Harley-Davidson Recall — Headlights May Fail

Recall Notice: 21V225000

NHTSA Campaign Number: 21V225000

Harley-Davidson is recalling certain 2019-2021 Sportster (XL) motorcycles and 796 headlight assemblies that may have been sold as replacement parts for 2005-2019 Sportster, 2005-2017 Softail, 2005-2017 Dyna, and 2005-2011 V-Rod motorcycles. The glass bulb within the headlight assembly may fail, causing a loss of both high and low beams.

Obviously, a loss of both headlight beams can reduce visibility and increase the risk of a crash.

The interior of the bulb shield in an unknown number of XL Headlamp Assemblies, part number 68297-05A, may have been produced with a glossy, chrome finish. If this condition is present, the resulting thermal conditions may cause a hole to develop in the tip of the dual-filament bulb, which in turn may allow the sealed gas to escape from the bulb, thereby causing the powered filament to fail prematurely. Investigation of this issue indicates that switching to a different beam (high to low or low to high) to restore lighting causes the second filament to fail.

Affected Motorcycles

The specific make/model/year is in the attached chart and the potential number of units affected is 31,346.

The remedy is that Harley-Davidson is notifying owners, and dealers will install a headlamp bulb shield, free of charge. The recall is expected to begin April 12, 2021. Owners may contact Harley-Davidson customer service at 1-800-258-2464. Harley-Davidson’s number for this recall is 0177.

Reference NHTSA Document (PDF).

Photos courtesy of Harley-Davidson and NHTSA.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson Trike Recall – 19V-843

Harley-Davidson ($HOG) is recalling certain 2019-2020 Trike motorcycles built between 3/12/18 and 11/5/19 with traction control.  The Trike Traction Control System software may respond incorrectly to a faulty rear WSS (Wheel Speed Sensor) signal by activating one of the rear brakes. Unintended activation of one rear brake could lead to an unexpected change in the vehicle direction which may increase the risk of a crash.

The potential number of units affected is 12,624.  The component manufacture is Robert Bosch LLC.

The remedy is for dealers to update the traction control system software, at no charge to the customer.  The recall began December 2, 2019. Owners may contact Harley-Davidson customer service at 1-800-258-2464. Harley-Davidson’s number for this recall is 0175.  Specifically, the new Electro-hydraulic control unit (EHCU) software download removes or disables the software from recalled component, that causes this unintended activation of a rear brake.

#9 – Traction Control Switch

Affected Vehicles:
FLHTCUTG         ’19-’20
FLHTCUTGSE     ’20
FLRT                 ’19-’20

IMPORTANT: Should riders choose to ride the motorcycle before this safety recall service has been completed, to reduce the risk associated with this condition, the motor company recommends that riders disable traction control on the motorcycle BEFORE each ride per the following procedure:

1. Start motorcycle, but do not begin moving. (Note: The (TC) icon in the tachometer will be flashing.)
2. Press and hold the (TC) button on the left hand control until the (TC) icon remains illuminated (solid) in the tachometer.
3. Do not touch the (TC) button during vehicle operation.

ABS Module (EHCU) (behind right side cover)

Since the system resets with every ignition switch cycle, this procedure needs to be performed at the beginning of every ride until the safety recall service has been completed.

NOTE: While the Traction Control function will be disabled, this does not affect other functions of the Reflex Defensive Rider System (RDRS). Reflex-Linked Brakes with Cornering-Enhanced ABS and Drag Torque Slip Control systems will remain operational.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to http://www.safercar.gov.

Photos courtesy of Harley-Davidson and National Highway Traffic Safety Administration

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson Oil Line Clamp – Recall

Harley-Davidson has learned that the oil line clamp, part numbers 10198, 10080, and 10344, used on the oil cooling system on certain model year 2017 Touring model motorcycles (FLHX, FLHXS, FLTRX, FLTRXS, FLHTCU, FLHR, FLHRC, FLHRXS, FLHP, FLHTP) built in the U.S. July 2, 2016 through May 9, 2017, may not have been properly installed, such that an oil line may become detached and cause a sudden loss of engine oil.

