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MAY 2008

HARLEY-DAVIDSON EMPLOYEES IN WISCONSIN APPROVE NEW LABOR AGREEMENTS

Milwaukee, WI April 4, 2008 -- All three unions representing Harley-Davidson (NYSE: HOG) employees in Wisconsin voted today to ratify new collective bargaining agreements with the Company. The new four-year agreements, which cover approximately 2,210 employees, became effective retroactive to April 1.

The Company has individual labor agreements with United Steelworkers (USW) Local 2-209, representing about 1,700 employees and International Association of Machinists and Aerospace Workers (IAM) Lodge 78, representing about 150 employees, in the Milwaukee area; and with USW Local 460 in Tomahawk, Wis., which represents about 360 employees.

“Harley-Davidson has a long history of working with our union partners to manage the business. We thank our employees and the union leaders for their important contributions to the success of these negotiations and to the success of Harley-Davidson,” said Harold Scott, Harley-Davidson Vice President, Human Resources.

“The new contracts balance Harley Davidson’s need to responsibly manage our business for the long term in a competitive global market with our desire to continue to provide a strong wage and benefits package for employees,” Scott said.

In addition to improvements in wages, the new contracts provide for the establishment of Health Reimbursement Arrangements (HRA) for bargaining unit employees, under which they can use HRA dollars to help pay for out of pocket health care costs. Other health care plan provisions are designed to moderate the rise in plan costs yet maintain Harley-Davidson’s position as a provider of top-tier health care benefits.

Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, Inc. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport motorcycles in addition to motorcycle parts, accessories and apparel. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.

TRIUMPH OPENS UP NEW MOTORCYCLE MARKET, REPORTS SAYS

Triumph Motorcycles has entered the Middle East, according to several published reports.

Triumph will begin shipping motorcycles to a Quatar dealer, Alfardan Motorcycles, according to the published reports.

Although the motorcycle manufacturer is clearly looking at new markets, company directors are looking at the world’s more traditional markets for the majority of their future growth. Tue Mantoni, Triumph’s commercial director, previously told Powersports Business that the company expects its biggest growth to occur in Italy, Germany, France and North America.

APRIL 2008

Dude, I think we picked the wrong bar
SYDNEY, Australia -- An armed robber picked the wrong target when he raided an Australian bar where a biker gang was holding a meeting. He ended up hog-tied and in a hospital. The man and an accomplice, wearing ski masks and waving machetes, stormed into a club in a western Sydney suburb shortly before 9 p.m. Wednesday and yelled at patrons to lie down as they tried to rob the cash register, police said Thursday.

About 50 members of the Southern Cross Cruiser Club had just started a club meeting in another room, and the bikers jumped up to intervene. One robber escaped by leaping over a balcony, while the other tried to flee through a service entrance, the club's president, who identified himself only as "Jester," told Australian Broadcasting Corp.

"We caught him at the fence and crash-tackled him and hog-tied him to the ground and waited for the police to get there," Jester said.

Police confirmed that club patrons had subdued one of the robbers, who was taken to a hospital with minor injuries, but did not give further details. Police captured the other suspect nearby. Jester said the robbers had walked past the bikers as they entered the bar but apparently failed to notice them, perhaps because the sk masks obscured their vision.

"I don't think he did his homework very well," Jester said of the ringleader. "He picked the wrong night."

Motorcycle safety training funds under attack
PICKERINGTON, Ohio--U.S. Transportation Secretary Mary Peters reaffirmed her desire to lobby states for mandatory helmet-use laws in testimony before the U.S. Senate Appropriations Committee Transportation Subcommittee on March 6, the American Motorcyclist Association reports.

Peters' testimony follows letters she sent in February to U.S. House and Senate leaders urging Congress to allow states to divert federal money away from motorcycle safety training and awareness programs and instead push for mandated helmet use.

Under federal law, the U.S. Transportation Department is barred from lobbying for or against specific state laws. That measure was passed by Congress at the request of motorcyclists who specifically wanted to prevent the federal government from lobbying for mandatory helmet laws. But when asked whether she would support an exemption to the law to allow her department to lobby the states for mandatory helmet laws, she said she would.

"I support giving the information to states so that they can act on those laws," Peters testified. "And I certainly have made myself available to a number of states, and, in fact, have called governors when I see substantial increases in the number of motorcycle deaths in a state, especially a state that has repealed a helmet law."

Peters is pushing to move funds out of motorcycle safety training and awareness even though the money was specifically approved by Congress at the request of motorcyclists who wanted to beef up the nation's motorcycle safety training and awareness efforts.

In February, in response to the letters Peters wrote, Ed Moreland, AMA vice president for government relations, expressed concern that diverting federal motorcycle safety funds to mandate helmet use could harm rider training courses and motorcycle awareness programs that are already underfunded in many states. At that time, he also expressed concern that Peters' proposal could contradict sections of transportation bills passed in 1998 and 2005 that ban the use of federal motorcycle safety funds to lobby state legislatures in favor of mandatory helmet laws and could effectively reverse that ban.

"Banning the federal government from lobbying for mandatory state helmet laws was the very reason Congress passed this measure in the first place," said Moreland. "What Peters is asking for is not an exception to the rule, it's an example of an exception completely circumventing the rule." Moreland believes Peters is willing to push for mandatory helmet laws at the expense of rider training and awareness programs designed to teach motorcycling skills that would prevent crashes from occurring in the first place.

"This latest testimony reaffirms our fears--that the U.S. transportation secretary wants to lobby for mandatory helmet laws by diverting funding specifically set aside for motorcycle safety training and awareness to further her mandatory helmet-use agenda," Moreland said. "Helmet use is certainly one part of a comprehensive approach to motorcycle safety, but the use of motorcycle helmets is already advocated in existing motorcycle safety training programs," Moreland said. "Congress decided to fund motorcycle safety training and awareness programs at the request of the motorcycling community. This effort by Secretary Peters to divert money away from those programs is an attempt to circumvent the wishes of Congress and those motorcyclists nationwide who wanted to specifically augment rider training and awareness programs," he said.

The American Motorcyclist Association: rights. riding. racing. Founded in 1924, the AMA is a non-profit organization with 290,000 members. The Association's purpose is to protect and promote the interests of motorcyclists, while serving the needs of its members. For more information, visit the AMA website at www.AMADirectlink.com.

Recalls Motorcycles for Faulty Brake Lines
The Harley-Davidson motorcycle company is recalling 5,947 2005 to 2007 FLHP, FLHPI, FLHTP, FLHTPI, FLHPE AND FLHPEI Police and Escort motorcycles equipped with anti-lock brake systems.

“Inconsistencies in the routing of the brake lines can cause abrasion of the lines and hoses,” according to the National Highway Traffic Safety administration. “This condition has caused brake fluid leaks,” according to NHTSA. The safety agency reported on its web site that “loss of brake fluid could lead to loss of brake function, which could lead to a crash resulting in injury or death.”

Harley-Davidson dealers will inspect and replace brake lines on the motorcycles “if necessary,” NHTSA reported. “Brake line retention and clutch cable position devices will also be installed to prevent future abrasion to the brake lines,” the agency said.

The Harley-Davidson recall is expected to begin “on or about March 10, 2008,” according to NHTSA. Owners may contact the motorcycle company at 1-414-342-4680 or NHTSA at 1-888-327-4236 (TTY 1-800-424-9153).

Honda will cease motorcycle production in United States
Automaker says 13,000 workers at Ohio plants will get other duties. Honda Motor Co. plans to stop producing motorcycles in the United States next year and will transfer production to Japan, the automaker announced Wednesday.

Honda currently makes motorcycles at its plant in Marysville, Ohio, employing 450 workers.

Honda said there will be no layoffs when production ends in spring 2009. The workers will remain with the company, helping produce cars, trucks, engines and parts and filling other jobs at Honda's other operations in west-central Ohio.

The motorcycle plant opened in 1979 as Honda's first U.S. plant. Last year, it made 44,000 Gold Wing touring and VTX cruiser bikes.

Honda said motorcycle production at the Marysville plant and at the Hamamatsu factory in Japan will be consolidated at a new motorcycle plant in Kumamoto, Japan, in 2009. It is part of a global plan to produce certain larger motorcycles, Honda said.

