Bill introduced to exempt kids’ dirtbikes and all-terrain vehicles from federal ‘lead law’

Kids Just Want to Ride Act introduced in Congress

PICKERINGTON, Ohio — With the deadline fast approaching that would effectively ban the sale of kids’ dirtbikes and all-terrain vehicles (ATVs), U.S. Rep. Denny Rehberg (R-Mont.) has introduced legislation to end the ban, the American Motorcyclist Association (AMA) reports.

On Jan. 25, Rehberg introduced H.R. 412, the Kids Just Want to Ride Act, which would exempt kids’ off-highway vehicles (OHVs) from the Consumer Product Safety Improvement Act (CPSIA) of 2008 that effectively bans their sale beginning May 1.

“Here again, a law meant to improve children’s safety is actually being enforced in a way that puts kids in more danger than ever, while destroying jobs to boot,” Rehberg said. “It’s critical that we put to rest any confusion once and for all so kids can just get outside and ride.

“There’s no excuse for continued bungling that only stops kids from using the very youth-sized off-road vehicles that are intended to keep them safe,” Rehberg added.

“The American Motorcyclist Association has always been an excellent advocate for their members, and I’m happy to be working so closely with them again,” Rehberg said.

Ed Moreland, AMA senior vice president for government relations, thanked Rehberg on behalf of the AMA and the All-Terrain Vehicle Association (ATVA), which is the AMA’s sister organization.

“This is the most promising and viable legislative remedy available to permanently exclude kid-sized motorcycles and ATVs from the deleterious and unintended consequences of the CPSIA,” Moreland said. “We also want to thank the many thousands of AMA and ATVA members who have answered the call from the beginning to urge their lawmakers to exempt kids’ OHVs from the lead law.

“Now, we need a renewed push because time is running out,” Moreland said.

The easiest way to contact federal lawmakers is through the Rights section of the AMA website at

The CPSIA bans the making, importing, distributing or selling of any product intended for children 12 and under that contains more than a specified amount of lead in any accessible part. Aimed at children’s toys, the law also ensnared kids’ dirtbikes and ATVs because trace levels of lead can be found in parts such as batteries and brake calipers.

The law also requires all children’s products to undergo periodic testing by independent laboratories approved by the Consumer Product Safety Commission (CPSC), which is responsible for implementing out the CPSIA.

On May 1, 2009, the CPSC delayed enforcement of the lead-limit portion of the law until May 1, 2011 to, among other things, give vehicle makers time to figure out ways to ensure their products comply with the law.

Even though the lead-limit portion of the law isn’t being enforced, many dealers are no longer selling kid-sized OHVs and half of the major ATV manufacturers are no longer selling machines for kids because of uncertainty surrounding the CPSIA.


SANTA CRUZ, Calif., (January 25, 2011) Zero Motorcycles, the global leader in the electric motorcycle industry, has announced plans to open a new motorcycle manufacturing facility that will more than double the company’s current production capacity. Being built alongside Zero Motorcycles’ corporate headquarters in Santa Cruz County, it will provide Zero with a powerful competitive advantage in a fast paced industry. By keeping manufacturing and R&D working shoulder to shoulder, Zero’s strategy is to streamline the inclusion of their latest technology into production before the competition. Falling on the heels of Zero’s recently announced $1.84 million ‘next generation’ powertrain project, the new factory is another sign of the company’s continued growth and momentum. For motorcyclists the result will be more advanced motorcycles that they can actually own and for California this means more ‘green jobs’.

“With this exciting new expansion, we reconfirm our commitment to building the best electric motorcycles in the world as well as creating U.S. based manufacturing jobs”, said Steve Salyer, Vice President of Operations for Zero Motorcycles. “Quality Control at the highest levels means personally inspecting each bike as it comes off the assembly line. Moreover, in the spirit of continual improvement and innovation, we believe that having our manufacturing and engineering teams collaborating within the same space gives us both an operational and developmental competitive advantage.”

The new facility will bring Zero’s total production space to 34,000 square feet and is supported by a redevelopment grant from the city of Scotts Valley. Rewarded for their innovative technology, Zero will utilize the space to meet an increase in consumer demand and to continue to develop their advanced powertrain technology. As the motorcycles come off the line they will be crated and shipped off to meet Zero’s growing global demand.

“Since the inception of Zero Motorcycles, Santa Cruz County has been our home. With many companies looking outside of the U.S. to develop and build their products, we are proud to say we are continuing our support of our local community,” said Gene Banman, CEO of Zero Motorcycles. “At the same time, we are responding quickly to an increasing global demand for our motorcycles. This investment positions us ideally for further growth, innovation and development as we move into 2012 and beyond.

