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Feeling the effects of international trade, and a future without the TPP, Harley-Davidson is reported by the New York Times to be opening a new factory in Thailand – country that places a 60% tariff on motorcycles in Harley-Davidson’s relevant market.

The news comes at the dismay from Harley-Davidson’s workforce, which has just seen its ranks diminished by 118 jobs at its York plant, in Pennsylvania. Despite this, Harley-Davidson says that the move is about growing sales abroad, not losing jobs in the United States.

“This is absolutely not about taking jobs out of the United States,” said Marc McAllister, the Managing Director of Harley-Davidson’s international sales, while talking to the NY Times. “This is about growing our business in Asia.”

Of course, if Harley-Davidson wasn’t having to side-step a 60% tariff to sell motorcycles in Thailand, one has to wonder if the Bar & Shield brand would be building a factory in Thailand in the first place…

For as long as we have covered the Pied Piper dealership rankings, one brand has stood above all others in customer satisfaction, and that brand has been Ducati.

But for the 2016 rankings, we have a new boss in town, as BMW dealerships have taken the top honors in the most recent Pied Piper Prospect Satisfaction Index.

For those readers who aren’t that aren’t familiar with Pied Piper, the company’s Prospect Satisfaction Index is sort of the Consumer Reports of a dealership network experience, and acts as a measuring stick for how a brand is performing when it comes to interacting with potential customers.

As such, the PSI takes into account a mixture of “mystery shopper” experiences, along with actual sales success for each brand, thus giving a mixture of subjective and objective measurement for a company’s dealer network.

On the heels of Harley-Davdison’s lackluster first quarter results of the year, the American brand has announced that it will be laying off 118 employees at its vehicle operations plant in York County, Pennsylvania.

Harley-Davidson says that the staff reductions are coming as part of a “production realignment” and that the layoffs will begin June 23rd, with a completion date around the end of July 2017.

Though a couple brands are showing gains, 2017 looks like it will be a tough year for the motorcycle industry – a statement supported by Harley-Davidson’s Q1 2017 sales figures, which are down 4.2% compared to last year, with 70,831 motorcycles sold to consumers.

That figure gets worse when you zero-in on Harley-Davidson’s domestic numbers, with the brand’s motorcycle sales in the United States down 5.7% for Q1 2017. Still, it is important to note that Harley-Davidson maintains a 51.3% marketshare figure in the 601cc-plus category, in the USA.

Compare that to Harley-Davidson’s progress abroad, where on its face things don’t seem to be going too poorly, with sales down only 1.2%.

However, it should be noted that shipments abroad are down considerably, 14.7% to be exact, a sign that bikes aren’t moving as quickly as expected in markets outside of the United States.

An Asphalt & Rubber reader sent me link recently, outlining how President Trump’s pullout from the Trans-Pacific Partnership (TPP) would adversely affect international sales for Harley-Davidson.

At first I was just going to post a quick synopsis and send you all to read it for yourselves, if you wanted to dive deeper into the meat of the story. But then, I did some digging of my own.

The story, done by Forbes, doesn’t connect the dots too well. And while I agree with the author’s ultimate point, the reasoning he uses to get there is fairly flawed.

His argument boils down to the fact that the TPP would lower import costs for brands doing business in Asia, and since Harley-Davidson sells 40% of its bikes in the Asian market, it would therefore benefit from the USA becoming a TPP signatory.

The issue of course isn’t as cut-and-dry, and requires a bit of digging into what markets would become more favorable for Harley-Davidson, and where the future of the Bar & Shield brand resides. Buckle-up, because here we go.

Over 17,000 people flocked to the northern end of Portland this year, braving the cold interior of a vacant building with their plaid shirts, in order to drink PBR, listen to loud music, and look at the occasional motorcycle. Yes, it us that time of year for The One Motorcycle Show in Portland, Oregon.

More than just a much larger venue, The One Moto Show continues to gain traction with vendors and sponsors, all the while attracting more and more bike-curious attendees through its doors.

Main-lined into the zeitgeist that we recognize as two-wheeled hipsterdom, “mainstream” motorcyclists can roll their eyes while shuffling through the PDX masses, but you cannot deny the pulse the show keeps with younger motorcyclists.

