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Harley-Davidson

 
Hoover's Profile: Harley-Davidson, Inc.
(NYSE:HOG)
Company Financials
Income Statement
Balance Sheet
Cash Flow Statement

Contact Information
Harley-Davidson, Inc.
3700 W. Juneau Ave.
Milwaukee, WI 53208
WI Tel. 414-342-4680
Fax 414-343-8230

Type: Public
On the web: http://www.harley-davidson.com
Employees: 10,100
Employee growth: 3.3%

"Put your a** on some class," reads one (not necessarily official) Harley-Davidson T-shirt. Harley-Davidson is a major US maker of motorcycles and the nation's #1 seller of heavyweight motorcycles. The company offers 35 models of touring and custom Harleys through a worldwide network of more than 1,500 dealers. Harley models include the Electra Glide, the Sportster, and the Fat Boy. The company also makes motorcycles under the Buell, MV Agusta, and Cagiva nameplates. Harley-Davidson sells attitude with its brandname products, which include a line of clothing and accessories (MotorClothes). Harley-Davidson Financial Services offers financing to dealers and consumers in the US and Canada.

Key numbers for fiscal year ending December, 2008:
Sales: $5,594.3M
One year growth: (2.3%)
Net income: $654.7M
Income growth: (29.9%)

Officers:
Chairman: Barry K. Allen
President, CEO, and Director: Keith E. Wandell
VP, Controller, and CFO, Harley-Davidson and Harley-Davidson Motor Company: John A. Olin

Competitors:
BMW
Triumph Motorcycles
Viper Motorcycle

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Company History: Harley-Davidson, Inc.
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Incorporated: 1903 as Harley-Davidson Motor Company
SIC: 3751 Motorcycles, Bicycles & Parts; 3711 Motor Vehicles & Car Bodies; 3443 Fabricated Plate Work - Boiler Shops; 6719 Holding Companies Nec; 3089 Plastics Products Nec; 2389 Apparel & Accessories Nec; 3714 Motor Vehicle Parts & Accessories; 3716 Motor Homes; 3792 Travel Trailers & Campers; 2522 Office Furniture Except Wood; 2521 Wood Office Furniture; 3524 Lawn & Garden Equipment; 3519 Internal Combustion Engines Nec; 5651 Family Clothing Stores

The only motorcycle manufacturer in the United States, Harley-Davidson, Inc. has been designing heavyweight machines for bike enthusiasts for almost a century. The company is legendary for the great loyalty its vehicles have inspired in generations of cyclists.

The first Harley-Davidson motorcycle was built in Milwaukee, Wisconsin--still the location of the company's headquarters--in the early 1900s. The Davidson brothers--William, Walter, and Arthur--along with William S. Harley, designed and developed the bike and its three horsepower engine in their family shed. The machine went through many refinements until 1903, when the men established the Harley-Davidson Motor Company and produced three of their motorcycles for sale. Over the next several years both demand and production grew at a healthy rate, and by 1907 the company had begun to advertise.

Two years later the company produced a new model featuring a V-twin engine that produced a low, deep rumble now identified as the signature Harley-Davidson sound. The revolutionary engine--still a company standard--enabled riders to reach speeds of 60 miles per hour, which until that time had been believed impossible. Such capabilities served to set the company's motorcycles apart from the competition; by 1911 there were 150 other companies manufacturing the vehicles.

The onset of World War I was actually a boon for Harley-Davidson. The motorcycle, having done well in its utilization by police, was commissioned for use by the military. It proved especially useful on the U.S.-Mexico border, which was suffering incursions by the forces of Mexican revolutionary leader Pancho Villa. In all, 20,000 of the company's machines were employed by the U.S. infantry during the war.

The battlegrounds of the war also served as proving grounds for the motorcycles. After resuming normal production, Harley-Davidson was able to begin incorporating improvements into its new machines. The 1920s saw the company taking the lead in innovative engineering with such features as the Teardrop gas tank and the front brake. In 1921, the winner of the first race in which motorists reached average speeds of more than 100 miles per hour was riding a Harley-Davidson machine. Only Harley-Davidson and Indian would survive the grueling years of the Great Depression. However, a strong dealer network, continued use by the military and police, as well as the U.S. Postal Service, and strong exports to Canada and Europe, allowed Harley-Davidson to weather the economic disaster.

