Harley Davidson fined $12 million for Emissions avoidance
Discussion
The Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) have just come to a settlement agreement with Harley-Davidson, which sees the American motorcycle manufacturer agreeing to pay a $12 million fine for its Screamin Eagle “super tuner” devices.
Also in the agreement, Harley-Davidson agrees to spend $3 million to mitigate air pollution (through a project to replace conventional woodstoves with cleaner-burning stoves in local communities), as well as to stop selling, buy back, or destroy any illegal devices that increase air pollution from the company’s motorcycles. Boom goes the dynamite.
While not quite the Dieselgate scandal that caught Volkswagen circumventing EPA emission standards, Harley-Davidson’s “super tuners” do provide an aftermarket solution for motorcyclists to circumvent the emission devices on their motorcycles.
Compounding the issue though, Harley-Davidson has sold an amazing number of these tuners. Accordingly the EPA and DOJ came down on the Bar & Shield brand like a box of bricks, but the likely costs to take the boxes off the market will make the fines pale in comparison.
All told, Harley-Davidson has sold an estimated 340,000 illegal devices, according to the EPA. Additionally, the EPA says that Harley-Davidson sold more than 12,000 motorcycles that were not covered by an EPA certificate, and thus didn’t meet federal emission standards.
“This settlement immediately stops the sale of illegal aftermarket defeat devices used on public roads that threaten the air we breathe,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Harley-Davidson is taking important steps to buy back the ‘super tuners’ from their dealers and destroy them, while funding projects to mitigate the pollution they caused.”
“Given Harley-Davidson’s prominence in the industry, this is a very significant step toward our goal of stopping the sale of illegal aftermarket defeat devices that cause harmful pollution on our roads and in our communities,” said Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division. “Anyone else who manufactures, sells, or installs these types of illegal products should take heed of Harley-Davidson’s corrective actions and immediately stop violating the law.”
As you can tell by that statement from the DOJ, Harley-Davidson is very much being made an example of in this situation, and perhaps for good reason. For several years now there have been rumors of OEMs building and importing motorcycles in the USA that did not meet certain EPA emission and noise standards.
The settlement today is likely a warning shot that those actions will no longer fly under the radar. You can also consider this settlement a response to the EPA’s retracted proposal to apply on-road emission standards to road vehicles that were used in track or racing events.
What’s not clear from today’s proposed settlement is how much money in total this deal will cost Harley-Davidson. The $12 million fine, and $3 million mitigation costs are clear, but Harley-Davidson is also on the hook for the “super tuner” devices in the marketplace.
Harley-Davidson stock was down 10% at one point after this news, but has since rebounded to close at a 2% loss.
Also in the agreement, Harley-Davidson agrees to spend $3 million to mitigate air pollution (through a project to replace conventional woodstoves with cleaner-burning stoves in local communities), as well as to stop selling, buy back, or destroy any illegal devices that increase air pollution from the company’s motorcycles. Boom goes the dynamite.
While not quite the Dieselgate scandal that caught Volkswagen circumventing EPA emission standards, Harley-Davidson’s “super tuners” do provide an aftermarket solution for motorcyclists to circumvent the emission devices on their motorcycles.
Compounding the issue though, Harley-Davidson has sold an amazing number of these tuners. Accordingly the EPA and DOJ came down on the Bar & Shield brand like a box of bricks, but the likely costs to take the boxes off the market will make the fines pale in comparison.
All told, Harley-Davidson has sold an estimated 340,000 illegal devices, according to the EPA. Additionally, the EPA says that Harley-Davidson sold more than 12,000 motorcycles that were not covered by an EPA certificate, and thus didn’t meet federal emission standards.
“This settlement immediately stops the sale of illegal aftermarket defeat devices used on public roads that threaten the air we breathe,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Harley-Davidson is taking important steps to buy back the ‘super tuners’ from their dealers and destroy them, while funding projects to mitigate the pollution they caused.”
“Given Harley-Davidson’s prominence in the industry, this is a very significant step toward our goal of stopping the sale of illegal aftermarket defeat devices that cause harmful pollution on our roads and in our communities,” said Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division. “Anyone else who manufactures, sells, or installs these types of illegal products should take heed of Harley-Davidson’s corrective actions and immediately stop violating the law.”
As you can tell by that statement from the DOJ, Harley-Davidson is very much being made an example of in this situation, and perhaps for good reason. For several years now there have been rumors of OEMs building and importing motorcycles in the USA that did not meet certain EPA emission and noise standards.