As such, there were more than a few pillars of the motorcycle industry circulating in the show’s ranks – all incognito, of course – trying to understand how the next generation interacts not only with motorcycles, but also with each other.

Over 150 bikes were on display for those in attendance – I heard a figure as high as 170 motorcycles were hidden throughout the multiple rooms and floors of the show’s venue – and a couple trends struck me over the course of the show.

President Trump was scheduled to visit Harley-Davidson tomorrow, but those plans have since been scrapped because of Harley-Davidson’s worry about protests at the event.

Trump’s trip was supposed to include a tour of Harley-Davidson’s Menomonee Falls factory, where he would then sign several executive orders that relate to manufacturing in the United States.

With protests continuing over President Trump’s taking office, and the subsequent executive orders and personnel changes he has made to the government, reports are swirling that Harley-Davidson has backed away from hosting the 45th president. 

As motorcycle manufacturers report their 2016 numbers, we see the continued trend that last year was a tough year for OEMs in the USA. Harley-Davidson reports that its sales dropped 1.6% overall (262,221 units) in 2016, but that number doesn’t paint the full picture for the Bar & Shield brand.

Harley-Davidson sales were down 3.9% in the USA for the 2016 sales cycle (161,658 units), which is a stark contrast to the 2.3% growth Harley-Davidson saw abroad with its international sales.

These losses translated to Harley-Davidson’s balance sheet, with the company posting an 8% decrease in net income, making $692.2 million in 2016. Consolidated revenue remained steady however, at $6 billion.

As discussed previously on Asphalt & Rubber, flat track racing in the United States will have a comprehensive makeover in 2017. The series will be rebranded as the American Flat Track Series, and the calendar expanded to 18 rounds. 

At the Superprestigio in Barcelona last weekend, the CEO of the American Flat Track series, Michael Lock, sat down with Asphalt & Rubber to discuss the reasoning behind the changes.

The expat Englishman came to flat track with a unique perspective; that of an outsider. He was an Englishman abroad, and brought fresh eyes to the problem of trying to grow flat track racing once again.

Episode 43 of the Paddock Pass Podcast is out, and the show covers this past weekend’s Superprestigio flat track race in Barcelona.

Talking about the Superprestigio and flat track racing in general, Neil MorrisonSteve English, and David Emmett are joined by American freelance motorcycle journalist and photographer Andrea Wilson, who brings her unique insight into the sport of to the podcast.

The show covers first the action-packed day in Spain, where some of the biggest names from multiple two-wheeled racing disciplines competed for the ultimate in bragging rights.

After analyzing Marc Marquez’s victory over Brad Baker, the show takes a turn to talk about flat track racing in the United States, and the changes that the American Flat Track series is seeing for the 2017 season.

Packed with insight, we think you will enjoy this special episode immensely.

As always, be sure to follow the Paddock Pass Podcast on FacebookTwitter and subscribe to the show on iTunes and SoundCloud – we even have an RSS feed for you. If you like the show, we would really appreciate you giving it a review on iTunes. Thanks for listening!

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Considering how much growth they are achieving, how many brands they are acquiring, and how many new bikes they are developing, it really is a shame that we don’t talk about Polaris here more often. The American OEM is one of the true movers-and-shakers of the motorcycle industry right now.

It probably has something to do with the fact that Polaris’ two sub-brands, Indian and Victory, produce machines that are outside our usual fare at Asphalt & Rubber. That is a polite way of saying, they make cruisers, and we don’t really like those sort of motorcycles here.

There is nothing wrong with someone riding a cruiser, of course. In fact, roughly one of every two new motorcycles sold in the United States comes from our friends at Harley-Davidson. American motorcycling really looks more like a Harley-Davidson cult than we may think here in our sport-bike focused echo chamber.

In the pursuit to see how the other half lives, I have been riding around on a Victory Octane for the past few weeks, as part of an ongoing discussion with the folks at Victory about their products, and how sport bike riders perceive them.

My initial thoughts on the Octane, and Victory as a whole, lead me to some interesting notes about the bigger picture at Polaris, and how the American OEM can set itself as one of the top global brands in the motorcycle industry. Like with Rommel in the desert, it involves a two-pronged attack.