Henry Ford's introduction of the assembly line, on which he could quickly and inexpensively produce his Model T automobile, had a profound effect on the motorcycle industry. While motorcycles had traditionally been used by workers and businesspeople, the more affordable car became their vehicle of choice. The motorcycle, in the meantime, was gradually becoming a recreational vehicle.

Military procurement during World War II proved as helpful to Harley-Davidson as it was during World War I. In 1941 the company turned its entire manufacturing effort toward supplying U.S. and Allied troops going into battle, shipping nearly 100,000 machines overseas. Harley-Davidson's efforts earned them the Army-Navy "E" award, an honor bestowed upon companies that excelled at production during wartime. The healthy postwar economy found consumers with money to spend on recreation. To meet burgeoning demand, the company purchased additional manufacturing capacity in 1947.

As the second generations of the founding families began moving into management positions at the company, Harley-Davidson found itself "king of the road"--with the shutdown of Indian in 1953, the company became the sole American motorcycle manufacturer. Continuing to prove itself a design innovator, the company introduced its Sportster model in 1957, heralding the era of the all-powerful, throaty "superbikes." An entire subculture began to grow up around these motorcycles, and leather jackets and riding boots became as much a statement of one's desire for a life of freedom on the open road as a necessity for motorcycling. Unfortunately, the film The Wild One, starring Marlon Brando, depicted biker gangs riding Harley-Davidson motorcycles as packs of lawless renegades. The stereotype that grew out of this is one the company still actively strives to dispel.

In 1965 Harley-Davidson went public when the two families decided to give up control and put the company's shares on the market. Four years later the company was bought by the American Machine and Foundry Co. (AMF), a leisure equipment manufacturer headed by Harley-Davidson fan Rodney C. Gott. The arrangement proved, at least initially, to be a good one for Harley-Davidson, for it was also in the 1960s that the company experienced its first competition since Indian went out of business. The financial resources and stability that AMF was able to provide helped the company battle Japanese motorcycle manufacturers, who had begun exporting their vehicles around the world, placing themselves in direct competition with Harley-Davidson.

Demand for motorcycles continued to grow through the early 1970s, and, in an effort to keep up, the company opened an assembly plant in York, Pennsylvania, in 1974. While engines would still be made in the Milwaukee facilities, the bikes themselves would be assembled in the new plant. In 1975 AMF put Vaughn Beals at the head of Harley-Davidson, and Jeff Bleustein was named chief engineer. Bleustein was charged with making manufacturing improvements, which were becoming increasingly necessary as production grew.

These efforts added an extra $1,000 in costs to each bike, however, and the profit line suffered as a result. To compensate, AMF management began to apply pressure for greater sales volume, with the result that quality began to suffer. The production standards that customers had come to count on were being lowered, and there were chronic shortages of parts, with the result that as many as 30 percent of the vehicles coming off the assembly line were incomplete. This, in turn, meant extra manpower searching for spare parts to finish outfitting the machines, a task that even fell to dealers on those occasions when incomplete bikes were accidentally shipped.

Such problems took their toll on the company, especially in light of rising Japanese competition. In 1969 Harley-Davidson had enjoyed an 80 percent share of the U.S. motorcycle market for super heavyweight machines--bikes with engines over 850 cubic centimeters (cc). Ten years later, just when Honda Motor Co. was opening a plant in Marysville, Ohio, that share had dropped sharply to 20 percent. While there were still some riders who would settle for nothing but a Harley-Davidson motorcycle, newcomers to the motorcycle market were opting for Japanese affordability and dependability.

To make matters worse, the 1981 recession severely threatened Harley-Davidson's share of the market for heavyweight bikes--motorcycles with engine capacities of 700-850 cc--nearly finishing the company off as a manufacturer. Soon AMF began to lose interest in keeping the struggling business afloat. To save the company, and to effect a turnaround, 13 Harley-Davidson executives, led by Vaughn Beals, put together a plan for a leveraged management buyout. With the financial support of Citicorp, the management team succeeded in taking control of Harley-Davidson from AMF on June 16, 1981, at a cost of $81.5 million.

The group's turnaround strategy called for getting back on the quality track through new management and manufacturing techniques. Unable to beat them, Harley-Davidson instead decided to join their Japanese competition, adopting such management techniques as decentralized quality discussion groups and "just-in-time" inventory control. After the company's top management toured Honda's Marysville plant in 1981, Vaughn Beals noted in Fortune, "We were being wiped out by the Japanese because they were better managers. It wasn't robotics, or culture, or morning calisthenics and company songs--it was professional managers who understood their business and paid attention to detail." In an effort to do likewise, management at the York plant developed three principles for change: worker involvement, manufacturing materials available as needed, and statistical operator control.

