Harley-Davidson Avoids $3M Retrofit Of Wood-Burning Appliances

In August 2016, Harley-Davidson agreed to pay a $12 million civil fine and stop selling engine “Pro Super Tuners” deemed illegal after-market devices that caused its motorcycles to emit too much pollution.  I previously posted about this topic HERE.

The motor company also agreed to spend about $3 million to retrofit or replace wood-burning appliances with cleaner stoves to offset excess emissions from the sale of “tuners.”

It’s important to note that the EPA legal action had a significant chilling effect on the performance parts market at Harley-Davidson dealers and many other after-market manufactures.

As previously disclosed, the settlement resolved allegations with the EPA, that the company sold about 340,000 “tuners” enabling motorcycles since 2008 to pollute the air at levels greater than what the company certified. Harley-Davidson did not admit liability and has always maintained that it disagreed with the government, arguing that the tuners were designed and sold to be used in “competition only.”

Even though the settlement had not yet taken effect, a U.S. judge this week approved a revised settlement with Harley-Davidson and dropped the requirement that it spend $3 million to retrofit or replace wood-burning appliances with cleaner stoves to offset excess emissions.

Multiple environmental groups along with a group of 10 states sharply objected to the revised settlement by U.S. District Judge Emmet Sullivan.

Photo courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

EPA Forces Stop Sell Of Harley-Davidson Pro Super Tuner

The “spin” is that Harley-Davidson reached a settlement with the U.S. Environmental Protection Agency (EPA) regarding the sale of its Pro Super Tuner — an aftermarket tuning product used to calibrate motorcycles intended for off-road and closed-course competition.

The 411 is:  Harley-Davidson agreed to no longer sell its competition-only tuner in the U.S.  They also agreed to pay a $12 million civil penalty and spend $3 million on an air pollution mitigation project.  In addition, Harley-Davidson will also have to buy back and destroy the roughly 340,000 “illegal” devices that it sold.  As part of the mitigation of air pollution under the settlement, the motor company agreed to work with an independent third party to replace conventional wood-stoves with cleaner-burning stoves in designated communities, thereby improving future air quality.

Important to note is that the settlement is not an admission of liability by Harley-Davidson.

The EPA took legal action and alleged that by selling the Harley-Davidson Pro Super Tuner through its U.S. dealer network, the motor company enabled dealers and customers to tamper with motorcycles used on public roads. Harley-Davidson disagreed with the EPA’s position, noting that the tuner was designed and sold as an after-market, competition-only product used to adapt engine parameters for use with Harley-Davidson after-market equipment.  The product was sold for more than two decades, under an accepted regulatory approach that permitted the sale of competition-only parts.

Is this government overreach or the administrations regulatory process/approach to public protection in the race/competition-only arena?

Ed Moreland, Harley-Davidson’s Government Affairs Director contends that it was legal to use the Pro Super Tuner in race conditions in the U.S., however, “concern for our U.S. customers and dealers weighed heavily in reaching this compromise with the EPA…”by settling this matter, we can focus our future attention and resources on product innovation rather than a prolonged legal battle with the EPA.”

To settle or not to settle a case often comes down to a corporation’s litigation culture. Harley-Davidson likely determined that legal fees and the possibility of liability/payouts at the end of a losing legal battle meant it was more cost effective to capitulate, remove the product for sale — settle for $15 million and move on.

Harley-Davidson, is one of many suppliers in the aftermarket race/performance parts industry and the legal tactics of the EPA, along with the potential consequences of prolonged legal action with manufactures will have a chilling effect on the performance parts market.

It should be noted that Harley-Davidson’s corporate stance is and has been committed to meeting or exceeding all emissions requirements for its motorcycles in every market it serves.  They have always included clear product labeling of competition-only products and detail on what performance enhancements are considered street legal and for competition-use only, and called out the legal consequences of tampering with emission controls and components, and what enhancements would void the vehicle warranty.

Photos courtesy of H-D.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »