The under 750 years? Anyone remember the story and years when the Japanese had to be under 701cc?

Question

I remember Harley Davidson bikes were so crappy and they were in danger of bankrupcy they got the govt to limit j*p bikes displacement but very little else must have been around the early 80s.

Answer 1

Harley-Davidson got the Reagan administration to levy a huge import tax on any bikes that would pose  a competitive threat to their poorly made,  out-dated, underpowered line of motorcycles.

The 700cc j*p bikes are commonly referred to as "embargo bikes".

Now, H-D depends on marketing "heritage", trendy "patriotism" and "resale value".

Answer 2

Yep, remember it clearly.  The Japanese companies were flooding the market with all the left over bikes at less than cost.  This practice is technically called "dumping" and causes unfair competition.  Harley got the tariff imposed and after that, the brand new leftover Japanese bikes sold for what a used bike of the same year would have.  This certainly killed the used j*p bike market.  However, the price of a j*p bike certainly didn't go from $3000 to $7500, not in the least.  The tariff averaged $350-$500, which was 10-15% of the cost of a new 750 bike at the time.  IN response, the Japanese down sized most of their 750's to 699cc's, thereby circumventing the tariff.  The tariff was supposed to last 5 years, but the new Harley Evo bikes sold so well that Harley asked that the tariff be lifted after 3 years.  

In short, sure, the tariff did give the newly reorganized Harley Davidson company some breathing room to get itself established.  Had the Japanese been allowed to dump new bikes at less than cost prices, you can be assured that just about every non-Japanese bike manufacturer would have gone under, American and European.  There's more to the story than you've mentioned in your post and I hope this helps.

Answer 3

Yes it was, something about the j**s flooding the market with 750 cc and over bikes and that was taking away from the Harley sales due to the  amount and price of the bikes so a tariff charge was put on all imported motorcycles 750 and over. That is about the size of it I might have missed a fact or two. I always wondered because the guy who bought a  big j*p bike was never going to buy a  Harley anyway.

Answer 4

I remember Tricky d**k Nixon being at the HD plant in York, Pa. and telling those employers how he was going to impose this tax on j*p garbage and the HD people told him they didn't need any of his help. HD could make it on their own. And they did.

Answer 5

Bikerlaw has it right except

The tariffs did not effect smaller manufacturers like Moto Guzi and BMW because they were considered low volume and therefore not a threat to HD (back then not now)

All bikes made in the USA were exempt. (at that time included HDs biggest competition Gold Wing made in Marion, Ohio and also all Kawasakis made in Lincoln, Neb)

Answer 6

Don't ya love it when greed rules out technology?

Answer 7

Early to Mid 80's, Japan had stockpiles of old bikes in warehouses, it wasn't at all odd to find "new" bikes on the showroom floor 4 or 5 years old.  

Japan was breaking into the Heavyweight Cruiser market, and a neat twin Honda was taking it all in dirttrack, the long held bastion of HD.  

HD went to the government, and produced proof they were about to unleash a multi cylinder 750 on the market, and the Japanese were killing the market.  So, All imports got a HUGE tariff for anything over 701 cc's for I think 5 years.  And we in the USA never saw that prototype...

This step increased the price of motorcycling in America.  Just before this, a sport 750 sold for about $3000.  After the tariff, $7500 and climbing fast.

Answer 8

yer something linke that