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Does it matter?  You bet!

Pendleton, Oregon and the “wild west” stands for — freedom, independence, self-expression and the rebel spirit.

That could be a marketing campaign for Harley-Davidson and likely why the motor company will grace Oregon’s Pendleton Bike Week (July 19 – 23rd).

This is major news, especially in biker circles.  It’s a lot of work and a big deal in the consumer goods and services sector to obtain a title sponsor on any type of event, let alone when the backbone of American culture, the flagship of American brands elects to throw its considerable weight behind an event and partner with an up-and-coming independent motorcycle rally in the Northwest.

Big shout out and congrats to Eric Folkestad and the Pendleton team for securing the sponsorship!

You may recall that the Pendleton Bike Week (PBW) is not a local or national sponsored HOG event so, this is really the first-of-its-kind partnership with Harley-Davidson and will help legitimize this event for motorcycle enthusiasts.  What makes this even more interesting is the fact that the Pacific Northwest HOG Rally (July 20 – 23rd) held in Meridian/Boise, ID will occur on the same set of dates as PBW.  Pendleton and Meridian, ID are about 3 hours apart on I-84 and I would anticipate some riders are working on a plan to attend both.

PBW is in it’s third year and it’s estimated there will be upwards of 20,000 bikers over the four days visiting the area this year.  I attended the first event in 2015 (read about HERE) where there was about 6,000 attendees and last year’s attendance spiked to about 16,000 across the four days.

Harley-Davidson will have factory reps on hand to chat with and two factory demo trucks onsite so riders can experience the performance of the company’s new line of motorcycles, including the new Milwaukee-Eight engine.  Pendleton is at the base of the scenic Blue Mountains, which has become well-known as a hub for motorcycle touring eastern Oregon.

The city of Pendleton is an appealing venue and the rally is a nice ‘back to the basics’ ride in the “wild west.”  See you there.

Photo courtesy of PBW

All Rights Reserved (C) Northwest Harley Blog

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screen-shot-2017-01-09-at-11-15-09-amPolaris, the MN-based maker of motorcycles and all-terrain vehicles announced today that it’s winding down the Victory brand effective immediately to concentrate on its better-performing Indian Motorcycles business.

Polaris said it will assist dealerships in liquidating inventory and will supply parts for another 10 years and honor warranties in place.  Victory motorcycles are primarily manufactured in Spirit Lake, Iowa.

The first Victory motorcycles rolled out in 1998, yet never took much market share from Harley-Davidson Inc., in the cruiser-bike category. Indian Motorcycles, which Polaris relaunched after a 2011 acquisition, has performed better, however Harley’s market share remains at 48 percent to Indian’s 3 percent.

Polaris Industries Chairman and CEO Scott Wine stated, “This decision will improve the profitability of Polaris and our global motorcycle business, and will materially improve our competitive stance in the industry. Our focus is on profitable growth, and in an environment of finite resources, this move allows us to optimize and align our resources behind both our premium, high performing Indian Motorcycle brand and our innovative Slingshot brand, enhancing our focus on accelerating the success of those brands. Ultimately this decision will propel the industry-leading product innovation that is core to our strategy while fostering long-term growth and increased shareholder value.”

Photo courtesy of Victory/Polaris.

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"M-8" top view showing tubular rockers

“M-8” top view showing tubular rockers

It happens every year and often it’s big news.

This year the launch of the Harley-Davidson 2017 motorcycle line-up is anchored by the new Milwaukee-Eight™107 and Milwaukee-Eight™114 power plants.

A couple weeks ago I posted about a new eight-valve Big Twin and now we know the rumors are true.  The displacement of the standard version is 107ci (1,750cc) or in the CVO version it’s 114ci (1,870cc). The 2017 touring models get these engines first and may waterfall down to other models later in the year.  The 107 uses precision oil-cooled cylinder heads and will be in the Street Glides, Road Glides, the Electra Glide Ultra Classic, and Freewheeler trikes.  A Twin-Cooled version with liquid-cooled cylinder heads and radiators will be in the Ultra Limited models, the Road Glide Ultra, and Tri Glide models.  The CVO Limited and CVO Street Glide models will have the Twin-Cooled Milwaukee-Eight 114.

M-8: Four-valve combustion chamber and the dual spark plugs

M-8: Four-valve combustion chamber and the dual spark plugs

You might recall that the last major design evolution of the Twin Cam — and a significant part of the Project RUSHMORE and marketing campaign — was anchored on improving power plant cooling.  This took the form of circulating liquid coolant in tubes around each cylinder head’s hot exhaust valve seat and then to external radiators.  Many riders neglected to notice much in the way of decreased heat from this method of trying to get more power out of the 103.