Renovations begin in early 2011 with the first production motorcycle expected to roll out by late February 2011. The company plans to add twenty-five employees by mid-2011.

Zero Motorcycles is the next step in motorcycle evolution and represents the ultimate electric motorcycle technology. Unencumbered by conventional thinking about how they design, manufacture and sell high performance electric motorcycles, they are on a mission to turn heads and revolutionize their industry by combining the best aspects of a traditional motorcycle with today’s most advanced technology.


Company Generates Full-Year EPS of $1.11 from Continuing Operations
Performance Reflects Strong Rebound at HDFS, Progress on Business Strategy and at Retail
Company Forecasts 2011 Shipment Growth

MILWAUKEE, Jan. 25, 2011 — Harley-Davidson, Inc. (NYSE: HOG) reported full-year 2010 income from continuing operations of $259.7 million, or $1.11 per share, compared to income of $70.6 million, or $0.30 per share, from continuing operations in 2009. For the fourth quarter of 2010, Harley-Davidson recorded a loss from continuing operations of $42.1 million, or $0.18 per share, which includes the impact of a one-time, $85.2 million charge from the Company’s early repurchase of senior unsecured notes during the quarter.

Retail sales of new Harley-Davidson motorcycles in the fourth quarter were nearly level with the year-ago period, decreasing 1.0 percent worldwide and 0.2 percent in the U.S.

The Company’s financial services unit, Harley-Davidson Financial Services, was a key contributor to 2010 earnings, with operating income from financial services of $181.9 million for the full year, including $43.5 million in the fourth quarter. Operating income from motorcycles and related products was $378.8 million for the full year, including an operating loss of $6.8 million in the fourth quarter.

“We feel good about our 2010 results,” said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc. “Through the hard work of a lot of very dedicated and talented employees and dealers, we have made strong progress at transforming our business to be leaner, more agile and even more effective at delivering great products and customer experiences.

“In 2010, we expanded our international footprint, saw improvement in our motorcycle segment results driven by the restructuring of our operations and returned HDFS to solid profitability. A strong, financially sound Harley-Davidson is key to our ability to invest in the business and grow. While there is still hard work ahead and we remain cautious in our outlook, I am confident that we are positioning Harley-Davidson to succeed and deliver value for all our stakeholders into the future,” Wandell said.

2010 Retail Harley-Davidson Motorcycle Sales

Fourth Quarter: During the fourth quarter of 2010, retail sales of new Harley-Davidson motorcycles decreased 1.0 percent worldwide, down 0.2 percent in the U.S. and down 2.1 percent in international markets, compared to the prior-year quarter. Industry-wide U.S. heavyweight motorcycle (651cc-plus) retail unit sales decreased 14.8 percent in the fourth quarter compared to the year-ago period.

Full Year: For the full year 2010, worldwide retail sales of Harley-Davidson motorcycles decreased 8.5 percent compared to 2009. U.S. retail sales of Harley-Davidson motorcycles decreased 11.7 percent for the full year, while the U.S. heavyweight market segment was down 14.6 percent, compared to 2009. In international markets, retail sales of new Harley-Davidson motorcycles decreased 1.9 percent for the full year compared to 2009. For the full year, dealers sold 222,110 new Harley-Davidson motorcycles worldwide at retail, including 143,391 in the U.S.

“In the U.S., we are the market share leader in new on-road motorcycle sales, not only to Boomers but to young adults, women, African-American and Hispanic riders. In Europe, we moved into the number two market share spot for heavyweight motorcycles in 2010. For 2011, we plan to build on our position as one of the strongest brands in the world through our continued focus on customer-led products and experiences,” said Wandell.

Fourth quarter and full year data are listed in the accompanying tables.

Harley-Davidson Motorcycles and Related Products Segment Financial Results

Fourth Quarter: Revenue from Harley-Davidson motorcycles in the fourth quarter of 2010 was $697.8 million, up 26.4 percent compared to the year-ago period. The Company shipped 44,481 Harley-Davidson motorcycles to dealers and distributors worldwide during the quarter, compared to shipments of 35,938 motorcycles in the fourth quarter of 2009.

Revenue from Parts and Accessories totaled $149.4 million during the quarter, up 3.3 percent, and revenue from General Merchandise, which includes MotorClothes® apparel, was $61.5 million, down 7.9 percent compared to the year-ago period.

Gross margin was 29.6 percent in the fourth quarter, compared to 20.3 percent in the year-ago period. Fourth-quarter 2010 gross margin benefited from favorability on product mix and foreign currency, while fourth-quarter 2009 gross margin was adversely affected by higher fixed costs spread over fewer units and the impact of exiting the Buell product line. The Company had an operating loss in the fourth quarter from motorcycles and related products of $6.8 million compared to an operating loss of $221.8 million in the year-ago period.

