U.S. Motorcycles to Rev Up in China?

Many American manufacturing companies are trying to break into the Chinese market. With about a billion people, the idea of selling goods in China is an attractive one, but the GLRC’s Christina Shockley has the story of one company that’s having a hard time reaching Chinese citizens. That’s because local environment and safety regulations often stand in the way:

Transcript

Many American manufacturing companies are trying to break into the Chinese market.
With about a billion people, the idea of selling goods in China is an attractive one, but
the GLRC’s Christina Shockley has the story of one company that’s having a hard time reaching
Chinese citizens. That’s because local environment and safety regulations often stand in the way:


Motorcycle maker Harley-Davidson opened a dealership in Beijing in April. It’s the
company’s first shop in China in at least 60 years.


Robert Kennedy is Executive Director of the William Davidson Institute at the University
of Michigan. The institute studies business and policy issues in emerging markets.
Kennedy says there’s a huge demand in countries like China for products associated with
the American way of life. He says Harley-Davidson motorcycles are a prime example:


“I mean, they’re associated with a particular lifestyle here, it’s a very American thing.
And they have very low penetration in China and India, and these other countries now,
but because there’s slowed demand growth in the US, if they want to grow, that’s a great
place for them to go.”


Kennedy says it’s very common for companies to try to ease restrictions in other
countries to make it easier for them to export goods and there are several restrictions on
motorcycles in China. The rules vary from community to community, but most large
cities ban, or severely limit, motorcycle use in the city center.


Experts say the rules are in place partly because of safety and environmental issues.
Barrett McCormick specializes in Chinese politics at Marquette University. He says
environmental problems can be intensified because Chinese roads are clogged, and most
motorcycles there are dirty:


“Anyone who’s been to China 10 years ago or something, a common site is some horrible
little motorcycle putting down the road, with a big cloud of smoke behind it, and I think that’s
the kind of thing that the Chinese government has regulated to eliminate.”


McCormick says air quality is one of China’s most pressing problems. A recent report
from the World Health Organization says many of the most polluted cities in the world
are in China. It says one of the main sources of air pollution there is motor vehicles
emissions.


Zhixin Wu is with a company that’s working with government agencies to develop
Chinese transportation policies. He says emissions from dirty, small motorcycles in
china account for roughly 50 or 60 percent of emissions in urban areas:


“In China almost all the motorcycles use the two stroke internal combustion engine.”


Wu says that type of small engine is very dirty. But, Harley-Davidson says those bikes
are a far cry from the motorcycles it produces:


“The motorcycles in use in China, I guess I wouldn’t even characterize them as
motorcycles. I would call them two-wheelers.”


Tim Hoelter is the company’s Vice President for International Affairs. He says Harley
bikes easily meet environmental regulations in every market in which they’re sold. And
Hoelter says the company is working with officials in the United States and China to get
this point across:


“Not too long ago the Chinese ambassador to the United States came to Milwaukee and
met with local business people. I sat two seats away from him at dinner, and was able to
talk to him about these riding bans.”


Hoelter says the company is also meeting with American trade officials, and authorities
in the Chinese government, to get the rules changed. He says his company has already
helped ease motorcycle restrictions in other countries, such as Vietnam and India.


Robert Kennedy, from the William Davidson Institute, says Harley-Davidson will
probably be able to get the rules changed in a few years, assuming the regulations have
the inadvertent affect of keeping out Harley motorcycles. He says China has a huge trade
surplus with the United States, and that’s a sensitive political issue.


Kennedy says it’s not unusual for countries to have rules that keep foreign goods out,
even if that’s not their intent:


“The US has some of these regulations that keep out other countries products, and other
countries have regulations that keep out our products. It’s not like under the Romans or
the British where a country would send in the army and force them to buy our goods, it’s
just governments working together to sort out the details to allow trade to happen.


Kennedy says even though most Chinese wouldn’t be able to afford Harley motorcycles,
there are many who could, and as people there become more wealthy, the possibility
exists for a huge market.


For the GLRC, I’m Christina Shockley.

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Harley-Davidson Pushes for Ride in China

Motorcycle maker Harley-Davidson wants China to relax its restrictions on motorcycle use in big cities. The company says that’s the only way its new dealership will be successful in the country long-term. The GLRC’s Christina Shockley reports:

Transcript

Motorcycle maker Harley-Davidson wants China to relax its restrictions
on motorcycle use in big cities. The company says that’s the only way its
new dealership will be successful in the country long-term. The GLRC’s
Christina Shockley reports:


Sound of motorcycle)


Harley-Davidson has opened a new dealership in Beijing hoping to sell
its motorcycles in China, but China limits motorcycle use and ownership
in big cities because of safety concerns and environmental issues.