If this condition remains undetected, it could lead to oil on the rear tire which may result in loss of vehicle control, increasing the risk of a crash.

Summary
NHTSA Campaign Number: 17V-333 or sometimes listed as 17V333000
Potential Number of Units Affected:  45,589
Harley-Davidson Campaign number: 0170.
Makes/Models:  Certain 2017 Electric Glide Ultra Classic (FLHTCU), Police Electra Glide (FLHTP), Police Road King (FLHP), Road King (FLHR), Road King Special (FLHRXS), Street Glide (FLHX), Street Glide Special (FLHXS), Road Glide (FLTRX), and Road Glide Special (FLTRXS) motorcycles.

Remedy: Harley-Davidson will notify owners, and dealers will inspect and correct the oil cooler line clamps, as necessary, free of charge. The recall is expected to begin on June 6, 2017. Owners may contact Harley-Davidson customer service at 1-800-258-2464.

Note: Dealers may sell but NOT DELIVER any motorcycles until the remedy is completed per the service bulletin.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to http://www.safercar.gov.

Photo courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

The Harley-Davidson Saddlebag Recall

Saddlebag Sketch

This is more than a simple saddle bag retaining clip that takes less than 10 minutes to replace.

Harley-Davidson is facing steep competition.  Not only from less expensive motorcycles imported from Asia, but electric motorcycles from Zero, Brammo (now owned by Polaris) and also from core customers who look for a mainstream gasoline cruiser from Indian and Victory.  Polaris will undoubtedly be first to market with a chrome-plated electric cruiser given the previous discussion by CEO Matt Levatich.

In addition, it’s not clear that Harley-Davidson is getting much of a sales bump from the decision to double-down on support of outlaw biker gangs as part of their marketing pitch.  The hard-edge reference is NOT about the one-percent patches, rather licensing support of TV shows like Sons of Anarchy (SOA) and other Hollywood fluff.  Trying to appeal to people who don’t have much adventure in their lives with a TV show prescribing on the road escapism… well it escapes me!   Meanwhile they try so hard to alienate and re-write the Baby Boomer chapter!

But I’ve digressed.

Harley-Davidson reported slipping revenues for Q2 2015.  U.S. market share is below 50% for the first time ever!  The company is betting on its name recognition and motorcycle quality.  They even choose to muster up some brash swagger and declined slashing prices as a subtle way of saying “our bikes are better!”

And on that quality topic, Harley recently issued a saddlebag recall – campaign number 15V-427.  The motor company is the poster child for the “land of recalls” sans Chevy.  So many, that owners find it difficult to recall when their bikes didn’t!

Snarky comments aside, all manufactures have issues, but Harley-Davidson is unique in acknowledging and using quality as a key differentiator and strategy for increasing sales.  I’m not sure how well that will work for them.

Meanwhile the Dealers are replacing the 4 (2 on each side) saddle bag pin retaining clips free of charge. The motor company issued a recall stating that the saddlebag mounting receptacle, P/N 10900009 on some model year 2014 and 2015 Touring family vehicles (see drawing #1 above) may not adequately secure the saddlebag to the motorcycle during use.  If this condition remains undetected, the saddlebag may become separated from the motorcycle while it is in motion, possibly creating a hazard for other motorists including your riding buddy’s in formation behind that “separated” bag.

If this happens there is a good chance you’ll be picking up a new “road rash” painted saddlebag and dirty laundry strewn across the roadway!

