Harley-Davidson’s Lawsuit Loss Spikes Tariff Tax...

Blissful Hump Day from the wBW workforce!

Right this moment, we’ve bought a neat handful of reports from almost each nook of the Powersports business: 

  1. CCM’s preparing for a world debut into new markets.
  2. Yamaha’s V4 engine: Once we can count on a debut, and what this engine means for future bikes in Yammie’s manufacturing strains. 
  3. Harley-Davidson misplaced their huge lawsuit and shall be pressured to pay an insane 56% in tax levies for HD bikes in Europe.
  4. Ducati’s capped at 200,000 bikes per 12 months, and we now know why.

Let’s begin with CCM, as a result of that HD lawsuit is burning a gap in my display… 

CCM Declares Intent to Broaden Internationally

A view of a CCM bike. Media sourced from CCM.

…Together with a “Three-Yr Mannequin Plan”

The final time we chatted about CCM in correct type, it was 2022 and the company had just put out a titanium-framed Spitfire in commemoration of their Golden Anniversary. Right this moment, it seems that Clews’ Competitors Bikes are raring to comply with in Buell’s footsteps, with current updates to the itinerary together with an eventual push into international markets, per CCM’s Managing Director imparting the next: 

“I’d say in three years we may have positively new merchandise, and we shall be in a number of worldwide markets. That’s the last word purpose.”

– Jason Broome, Managing Director, CCM (Motorcycle Sports)

Why this random stretch throughout the border into new territory, you ask? 

Apparently, CCM is effectively conscious that their present 600cc engine shouldn’t be but compliant with Euro5+ requirements, labeling the alignment with such an emissions compliance to be “a fancy and difficult course of.”

Right this moment, CCM earnings off of the Bike Single Car Approval (MSVA) course of by which their bikes might be bought within the UK; it’s a slightly prolonged course of that requires a DVSA examiner to conduct a radical inspection of the bike, and this methodology of bringing CCM bikes to the UK has been shrinking CCM’s buyer base (hence the corporate’s drive to supply one thing new to their neighborhood).

“New” stuff purportedly features a new engine throughout the subsequent two years or so, in addition to the discharge of “Venture X,” an journey idea brainchild with CCM’s present engine set to debut round Q2 of subsequent 12 months (2025). 

For these of you questioning, the highway prepared model of CCM’s Venture X idea is anticipated to be round £13,995 plus OTR. Componentry will embrace retro Dakar rally styling comparable to spoked rims, a chunky gas tank, and a small head fairing alongside a USD fork that includes long-travel suspension that’s mated to a single-shock system on the rear of the bike.

As for Venture X’s worth, CCM is anticipating its new journey bike to take up about half of the corporate’s constructing capability. This interprets to about 300 bikes a 12 months, although the quantity may very effectively develop with the corporate’s talks towards worldwide market gross sales. 

An journey bike fills a void that may take us the following two years. Inside that time-frame, we may have a brand new product, with a brand new engine, new chassis, that shall be obtainable on the market, after which it’s one other 18 months for homologation.”

– Jason Broome, Managing Director, CCM (Motorcycle Sports)

Broome’s lifelike outlook gives a contemporary tackle timelines and expectations for mannequin success in a bike model, particularly when contemplating given the nebulous (and sometimes unstable) dangers related to going worldwide:

“We don’t need to put a limitation quantity on it, as a result of we don’t need to over promise and beneath ship. We’d slightly say that CCM as a producer construct about 300 bikes a 12 months, and this can most likely be round 50% of the manufacturing as a result of it’ll devour allocation of manufacturing of the opposite bikes.”

– Jason Broome, Managing Director, CCM (Motorcycle Sports)

People, would you wish to see CCM’s single-cylinder Spitfire on Western shores?

Yamaha Confirms V4 Engine for the MotoGP Circuit

A view of a racer on a Yamaha race bike.
Quartararo on Yamaha’s 2023 YZF-R1. Media sourced from GPOne.

