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Harley-Davidson Success Story

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7 years ago

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The dream of every motorbike enthusiast, Harley-Davidson was founded in the year 1903 in Milwaukee, Wisconsin.  This American motorcycle manufacturing company has seen several ups and downs in its 116 year long history and is one of the two motorcycle companies to survive the Great Depression. 

Founder William S. Harley, along with his childhood friend Arthur Davidson, started working on a small engine in Davidson’s family shed.  Based on William S. Harley’s design, the duo developed the first Harley-Davidson motorcycle, which took almost 2 years to finish. The duo were then joined by Arthur Davidson’s brothers William A. Davidson and Walter Davidson and formed their company Harley-Davidson, producing a limited number of motorcycles.  Harley and the brothers then went on to build their first factory in 1906 in Chestnut Avenue, Milwaukee, where the corporate headquarters of Harley-Davidson are situated now. The Company slowly started making profits and by 1914, it was ahead of its competitor, Indian, another motorcycle manufacturing company and was producing almost 16,500 machines a year.

Harley-Davidson’s popularity rose after America entered World War I and the demand for motorcycle for war efforts increased.  Harley-Davidson sold nearly 20,000 motorcycles to the American military. Another great opportunity was World War II, when the Company sold nearly 80,000 motorcycles to the allied forces.

 

By 1920, Harley-Davidson became the largest motorcycle manufacturing company in the world, with its presence in 67 countries.  However, the Company suffered greatly during the Great Depression, when its sales plummeted from 21,000 in 1929 to 3,703 in 1933.  The Company somehow survived the Great Depression by introducing various new vehicles like a three wheeled utility motorcycle called Servi-Car, while legendary motorcycle manufacturers like Excelsior-Hendersen perished. 

Harley-Davidson stayed popular all over the world until the 1960s.  In 1969, after it was bought by American Machine and Foundry (AMF,) the Company suffered from a tarnished reputation.  The AMF fired many of the Company’s workers and reduced production, resulting in poor quality yet expensive motorcycles.  This move resulted in a decline of sales and popularity and the Company almost went bankrupt. 

Harley-Davidson gained its reputation back in 1981, after the AMF sold the Company to a group of investors, which included William A. Davidson’s grandson, Willie G. Davidson.  The new management decided to exploit the retro appeal of the Company by adopting the look and feel of the earlier motorcycles manufactured by the Company.  This was considered to be a smart move and Harley-Davidson revived its lost reputation. The Company has been growing ever since and launched various new ranges of motorcycles.

In the 21st century, Harley-Davidson established itself as one of the most respected motorcycle manufacturers in the world and became one of the strongest brands.  With a net worth of over $ 5.06 billion, Harley-Davidson has come a long way.

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