UPDATED: July 23, 2015 (1:40pm PDT) — the recall effects 185,000 motorcycles which covers certain 2014 and 2015 Road King, Street Glide, Electra Glide Ultra Classic, Ultra Limited, Police Road King, Police Electra Glide and CVO Ultra Limited bikes. Also affected are 2014 CVO Road King and the 2015 Electra Glide Ultra Classic Low, Ultra Limited Low, Road Glide, CVO Street Glide and CVO Road Glide Ultra motorcycles. No injuries or crashes have been reported due to the saddlebag issues and no information has been provided on the number of “separated” bags.

UPDATED: July 29, 2015 — Polaris introduces its 2016 line up which includes the Victory Empulse TT ($19,999), an electric model which rolls out way ahead of H-D’s LiveWire.  It’s based on the Brammo Empulse R motorcycle produced by the electric motorcycle division of Brammo Inc., which was acquired by Polaris earlier this year.

Photo courtesy of H-D.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson Up On Blocks – Again

Quality control issues in 2014 seem to bedevil Harley-Davidson.

The latest examples are the recalls of 4,688 model year 2014-2015 FLS Softail motorcycles manufactured March 25, 2013, to October 2, 2014 for a lamp-outage detection issues and 1,560 of its 2015 Tri-Glide Ultra Classic FLHTCUTG motorcycles due to rear-brake master cylinder issues.

The Softail motorcycles may have been manufactured without lamp-outage detection for the front turn signals and a rider may not be aware that a front turn signal is not working. And without working front turn signals, there is an increased risk of a crash.  Harley-Davidson is notifying owners, and dealers will correct the body control module software, free of charge. The recall began in December 2014.  The Harley-Davidson’s number for this recall is 0618 or NHTSA campaign number: 14V725000.

On the 3-wheel, certain Tri-Glide Ultra Classic motorcycles manufactured from July 14, 2014, through Oct. 15, 2015, could have rear master cylinder assembled with an incorrect piston.  Harley says this piston may not provide the proper support and may allow a tear in the primary cup. If the primary cup develops a tear it will decrease the brake performance and might increase the risk of a vehicle crash.  Harley-Davidson will notify owners, and dealers will replace the rear master cylinder, free of charge. The recall began December 16, 2014. The Harley-Davidson’s number for this recall is 0162.  Owners may contact Harley-Davidson customer service at 1-800-258-2464 or National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236, or go to www.safercar.gov.

While Harley-Davidsons recalls this year pale in comparison to the massive 300,000 bike recall issued back in 2011, but that was simply a rear brake light problem.

Most of the 2014 Harley-Davidson recalls seem to be centered around rushed product development and/or shoddy workmanship.  That same workmanship issue which has dogged the automakers.  And speaking of, these are the same automakers which just 4-years ago Mr. Keith E. Wandell (Harley-Davidson CEO and President) stated; “Look in a mirror – Harley was already so far down that same (GM) path it wasn’t even funny.”   Basically warning Harley-Davidson employees that it was turning into a GM… and the credibility issue that becomes being associated!

Prior to the above recalls we’ve seen the motor company recall more than 105,000 model 2014 Touring and CVO Touring motorcycles because of a problem with the anti-lock braking system that caused the front wheels to lock up without warning. In August, it recalled over 4,500 bikes for a faulty ignition switch.  It’s also recalling about 1,400 of its 500 and 750 Street bikes from the 2015 model year for a possible fuel tank leak.  I’ve captured the 2014 recalls HERE.

Is Harley-Davidson re-testing the customers reputation of shoddy workmanship (and raising the ghost of Harley’s past)?  It would do well to get a tighter grip on these issues and instill the pride of craftsmanship that should be the motorcycle maker’s hallmark.

Photos courtesy of Harley-Davidson.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson Recalls All 2014 Touring Models

Harley-Davidson is recalling more than 105,000 motorcycles from the 2014 model year because their clutches may fail, causing stopped bikes to creep forward and potentially crash.  The motor company said it will rebuild clutch master cylinders for motorcycles impacted by the recall.

