Cycle World Round Up
CYCLE WORLD ROUND UP
HARLEY ACCUSES BIG FOUR OF DUMPING
Spurred by its diminishing share of the big bike market, and its claimed inability to field an economically competitive domestically - produced motorcycle in either the light-or middleweight field, Harley-Davidson has petitioned the U.S. Treasury Department to investigate (and, presumably, put an end to) what it calls unfair pricing tactics by the four leading Japanese manufacturers.
The practice is commonly called dumping, and H-D alleges that Honda, Kawasaki, Suzuki and Yamaha have all been doing it for the past few years to the tune of hundreds of thousands of motorcycles.
Citing some 83 price comparisons, H-D charges that Big Four prices to dealers at home and in western Europe are consistently higher than those charged to U.S. dealers, frequently by as much as 58 percent, which in some models amounts to almost $900 per bike.
Harley President John Davidson, speaking at a Washington, D.C. news conference, said the lower U.S. prices are “a consistent practice for Japanese manufacturers,” one which has been sharply aggravated by the industry slump of 1974-’75 “As our petition explains,” said Davidson, “demand for motorcycles soared in late 1973 and early 1974 on the heels of the Arab oil embargo. Immediately thereafter, the market declined sharply and the Japanese firms were caught by surprise, holding substantial inventories and more production capacity than the marketplace could absorb.
“Their reaction was to make the U.S. market the dumping ground in which they are moving aggressively to sell both their large inventories and their continued substantial excess production.”
Davidson went on to state that Japanese pricing scuttled Harley-Davidson’s 1973— ’74 attempt to build a lightweight machine at its York, Pennsylvania factory, forcing the company to revert to its practice building these bikes in Italy.
“It therefore seems accurate to say that the U.S. lightweight motorcycle industry was driven out of business by Japanese dumping,” said Davidson. “Even with manufacturing operations in Italy, we were only able to marginally increase our share of the lightweight market by selling at unprofitable prices.
“In addition, Japanese dumping has prevented Harley-Davidson from establishing a position within the middleweight sector of the market, the largest volume segment of the American market. We are convinced we can build a first class middleweight motorcycle, particularly in view of our world and U.S. championships with 350-cc and 750-cc racing models, but Japanese dumping has kept us out of this segment of the market.”
The dumping complaint is more than mere gnashing of teeth by Harley-Davidson. There is a law, the Antidumping Act of 1921, aimed at protecting domestic industries against just what H-D is complaining about.
“We are only asking the government to investigate the situation,” said Davidson, “and, finding the Japanese exporters are pricing their motorcycles unfairly, to enforce the law.”
Matters such as this grind out slowly. Presumably, the Treasury Department will investigate H-D’s allegations, a process which will take at least three months. If Honda, Yamaha, Suzuki and Kawasaki are adjudged guilty, several things can happen: The Big Four could face some sort of tariif, aimed at putting H-D on more equal footing in the U.S. market; the Big Four could simply cease and desist from its alleged unfair pricing practices; or the Big Four could answer the complaint by lowering prices to dealers in Japan and Europe.
H-D regards the latter course as unlikely, the first course as undesirable and the middle road as optimum.
But one thing seems certain: None of this is likely to make it any cheaper to get up on two wheels-anybody's two wheels.
HUSKY'S ARMY AUTOMATIC
If and when the Swedish Army ever goes off to war, its couriers will be flying around on automatic motorcycles such as the one pictured here. The bike is Husqvarna’s military model, currently being supplied to the Swedish Army under terms of what Husqvarna describes as “a long range contract.”
The transmission is Husky’s mechanical 4-speed automatic, the same one that’s employed on the 360 Automatic Enduro and the 390AMX. However, on the military model the automatic is bolted up to a 250-cc Single that puts out a reported 24 hp.
Besides its street-legal lighting—turn signals, tail and headlamp—the Military 250 Automatic differs from the average civilian Husky with its passenger footpegs and chainguard.
Although the bikes are a trifle on the slow side, Husky promises full sponsorship—in return for a minimum enlistment.
Meanwhile, back in the States, Husky is relocating its U.S. operations to San Diego after many years in Antioch, Tennessee. There will also be a National Enduro Racing HQ in an Eastern location to be announced at a later date.
Husqvarna will enlarge its existing San Diego facility to accommodate headquarters operations. The new Husky HQ address: 4935 Mercury Street, San Diego, California 92111.
350 THE HARD WAY
Not all cylinders are created equal. Not at the Harley-Davidson factory in Varase, Italy, at any rate.
Harley is hard at work developing a new 2-stroke Triple for its sagging 350-cc road racing effort. The unique feature of the new powerplant is its small 100-cc center
cylinder sandwiched between outer cylinders of 125 cc.
The design aim is to keep the engine as narrow as possible. Although bench testing was completed as we went to press, there is no word on performance or probable track appearance dates as yet.
BOOM YEAR AT KAWASAKI
The good times are definitely rolling in the Kawasaki sales department with the KZ650 well on its way to becoming the hottest selling newcomer in the history of the motorcycle business. The hotrod junior edition of the KZ 1000 looks like a good bet to obliterate the previous record for a new' bike—21,840, set by the first Honda 750 Four back in 1970, its first full year on the market—by as much as 5000 to 6000 units.
With its street machines performing well on the showroom floor, Kawasaki appears to be ready to accommodate its off-road machinery to four-stroke powerplants. A KL250 dual-purpose bike is already available in Australia, assembled around a modified version of the KZ200 engine. If the rumor-mongers are accurate, there will be a line of KL bikes for the U.S. market, probably by next month.
Meanwhile, look for some dynamite new' Kawasaki motocrossers, probably this month. The fresh incarnations of Kawasaki's KX125, KX250 and KX400 will stress light weight and insiders are talking about a 5-hp advantage over the competition for the 250 and 400 versions.
TRIUMPH PRESSES ON ALONE
The Triumph motorcycle continues to be a seriously endangered species, but following a series of complex financial/ political/labor maneuvers in England, extinction seems less imminent now than in the past couple of years.
The agreement between the British government, Norton-Villiers-Triumph, Ltd. and Meriden Motorcycles, Ltd. (better known in the U.K. as the Meriden workers cooperative) gives the latter group all rights to the Triumph name as well as a substantial supply of new Bonnevilles.
Everyone involved seems pleased with the arrangement. The government, which entered the motorcycle business in 1973 in the BSA rescue effort, will be able to limit its involvement largely to support of the Meriden effort. NVT, freed of its partnership with government, is looking toward a number of possible routes to revival of the Norton, foremost of which seems to be a Wankel-engined version. And Meriden, free of other considerations, can concentrate on producing the one British bike that continues to have some viability in the world market.
The deal was precipitated by Meriden’s production contract with NVT, which was due to expire late this year. Since the formation of the Meriden cooperative in 1975, the group has been producing Triumphs which were then marketed by NVT. The new arrangement hands all marketing rights to the cooperative.
U.S. sales and distribution of Triumphs will be handled by a new company, Triumph Motorcycles of America, Inc., headed by Brenda Price and headquartered in Placentia, California. The company is currently marketing Bonnevilles and Tigers, as well as a Jubilee version of the Bonneville commemorating the 25year anniversary of Queen Elizabeth’s coronation. The Jubilee Bonnie features a silver metallic paint job with red, white and blue trim, a new seat and chromed engine and transmission cases.
