Harley-Davidson to make more motorcycles outside the US

Harley-Davidson plans to shift some motorcycle production away from the US to avoid the "substantial" burden of European Union tariffs.

Last week, the EU imposed retaliatory tariffs on US goods, including bourbon, orange juice and motorcycles.

The measures are a response to new US duties on steel and aluminium imports.

Wisconsin-based Harley-Davidson said the increased cost from the tariffs threaten its international sales, which it has been trying to expand.

The company has assembly plants in Australia, Brazil, India and Thailand as well as in the US.

It said it would raise investment in its international plants, though it did not say which ones.

"To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden," the company said.

Harley-Davidson said it expected the ramp-up in production to take nine to 18 months.

US President Donald Trump tweeted his disappointment at Harvey-Davidson's decision which he characterised as the company waving the white flag of defeat.

The company's move is one of the most visible consequences of the trade disputes triggered by Mr Trump's decision to levy tariffs on steel and aluminium imports.

Mr Trump says the duties are necessary to protect the US steel and aluminium industries, which are vital to national security.

They have drawn retaliation from the EU, Canada, Mexico, India and others while driving up the cost of metals for manufacturers in the US.

US companies that range from boat-builders to nail manufacturers have warned about the consequences of escalating trade tensions.

However, the tariffs have also helped to spur investment in US steel plants.

For example, British-owned GFG Alliance, has said it plans to invest $5bn over several years to reopen a shuttered steel plant in South Carolina. The firm says the move will put about 125 people back to work "immediately".

'Only sustainable option'
Harley-Davidson said the EU's tariffs would add, on average, $2,200 (£1,660) to each bike exported to Europe from the US as the import tax increases from 6% to 31%.

Harley, which sold nearly 40,000 motorcycles in Europe last year, said it planned to absorb those costs rather than pass them onto customers and risk hurting sales.

Shares in the company sank almost 6% after the firm announced its decision, which is expected to add between $30m and $45m to its expenses this year.

Harley-Davidson said the tariffs make shifting production "the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe".

Harley-Davidson, which has been focused on expanding its overseas sales, said it remained committed to US manufacturing.

The company employed about 2,100 people at manufacturing plants in the US at the end of last year.

It had already announced plans to close a plant in Kansas City, Missouri - a decision which workers claimed was due to the opening of a new facility in Thailand.

Harley-Davidson has disputed those allegations, arguing the move was about boosting overseas sales.

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Analysis
Kim Gittleson, New York Business Correspondent
In early 2017, President Donald Trump met with executives from Harley-Davidson who he thanked for "building things in America".

But just over a year later, Harley serves as a sobering example of what happens when Trump's America First trade policy collides with the rest of the world.

While Harley-Davidson had been struggling financially well before the EU's retaliatory tariffs went into effect, the import duties of 25% certainly didn't help matters.

It is worth mentioning that Harley could make the decision to shift production because it had chosen, in 2017, to open a new manufacturing plant in Thailand.

At the time, the company said it was moving manufacturing there to avoid a different tariff: this one being the 60% duty levied on Thai imports. That decision, of course, was made after Trump decided to pull out of the Trans-Pacific Partnership, a trade treaty that Harley had said it supported.

All of which goes to show that when it comes to "winning" a trade war, the only certainty is the unintended consequences that inevitably result when decades of trade policy are reversed in a matter of months.

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United Steelworkers, which represents some Harley employees and has supported some of the president's tariff announcements, said it does not know yet how the company's decision will affect US employment.

Michael Bolton, a director at United Steelworkers, said: "Harley's desire to improve sales both domestically and abroad predates the Trump administration's tariffs, as does the company's willingness to build assembly facilities overseas to avoid tariffs.

"The company built its reputation and image by making motorcycles here, and if the company wants to continue to market itself as an iconic American brand both at home and abroad, it needs to focus on US production," he added.

'Headwind to hiring'
Mr Trump had made raising manufacturing employment a goal, but economists warn that the escalating trade tensions are likely to be counter-productive.

In addition to the metals tariffs, the Trump administration has also said it will impose tariffs on $34bn of Chinese goods starting on 6 July as punishment for violations of intellectual property protections.

China is due to retaliate in kind.

Mr Trump has also threatened tariffs on foreign cars and auto parts, arguing that firms should make such products in the US.

(Source: BBC)

The female motorcyclist riding solo across Pakistan

The most dangerous part of Zenith Irfan's motorcycle trip across Pakistan came when she posted photos of the journey online.