''This move allows us to improve the competitive-ness and appeal of our products by applying the latest technologies and production systems at one efficient location,'' said Akio Hamada, president and CEO of Honda of America.

Honda employs about 13,000 workers at five plants in Ohio — two in Marysville and one each in East Liberty, Anna and Russells Point. Besides motorcycles, workers make the Accord, Civic, Element, CR-V, Acura TL and RDX sport-utility vehicle.

New York City Transportation Department thumbs nose at federal law
PICKERINGTON, Ohio -- In one of the most outrageous acts the American Motorcyclist Association has seen in years, the New York City Transportation Department defiantly refuses to change its rules so that they comply with federal law to allow motorcycles to use high-occupancy-vehicle (HOV) lanes.

The department states that it won't change its rules to comply with federal law because the New York City Police Department opposes the change. But transportation officials refuse to explain the police opposition despite numerous attempts by the American Motorcyclist Association to get an explanation.

The Police Department opposition was supposed to have been recorded, but wasn't, in a public forum--a city Transportation Department hearing that was held Sept. 12, 2007 to change department rules related to motorcycle use of HOV lanes to comply with federal law. The rule change was to go into effect within 60 days of that hearing.

"New York City's public servants are intentionally ignoring a law passed by the American people's elected representatives in the U.S. Congress," says Imre Szauter, AMA legislative affairs specialist, who has been trying to get answers from New York City transportation officials on the HOV-motorcycle issue.

"Because the New York City Transportation Department refuses to change its rules, every American motorcyclist faces tickets and fines when riding in New York City HOV lanes," Szauter continues. "This is outrageous and totally unacceptable. Karen Perrine of Staten Island, New York, suffered through a two-and-a-half-year nightmare because of a ticket she got on Oct. 26, 2005 while riding her Yamaha FZ1 motorcycle in a New York City HOV lane."

The New York Department of Motor Vehicles Appeals Board, in a letter dated February 15, 2008, agreed that Perrine was within her rights to use the Brooklyn-Queens Expressway HOV lane when she was pulled over and ticketed for an HOV lane violation. The board reversed her conviction and removed it from her driving record. Perrine, however, is afraid to use the HOV lane again.

"When I opened the envelope from the Appeals Board I felt some satisfaction in having the conviction reversed, but it's been extremely unfair to me that I have had to sit for over a year and a half with the points from this ticket on my driver's license, while I waited for a decision from the Appeals Board," Perrine says. "I was not breaking the law.

"In the last year and a half, those points have made me eligible for a new $300 New York Drivers Assessment Fee and led to the cancellation of my auto insurance policy. The total cost of this ticket including the appeal, the Drivers Assessment Fee and the replacement auto insurance policy has been $1,270," she says.

"When I attended a public hearing at the New York City Department of Transportation in September 2007, and read a statement about my ticket and traffic court hassles, I thought that I was helping to change the local traffic laws and prevent other bikers from suffering as I have," she says. "The New York City Department of Transportation had drafted an amendment that would make local traffic rules comply with the U.S. Code, finally. The new rules were to take effect by this spring."

In recent years, motorcyclists in Phoenix and Pittsburgh also were ticketed for riding in HOV lanes. But those tickets were dismissed when the ticketed motorcyclists and the American Motorcyclist Association pointed out that federal law allows motorcycles in HOV lanes. In fact, Pittsburgh even put up signs allowing motorcycles in HOV lanes after officials there were informed of the federal law.

The U.S. Code governing HOV lanes--Title 23, Section 166 (23USC166)--states agencies that govern HOV lanes must allow motorcycles to use the lanes unless they prove motorcycles pose a safety hazard on the lanes, and that proof is accepted by the U.S. Transportation Secretary following a Federal Register notice and public comment period on the ban.

The American Motorcyclist Association: rights. riding. racing. Founded in 1924, the AMA is a nonprofit organization with 290,000 members. The Association's purpose is to protect and promote the interests of motorcyclists, while serving the needs of its members. For more information, visit the AMA website at www.AMADirectlink.com.
James also added that he hopes paying the fine will “bring to light that California has a flawed system when it comes to its Clean Air Agencies and the policies and practices they use.”