Tim Hoelter is a vice-president with Harley-Davidson. He says the
company hopes the restrictions will change, over time.


“We of course are hopeful that working with our government partners in
Washington, and working cooperatively with the Chinese ministries to
understand the basis for these bans that over time we can overcome
them.”


Hoelter says the company has been successful in changing bans in other
countries, including Japan… by working with the foreign and U.S
governments.


For the GLRC, I’m Christina Shockley.

Related Links

Rust Belt City Desires High Tech Future

  • Wheels are turning both in young minds and innovative transportation. Both could help revive the Rust Belt. (Photo by Max Eggeling)

The loss of traditional manufacturing jobs has hit Great Lakes states hard in recent years. But some business owners believe they are on the cusp of creating a new type of manufacturing base. The Great Lakes Radio Consortium’s Julie Grant spent some time in one community that’s discussing how new businesses can provide a foundation for the future:

Transcript

The loss of traditional manufacturing jobs has hit Great Lakes states hard in recent
years. But some business owners believe they are on the cusp of creating a new type of
manufacturing base. The Great Lakes Radio Consortium’s Julie Grant spent some time in
one community that’s discussing how new businesses can provide a foundation for the
future:


Not long ago, there were lots of good-paying factory jobs in northeast Ohio. But the state
has lost 200,000 manufacturing jobs in the past four years. Some business people and
academics are trying to shape a new economy for the region. Their efforts could be
symbolized by a little bird…


“I need a Sparrow, I need it…”


A sparrow is an electrically charged three-wheel motorcycle that’s fully covered in steel.
It looks like a tear drop… or maybe a gym shoe. David Ackerman isn’t sure if he’d pick
one in bright orange…


“…but look, there it goes, look at it go! Is that the weirdest thing you’ve ever seen? I
love it! It’s like something out of “sleeper.” But it’s very sleek and cool and futuristic…
Does it really go 70? Yeah, it goes 70….”


While Ohio and other Midwestern states might have a tough time competing globally in
the steel market, some economists believe innovative transportation is one way Ohio
could build a foundation for a new economy. The state has put millions of dollars into
fuel cell research, Honda is building hybrid cars in central Ohio, and newer companies
are working to make auto engines cleaner and more efficient.


Some of those business owners gathered with people from the community to discuss how
transportation technology could be part of the region’s future. Bob Chalfant of a
company called Comsense spoke on the panel. He says the technology they’re
developing could have a huge impact…


“…the benefits to Cleveland are jobs. We figure the total market for pressure sensors for
combustion applications is about 2.2 billion dollars.”


Chalfant’s company expects to create 2,000 jobs in Cleveland. But if businesses like
Comsense are going to girder the area’s new economy, they’re going to need educated
employees for their high tech manufacturing jobs. The problem is, many young educated
folks are leaving the Midwest.


Meredith Matthews is a public school teacher in inner city Cleveland. She says they’re
trying to train students for these kinds of jobs, but they need direction from these new
companies…


“I teach in the third world known as the Cleveland Public Schools. I’m introducing
myself, so that if anybody needs kids, we got ’em. If you want to stop by and talk to me,
I’ll show you how to get kids, I’ll show you how to get in the door.”


Local universities and community colleges already have some research and training in
fuel cell technology. But mechanic Phil Lane looks at Cleveland’s poverty rate, the
highest among all big cities in the nation, and wants these companies to start training kids
even younger…


“We need to grab kids in the second and third grade, particularly in the very bad
neighborhoods, before the neighborhood can get to the kid. That’s what we really need to
do.”


Lane says training poor children early would provide a real foundation for a new
economy in Cleveland. Many communities that have lost their job base are starting
similar conversations and searching for ways to fit in to the global marketplace.


For the Great Lakes Radio Consortium, I’m Julie Grant.

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Bikers Gear Up for Epa Battle

  • Some motorcycle riders are concerned that the U.S. Environmental Protection Agency is unfairly targeting bikers with a proposal to reduce motorcycle emissions. Illustration courtesy of ABATE of Illinois.

The Environmental Protection Agency wants to clean up pollution from motorcycles. Motorcycle enthusiasts don’t want the government telling them how to operate their street bikes. It’s become a battle between bikers and bureaucrats. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

The Environmental Protection Agency wants to clean up pollution from
motorcycles. Motorcycle enthusiasts don’t want the government telling
them how to operate their street bikes. It’s become a battle between
bikers and bureaucrats. The Great Lakes Radio Consortium’s Lester
Graham reports:


(pipe sound #1)


Bikers turn their heads when they hear a pair of exhaust pipes cackling
by. The sound catches their attention as much as the style and chrome on
the motorcycle. Bikers such as Neil Toepfer say making changes such as
with exhaust pipes are a part of the culture of motorcycle enthusiasts.


