Uneasy Rider

Harley pleads for relief

Harley-Davidson Motor Co., the sole surviving U.S.-born and -bred motorcycle maker, is feeling wobbly. Last week H-D officials pleaded with the U.S. International Trade Commission hi Washington for import protection against Japanese-made bikes. Since 1978, argued H-D Chairman Vaughn Beals, Harley has lost more than a third of the so-called big-bike market (engines of more than 700 cc displacement), chiefly to Yamaha, Suzuki, Kawasaki and Honda.

In many cases, the Japanese machines cost less than the well-crafted but expensive Harleys. Since 1977 Harley's prices have gone up about 60%, those for Japanese bikes only 40%. Barley's list price for its top-of-the-tine touring model is $8,655; the comparable Honda Aspencade is $6,998. Prices are being kept down artificially, charges Beals, "to dominate foreign markets." What is more, says Beals, the Japanese have glutted the U.S. market, which is sensitive to unemployment among young males, by exporting far more bikes than dealers could sell during the recession.

One result of the two-wheeled skid: H-D's work force has been chopped 40%. The company has asked the International Trade Commission for an average tariff of 40% on Japanese bikes for five years. That, contends HD, would narrow the price gap between Harleys and Japanese bikes to what it was in 1977 before the Japanese began holding down prices. A favorable ITC ruling would not give Harley an open road. President Reagan, a foe of import controls, must decide what relief, if any, Harley gets.

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