The company knows of 19 low-speed tip-over crashes tied to the problem, with three minor injuries reported. Bikes named in that recall include the Electra Glide Ultra Classic and the CVO Road King.

The NHTSA recall details follow:

NHTSA Campaign #: 14V537000
Potential Number of Units Affected: 105,746
Vehicle Make | Model | Model Year(s)

• H-D FLHRSE 2014
• H-D FLHTCU 2014
• H-D FLHTCUTC 2014
• H-D FLHTCUTG 2014
• H-D FLHTK 2014
• H-D FLHTKSE 2014
• H-D FLHTKSHRINE 2014
• H-D FLHTP 2014
• H-D FLHX 2014
• H-D FLHXS 2014
• H-D FLHXSHRINE 2014
• H-D FLSTNSE 2014
• H-D FXSBSE 2014

SUMMARY:
Harley-Davidson Motor Company (Harley-Davidson) is recalling certain model year 2014 Electra Glide Ultra Classic (FLHTCU), Ultra Limited (FLHTK), Police Electra Glide (FLHTP), Street Glide Special (FLHXS), Street Glide (FLHX), Tri Glide Ultra (FLHTCUTG), CVO Limited (FLHTKSE), CVO Road King (FLHRSE), CVO Breakout (FXSBSE), Electra Glide Ultra Classic Twin Cooled (FLHTCUTC), Ultra Limited Shrine (FLHTK SHRINE), Street Glide Shrine (FLHX SHRINE), and CVO Softail Deluxe (FLSTNSE). In the affected motorcycles, a component in the clutch master cylinder may fail, reducing the pressure available to keep the clutch disengaged.

CONSEQUENCE:
If the clutch does not remain disengaged, the motorcycle may creep forward while the rider intends to be stopped, increasing the risk of a crash.

REMEDY:
Harley-Davidson will notify owners, and dealers will rebuild the affected clutch master cylinders, free of charge. The recall is expected to begin in September 2014. Owners may contact Harley-Davidson customer service at 1-800-258-2464. Harley-Davidson’s number for this recall is 0159 and 0160.

In addition the motor company is also recalling 1,384 motorcycles made earlier this year to test for possible fuel tank leaks.  The recall is on model year 2015 XG500 and XG750 motorcycles manufactured June 11, 2014, to August 14, 2014.  Dealers will test fuel tanks subject to that recall and replace them for free if any leak from under their caps. No injuries, accidents or fires have been tied to that problem.

Photo courtesy of H-D.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

The CanAm Fire Controversy

Can-Am Spyder

Hype, or is Bombardier taking a gamble?  But, lets start at the beginning.

U.S. safety regulators are investigating two reports of fires in the Can-Am Spyder three-wheeled motorcycles.

The motorcycles are made by Bombardier Recreational Products Inc.  (BRP) of Canada and the probe covers about 52,000 motorcycles from the 2008 through 2014 model years and they are looking into what is causing the fires.

Bombardier has had three recalls to date in 2012 and 2013, and all involved the risk of fires. Last year, the company recalled about 8,200 Spyders because brake fluid leaks could cause fires. In 2012 it recalled about 34,000 because fuel vapors could leak due to an ill-fitting gas cap. It also recalled 9,600 because fuel vapors could exit a vent hose in the engine compartment.

I don’t want to draw any similarities because these are very different situations, but many of you might recall the Ford Pinto.  It was one of the biggest continuing automotive news stories in the late 1970s with dramatic tales of exploding Fords on the highway and considerable awards from civil-court juries that were presented to victims of accidents involving the cars.

At the time, experts calculated the value of a human life at around $200,000, while a serious burn injury was worth about $67,000. Using an estimate of 180 deaths and 180 serious burns, someone at Ford put on paper that the cost to redesign and rework the Pinto’s gas tank would cost close to $137 million, while possible liability costs worked out to around $49 million.