So let’s talk details of the new eight-valve “M-8”.
ksksksksk

M-8:  Cutaway shows cooling areas of circulating liquid (Blue)

The 107 (3.937 x 4.375-inch bore and stroke) is cooled by pumping oil through it and then through a “chin radiator” ahead of the crankcase. In the 107 and 114 Twin-Cooled models (the 114 has 4.016 x 4.500-inch cylinder dimen­sions), water/antifreeze coolant is circulated through a cored heart-shaped passage that encircles the exhaust valves and then through radiators mounted forward to either side of the engine, as we’ve seen.  The new engine uses a nearly flat chamber of minimum surface area with four valves and abandons the large surface area of the traditional deep, modified hemi two-valve combustion chamber found in the old design.  The new engine operates at high compression ratios (as high as 10.5:1).  As a result, the 2017 Touring motorcycles will provide 10 percent more torque.  Harley states that will translate into two to three bike lengths faster from 0–60 mph, and one to two lengths quicker in top-gear 60–80-mph roll-ons along with improved fuel economy.

Overall airflow capacity of the “M-8” is 50 percent greater versus previous Big Twin engines, and the throttle body now has a 55mm bore.  Each cylinder has an acceleration-type knock sensor along with ECM control which protects the engine from detonation.  The new system is an improvement over the previous ion-sensing knock detection.  The exhaust components, including the catalyst, have been relocated to help move engine heat away from rider and the new engines have a single four-lobe camshaft with automatic hydraulic tensioner in place of the Twin Cam’s pair which will help reduced mechanical noise.

And in a first for the rubber-mounted Big Twin is a single counter-rotating internal balancer.  It’s meant to eliminate 75 percent of the engine’s primary shaking force.  In addition, idle rpm has been cut from 1,000 to 850 rpm all in a effort to give riders improved engine smoothness.  Other engine items of note is a new higher capacity alternator along with a new 1.6 kW (2.14 hp) starter that replaces the previous 1.2 kW (1.6 hp) units.  There is a self-torque-boosting clutch with Brembo hydraulic actuation for a lighter lever pull and the engine ECM has been changed from a mapped system to torque-based which will be interpreted as a call for a specific torque level, not a specific throttle angle.

On the motorcycle side, the front and rear suspension is new.  The new 49mm fork contains “dual bending valve fork technology” and uses cartridge-style variable-orifice damping valves, which Harley claims will deliver improved control at low speed without harshness over sharper bumps.  This wasn’t achievable with the old system of fixed damping.  Touring fork travel is 4.6 inches on standard models and 3.9 inches on low models.

After doing a quick H-D web site scan on the CVO Street Glide and CVO Limited models — it looks like the MSRP price went up $1K from 2016 ($36,799) to 2017 ($37,799).  The same $1K increase is also shown for the CVO Limited ($39,999 to $40,999).

Only you can decide if the new 117 engine, the new suspension along with the radio power adjustment warrants the price increase.

Photos courtesy of H-D.  Engine detail/stats courtesy of Cycle World.

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H-D new engine -- “Milwaukee-Eight”

H-D new engine — “Milwaukee-Eight”

According to the rumor mill, Harley-Davidson is set to release a new engine in certain touring models for 2017.

The new engine is called the “Milwaukee-Eight”.

The engine will have four valves per cylinder and be increased to 107 cubic inches, or 1753cc.There have been seven distinct engine designs from the motor company since 1914, and Harley-Davidson has been consistent with air-cooled, pushrod driven, two valve per cylinder designs.  The new engine is the eighth in the line and may explain the naming convention. The new engine will be air cooled, but the increase in the number of valves will help make the new engine compliant with increasingly more stringent emissions laws.

The official unveiling is reportedly to occur in a couple of weeks when Harley-Davidson rolls out the new 2017 models.

Photo courtesy of Harley-Davidson and motorcyclelife.com.au

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Screen Shot 2016-08-10 at 11.42.14 AMI’m a bit late getting this information out, but you can read the company press release HERE.

From my experience you know it’s going to be a long day when the financial perspective includes statements about how we’re in challenging times…  “Political, economic and cultural forces working against the confidence and security for people everywhere in the world” — whoa, roll the eerie and scary sound effects!

