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What It Really Means for Harley-Davidson Now That Trump Has Killed the Trans-Pacific Partnership (TPP)

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An Asphalt & Rubber reader sent me link recently, outlining how President Trump's pullout from the Trans-Pacific Partnership (TPP) would adversely affect international sales for Harley-Davidson.

At first I was just going to post a quick synopsis and send you all to read it for yourselves, if you wanted to dive deeper into the meat of the story. But then, I did some digging of my own.

The story, done by Forbes, doesn't connect the dots too well. And while I agree with the author's ultimate point, the reasoning he uses to get there is fairly flawed.

His argument boils down to the fact that the TPP would lower import costs for brands doing business in Asia, and since Harley-Davidson sells 40% of its bikes in the Asian market, it would therefore benefit from the USA becoming a TPP signatory.

The issue of course isn't as cut-and-dry, and requires a bit of digging into what markets would become more favorable for Harley-Davidson, and where the future of the Bar & Shield brand resides. Buckle-up, because here we go.

To continue reading this story, you need to have an A&R Pro subscriber account. If you have an A&R Pro account, you can login here.

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Opinion/Editorial

Why the USA Might Tax European Motorcycles Over Beef

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What do chickens have to do with potatoes? For that matter, what do chickens have to do with steel? And what do both of those things have to do with tires?

The answer isn’t as obvious as you may think, and this week everyone in the motorcycle industry is asking themselves what European motorcycles have to do with beef exports.

The answer to all these questions is the same though, and it involves the rather unsophisticated motorcycle industry being dragged into the rather complex world of international trade negotiation. Let me explain.

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News

MV Agusta Relaunches in USA and Canada

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It didn’t take long for the news to become officially official, but MV Agusta USA and MV Agusta Canada have come under new ownership, as the Italian brand attempts to relaunch itself in the North American market.

Heading the new efforts is Urban Moto Group, headed by Joseph Elasmar, who imports MV Agusta, Benelli, EBR, Royal Enfield, and other brands into Australia.

According to the their agreement, both MV Agusta and Urban Moto will co-develop the North America territories, with the aim of capitalizing on the region’s large market for big displacement motorcycles.

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Opinion/Editorial

Is the Presidential Election Hurting Harley-Davidson’s Sales?

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No matter your political leanings, you cannot deny that the upcoming presidential election is grabbing a lot of headlines, and dominating our social discourse – and that is perhaps the way it should be, as electing the leader of the free world is no trivial matter.

Whoever leads the United States of America after January 20th will have a dramatic affect, not only on the American public sector, but also on the American private sector. The daily business and life of America are intrinsically linked to this country’s politics.

It is therefore not that uncommon to hear of American business leaders voicing their opinions, and endorsing political candidates for office – sometimes they themselves even run for office – so, maybe we shouldn’t be that surprised to hear that Harley-Davidson CEO Matthew Levatich weighed in on the 2016 election cycle.

It is a bit surprising to hear what he has to say though…

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News

Harley-Davidson Q2 2016 Sales Down 1.9%

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Harley-Davidson released its second quarter sales results today, showing the Bar & Shield brand taking a dip in sales in Q2 2016.

According to its report, Harley-Davidson sales are down 1.9% worldwide, a figure that is due mostly to the company’s performance on its home turf in the USA, which are down 5.2% when compared to Q2 2015.

In fact, Harley-Davidson sales abroad saw a modest gain of 4.3%, but since the iconic American brand still sells roughly two-thirds of its units here in the United States, the sales trends here steer the company’s fate heavily.

To that tune, Harley-Davidson notes that the US motorcycle industry as a whole is down 8.6% in Q2 2016 – a fair point to make, but it is also skewed by the fact that Harley-Davidson accounts for one-in-two of every new motorcycle sold in the USA.

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Reviews

Gone Riding: Yamaha FZ-10

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Hello from The Tail of the Dragon, one of the USA’s most famous motorcycling roads, which happens to be situated in the Smoky Mountains of North Carolina. I’m out here for a press launch with Yamaha USA, riding the 2017 Yamaha FZ-10.

Our route will see us riding some of the local roads, including The Tail of the Dragon (something I’ve long wanted to do), which should be happy hunting grounds for Yamaha’s new streetfighter…I just hope it doesn’t scare the locals with its Transformers-inspired face and neon accents.

Truthfully though, the Yamaha FZ-10 looks better in person, and it is even starting to grow on me visually. What I’m really interested to see though is how this “retuned” R1 handles the street. I’m hoping it has as much crazy between the handlebars as its avant-garde attire suggests.

While I’m out riding, I will try and give you a live assessment of the machine, and answer any questions you might have. So, here’s your chance to learn what it’s like to ride the 2017 Yamaha FZ-10, before even my own proper review is posted.

Cellphone reception is pretty spotty here in the mountains (read: non-existent), but we’ve got pretty good wifi at the hotel, so I will attempt to answer any questions you post here in the comments and on social media.

As always, if I don’t know an answer, I will try to get a response from the Yamaha personnel that are here with me in North Carolina. So, pepper away.

You can follow our thoughts on the bike live via Facebook, Twitter, and Instagram. You can also try searching for the hashtags: #Yamaha #FZ10 #FZFirstRide for the thoughts of my colleagues as well.