Full Year: In 2010, the Company shipped 210,494 Harley-Davidson motorcycles, in line with its target range of 207,000 to 212,000 motorcycles. Full-year 2010 shipments were 5.6 percent lower than 2009, when the Company shipped 223,023 units. Revenue from Harley-Davidson motorcycles for the full year was $3.14 billion, a 1.2 percent decrease compared to 2009. Full-year P&A revenue was $749.2 million, a 2.4 percent decrease from the year-ago period. General Merchandise revenue was $259.1 million, an 8.2 percent decrease compared to 2009. Gross margin for the full year 2010 was 34.2 percent and operating margin was 9.1 percent, compared to 32.3 percent and 7.3 percent respectively in 2009.

Financial Services Segment

Fourth Quarter: The financial services segment recorded operating income of $43.5 million in the quarter, compared to an operating loss of $7.1 million in the year-ago quarter. The improvement in year-over-year operating income is largely the result of higher net interest income and lower provision for credit losses.

Full Year: For the full year 2010, operating income from financial services was $181.9 million, compared to an operating loss of $118.0 million in 2009. Full-year 2009 results were affected by two non-recurring, non-cash charges totaling $101.1 million.


In 2011, the Company expects to ship 221,000 to 228,000 Harley-Davidson motorcycles to dealers and distributors worldwide, an approximate five percent to eight percent increase compared to 2010. The Company expects to ship more motorcycles to U.S. dealers than it anticipates dealers will sell at retail in 2011, to return aggregate U.S. dealer inventory to what the Company believes is an appropriate level. In the first quarter of 2011, Harley-Davidson expects to ship 51,000 to 56,000 motorcycles.

The Company expects 2011 gross margin to be between 34.0 percent and 35.0 percent. Harley-Davidson expects full-year capital expenditures of between $210 million and $230 million, including $60 million to $75 million to support restructuring activities.

Restructuring Update

The Company is lowering its cost estimates for previously announced restructuring activities which began in 2009 by $10 million to $25 million, and now expects the restructuring to result in total one-time charges of $495 million to $510 million into 2012, including charges of $85 million to $95 million in 2011. The Company expects to realize savings of $210 million to $230 million in 2011, and $275 million to $295 million in 2012, from restructuring activities initiated since early 2009. Upon completion of the restructuring activities, Harley-Davidson continues to expect to realize annual ongoing savings of $290 million to $310 million, beginning in 2013. In 2010, the Company incurred restructuring charges of $164 million and realized savings of $172 million.

The Company and the unions representing its production employees in Kansas City, Mo. are scheduled to begin negotiations this week on a new labor agreement to replace the current contract which is set to expire in July 2012. The Company has advised the unions that the Kansas City operations must become more competitive and flexible if those operations are to remain viable. The Company expects to make a decision on the future of the Kansas City operations in early March 2011, and will provide any updated cost and savings information at such time as it discloses a final decision.

Income Tax Rate

For the full year 2010, the Company’s effective income tax rate from continuing operations was 33.5 percent, compared to 60.5 percent in 2009. The 2009 effective tax rate was unfavorably impacted by a one-time tax charge related to a Wisconsin tax law change and a non-deductible goodwill charge. In 2011, the Company expects its full-year effective tax rate from continuing operations to be approximately 35.0 percent.

Cash Flow

Cash and marketable securities totaled $1.16 billion as of Dec. 31, 2010, compared to $1.67 billion at year-end 2009. For the full year 2010, cash provided by operating activities from continuing operations was $1.16 billion, compared to $609.0 million in 2009, and capital expenditures were $170.8 million in 2010, compared to $116.7 million in 2009. In December 2010, Harley-Davidson repurchased $297.0 million (face value) of senior unsecured notes more than three years ahead of their Feb. 14, 2014 maturity date, at a price of $380.8 million, using cash on hand, and subsequently retired the debt. If held to maturity, Harley-Davidson would have incurred approximately $438 million in principal and interest payments over the remaining life of the notes.

Discontinued Operations

In the third quarter, the Company completed the divesture of its MV Agusta subsidiary. For the full year, Harley-Davidson incurred a $113.1 million loss, net of tax, from discontinued operations, comprised of operating losses as well as fair value adjustments. Including discontinued operations, the Company reported earnings per share of $0.62 for the full year.

Company Background

Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Harley-Davidson Financial Services (HDFS) and Buell Motorcycle Company (Buell).

Conference Call and Webcast Presentation

Harley-Davidson will discuss fourth-quarter results on a Webcast at 8:00 a.m. CT today. The Webcast presentation will be posted prior to the call and can be accessed at Click “Events and Presentations” under “Resources.”