Tucking her hair into a helmet, Zenith Irfan, 21, is preparing for a motorcycle ride through the busy roads of Lahore, Pakistan, despite hostile stares and gaping mouths. Lahore's roads are lawless, crammed with donkey carts, horse carriages, and rickshaws; drivers weave in and out of the livestock and zoom past traffic lights.

Irfan was drawn to motorcycles after learning that her late father had always wanted to ride across the country on one. She made it a goal to carry out his dream. After she became tired of commuting to university in a rickshaw, her family bought her the first motorbike— a small Honda C70—and her mother insisted that it was now or never that she start learning.

Irfan learned how to bike in the wide and empty streets of her colony, gaining the confidence and experience to take to Lahore's treacherous roads. Once she went full-speed around the main square, she admits she was scared and describes the acclimation process to the streets as "gruesome."

Nevertheless, after two years of both city and rural trips, Irfan decided to plan her cross-country odyssey. Famous Sufi poet Amir-e-Khusro Dehlavi once said, "If heaven is on earth, then it's in Kashmir." With this in mind, Irfan packed a few things and took off, embarking on a solo journey there, stopping off in the misty green mountains of Murree, to Muzaffarabad, and then to Neelam Valley, where the scenery moved her to tears.

"I had never seen snow," Irfan recalls. "What a euphoric moment it was for me to have made it to Kashmir from Lahore. I felt liberated and connected with my father."

On her solo trip, Irfan covered over 700 miles in six days. She was often slowed to a single-digit speed due to unpaved roads and rocky terrain. For the most part, Kashmir villagers were intrigued and friendly as she passed through town. Rural communities are made up of tribes and, despite poverty, literacy rates in Kashmir stand proportionally above the national average at 72 percent, while 88 percent of girls are enrolled in primary school, according to official figures. Irfan believes this is why her experience was safer: because people are more educated, unlike in the northwestern province of Khyber Pakhtunkhwa, where it wasn't possible for her to travel alone.

It was only after she returned from Kashmir that she experienced aggressive hostility from others: Irfan set up Facebook blog called "1 Girl 2 Wheels" in order to document her travels, which is where she experienced the most harassment. "It got bad. I was at breaking point and was so depressed because the comments were absolutely horrendous. So many people said I was a 'disgrace to the symbol of Islam' and that I should not be a Muslim, 'where is my scarf,' 'where is my burka'—which is quite ironic because if I wear one on the bike, I'll get more attention."

As Irfan's social media presence grew, she was worried the the Pakistani sect of the Taliban might hunt her down if she disclosed her location. Now, however, she believes it's all about fate. While many people still believe Pakistan is completely plagued by terrorism, Irfan wants to change how the country is perceived.

For now, though, it's all about motorcycling. "For a Pakistani girl in a South Asian community, this is the biggest privilege any girl can have. I know so many girls who want to go out and travel and they can't because their parents won't allow them to. For me, I had to make the most of it."

(Source: Broadly.)

Demand for motorbike licence increases in Qatar

The number of expatriates seeking a motorbike licence has increased over the past few months, after many eateries have stopped using cars for home delivery services, say sources from driving schools.

The increasing popularity of motorbikes among Qatari and expatriate youth has also caused a rise in the demand for motorbike licence. To drive a motorbike a special licence is required and the procedures for obtaining a licence are more or less the same as other types of driving licences.

Omer Kabaloo, General Manager of Al Khebra Driving Academy, told The Peninsula that the number of trainees at the school obtaining a motorbike licence has increased by about 20 percent over the past few months, mainly because of increasing demand from delivery boys.

“Most of the restaurants have switched over to motorbikes instead of cars for food delivery. A full course for motorbike includes 10 theory classes and 25 practical classes and the fee is QR1,475. A trainee can avail four road tests. If a Qatari wants to get a motorbike licence, the registration formalities are simpler,” he added.

Kabaloo said a few European ladies have also obtained motorbike licence through the Academy. The procedures to register for the licence for an expat is the same as that of a car driving licence.

The required documents include a no objection letter from the employer, eye-test report, copy of applicant’s Qatari ID and four passport size photos. If the ID is not issued yet, a copy of the visa and the passport as well as the entry stamp in the passport are required, he explained.

An instructor at Al Khebra said motorbike training includes classroom instruction and a minimum of 8 hours on-cycle training. Helmets are also provided for those who do not have their own.

Theoretical training includes lessons on the challenge of motorcycling, motorcycle controls, rider and motorcycle preparation, basic riding skills, advanced turning and braking techniques, special riding situations and dangers of impaired riding.

Practical lessons include straight line riding, turning, shifting and stopping, advanced turning and braking techniques and collision avoidance manoeuvres.

Yousaf Khan, an employee at Dalla Driving Academy said the demand for motorbike licences have increased as compared to car driving licences.

“Most fast food outlets have replaced cars with motorbikes for door delivery. We are offering full courses as well as short courses,” he said.

He said eye test is available at the Academy from 7am to 12pm and from 3pm to 7pm every day except Friday.

(Source: The Peninsula)

The tragic tale of the abandoned and the most stunning motorcycle graveyard

This story starts with a motorcycle enthusiast named David Cuff who came across someone’s Flickr account that contained a collection of mystifying photographs showing a forgotten army of motorcycles abandoned in an unknown warehouse. Cuff set out on a mission to find the motorcycle graveyard and thanks to a random information about the location on a sport bike forum, David and his friends discovered the exact location of the rusty graveyard – 71 Gooding Street, the City of Lockport, Niagara County, New York.

He was determined to visit the motorcycle graveyard, if it was indeed still there, take pictures, hopefully even purchase an old bike. He organised a trip with his friends and they hit the road heading nine hours north to the town of Lockport, New York, to find out if the place was truly the rusty vintage bike heaven the message boards had made it out to be.

The place was known as the Motorcycle Graveyard of Lockport. From the early 1970’s, the building on Gooding Street became the headquarters for this growing business. The company was established by Kohls Cycle Sales after collecting over 50 years worth of motorcycles and related parts. Around 1997 Kohl sold the building and motorcycles to a man named Frank Murrell, and Frank operated the business as Kohl’s Cycle Salvage which sold parts off of the hundreds of motorcycles.

“The buildings were trashed, stuff everywhere … There were small hints that there were motorcycles in there with a gas tank here and a beat up motorcycle frame there. The door to the building that had the motorcycles was open a few inches and I could see a motorcycle leaning against the wall… The basement was full of old rusty bikes that nearly rusted away from the moisture in the air…There was a set up stairs that looked like they were just days from crumbling. I lightly walked upstairs and opened the door and that’s where my jaw dropped. The room was full of motorcycles. There were holes on the main floor with motorcycles falling into the basement and there were motorcycles on the third floor falling onto the main floor. Half of the main floor was concrete and very stable so we wondered around and tried to process what we were seeing while trying to be quiet and be aware what was around us.”

“The building with the alleged motorcycles is within eye sight of the canal lock,” describes David of the moment he first eyed the warehouse. “We hung out by the lock for a little while watching boats being raised and lowered. I was getting a feel for the area and casing the building like a bank robber.”

The building was condemned and owned by the City of Lockport due to unpaid property taxes. A lengthy process to acquire accident insurance would be needed for Frank to enter the building. David began to call Frank regularly, gaining his trust in the hopes of helping him save some of the forgotten bikes.

“The process was slow and I would call Frank every three to four days and inquire about the status of entry. I probably got on Frank’s nerves but I knew it would be worth it in the end. Frank was very patient with me and always gave me an update when I called.“

The city finally gave Frank a deadline to get whatever he wanted out by mid-November 2010 and David began planning his second visit, this time with a bike trailer in tow ready to take home some motorcycle history. Cuff and his friends wasted no time swooping in to grab up every frame, tank, part, and piece they could, knowing Frank planned to just scrap anything left over. They made multiple trips back and forth with little to no sleep until finally they’d picked the 4-story building through and through. The rest was put in dumpsters and scrapped.

“We were able to save some bikes and parts. It was also nice to see the memories come back to Frank. He has a great memory and told us details from back when the business was booming including such as [that time] he scrapped 600 or so motorcycles years ago. I shed a tear hearing that. These weren’t ugly late 1970s or 1980s bikes. These were 1960s and early 1970s bikes.”

On July 30th, 2013, the building burned down in a fire and the remains of the graveyard were lost forever.

“I’m afraid there will never be another scrap yard like this one,” David says woefully. “These days it’s much different. Motorcycles are much more expensive and not just tossed aside. With things like ebay and craigslist there are just too many avenues to sell bikes and parts. These finds are what we dream of as kids. We all hear the rumors but assume they don’t exist or don’t make the effort to explore the possibility or to track down the facts. This is one time where the outcome made it all worth it.”

(Source: The Vintage News)