
  • The motor company is in talks with major U.S. banks to secure $1.3 billion in liquidity.
  • Harley’s U.S. retail sales were down 15.5% compared with the same period a year ago.
  • International retail sales were down 20.7% compared with 2019.
  • Harley’s U.S. heavyweight motorcycle market segment share was down 2.2 percentage points, to 48.9%.

Another quarter, another poor performance from Harley-Davidson, though the market seemed to buy into the promise that this time it will be able to turn things around.

Déjà vu…

Management promising to fix things again by “crafting strategy accelerants” to deliver improved sales and better returns.  However, it admitted that its efforts thus far haven’t worked and also said it was “refining” the plans it had already devised, but it wouldn’t reveal how it was going to achieve them until this summer. Granted the financial problems Harley-Davidson encountered this quarter aren’t necessarily all of its own making, though it hasn’t helped itself along the way.

It’s important to note that the Harley-Davidson trends in the U.S. have been weak for years despite the economy being strong for so long. That is a major problem and the acting Harley-Davidson CEO, Jochen Zeitz, remains vague on what the motorcycle company is going to do to change that dynamic.

The “ReWire” Board

The fact that management chose the term “ReWire”, emphasizing the electric future to describe their refining plans reads like a satirical article in The Onion.  It’s as if CEO, Jochen Zeitz said, “I’ve heard some concerns going around, and I want to impress upon each and every one of you that I’m taking every possible step to ensure that we tap into a market that has traditionally been neglected by motorcycle manufacturers, Harley-Davidson is announcing a new line of motorcycles designed specifically for men.”

The “ReWire” plan consists of five main points:

  • Enhance core strengths and better balance expansion into new spaces.
  • Prioritize markets that matter.
  • Reset product launches and product line-up for simplicity and maximum impact.
  • Build the Parts & Accessories and General Merchandise businesses to their full potential.
  • Adjust and align the organisational structure, cost structure and operating model to reduce complexity and drive efficiency, to set Harley-Davidson up for stability and success.

The ReWire playbook abandons some of the previously ratified “More Roads” plan, but there is so much “CEO Speak” — “designed to address top priority opportunities, drive consistent execution and reset the company’s operating model in order to reduce complexity, sharpen focus and increase the speed of decision making.” — in that investor call its difficult to know what exactly remains “committed” to or what will stop.

Little is certain these days, but there’s one sure thing: in a situation where 30+ million people were laid off or furloughed in the past 6-weeks, people are definitely thinking about their wallets.  And living with ever-present, crushing uncertainty and the knowledge that people all around us are dying isn’t the stimulus to rush out and purchase a new motorcycle.

Let us face facts.  It’s going to be a different world for a while. After all, temperature checks, touch-less payments, masks, wipes, take-out and distancing were not part of the Harley experience before the March closures.

If Harley-Davidson is about anything, it’s about bringing people together. Lots of them. And really, really close — with motorcycle rallies, music festivals, HOG events and all the cross country rides.  Looking at you Sturgis!

The whirlwind of 400,000+ motorcycle enthusiasts half-hearted adherence to CDC guidelines, while gathering all week in a number of local bars, and eating VEGAN-burgers could be viewed as a controlled experiment to determine the virus’s true incubation rate.

I have some gray in my hair and beard, something you will see in a majority of Harley enthusiasts.  I find the idea of a Harley specifically aimed at men deeply patronizing.

Photos courtesy of Harley-Davidson.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

COVID-19 Cancels Business

Recall back on March 19, 2020,  Harley-Davidson announced the closure of most U.S. production until March 29th.

The facilities that temporarily ceased production were York Vehicle Operations in Pennsylvania, as well as two Wisconsin operations, including the powertrain operation.  The majority of its global production employees continue to be on temporary layoff.

Today, Harley-Davidson announced additional actions it is taking in response to impacts of COVID-19 on its business:

• Significantly reducing all non-essential spending
• Temporarily reducing salaries
– CEO and the Board of Directors will forgo salary/cash compensation
– 30 percent reduction for executive leadership
– 10 to 20 percent reduction for most other salaried employees in the U.S.
– No merit increases for 2020
• Implementing a hiring freeze

The press release stated that medical benefits remain intact for all global employees.  Outside of the U.S., the motor company will take similar actions as based on regulations governing each of its operating locations. Salary reductions will be reassessed at the end of the second quarter as the company continues to closely monitor business conditions.

Not included in this announcement was information related to dealerships.  To my knowledge few if any have suspended operations.  The mandates and closures of nonessential businesses, left the question of whether dealerships, sales rooms, or repair shops should be included as the various city, county and state rules have been ambiguous.