One of the first steps Harley-Davidson took was to group the employees in a plant-wide network to ensure their input in improving the manufacturing process. The York plant management met with workers' representatives for months in 1981 to achieve a consensus on what was sought and also to ease skepticism. The increases in productivity stemming from these measures were deemed to be the effects of effective communication, shop floor enthusiasm, and increased recognition.

The second point of the revitalization program involved managing the company's inventory. A program of just-in-time inventory control called MAN--Material As Needed--was developed, based on Toyota Motor Corporation's Toyota Production System. The plan called for the use of expanded communication in monitoring the flow of inventory. Harley-Davidson also introduced a statistical operator control system to improve quality control. The aim was to reduce defects and scrap by reworking machines right on the assembly line. The process began with the operators, who established parameters for quality using statistical methods. Then workers along the assembly line would chart actual quality and introduce improvements where warranted.

During the early 1980s, the company began making cosmetic changes to its motorcycles, prompted by Vice-president William G. Davidson, grandson of the founder. Davidson, who felt it was important to remain close to the bike maker's customers and their needs, would often mingle with Harley devotees at gatherings, sporting his own beard, black leather, and jeans. As he explained in Fortune, "They really know what they want on their bikes, the kind of instrumentation, the style of bars, the cosmetics of the engine, the look of the exhaust pipes, and so on. Every little piece on a Harley is exposed, and it has to look right. A tube curve or the shape of a timing case can generate enthusiasm or be a turn-off. It's almost like being in the fashion business." In addition to changing the look of established models, the company began to design new motorcycles to appeal to a broad range of consumers.

Meanwhile, the competition was moving ahead. Though the recession of the early 1980s had depressed demand for heavyweight bikes, Japanese manufacturers swamped the U.S. market with their surplus inventory, driving average market prices down still further. In 1982, however, the company won an anti-dumping judgment from the International Trade Commission (ITC). This led then-U.S. President Ronald Reagan to impose additional tariffs on imported heavyweight Japanese models, as allowed by the ITC.

The additional tariffs--45 percent on top of an existing 4.4 percent measure--were meant to decrease gradually over five years, until April 1988. These measures would give Harley-Davidson the opportunity to effect its revitalization plans. Predictably, as the company's market share began to increase, so, too, did its profits. Harley-Davidson had lost $25 million in 1982, but rebounded into the black again in 1983 before posting $2.9 million in profits on sales of $294 million in 1984. Though Japanese bike makers were able to elude some of the tariffs by building more machines in the United States, by 1986 Harley-Davidson's share of the U.S. super heavyweight market had crept back up to 33.3 percent, ahead of Honda for the first time since 1980.

During this time, Harley-Davidson began placing more emphasis on its marketing efforts. In a 1983 public relations move, the company established the Harley Owners Group (HOG), a club with its own newsletter for fans of the motorcycle. By the end of the 1980s, membership in HOG had grown to 100,000 members. The company developed the SuperRide promotion, several years later; it was designed to attract large numbers of new buyers from an upscale niche. Television commercials invited people to visit one of Harley-Davidson's 600 dealers across the United States to test ride a new bike. Over 40,000 people took Harley-Davidson up on its offer. Though immediate sales did not cover the promotion's $3 million price tag, the effort did result in increased sales over the course of the next several years, and many of the new buyers were owners of rival Japanese models.

Although Harley-Davidson was making great strides, the company suffered yet another blow in 1984. Citicorp--nervous that the economy was headed back into a recession, especially in light of the 1988 deadline on import tariffs--informed Harley-Davidson that in future years they would no longer provide overadvances--money over and above the conservative lending limits set as part of the company's business plan. Taking this as an indication that Citicorp wanted out of its arrangement with the company, Beals and Richard Teerlink, who was then the finance officer, began searching for another lender. Once word concerning Citicorp's plans got out, however, other banks showed little interest in making the commitment. By October 1985 Beals and his management team had contacted the investment firm Dean Witter Reynolds in order to begin Chapter 11 bankruptcy proceedings.

Before those plans were finalized, Beals and Teerlink were approached by an interested lender. After weeks of hard bargaining, Heller Financial Corporation--whose second in command, Bob Koe, was a Harley buff--agreed to supply Harley-Davidson with $49 million to buy out Citicorp's stake in the business. Thus Citicorp was forced to take an $18 million write-down on its original investment. Heller Financial Corporation's faith in Harley-Davidson paid off handsomely. The company's market share began to climb steadily, and profits for 1986 topped $4.3 million on sales of $295 million. That year a revived Harley-Davidson went public, offering two million shares of stock worth $20 million and $70 million worth of unsecured subordinate notes that would mature in 1997.