Inline-4 Various Anticipated to Seem in 2025

And so it goes: A stupendous bike is revealed, variations are celebrated by way of the next years, specs are tweaked, componentry swapped out and introduced again, performances lauded, remembers initiated, enhancements made, and, finally, the bike falls from grace or withdraws from the streets because of economic system, market and emissions motion. 

Such was the case of Yamaha’s R1, arguably one of many best supersport bikes ever produced. R1 Riders are nonetheless chasing the solar about our good circuits, but our markets proceed to mourn the lack of that unmistakable inline-four scream slapping in opposition to nation highway straightaways. 

For the latter group, we get to offer updates on what may be very more likely to be Yamaha’s inline-four various: a V4 engine on the cusp of a MotoGP circuit debut. 

There’s a variety of discuss wafting in regards to the nice internet in terms of this engine; a lot of what I discovered was extra rumour, so I’ll keep on with Alex Rins’ contributions (sourced from Visordown) for optimum accuracy right here: 

  1. Yamaha is at the moment the one producer in MotoGP to make use of an inline-four engine.
  2. Yamaha’s frequent struggles by the hands of their rivals – Ducati, Aprilia, and KTM, to call just a few – imply that the swap to V4 configuration will permit the corporate to stay aggressive with different producers utilizing the same engine (to nice impact).
  3. Yamaha has introduced a slew of skills to their MotoGP workforce, with fairly just a few engineers and technicians hailing from Ducati.
  4. F1 engine advisor (Luca Morini), beforehand of Aprilia, was considered one of Yamaha’s new members to suggest the swap to V4 energy. 
  5. The brand new V4 engine was anticipated to be revealed at Jerez, but it surely wasn’t prepared in time. 
  6. After some delays, the V4 is at the moment anticipated to debut on the Sepang Shakedown check in February 2025.

Many are beneath the agency perception that this V4 engine will translate – finally – to a road-going streetbike able to round 800cc’s of american. Typical turnaround time from MotoGP grid to street-ready manufacturing debuts can take anyplace from three to 6 years and past, so solely time will inform what Yamaha has in the way in which of manufacturing plans for his or her incubating V4. 

How do you are feeling Yamaha’s V4 will carry out in comparison with the earlier inline-four?

Levy Legal guidelines: Why Harley-Davidson Misplaced their Large EU Tariff Lawsuit

A front qwuarter view of Harley-Davidson's 2024 Road Glide Limited.
Harley-Davidson’s 2024 Highway Glide Restricted. Media sourced from Harley-Davidson.

… and Why America’s Iconic Bike Model is About to Get Extraordinarily Costly in Europe

Again in 2021, we lined that Harley Davidson was attempting to relocate their bike production to avoid paying extra duties in the EU on their bikes. The European Parliament Commerce Committee wasn’t blissful on the time, citing the next grievances to the press: 

“… relocating manufacturing in an effort to keep away from punitive tariffs shouldn’t be acceptable [and] such makes an attempt are clearly unlawful beneath European regulation (Customs Code Article 59, and Implementation Act of 2015, Article 33).”

– Bernd Lange, European Union Commerce Committee Chairman (RideApart)

No matter what you may or may not have seen in a Harley-Davidson press release, we now know that, as of across the third of December of this month, the European Courtroom of Justice isn’t permitting ANY firm “to flee extra duties except relocation is economically justified.”

Given Harley simply tried to maneuver manufacturing to Thailand, its’protected to say the corporate is NOT justified – and now, Harley-Davidson’s going to need to pay a hefty +56% tax on every bike that they attempt to convey into Europe. 

Ouch.

We would like to have the ability to convey probably the most correct sourcing to your lap, so we’re dropping a quote from Global Tax News beneath, and we’ll even embrace the official Appeal Dismissal from European Union Law,  contemporary out of the courts, only for you:

“In June 2018, the Trump Administration imposed extra import tariffs of 25% on metal and 10% on aluminum. In response, the EU applied countermeasures, together with extra duties on bikes of US origin. In a Kind 8-Okay, Present Report, filed with the US Securities and Change Fee (SEC), Harley Davidson introduced that it will relocate the manufacturing of sure bikes destined for the EU from the US to its manufacturing facility in Thailand.