More background reading at:

H-D Executive Mass Exodus
H-D MIA with Coronavirus Response Ads
H-D Entrepreneur and New Mastermind

Photo courtesy of Instagram

All Rights Reserved © Northwest Harley Blog

Read Full Post »

1970 Harley-Davidson XR-750

I’m talking about the Harley-Davidson XR-750, which last month marked the 50th Anniversary since it’s debut.

From 1953 to 1969,  Harley-Davidson manufactured the KR750, the backbone of American dirt track racing.

The motorcycle engine was an air cooled, side valve 4-stroke 45° V-twin (flathead), 45.125 cu in (739.47 cc) displacement built for racing.  Unique for Harley’s at that time, the KR model shifted on the right, like a British bike, which worked great for dirt track.  It wasn’t until 1975, when DOT specified that all motorcycles sold in the U.S. had to have a standardized, left-side gear shift.

Harley-Davidson Flat Track Racing

Prior to 1969, the American Motorcyclist Association (AMA) rules for the Grand National Championship were structured to favor “sidevalvers” (side-valve engines) rather than overhead-valve (OHV) engines.  The intent was to deliberately favor American made bikes such as those from Harley-Davidson with their side-valve engines, and disadvantage the competition which was mainly from British manufactures i.e., Triumph, BSA, and Norton. The AMA rules allowed side-valve engines of up to 750cc capacity but OHV engines were limited to 500cc. The 50% engine size advantage stacked the odd in the favor of the side-valve bikes.

As you might imagine, the British manufactures complained…about everything—the rules, the manufactures, the officials, the drivers, the races, and the racing itself.

Harley-Davidson XR-750

As a result, in 1969, in prep for the 1970 race season, the AMA approved that all professional Amateur & Expert dirt track and speedway engines could be 750cc, regardless of configuration or valve style. This rule change eliminated the 250cc penalty for OHV engines that had existed since 1933.  Many British manufacturers begin designing and developing OHV 750cc engines for competition. To be approved by the AMA (for Class C competition), a motorcycle must be a standard catalogued production model and at least 200 units of the same model with identical engines and transmissions and must be available for inspection and/or purchase within the United States.

XR-750 Engine – Ported and Polished Heads

Unhappy with the decision, but with a desire to continue the racing legacy, Harley-Davidson set out to create a new overhead-valve racing motorcycle.  The Milwaukee motor company leveraged their OHV V-twin racing engine based on the Sportster XLR.  However, it’s engine had a displacement of 900cc (55 cu. in.) and would need to have its capacity reduced to 750cc. Harley-Davidson engineers accomplished this by decreasing the engine’s stroke from 3.81″ to 2.983″ and increased the bore from 3.0″ to 3.2″ bringing the engine in just under the 750cc maximum.

The AMA approved the Harley-Davidson “XR”, a 750cc V-twin overhead valve engine, for Class C competition on Feburary 27, 1970. It had been tentatively approved in late-1969 as the “750 Sportster”, but the motor company lacked having 200 units available for inspection at the time. The motorcycle is dubbed the “iron XR“, or “Iron Head,” due to its steel cylinders and heads.

Even Knievel

For the 1972 race season, there were a number of changes.  A vote was taken on November 18, 1971, and the AMA Competition Congress voted to allow qualified women to compete in all forms of AMA Racing.

The Water-Cooling was approved, as long as it is an integral part of a production motorcycle.  Titanium frames were outlawed from all AMA competition. The AMA approved the Harley-Davidson XR-750, an updated version of the XR, for Class C competition on April 12, 1972. The updated engine used aluminum cylinders and heads to address the overheating issues that plagued the XR model. However, due to delays in getting all 200 units completed, it wasn’t approved in time for the Daytona 200, but debuts at the Colorado Springs national on April 30, 1972.

Speaking of aluminum heads, they were made, then shipped to Jerry Branch of Branch Flowmetrics in Long Beach, California to be ported and assembled. The new cylinder head design included larger valves. The cylinder heads were then shipped back to Harley-Davidson’s factory in Milwaukee for fitting to the new engines. This V-twin engine was not quite of the same dimensions as the Iron Head. The bore was increased to 3.1” and the stroke reduced to 3”. Carburetors were 36mm Mikuni, one for each cylinder. The exhaust systems were mounted high on the left side of the motorcycle well away from the carburetors.  Power was 82hp at 7,700rpm giving the bike a top speed of around 115mph.

Harley-Davidson Flat Track Racing Team

Branch wrote engineering books on his engine air flow work and eventually sold Branch Flowmetrics to Mikuni in the late 1990s.  Branch was the only independent company to ever supply Harley-Davidson ported and polished heads!