Ford’s corporate legal machine went to work, however, when the memos regarding the liability assessments were leaked and entered into evidence, the cases were as good as over and Ford paid dearly in civil claims, public image and as a brand for product safety.

Former Ford exec Lee Iacocca reflecting on the Pinto incident and Ford’s attempts to control the damage, made this summation in his book Talking Straight: “Clamming up is what we did at Ford in the late ’70s when we were bombarded with suits over the Pinto, which was involved in a lot of gas tank fires. The suits might have bankrupted the company, so we kept our mouths shut for fear of saying anything that just one jury might have construed as an admission of guilt. Winning in court was our top priority; nothing else mattered.”

BRP is a world leader in the design, manufacturing, distribution, and marketing of motorized recreational vehicles and powersports engines.

The term “transparency” means much more than the standard business definition and its my hope that the company will be candid with the motorcycle riding public beyond the narrow interpretation of legal compliance on the risk of fires.

Photo courtesy of BRP.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson FXDL Ignition Switch Recall

FXDL Dyna Low Rider Recall Letter

It’s surely just a coincident that two months ago GM icon Jim Federico was hired on as the Harley-Davidson VP of Engineering and now the motor company has issued an ignition switch recall on more than 3,300 FXDL Dyna Low Rider bikes.

You might recall that ignition switch problems have plagued General Motors and have now turned up in the motorcycle business.

It turns out that engine vibration can turn the switches from ‘on’ to the ‘accessory’ position.  If the switch goes to “accessory,” the engine can shut off while being driven and potentially cause a crash, however, there have been no crashes or injuries reported from this problem.

This recall involves 3,361 motorcycles shipped in the U.S, which represents certain model year 2014.5 FXDL models built 1/6/2014 through 6/9/2014.

Some of these motorcycles may have been assembled with a top engine mount bracket assembly (P/N 16400026) that has a resonant frequency equivalent to 5800 RPM engine speed. When the engine is operated at that speed, it causes excessive vibration in the ignition switch, which mount to that bracket. The excessive vibration can cause the switch to move from the “IGN” (ignition on) position to the “ACC”(accessory only) position, shutting the engine off. The production Electronic Control Module (ECM) calibration will not allow engine speed to exceed 5600 RPM, but Harley-Davidson offers street-legal performance calibrations which will allow the engine to operate above 5600 RPM. If a performance calibration has been installed which permits the engine to exceed 5600 rpm, it could allow a condition that may potentially cause the engine to stall unexpectedly. A stall while riding in traffic could lead to a crash.

The chronology of recall events are:  On 3/31/14, Harley-Davidson’s Customer Service department notified the Harley-Davidson Recall Investigation Committee (RIC) that the ignition switch on an FXDL motorcycle fitted with a non-Harley-Davidson exhaust system moved on its own from the “IGN” (ignition on) position to the “ACC” (accessory only) position during operation on a chassis dynamometer for tuning purposes.

The RIC initiated an investigation and analysis of this issue. A search of existing warranty data in April, 2014 disclosed no warranty events, but a search of customer complaints disclosed one complaint, which referenced an event similar to the initial report, i.e., an FXDL model motorcycle fitted with a non-Harley-Davidson exhaust system, operated on a chassis dynamometer.

During May, testing was initiated to attempt to re-create this condition.

During May and June, the RIC met to review test and field data information. The testing indicated that this condition could potentially occur both on the road as well as on the dynamometer, that a non-Harley-Davidson exhaust system was not necessary to create the condition, but could enhance it, and that the production Electronic Control Module calibration was not able to create the condition, as an engine speed of 5800 rpm or greater (production calibration includes a 5600 rpm rev limiter), was required to create the condition.

Another review of the warranty and complaint databases in June revealed a total of four events, all of which occurred on motorcycles believed to be fitted with non-Harley-Davidson exhaust systems and ECMs with higher than production engine speed rev limit calibrations.

There were no reported crashes or injuries.