Here is a quick synopsis:

The Bad:

  • Worldwide sales for the quarter were down due to significant declines in the U.S. industry which was a surprise and far weaker than expected. Worldwide retail sales of new Harley-Davidson motorcycles in Q2 were down 1.9%.  U.S. retail sales were lower than expected on surprisingly weak industry results.  Q2 retail sales in the U.S. were down 5.2% versus prior year, behind weak U.S. industry sales.
  • U.S. retail inventory was up at the end of the second quarter.
  • Manufacturing expenses were higher than expected, driven by startup costs related to the implementation of a new ERP system in Kansas City, and costs associated with plant retooling.  In addition, plant efficiencies were lower than expected due to lower production given soft sales in Q2.  This is an overly simple statement because in reality it’s complex planning and execution, including numerous down days, inventory bridges and careful new model ramp plans.
  • The motor company stated they are taking steps to lower expected 2016 shipments which is largely due to continued pressure on industry growth in the U.S.  Third quarter shipments are expected to be approximately flat to down 9% versus 2015 third quarter.

The Good:

  • Revenue was up slightly.  Net income was $280.4 million on consolidated revenue of $1.86 billion compared to net income of $299.8 million on consolidated revenue of $1.82 billion in last year’s second quarter.
  • Q2 market share of 49.5% in the U.S., was up a strong 2.0 percentage points. The gains came in all segments, Touring, Cruisers and the Street/Sportster segment size of motorcycles. And it came from all seven sales regions in the U.S. The market share gains were over double the nearest competitor and came largely at the expense of Japanese competitors.
  • Retail sales in international markets were up in Q2 in all regions except Latin America (Brazil).
  • The company added six new international dealerships in the second quarter and has a goal to add 150+ international dealers over the next 4 years.

Given this current environment one could wonder if Harley-Davidson is positioned appropriately for the flat/declining industry which seemed to surprise them in Q2 — management states they are prepared.

Full Disclosure:  I have NO personal stock holdings in HOG or plans to procure any.

Some parts of the above text are attributable to the Seeking Alpha transcript on July 28, 2016.  Photo courtesy of Harley-Davidson.

All Rights Reserved (C) Northwest Harley Blog

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Indian Motorcycle 2017 Line-Up

Indian Motorcycles

Could this be a historic mark on Sturgis?

Seventy-five years after Ed Kretz dominated the first motorcycle race on the sands of Daytona Beach, Indian Motorcycle announces the 2017 line-up just days before the start of the 76th Sturgis Motorcycle Rally and just hours before Harley-Davidson’s Q2’16 financial results.

Indian states the 2017 lineup includes the recently released Scout Sixty, Indian Springfield and Chief Dark Horse models with new color choices.

A new and the industry’s largest and brightest touch-screen information and entertainment system has a 7-inch display with turn-by-turn navigation, Bluetooth audio and USB flash drive support. The Chieftain bikes come with 100 watts of audio, while the more expensive Indian Roadmaster has 200 watts.  The screen is glove compatible with two-finger touch capabilities, according to the company.

Indian has grown at a brisk pace, introducing nine new models since its relaunch in August 2013.  The motorcycle industry is looking to be flat this year, so Indian and Harley-Davidson are in a share battle.  For the full year, Polaris sees motorcycle sales increasing in the high teens on a percentage basis.

Time will tell if it’s a brand, a dealership or a bike thing as the two companies slog it out in the back half of the year.  On the surface it looks like Indian will once again challenge its main rival.

If you are headed to the 76th annual Sturgis Motorcycle Rally,  riders can view the entire new 2017 lineup at the Indian Motorcycle Factory display on Lazelle St. or experience them firsthand with a Factory Demo Ride at 2100 Whitewood Service Road (I-90 at Exit 30) from August 6 – August 12 from 9 a.m. – 5 p.m. daily.

Photo courtesy of Indian Motocycles.

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The Gypsy Jokers Motorcycle Club House

The Gypsy Jokers Motorcycle Club House

There is plenty of hollywood sizzle to the story, but don’t hold your breath.  It’s not a new Kurt Sutter television drama on motorcycle outlaws and biker “authenticity.”

It’s been a week where the Oregon Gypsy Jokers Motorcycle Club (GJMC) can’t avoid the news.  The GJMC, who have sometimes had a violent history in the Northwest, have managed to limit their appearances in the crime scene so reports linking the club or members of the club to serious crimes is unusual.