Forward-Looking Statements

The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) execute its business strategy, (ii) effectively execute the Company’s restructuring plans within expected costs and timing, (iii) successfully achieve with our labor unions flexible and cost-effective agreements to accomplish restructuring goals and long-term competitiveness, (iv) manage the risks that our independent dealers may have difficulty obtaining capital and managing through unfavorable economic conditions and consumer demand, (v) manage supply chain issues, (vi) anticipate the level of consumer confidence in the economy, (vii) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, (viii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (ix) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (x) manage production capacity and production changes, (xi) provide products, services and experiences that are successful in the marketplace, (xii) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (xiii) sell all of its motorcycles and related products and services to its independent dealers, (xiv) continue to develop the capabilities of its distributor and dealer network, (xv) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (xvi) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (xvii) adjust to healthcare inflation and reform, pension reform and tax changes, (xviii) retain and attract talented employees, (xix) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation, and (xx) implement and manage enterprise-wide information technology solutions and secure data contained in those systems.

In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission. Many of these risk factors are impacted by the current turbulent capital, credit and retail markets and our ability to manage through unfavorable economic conditions.

The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

Western Governors Oppose “Wild Lands” Policy

PICKERINGTON, Ohio — Western states governors have added their voices to the chorus of vocal critics of the new federal “Wild Lands” policy that gives administration officials the power to ban responsible off-highway riding on millions of acres of public land, the American Motorcyclist Association (AMA) reports.

On Dec. 22, 2010, Interior Secretary Ken Salazar signed Secretarial Order 3310 creating a new land-use designation called Wild Lands that essentially allows officials in the federal Bureau of Land Management (BLM) to manage public land as if it had received a “Wilderness” land-use designation from Congress, but without requiring congressional approval.

A Wilderness designation is one of the strictest forms of public land management. Once Congress designates an area as Wilderness, nearly all forms of non-pedestrian recreation are illegal. The AMA supports appropriate Wilderness designations that meet the criteria established by Congress in 1964, but anti-access advocates have been abusing the legislative process to ban responsible off-highway vehicle (OHV) recreation on public land.

In December, the AMA and OHV enthusiasts won an important battle when U.S. Senate Majority Leader Harry Reid (D-Nev.) dropped his effort to pass a massive omnibus public lands bill that would have inappropriately designated millions of acres of public land as Wilderness. With the new “Wild Lands” policy, anti-access advocates are now seeking an end-run around Congress.

Federal lawmakers quickly called the Wild Lands policy a “land grab” and a blatant attempt to usurp congressional authority. Off-highway riders sporting “Stop the Land Grab” stickers produced by the AMA and distributed by the Utah Shared Access Alliance (USA-ALL) turned out in droves for a meeting of Utah’s Governor’s Council on Balanced Resources that featured BLM Director Bob Abbey trying to explain the new policy.

Ed Moreland, AMA senior vice president for government relations, sent a letter to Salazar asking him to explain whether the new Wild Lands land-use designation will block traditional routes of travel for off-highway riding. It can be viewed at

Governors who have come out against the Wild Lands policy include Wyoming’s Matthew Mead, Idaho’s C.L. “Butch” Otter and Utah’s Gary Herbert.

“This letter is to advise you that I firmly oppose Secretarial Order 3310, which was released just before the Christmas holiday and while many gubernatorial offices, like mine, were in a state of transition,” Mead wrote to Salazar on Jan. 17. “Though you will seek feedback from state BLM offices prior to issuing final agency guidance, the opportunity for public input on the policy itself was never afforded.”

Mead sent on to say that the people of Wyoming “want and deserve” a say in land-management policies that affect them.

Otter, meanwhile, called on Salazar to immediately withdraw the order.

“Without any state or public input, the Interior Department has circumvented the sovereignty of states and the will of the public by shifting from the normal planning processes of the Federal Lands Policy and Management Act (FLPMA) to one that places significant and sweeping authority in the hands of unelected federal bureaucrats,” Otter said in a letter to Salazar.

In asking Abbey to appear before the Governor’s Council on Balanced Resources, Utah’s Herbert complained: “There was no policy discussion with the state. There was no formal notice this was being considered. The federal government suddenly administratively locked up additional Utah lands without even consulting us, and we want an explanation.”

Herbert remained opposed to the Wild Lands policy following the Jan. 14 meeting.

Salazar’s order has far-reaching implications because the BLM manages about 245 million acres of public land nationwide, primarily in western states.

Under Salazar’s order, BLM officials will look at the land they manage and decide which land should be labeled “Lands With Wilderness Characteristics.” Once those decisions are made, the officials will go through a public land-use planning process before designating land as “Wild Lands.”