“That’s how we express ourselves, making changes on the bike that make
it even more fuel efficient or perform the way that we the rider want it to perform.”


And the sound of the bike is a big part of identity for many riders.


(pipe sound #2)


But motorcycle riders such as Toepfer say they’re concerned about an
Environmental Protection Agency proposal that would crack down on
motorcycle exhaust systems. Toepfer and others have gone so far as to
ride their bikes to Washington to let Congress know they oppose the
EPA messing around with their freedom to modify their bike pipes.


“The thing with the EPA… and I’m probably going to get
somebody’s nose out of joint when I say this… but the EPA is just a
government agency. They don’t answer to the people. They don’t listen to
the people. They’re bureaucrats that have their own agenda.”


Toepfer is being mild compared to what some other bikers are saying
about the EPA. There seems to be a bit of a culture clash. A poster on
the internet by one motorcycle riders association depicts a mock-up of
an assault rifle toting EPA official in riot gear. The caption reads “He’s
from the Government, but he’s not here to help.” It goes on to read “He’s
here to take your heritage. He’s here to take your freedom. He’s here to
take your motorcycle.”


Many bikers say they don’t understand why the EPA is going after their
motorcycle exhaust pipes…


(pipe sound #3)


Mike Hayworth is the owner of Watson’s Wheels of Madness, a custom
motorcycle shop in Alton, Illinois. He suspects the problem is either the
government bureaucrats don’t have enough to do… or do-gooders who
can’t mind their own business…


“These environmentalist people, they want to rule our lives
and they’re going to take and do whatever they can to say ‘We got to stop
this and we got to stop that.’ What kind of pollution does a motorcycle –
there’s not enough motorcycles in the United States to pollute anything.”


That same argument is being made in Washington, D.C. Thomas Wyld is
a lobbyist with Motorcycle Riders Foundation. He says a study by the
California Air Resources Board found that street bikes were only
responsible for six one-thousandth of a percent of all motor vehicle
emissions.


“And if you took that pollution inventory of motor vehicles and
made it equivalent of a 100-yard football field, street motorcycles would
occupy a quarter of an inch on that field.”


Wyld adds that motorcycles are fuel efficient, reduce traffic congestion,
and take up less parking space. Wyld says those are things the EPA
should be encouraging instead of pestering bikers with exhaust
emissions restrictions.


(pipe sound #4)


The EPA is a little baffled by all the noise about the emissions proposal.
Don Zinger is with the EPA’s Office of Transportation and Air Quality.
He says the bikers don’t understand the proposal…


“These new requirements will have absolutely no effect on
existing motorcycles.”


Zinger says any new restrictions on exhaust systems would only affect
new motorcycles that come off the assembly line after the restrictions are
implemented… probably four years from now.


And Zinger notes… motorcycles pollute a lot more than most people
realize.


“A typical motorcycle built today produces about 20 times as
much air pollution as a new car today over every mile that’s driven. 20
times. That’s pretty significant.”


So, the EPA says street motorcycles should be made to pollute less, as
the EPA has required many other types of vehicles to do.


Many bikers believe the EPA is targeting street motorcycle riders
because they’re a small segment of society with a reputation of being on
the wild side. EPA officials say bikers won’t notice a difference in the
sound or performance of the bikes under the proposed emissions
restrictions… but it will mean they’ll pollute less.


(bike pipes leaving the scene)


For the Great Lakes Radio Consortium, this is Lester Graham.

BIKERS GEAR UP FOR EPA BATTLE (Short Version)

  • Some motorcycle riders are concerned that the U.S. Environmental Protection Agency is unfairly targeting bikers with a proposal to reduce motorcycle emissions. Illustration courtesy of ABATE of Illinois.

The Environmental Protection Agency is considering new rules to reduce pollution from motorcycles. The EPA says street bikes pollute far more than cars or even SUVs:

Transcript

The Environmental Protection Agency is considering new rules to reduce
pollution from motorcycles. The EPA says street bikes pollute far more
than cars or even SUVs. The Great Lakes Radio Consortium’s Lester Graham
reports:


The EPA’s proposal would require new motorcycles to substantially
reduce exhaust emissions. The EPA says the average new motorcycle
pollutes 20 times more than the average new car. Don Zinger is with the
agency’s Office of Transportation and Air Quality.


“The motorcycle standards have been in place since 1980. In
other words, they have not been changed in 22 years now. So, we think it’s
appropriate to consider more stringent standards for motorcycles.”


Bikers are concerned that the emissions restrictions will affect the
performance of motorcycles. They also say the EPA is trying to take
away their right to change how their bikes sound. Many bikers feel the
rumble of their motorcycle is a statement of their individuality. EPA
officials say they just want the motorcycles to pollute less.


For the Great Lakes Radio Consortium, this is Lester Graham.