In 1972, Harley-Davidson was the first-ever “Grand National Manufacturer’s Championship“, which compiles the highest finish of each brand at every Grand National Championship event.  Between 1972 and 2008, the XR-750 won 28 of 37 AMA Grand National Championships. The XR-750 racked up more wins than any other motorcycle in AMA racing history and earned the description of being the “most successful race bike of all time.”  In addition, the XR-750 became a cultural icon with legendary stuntman Evel Knievel at the handlebars. Evel Knievel began jumping an XR-750 at the height of his career from 1970 to 1976.

Harley-Davidson created one of the greatest bikes in the history of American motorcycling.

For 2020, the Harley-Davidson Factory Flat Track team will use the updated Harley-Davidson® XG750R flat tracker, powered by the liquid-cooled, fuel-injected and race-tuned 750cc Harley-Davidson® Revolution X™ V-Twin designed for the Street 750 motorcycle.

Full details on the Flat Track team can be found HERE.  Flat Track racing news is HERE.

Photos courtesy of Harley-Davidson

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Suzuki Loom Manufacturing Company – Hamamatsu, Japan

The date was March 15, 1920 when the Suzuki Loom Manufacturing Company (later changed to Suzuki Motor Co. Ltd)  was founded by Michio Suzuki.

Suzuki Motor Corporation celebrated its 100th anniversary last month. Suzuki manufactures cars, marine engines, wheelchairs, and legendary motorcycles such as the GSX-R, championship winning RM-Z motocross bikes, agile scooters, and revolutionary ATVs.  The company has over 45,000 employees and has 35 production facilities in 23 countries and 133 distributors in 192 countries. Suzuki’s domestic motorcycle sales volume is the third-largest in Japan.

1952 Power Free 36cc, 2-cycle auxiliary bicycle engine

I never owned one, but a good buddy (here’s looking at you GL) bought a new Suzuki GS-1000, that he let me ride a several times.  The GS Suzuki’s were very popular in the late 70s and early 80s.  The the lack of oil leaks, great performance, and their reliability were big selling points.  The DOHC in-line 4-cylinder 4-stroke engines were powerful and required very little maintenance, but the four Mikuni carburetors did require regular balancing with vacuum gauges.

Suzuki entered the motor-vehicle field with the launch of the Power Free, a 36cc, 2-cycle auxiliary bicycle engine.  In Hamamatsu, Japan where the Suzuki Headquarters was located, there were strong seasonal winds that made it difficult to bicycle when there was headwinds. Shunzo Suzuki would ride his bicycle to go fishing, but thought “it would be so much easier if this bike had an engine…”

1971 – GT750 750cc, 2-cycle Motorcycle

This thought and idea developed into the Power Free, which launched in 1952. At the time, regulations on riding motorised bicycles changed from licence-based to permission-based, allowing everyone to ride them after taking a simple course. This trend really helped Power Free to become an immediate success with record sales.

The below information isn’t a comprehensive list, but provides some highlights of key motorcycle launches.  Some product introduced were mainly for the Japanese domestic market and not available in the U.S. History:

  • June 1952 – Suzuki enters the motor-vehicle field with the launch of the Power Free 36cc, 2-cycle auxiliary bicycle engine.
  • March 1953 – Diamond Free 60cc, 2-cycle auxiliary bicycle engine debuts and its monthly production exceeds 6,000 units amid a bike boom.
  • March 1955 – Colleda 125cc, 4-cycle motorcycle debuts.
  • June 1963 – Mitsuo Ito becomes the first Japanese rider to win the Isle of Man TT in the 50cc class.
  • March 1967 – Thai Suzuki Motor Co., Ltd. is established for assembly in Thailand. (First motorcycle plant outside Japan)
  • September 1971 – GT750 750cc, 2-cycle motorcycle debut.
  • January 1972 – GT380 380cc, 2-cycle motorcycle debuts.
  • October 1981 – GSX 1100S Katana 1100cc, 4-cycle motorcycle debut in overseas markets.
  • March 1984 – GSX-R 400cc, 4-cycle sportbike debuts.
  • March 1985 – GSX-R750 750cc, 4-cycle motorcycle debuts.
  • August 2009 — TU250X 250cc, 4-cycle motorcycle with old school charm debuts.
  • August 2016 – SV650ABS sportbike debuts.
  • January 2018 – New sportbike GSX-R125 ABS, GSX-R series debuts.
  • October 2018 – Suzuki unveils all-new KATANA for the overseas market.
  • November 2019 – Suzuki Unveils the All-New V-STROM 1050 and V-STROM 1050XT.

The Suzuki Hayabusa — The ‘Ultimate’ Sportbike

The journey of any company for 100 years is never easy.  Suzuki has overcome a number of crises since the foundation and continues to thrive.

Suzuki has grown into a company with many motorcycle fans across the globe. The founder’s philosophy of ‘focusing on customers’ and striving to deliver products that customers want across the globe marks another beginning of the next century.

For a complete Suzuki motorcycle lineup go HERE.

Photos courtesy of Suzuki Motor Corporation

All Rights Reserved © Northwest Harley Blog

Read Full Post »

The 38th year of the largest motorcycle gathering on the west coast was scheduled for April 23-26th.

Earlier, the longstanding promoter of the event, Dal-Con Promotions, had no plans to return in 2020 and went “dark.”  In January, the motorcycle rally status, which draws tens of thousands of riders to Laughlin every year, wasn’t clearly known and the local chamber of commerce declared it OFF and removed it from the organization’s event calendar.

News reports surfaced in late February that Jerry Jackson, of Five Star Exhibits, Inc., negotiated and acquired the intellectual rights — including the rights to the trademarked Laughlin River Run title and the event was back on.  Although, Five star Exhibits stated they were not a promoter of events and would not contract with entertainers and/or food and beverage concessionaires.  The web site was refreshed with new information, but without a promoter, motorcycle enthusiasts were expecting a different experience from past years.

Due to the COVID-19 pandemic the Laughlin River Run has officially been CANCELLED.

It’s disappointing not to be able to enjoy this time in our lives with other motorcycle enthusiasts, but the health and well-being of everyone is paramount.

Photo courtesy of Five Star Exhibits

All Rights Reserved © Northwest Harley Blog

Read Full Post »

President Ronald Reagan With CEO Vaughn Beals

In 2020, April Fools is passé and pranks are out.  The pandemic crisis has changed humor!

The popular metaphor for speech is “Shouting fire in a crowded theater,” which may cause panic.  The seriousness of COVID-19 has the capacity to frighten in a visceral way the public and dedicating a blog post to misleading people just seems like a very bad idea.

Do you remember a long time ago in a galaxy far far away, when tariffs were being used to control unfair trade practices (labor, environment and other issues).

Former H-D CEO Matthew Levatich With Recode’s Kara Swisher Discussing Tariff’s

Recall the hysteria of — Tariffs bad, Harley good?

Harley-Davidson execs and investors panicked when the European bloc raised its 6% tariff to 31% on motorcycles. That made each motor company motorcycle about $2,200 more expensive to export, and forced the company into opening another manufacturing plant in Thailand.

Thirty-seven years ago today, President Ronald Reagan took bold steps to protect Harley-Davidson from foreign competitors.  It was April 1, 1983, when Reagan ordered massive tariffs on large Japanese motorcycles to help the last surviving maker of American-made motorcycles.

President Ronald Reagan at H-D York, Pennsylvania on May 6, 1987

I’ve previously written about how during the 1970’s, Japanese motorcycle manufacturers flooded the U.S. motorcycle market decreasing Harley-Davidson’s market share. It had only been a few years since Harley-Davidson executed the epic buy back from AMF.  Their sales hadn’t reached the levels they envisioned, in part, because the AMF era was famous for shoddy quality, bikes requiring a lot of maintenance and the Milwaukee motor company was getting knocked down publicly and in need of some sunshine.

With poor quality and high-maintenance requirements, Harley was skiding toward bankruptcy.  In 1982, Harley-Davidson sought protection from the International Trade Commission (ITC) and requested a tariff on all overseas heavyweight motorcycles. This was the first and only time such a request was made to the ITC. They also lobbied the Reagan administration to raise tariffs on Japanese manufacturers because of “Dumping,” which in this context refers to exporting a product at a lower price than is charged in the home market, or selling at a price that is lower than the cost to produce it.

President Ronald Reagan and CEO Vaughn Beals at H-D York, Pennsylvania on May 6, 1987 — Recieving Appreciation Award

It was a different time and President Reagan used tariffs, versus tweets, to change the course of the American motorcycle industry.

On April 1, 1983, April Fools Day, President Reagan signed into law an act that imposed draconian import tariffs for a five-year period on Japanese motorcycles with displacement of greater than 700 cc’s.  This would give the American motorcycle maker some breathing room from intense competition to retool, get its act together and turn profitable. While the act was supposed to last for five years, then CEO Vaughn Beals asked that it be lifted a year early in 1987.

It was as good then and just as good today… Remarking about the celebrated Harley-Davidson turnaround in 1987, President Reagan quipped (recorded in this Podcast), “Never bet against Americans.

If you are in need of some reading humor, check out these previous April Fools posts:
Harley-Davidson Boom Box Infotainment Virus
I Quit
Harley-Davidson Launches Blackline L-Edition
Keith Wandell Retirement Revs Up Harley
Wagoner Tapped As Harley CEO

Bonus:  President Reagan’s Remarks (Video) to Harley-Davidson Company Employees in York, Pennsylvania on May 6, 1987.

Photos courtesy of Harley-Davidson, Recode and Ronald Regan Foundation

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Older Posts »

%d bloggers like this: