Harley 1999

HARLEY-DAVIDSON INC.

Harley-Davidson is an American motorcycle manufacturer founded in Milwaukee, Wisconsin in 1903. The company was started by William S. Harley, who developed a plan for a small engine that could be mounted on a bicycle. With the help of his childhood friends Arthur and Walter Davidson, Harley was able to complete the prototype for the engine in 1901. In 1903, the trio founded Harley-Davidson Motor Company, and by the following year, they had produced and sold three motorcycles.

Over the next several decades, Harley-Davidson continued to grow and expand, introducing new models and innovations. In 1907, the company released its first V-Twin engine, which would become a signature feature of Harley-Davidson motorcycles. In the 1920s and 1930s, the company faced tough competition from European motorcycle manufacturers, but it was able to survive and thrive thanks to its commitment to quality and innovation.

During World War II, Harley-Davidson produced motorcycles for the military, including the WLA, which became the most widely produced motorcycle in the war. After the war, the company returned to producing civilian motorcycles and experienced a boom in popularity. In the 1950s, Harley-Davidson became a symbol of rebellion and freedom, and it was embraced by the counterculture of the time.

From the 1960s to the 80s, the all-American bike manufacturer struggled to increasing competition from overseas brands once again, this time from Asian manufacturers that enjoyed significantly lower costs. As he struggled to save the motorcycle company from financial ruin in the mid-1980s, CEO Vaughn Beals got a bit of help from Uncle Sam in the form of temporary tariffs on imports of Japanese motorcycles. But the CEO’s success in preserving one of America’s strongest brands owed more to one of his insights: The real problem wasn’t the Japanese. It was Harley’s inefficient factories and slipshod quality.

As CEO for most of the 1980s, Mr. Beals declared war on defects, slashed production costs and aimed marketing at a colossal opportunity: Baby boomers, reaching middle age, were itching for a way to feel young and rebellious again, if only on weekends. Harley prodded dealers to welcome newbies, brighten their showrooms and display plenty of Harley-branded merchandise, including cologne and wine coolers.

Motorcycle buyers were invited to join local Harley Owners Groups, or HOGs, featuring group rides and instant camaraderie. Once a rider’s road companions were all Harley fanatics, switching to a Honda or Yamaha became nearly unthinkable.

“We tried to leave nothing to chance,” Mr. Beals told The Wall Street Journal in 1990. The previously family-owned motorcycle manufacturer went public in a highly oversubscribed IPO in 1986. Today, Harley-Davidson is a household name and a symbol of Americana, with a devoted fan base and a reputation for producing high-quality motorcycles.