On 6/19/14, the RIC completed its review and analysis, and referred the issue to executive management.

On 6/27/14, upon review of the results of the RIC’s investigation and analysis, Harley-Davidson’s executive management made its determination that a safety related defect existed in the subject population and declared a recall to remedy the issue.

Authorized Harley-Davidson dealers will replace the engine mount bracket assembly and ignition switch knob on the affected motorcycles with the components provided in the recall kit which is covered by the warranty.

Photo courtesy of H-D.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson 2014 Touring Model Brake Line Recall

Harley-Davidson is recalling 66,421 Touring and CVO Touring motorcycles from the 2014 model year because their front wheels can lock up without warning.

The motor company says the front brake line can get pinched between the fuel tank and the frame which could cause front brake fluid pressure to increase, increasing the risk that the front wheel could lock up while riding. Motorcycles with anti-lock brakes built between July 1, 2013, and May 7, 2014, are included in the recall.

NHTSA Campaign Number: 14V-319

Components:
SERVICE BRAKES, HYDRAULIC

Potential Number of Units Affected: 66,421

Problem Description:
Harley-Davidson Motor Company is recalling certain model year 2014 ABS-equipped Touring and CVO Touring motorcycles, models FLHTK, FLHTKSE, FLHTKSHRINE, FLHTCU, FLHTCUTC, FLHTP, FLHX, FLHXS, FLHXSHRINE, FLHR, FLHRC, FLHP, and FLHRSE, manufactured July 1, 2013, through May 7, 2014. The affected motorcycles may have been assembled with the front brake line positioned so that it can be pinched between the fuel tank and frame causing the front brake fluid pressure to increase.

Consequence:
A pinched brake line will increase the front brake fluid pressure, possibly resulting in a front wheel lock-up, increasing the risk of a crash.

Remedy:
Harley-Davidson will notify owners, and dealers will inspect the motorcycles for brake line damage and replace the damaged lines as necessary. Dealers will also install one or two cable straps to properly prevent the line from being pinched in the future, free of charge. The recall is expected to begin in July 2014. Owners may contact Harley-Davidson customer service at 1-800-258-2464.

The chronology of events leading up to the recall:  Harley began an investigation on September 11, 2013 after it was “advised of a pinched brake line under the rear fuel tank mounting bracket of a police motorcycle being set up for service.”

On October 8, 2013, H-D determined that “six warranty claims/consumer contacts” were potentially linked to the brake line issue. Among those six incidents were “one crash with no injuries.”

Within a week corrective action was taken on the final assembly line at the York facility, as on October 14 a cable strap was added to retain the brake lines from being pinched under the aforementioned fuel tank mounting bracket. H-D reports it then closed its investigation on November 11, 2013.

However, the investigation was reopened on May 7, 2014 when the York Final Vehicle Audit “reported a Touring bike with a brake line pinched in a different location, between the fuel tank and the frame several inches forward of the rear fuel tank mounting bracket.”

Harley-Davidson added another cable strap to the production process addressing the issue at the new suspect location. The company subsequently reanalyzed its warranty data on May 12, reporting “a cumulative total of 39 warranty claims potentially related to this issue, four of which reported crashes (with one reported minor injury).” On May 20, it determined another “customer complaint involving a reported crash with minor injuries” was related to the front brake line issue.

In total the company knows of five crashes and two minor injuries related to the defect.

Photo courtesy of H-D and NHTSA.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson Financials And Product Recalls

I missed this a few days ago, but imagine that the first quarter results at Harley-Davidson were like eating a bag of those Krinkle Cut™ Salt & Pepper chips… a great taste with a satisfying crunch!

Yeah, I have a weakness for the hyper-engineered, overly marketed, addiction-creating potato chips.  But, I’ve digressed.

