HOG Slaughtered: Harley Davidson Tumbles After US Accuses It Of Evading Emissions Requirements
Until now, the emissions scandal revealed one year ago involving first Volkswagen (VLKAY) and then countless other companies using "defeat devices" to evade emissions requirements, was contained to the car space. That changed moments ago when the U.S. government alleged in a lawsuit that Harley-Davidson's (HOG) “Screamin’ Eagle” after-market engine tuners are emissions-control defeat devices, and accused the motorcycle maker of violating federal air pollution laws.
- U.S. ACCUSES HARLEY-DAVIDSON OF SELLING MOTORCYCLES WITH "DEFEAT DEVICES" DESIGNED TO EVADE EMISSIONS REQUIREMENTS
- U.S. FILES CLEAN AIR ACT LAWSUIT AGAINST HARLEY-DAVIDSON INC HOG.N -- COURT FILING
- LAWSUIT FILED IN FEDERAL COURT IN WASHINGTON, D.C.
- U.S. ACCUSES HARLEY-DAVIDSON OF VIOLATING CLEAN AIR ACT AND ON-HIGHWAY MOTORCYCLE REGULATIONS
- U.S. ACCUSES HARLEY-DAVIDSON OF SELLING MOTORCYCLES WITH "DEFEAT DEVICES" DESIGNED TO EVADE EMISSIONS REQUIREMENTS
The Milwaukee-based company sold more than 339,000 of those devices from 2008 to 2015, according to a complaint filed Thursday at a U.S. court in Washington. The government seeks a court order barring the company from making, selling or installing the tuners on bikes certified as emissions compliant, plus financial penalties.
The stock is tumbling.
Disclosure: None.
These devices are not "defeat devices". They are tuners. They are used when upgrading to higher performance components like high flow air intake and exhaust systems or engine upgrades. Tuning a motorcycle quite a bit different than it is with a car. Anyone who has installed performance upgrades in their car has had adjustments made to the onboard computer. That is essentially what these device do. If the bike isn't tuned to a narrow set of specifications engine failure will soon follow.
But even if so, if as a side effect they are allowing $HOG to evade emmissions requirements, wouldn't you say that's problematic?