The relocation would, in keeping with Harley Davidson, consequence within the bikes’ being granted Thai origin, thereby exempting them from the extra EU duties. This was additionally confirmed by the Belgium customs authorities in a binding origin info (BOI). Subsequently, the European Fee ordered the Belgian customs authorities to revoke the BOIs. In response to the European Fee, the relocation doesn’t consequence within the imported bikes’ being granted Thai origin because of the software of the so-called “anti-avoidance” provision outlined in Article 33 of the Delegated Act of the Union Customs Code (DA UCC).2

Article 33 DA UCC holds that any processing or working operation carried out abroad or territory shall be deemed to not be economically justified whether it is established on the premise of the obtainable details that the aim of that operation was to keep away from the appliance of measures like extra import duties. Which means that the manufacturing doesn’t confer origin standing, and relying on the composition of the enter supplies, the extra duties on US bikes could on this case nonetheless be imposed.

Harley Davidson subsequently sought annulment of the choice to revoke the BOI, initially on the Basic Courtroom and now on enchantment on the Courtroom of Justice. Following the Basic Courtroom’s determination, the Courtroom of Justice has additionally dismissed the declare.”

– December 3, 2024. (Global Tax News)

In response to the official Enchantment dismissal, the Courtroom discovered that Harley-Davidson didn’t display enough financial justification for his or her tried shift in manufacturing to Thailand, so the EU Courtroom of Justice upheld the European Fee’s determination to disclaim Harley-Davidson’s request for decrease tariffs.

We’re instructed that the Basic Courtroom of the ECJ has additionally declined to listen to an enchantment, so we will depend on Harley’s unlucky demise to be closing. 

No take-backsies means Harley bikes are about to get very costly for our neighbors throughout the pond.

We’ll preserve you posted on what this new end result means for Harley-Davidson bikes headed for Europe; within the meantime, keep tuned… and People, don’t take your HOG as a right!

How a lot does it price you to trip a Harley bike within the EU?

Trade Insider: Why Ducati Sells Underneath 200,000 Bikes Per Yr

A view of a Ducati Panigale V4.
A view of a Ducati Panigale V4. Media sourced from Ducati.

“The Message to These Who Have a look at You Needs to be Clear”

In a world the place extra is healthier, Ducati continues to push for the mentality that exclusivity is King… particularly as a high-profile bike model. 

Ducati’s long-reigning CEO, Claudio Domenicali, was quoted to MotoSprint as having imparted the next mindset:

“I wish to assume that we’re not an organization that merely produces bikes, however that we promote to the ‘Ducatisti’. Because of this, we can not promote 200,000 bikes a 12 months

Different firms even have small-displacement bikes, whereas we’ve got the Monster as our entry-level mannequin, which is 937cc.”

– Claudio Domenicali, CEO, Ducati (Motorcycle Sports)

The CEO’s push for a restricted availability of bikes has, to date, labored to the model’s benefit; with tons of of tens of millions of {dollars} locked into Ducati mannequin gross sales, Group Crimson has been capable of help an opulent quantity of specialised occasions, every providing displaying new ranges of what it means to Ducati to be a “Ducatisti.”

On the Ducati workforce’s facet of issues, the ability of silence is an actual a part of market positioning for everyone:

We imagine that it’s not solely essential what a model does, but additionally what it doesn’t do, in an effort to keep its market positioning. Once you present up with a Ducati, the message to those that have a look at you needs to be clear.”

Claudio Domenicali, CEO, Ducati (Motorcycle Sports)

Not too long ago, Ducati confirmed off their new 2025 Panigale V4, that includes the long-lasting Desmosedici Stradale V4 engine, a powerhouse able to 1,158cc of american, or 215.5 hp (160 kW) @ 13,000 rpm and elevated torque figures to 93.7 lb-ft (127 Nm) @ 9,500 rpm. 

Massive congrats to Ducati, and we will’t wait to see what’s subsequent in retailer for the corporate!

Do you trip a Ducati?

*Media sourced from CCM, GPOne, Harley-Davidson and Ducati*

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