Q1’14 Financials:  Harley-Davidson reported its first-quarter 2014 retail sales in the U.S. were not as high as expected — in large part because of the brutal winter season that gripped the eastern two-thirds of the country and the absence of the Road Glide models.  Still, sales increased 3 percent in the first quarter of 2014 and the motor company maintained a 56 percent market share in the U.S.

On April 22, Harley reported it sold 57,415 motorcycles worldwide in the first quarter of 2014, a 5.8 percent increase over the same quarter last year. The increase helped boost the company’s total revenue by 10 percent, with earnings up 22 percent.  Most of that growth came from international sales as dealers sold 21,685 motorcycles, an increase of 10.9 percent compared with the first quarter of 2013. Sales in the U.S. increased by 3 percent over the same period last year.

The company had net income of $265.9 million, or $1.21 a share, for the quarter which was up from net income of $224.1 million, or 99 cents a share, in first quarter 2013.  Harley-Davidson said it expects to ship between 279,000 and 284,000 motorcycles in 2014, which would be an increase of between 7 and 9 percent from 2013.  It was noted in the financial call that the absence of the Road Glide models continues to impact the company’s bottom line which in the first quarter of 2013, sales of the Road Glides represented 10 percent of its sales.

Keith Wandell, Harley-Davidson’s CEO, chairman and president, said in a press release that “Our dealers had a solid quarter of retail motorcycle sales.”  He went on to say, “Sales in the Asia Pacific region were up strongly, and we are encouraged by the continued growth of new Harley-Davidson motorcycle sales in Europe. We’re also excited to be entering the heart of the retail selling season in the U.S., having achieved first-quarter retail growth of 3.0% in the midst of a long, cold winter.”

After the earnings report was released, the company stock (HOG) went from $68 per share at close to establishing a new 52-week high of $71.99 per share.

Then there was some additional investment buzz from stock analyst’s and then with impeccable timing on April 29th, Mr. Wandell sold 45,308 shares of the company’s stock.  The stock was sold at an average price of $73.45, for a total value over $3.3 million.  The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

But wait, there’s more…

HBO Films

Loan Payback:  H-D announced that it paid off the $303 million, high-interest rate loan from Warren Buffett’s, Berkshire Hathaway Inc. during the quarter, funds that were used for Harley’s financing company.

You might recall that during the stock market crash of 2008, Harley’s finance subsidiary was unable to loan money to customers because the capital markets had shut down and liquidity was running low.  You may have read the book or watched the “Too Big To Fail” television drama film on HBO?  The money/loan helped Harley-Davidson continue financing motorcycles through its financing company, but the loan came with a hefty 15 percent interest rate.  It was a bridge that H-D desperately needed and Berkshire Hathaway was the only company from which Harley could borrow money without giving up its equity.

FXSB Recall:  The only dark cloud in all this good news hoopla was the motorcycle recall on 2013-14 FXSB and FXSBSE models manufactured from March 20, 2012, through March 10, 2014, to identify and fix a problem with the fuel level sensor signal.  The NHTSA Campaign Number is 14V185000 and effects approximately 9,100 motorcycles.

It turns out that suspension variances may affect the gas tank mounting angle, causing the fuel level sensor to read inaccurately. “The gauge inaccuracy may cause the motorcycle to run out of fuel unexpectedly, possibly even before the Low Fuel Warning lamp illuminates,” the recall stated. This would cause the motorcycle to stall, increasing the risk of a crash.  Harley-Davidson will notify owners, and dealers will update the software to recalibrate the fuel level sensor signal, free of charge.

Sometimes it’s hard to rise above in our country, because the haters are lined up to tear you down.  But, I want to say congrats to Harley-Davidson!  I’ve got a mental image that the senior leadership team is doing celebratory high-fives, along with a Wandell victory dance or a watching Mark-Hans Richer air-guitar somersault on the board room table.

Photo’s courtesy of Google Finance, H-D and HBO Films.

All Rights Reserved © Northwest Harley Blog

Read Full Post »