The settlement today is likely a warning shot that those actions will no longer fly under the radar. You can also consider this settlement a response to the EPA’s retracted proposal to apply on-road emission standards to road vehicles that were used in track or racing events.
What’s not clear from today’s proposed settlement is how much money in total this deal will cost Harley-Davidson. The $12 million fine, and $3 million mitigation costs are clear, but Harley-Davidson is also on the hook for the “super tuner” devices in the marketplace.
Harley-Davidson stock was down 10% at one point after this news, but has since rebounded to close at a 2% loss.
Always been a dodgy area.
Buying an emissions compliant bike then the owner modifying it via aftermarket tuners/parts is one thing. When the manufacturer makes the parts under their own sub-brand and allows their dealers to fit them at or before the time of purchase is quite another.
Will be interesting to see the knock-on with other manufacturers - most of the (expensive) Ducati-blessed Termignoni systems come with their own ECU. Apparently this does away with the OEM code that keeps the engine running very lean at lower RPMs to fudge their way through emissions testing. Surprise surprise, everyone thinks the bikes run much better with a set of Termis. This is all available via Ducati dealers, and I'm sure if you asked for a set of Termis on your new Panigale they'd happily oblige. At least in their case it's a separate company making the parts unlike HD.
Buying an emissions compliant bike then the owner modifying it via aftermarket tuners/parts is one thing. When the manufacturer makes the parts under their own sub-brand and allows their dealers to fit them at or before the time of purchase is quite another.
Will be interesting to see the knock-on with other manufacturers - most of the (expensive) Ducati-blessed Termignoni systems come with their own ECU. Apparently this does away with the OEM code that keeps the engine running very lean at lower RPMs to fudge their way through emissions testing. Surprise surprise, everyone thinks the bikes run much better with a set of Termis. This is all available via Ducati dealers, and I'm sure if you asked for a set of Termis on your new Panigale they'd happily oblige. At least in their case it's a separate company making the parts unlike HD.
Could affect the US tuning industry or more likely manufacturers with their own "tuning" sub brands.
No change so far to outside USA HD dealers selling you a "stage 1 kit" with your new bike. Thats how mine came, with optional pipes, filter and remap. Factory also make, sell and support optional cams, big bore kits etc.
HD have just launched a new version of their "super tuner" (the remap box, complete with CD of different maps for different tunes)
Will be interesting to see how it works out and any change in how this kit is sold....
No change so far to outside USA HD dealers selling you a "stage 1 kit" with your new bike. Thats how mine came, with optional pipes, filter and remap. Factory also make, sell and support optional cams, big bore kits etc.
HD have just launched a new version of their "super tuner" (the remap box, complete with CD of different maps for different tunes)
Will be interesting to see how it works out and any change in how this kit is sold....
Mad Jock said:
$12 Million is a drop in the ocean compared to the EPA fines levied on VW. You have to wonder what the fine would be if it had been, say, Triumph, BMW or Ducati? Do American companies get off more lightly than European companies?
No, I think this is quite different. The VW fine was so high because many of those vehicles were sold explicitly based on their claimed economy/saving the planet figures (or so people say...), and so people were 'cheated'. If you're buying performance parts to modify your vehicle away from the standard bike that was sold, you're actively involving yourself in that process. Also not many people will buy a Harley based solely on their economy/emissions figures.
bogie said:
Could affect the US tuning industry or more likely manufacturers with their own "tuning" sub brands.
No change so far to outside USA HD dealers selling you a "stage 1 kit" with your new bike. Thats how mine came, with optional pipes, filter and remap. Factory also make, sell and support optional cams, big bore kits etc.
HD have just launched a new version of their "super tuner" (the remap box, complete with CD of different maps for different tunes)
Will be interesting to see how it works out and any change in how this kit is sold....
Sell 'Screamin Eagle' to someone else or set it up as a totally separate company and continue as normal would be my bet.No change so far to outside USA HD dealers selling you a "stage 1 kit" with your new bike. Thats how mine came, with optional pipes, filter and remap. Factory also make, sell and support optional cams, big bore kits etc.
HD have just launched a new version of their "super tuner" (the remap box, complete with CD of different maps for different tunes)
Will be interesting to see how it works out and any change in how this kit is sold....
srob said:
R8Steve said:
Sell 'Screamin Eagle' to someone else or set it up as a totally separate company and continue as normal would be my bet.
Or just write "Not for road use" or similar on their stuff, like everyone else does 
As suggested by Steve above, I suspect "Screamin Eagle " will become another company.....
