Re-calibrating your KLR650 speedometer
(1987-2007 Models. 2008 and up are similar but not shown.)
Here is a copy of the text that I posted to the DSN_KLR650 group back in December, 2004, now with some pictures to help along.
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THE PROBLEM:

Under the odometer face is a disc that controls the needle movement (the cup outside of it generates a magnetic torque proportional to velocity and moves the inner disc). I've colored these two parts to help you visualize what I'm trying to describe. The trick here is to do this once, not over and over again as a trial-and-error project so I wanted to establish some repeatable point before mods, then tweak until that same test resulted in a 4-to-5 mph lower reading on the workbench.

On the inner disc is a tab that protrudes. Remember that I've colored two parts here red and blue, but your parts will be silver. The tab is the easiest thing to grab on the disc, and by looking through the side (come up with the method you prefer, just be consistent!) I would center the tab at a landmark under the speedo face. While holding at this location, my daughter said it read dead on 35 mph. I did this test a few times to see if we were repeatable at getting a reading of 35, and we were.

So the goal was to tweak the needle on the shaft until this same test resulted in a 30 or 31 mph reading. You’ll note that the needle assembly is a black ‘hockey puck’ with a red/orange needle. You don’t want to break off the needle, so your goal is to apply your twisting force to the hockey puck, if you will. The forces to spin the needle on the shaft were pretty high IMO so I was cautious and it took a number of tries.

My bike was only a year old when I did this, and the needle is not as brittle as an older bike that has sat in the sun a lot. About 6 months after I recalibrated the speedo on my bike, I also conducted this procedure on a friend's 1989 KLR. As we were twisting the needle, we heard the needle break right at its base connection to the "hockey puck" – CLICK. Dang! However, we simply mixed up some epoxy and dabbed on a drop right where the crack was... and let it cure with the needle displaced to the left about 4 mph. This stabilized the needle in the new position. So this speedo reports accurately now as well - however you can visibly see the kink where the needle meets the 'hockey puck' in his speedo. The good news is that when you're riding, you simply are looking where the needle is measuring on the speedo face, and never tend to notice the kink at all.