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Bikes

Gone Riding: Honda Africa Twin CRF1000L

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Hello from the road, dear readers. I’m out in Moab, Utah for the next few days, testing the Honda Africa Twin CRF1000L adventure-touring motorcycle. We have a solid couple of days riding ahead of us, with Tuesday being an on-road day, and Wednesday seeing our feet get dirty with some off-road action.

Weather here in Moab has been fluctuating for the past few days, with rain, hail, and flurries being previously on the menu, but the forecast promises us some sunshine for our stay. Hopefully the weatherman right.

One of the most anticipated machines for the 2016 model year, the Honda Africa Twin is finally about to arrive in motorcycle dealerships (though, in limited numbers). We’ve been looking forward to swinging a leg over this off-road focused ADV machine for some time, to see if it lives up to the hype.

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News

EPA Withdraws Racing Emissions Proposal

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If you have a modified track-only motorcycle, then we have some news to share that you will enjoy, as the Environmental Protection Agency (EPA) has withdrawn proposed language that would have specifically given it the ability to regulate the emissions of production vehicles that were being used at track days or similar events.

The proposed rule caused quite a storm in automotive enthusiast circles, as it would have affected racing and recreational uses of products that have been sold under “race use only” provisions for years. Of course, the larger issue at stake here was the continued selling of race parts to street enthusiasts.

Still, since it is hard to find a motorcycle on the road these days that hasn’t seen its emissions equipment modified, it doesn’t surprise us to see the backlash coming from the motorcycling community.

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Bikes

Gone Riding: 2016 Yamaha FJR1300

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Back on the road again, and this time I’m out in Arizona with Yamaha North America, riding the recently updated 2016 Yamaha FJR1300 sport-tourer.

Tomorrow sees our group leaving Phoenix and heading up into Sedona, where the red earth and picturesque mesas should make for an epic backdrop to our full day of riding.

For those who don’t know, the FJR1300 is a model that Yamaha has been slowly evolving each model year, instead of making punctuated improvements every few years. This makes it a surprising machine for press launch, but it also happens to be an important one for us to evaluate.

The sport-touring segment is surprisingly hot right now, with 17% growth in the past year, thanks mostly to the Yamaha FJ-09. There are some who think that the sport-touring market is dead, supplanted by the adventure-sport category, yet for some veteran riders, the ethos of the Yamaha FJR1300 is ideal.

The big news for the 2016 model year is the addition of a new six-speed gearbox, which should make highway speeds a bit more friendly. We will also be keen to tryout the suite of electronics on the base model FJR1300A, and experience the electronic suspension on the FJR1300ES, both of which were on the 2015 models, but are new to us.

As usual, I will attempt to answer questions regarding the 2016 Yamaha FJR1300 from the road. We will have two days of riding on the machine, so that should be ample opportunity for A&R to get acquainted with this venerable sport-tourer, and give you the skinny on its qualities.

As before, if I don’t know an answer, I will try to get a response from the Yamaha personnel that are here with me in Arizona. So, pepper away.

You can follow our thoughts on the bike live via Facebook, Twitter, and Instagram. You can also try searching for the hashtags: #FJR1300 for the thoughts of our colleagues as well.

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News

EPA Says Your Track-Only Motorcycle Should Be Regulated

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Interesting things are afoot with the Environmental Protection Agency (EPA), as the governmental body is seemingly under the impression that it can regulate the modification of racing vehicles that were originally made for on-road use. As such, the EPA is looking to update legal language to solidify that opinion.

If granted, this would mean that any production-based racing series, both cars and motorcycles, would be subject to EPA emissions regulations, and as such aftermarket modification to those machines would be greatly reduced.

In essence, that sport bike that you take to the race track, whether or not it ever spins a wheel on the road, could be deemed illegal if you modify it from its EPA-certified form, i.e. add an exhaust, intake, etc. Needless to say, this is causing quite the stir.

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Bikes

Gone Riding: Ducati XDiavel S

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Coming to the end of two weeks straight on the road, our final stop is in San Diego, CA for the international press launch of the Ducati XDiavel power cruiser.

Like its sibling and namesake, the Ducati Diavel, the XDiavel blurs the line between sport bike and cruiser, showing the Italian brand’s interpretation of an ubiquitous American motorcycling concept.

The XDiavel treads further into the cruiser segment than the Diavel does though, and as such it features feet-forward controls, a belt final drive, a teardrop-shaped gas tank, and a 240-width rear tire.

Bologna hopes that we will still regard the XDiavel as “true” Ducati though, with its Testastretta DVT 1262 v-twin engine producing 156hp, while making its peak torque of 95 lbs•ft at only 5,000 rpm.

Upping the performance factor is a suite of electronics: traction control, cornering ABS, launch control, wheelie control, ride-by-wire, and an IMU.

Will all of this make a power cruiser we wish we had in our garage? Well, that’s why we ride these things. So far though, the initial impression is favorable. Photos don’t do the lines of the XDiavel justice. I’m still not sure it’s my cup of tea, but we’ll let the brew marinate a bit longer, and see how it tastes.

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