A lay view but what if HD took this as an opportunity to start producing engines that didn't sound like a wet fart producing less power than a lawnmower?
If other manufacturers are pumping out emission compliant engines at 200bhp/litre, surely it's not beyond any motorcycle R&D to produce just over half that, thus negating the need for setting up a pretend company in the first place?
Similarly, maybe the outcome isn't actually due to evil legislation, it's instead a result of a company exploiting an obsessive fan base, flaunting the law, and producing archaic motorcycles with huge margins. It's apparent only interest to peddle it's brand name on leather tat, all the while without reinvesting in their company.
Just a thought.
If other manufacturers are pumping out emission compliant engines at 200bhp/litre, surely it's not beyond any motorcycle R&D to produce just over half that, thus negating the need for setting up a pretend company in the first place?
Similarly, maybe the outcome isn't actually due to evil legislation, it's instead a result of a company exploiting an obsessive fan base, flaunting the law, and producing archaic motorcycles with huge margins. It's apparent only interest to peddle it's brand name on leather tat, all the while without reinvesting in their company.
Just a thought.
sjg said:
.... most of the (expensive) Ducati-blessed Termignoni systems come with their own ECU. Apparently this does away with the OEM code that keeps the engine running very lean at lower RPMs to fudge their way through emissions testing. Surprise surprise, everyone thinks the bikes run much better with a set of Termis .....
Exactly the same with Harley, when I fitted a Power Commander III it came with a 'standard V-Rod' map. It gets rid off the factory fitted lean running to pass emissions map, making it run better with no air filter or exhaust mods. I did put a K&N and pipe mod on mine and the change was unbelievable, I think just about every manufacturer is being forced down this route.Prof Prolapse said:
A lay view but what if HD took this as an opportunity to start producing engines that didn't sound like a wet fart producing less power than a lawnmower?
Harley aren't in the superbike market and nor are their customers, suggesting they dump the v-twin is a bit like saying Ferrari should make diesel supercars, its just not going to happen.I don't see they have anything to gain by making an engine to compete with japanese pocket rockets.
Crafty_ said:
Harley aren't in the superbike market and nor are their customers, suggesting they dump the v-twin is a bit like saying Ferrari should make diesel supercars, its just not going to happen.
I don't see they have anything to gain by making an engine to compete with japanese pocket rockets.
What are you on about? I don't see they have anything to gain by making an engine to compete with japanese pocket rockets.
I never suggested either or those things... Why not just make a version of their current line up which isn't s
t and take it from there?Prof Prolapse said:
What are you on about?
I never suggested either or those things... Why not just make a version of their current line up which isn't st and take it from there?
Because their current line up is exactly what the customers want, perhaps? If they made their engine line more like Victory or Indian selection they'd still sell more because of the HD brand power, but the air-cooled, 45 degree V engines are HD's signature, even if they're not as powerful or efficient as they could be. Buyers don't care, they want potato potato.I never suggested either or those things... Why not just make a version of their current line up which isn't s
t and take it from there?Prof Prolapse said:
Crafty_ said:
Harley aren't in the superbike market and nor are their customers, suggesting they dump the v-twin is a bit like saying Ferrari should make diesel supercars, its just not going to happen.
I don't see they have anything to gain by making an engine to compete with japanese pocket rockets.
What are you on about? I don't see they have anything to gain by making an engine to compete with japanese pocket rockets.
I never suggested either or those things... Why not just make a version of their current line up which isn't s
t and take it from there?t line up" is it not ?The line up isn't "s
t", its just not what you think they should sell.Biker 1 said:
If this filters through to other marques, where would that leave the likes of Akrapovic, Yoshi, et al? Yamaha, KTM, Suzuki, etc all have accessory deals with these companies, which presumably require ECU tweaking....
A lot of the deals that Akrapovic etc. have with the OEMs mean they have to supply the road legal kit through the official route.The race or decat stuff is only available through the general aftermarket. Your dealer may well be able to get the after market stuff too, and would be more than happy to put to it on for you for a fee (different situation to the above though).
Akrapovic are already producing Euro 4 compliant exhaust cans. More and more of their stuff will be going fully Euro 4 compliant. Africa Twin being one of the most recent examples out of their range.
As with a lot of these after market things, it all depends if it's actually enforced on the road. Akrapovic, Yoshimura, Remus etc. will all continue to produce "Race Only" stuff. I'm sure that the stickers they apply to the exhausts saying NOT FOR ROAD USE will continue to fall off
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