The reports read like a melodramatic whodunit detective novel… There was a fractured skull, a broken rib, a broken leg and a removed nipple. Sounds like an overtly violent scene from Kurt Sutter’s Sons of Anarchy (SAMCRO) TV series, but according to law enforcement reports, Robert “Bagger Bobby” Huggins, 56, was an ousted Gypsy Jokers Motorcycle Club member who also had nails driven through his boots, slash wounds to his back and face and many blows to his face.  His lifeless body was found shirtless and bloody in a Clark County field on July 1, 2015 by timber loggers.

Screen Shot 2016-07-15 at 12.36.01 PMThese news reports are just noise without context.  And, this week Detective Jim Lawrence provided that context during a 3-day bail hearing to Multnomah County Circuit Judge Gregory Silver stating that witnesses informed him that Huggins had been banished from the motorcycle club in 2014, after fellow members determined he was stealing money from the club to support his heroin habit.  The following year, Huggins burglarized the Woodburn home of the Gypsy Jokers club president** and tied the president’s girlfriend to a chair at gunpoint — enraging the president and other members enough to torture and kill him.  There are cellphone records linking some defendants to the crime scenes, there is neighborhood surveillance camera footage, Huggins blood was found in a Suburban used to transport the body and various people told police about certain elements of the story leading up to the killing or surrounding the killing.

(L to R): Fisher, Dencklau, Thompson, Pribbernow

(L to R): Fisher, Dencklau, Thompson, Pribbernow

At the end of the day a grand jury indicted:

  • Mark Leroy Dencklau**, 56, Earl Devearl Fisher Jr., 46, and Tiler Evan Pribbernow, 34, each on two counts of murder, criminal conspiracy to commit murder, solicitation to commit murder, two counts of first-degree kidnapping, two counts of criminal conspiracy to commit kidnapping and solicitation to commit kidnapping. The three men remain in custody and were arraigned in a Multnomah County Circuit Court.
  • Melachi Watkins, 32, on a murder count, two counts of first-degree kidnapping and two counts of criminal conspiracy to commit kidnapping. Watkins was already in a Washington state prison on unrelated charges.
  • Ronald Charles Thompson, 51, on two counts of hindering prosecution and tampering with physical evidence. He was released on bail, police said.
  • Kendra Castle, 43, on a hindering prosecution count. She was released on bail.

It has been reported that Watkins, Thompson and Castle will be arraigned at a later date.

Details on the investigation had been limited because of the ongoing investigation, but Detective Jim Lawrence made the above details of the case public this week during a 3-day hearing which was to determine whether three of four men charged with Huggins’ murder should be allowed to be released from jail pending trial, set for 2017. Defendants Mark Leroy Dencklau; Earl Devearl Fisher; and Tiler Evan Pribbernow, have all been held in jail with no possibility of posting bail since they were charged in April.  In Oregon, when a defendant is charged with murder, aggravated murder or treason, release is denied when “the proof is evident or the presumption strong that the person is guilty.”

At the conclusion of the 3-day hearing, Multnomah County Circuit Judge Gregory Silver refused to grant bail to the three men.  Courtesy of the Oregonian the video is HERE.

Additional background and information courtesy of the Mercury Tribune:

  • Mr. Dencklau** is, or was, the president of the Portland GJMC, according to this 2007 press release from a biker-friendly lawyer who successfully sued the City of Portland on behalf of the GJMC after a failed 2004 police raid at the club’s NE MLK headquarters. According to court records, Mr. Dencklau has one felony conviction, for possession of controlled substances with intent to distribute.
  • Mr. Fisher has an extensive rap sheet, with five felony and four misdemeanor convictions, and seven parole violations. His most recent non-driving bust was in 2009 when he was convicted on two counts of unlawful use of a weapon.
  • Mr. Pribbernow is an Iraq War veteran and a methamphetamine addict. He was already in jail when the initial sweep happened, after a March arrest on meth possession and gun charges. He has at least eight prior felony and four misdemeanor convictions. Mr. Pribbernow’s been in the news before—most recently for a 2015 car chase that started in Oregon and ended in Vancouver, WA. Police discovered stolen license plates in his car, and booked him for driving under the influence of drugs, reckless endangerment, and eluding police.  He was also featured in a 2007 Willamette Week story for having shot a man, Kent Kotsovos, in Northeast Portland. He was arrested for attempted murder in 2005, but a grand jury said it was self-defense.
I’m not affiliated with any club.  I do not speak for the GJMC and I would never presume to speak for that club or any club.

As a motorcycle enthusiast I am less than thrilled to be highlighting this type of activity.  The mutilation and termination of an individual with extreme prejudice — a gangland style killing — will cause many to cast a colder eye on all bikers including the law-abiding, charitable brotherhood of family men who just like to ride.

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