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Harley Davidson, a well-known brand in motorcycling industry based in Milwaukee has come under a conviction of generating pollution above the regulated levels in a government hearing recently. The fine charged sums up to 12 million USD which the company has agreed to pay without creating much noise as a 'good faith' compromise.
This accusation has created a lot of buzz everywhere which also saw a decline in the share market. Harley Davidson came to 1.7 percent down to Dollar 53.58 after cutting 90 cents. Surprisingly, the shares were as down as 8 percent before the settlement when the accusation first came into being in U.S. lawsuit filed in Washington DC. But with a quick action by the biking giant, the shares surged again.
The case here is affiliated with the after market devices 'super tuners' which the company has been selling for many years into the US region. The allegation stated that Harley-Davidson has sold more than 340,000 since 2008 which are used in increasing the performance and power of the bike but on the same hand violates the CAA (Clean Air Act) of the federal government.
U.S. Justice Department said on Thursday that “Harley-Davidson Inc has agreed to pay a $12 million civil fine and stop selling illegal after-market devices that cause its motorcycles to emit too much pollution.”
The said 'super tuners' were considered very lethal to the environment and the court ordered the company to destroy all of them available as soon as possible and given a timeline of 23 August to stop the sales completely.
In another hearing, Harley-Davidson also found guilty of selling around 12,600 bikes which did not comply with the clean air governance i.e. EPA certification. The toxins notably hydrocarbons and nitrogen oxides were the main particles which caught the attention of EPA when they were on their routine inspection.
Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance told that "This settlement immediately stops the sale of illegal after-market defeat devices used on public roads that threaten the air we breathe,"
In another statement, John Cruden, head of the Justice Department's environmental and natural resources division said, "Given Harley-Davidson's prominence in the industry, this is a very significant step toward our goal of stopping the sale of illegal after-market defeat devices that cause harmful pollution on our roads and in our communities,"
Recently the same revelation also came from the reputed Volkswagen AG admitting for using fallacious software to manipulate U.S. emission standard in approx 600,000 vehicles in U.S. alone which has created a dark question mark on emission policies.
In their support, the company stated that they have been selling their products in confirmation with regulatory bodies and the tuners were perfectly OK to be used with the racing environment and events held up in united states.
California Air resource Board has strictly rolled out the authoritative implication on Harley Davidson that from now onwards every tuner must be certified and the tuners which are exported must contain labels of 'not for use in the United States'.
Justice board also informed that the company will be spending 3 million USD on a project for the pollution safety cause whereas, Harley Davidson was not contended with the viewpoint of EPA but still accepted all the conditions, obligations and the penalty for a better reason.
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