With the capital raised from these offerings Harley-Davidson purchased the motor home maker Holiday Rambler Corporation. By December 1986 the company had acquired all outstanding Holiday Rambler stock for approximately $156 million, enabling Harley-Davidson to diversify its manufacturing efforts. The company further broadened its business in 1986 when the U.S. government awarded Harley-Davidson a contract to produce military hardware, including casings for 500-pound bombs and liquid-fueled rocket engines for target drone aircraft.

The previous year had proven to be such a successful one for Harley-Davidson that in March 1987 the company asked the ITC to remove the tariffs imposed on Japanese superbike imports a year earlier than scheduled. Even so, Harley-Davidson's share of the super heavyweight market by the end of 1987 had climbed to 47 percent.

Despite the recession taking hold in 1990, Harley-Davidson saw its sales for that year increase to $864.6 million, up from $790.6 million a year earlier. The company also had a 62.3 percent share of the U.S. heavyweight motorcycle market, far and above Honda, its closest competitor with 16.2 percent. Holiday Rambler's sales were somewhat affected, however, by lower consumer spending.

Richard Teerlink, who had become president and CEO of Harley-Davidson, warned in the company's 1990 annual report that "maintaining Harley-Davidson's growth through a recessionary period will be a difficult, but not impossible task. We could easily exploit our worldwide motorcycle popularity for quick profits, a near-fatal mistake we made in the 1970s, but we are committed to a corporate vision that discourages short-term thinking."

The early 1990s brought the company some minor setbacks. Though sales in 1991 rose to $939.8 million, profits fell slightly, marking the first decrease since the 1986 refloatation. In addition, the company's motorcycle division experienced a work stoppage at the York plant, and sales and profits at the Holiday Rambler Corporation continued downwards.

Harley-Davidson instituted new labor and fiscal policies in the late 1990s under the leadership of Jeff Bleustein, policies that revitalized production and sales. The company's stock has grown steadily and attracted many new investors while keeping the old. Kiplinger's Personal Finance Magazine reporters Steven T. Goldberg and Nancy Stover declared in May 1998 that "Harley stock is now selling at 23 times this year's estimated earnings. Earnings are expected to grow 15 percent in 1998 and an annualized 18 percent over five years," and named Harley-Davidson, Inc. to their list of 12 stocks "that keep growing & growing & growing." Envisioning Harley-Davidson as a wise stock pick in spite of the motorcycle's rebel image is not misinformed: the company announced in April 1998 that they had realized record sales and earnings for the first quarter of that year. While the company had 32 consecutive quarters of growth, it had to absorb some of the costs of a new Kansas City plant, seen mostly in the decline of the gross margin from 32.4 percent to 32.1 versus the previous year. While company officials warned that further costs would have to be absorbed from plant openings and refurbishings, "the introduction of two new Europe specific Harley-Davidson motorcycle models, a new European marketing campaign, a full year of Buell sales, and additional dealers will result in increased sales for 1998," according to an article on the corporate web site.

There would be no profit without the product, and Harley-Davidson management has explored and incorporated new labor-friendly production techniques that reflect respect for its manufacturers. As the company borrowed management ideas from the Honda plant in Maryland, so also did it take a close look at GM's Saturn plant, with its great success through worker empowerment. Harley-Davidson opened a new plant in Kansas City in January 1998, at a cost of some $85 million, but that was only the tip of the iceberg. For two years, the company interviewed some 2,000 applicants for 300 positions. They were put through hours of rigorous personality and aptitude training. Those few who earned a place with Harley-Davidson enjoyed collective decision-making and a strong voice in the production process. Dealernews reported in March 1998 that Fortune magazine had named Harley-Davidson as one of the top 100 places to work in the country.

Harley-Davidson wisely selected merchandising that reflected the changing profile of the motorcycle-worshipping customer. "It's one thing to have people buy your products. It's another for them to tattoo your name on their bodies," the web site crows. Harley-Davidson has gone far beyond tattoos in hip merchandising. The Jacksonville Business Journal interviewed a third-generation dealership owner who planned to dedicate almost a fourth of his floor space to merchandise including, "Anything from blue jeans and T-shirts to leather jackets and boots. It's not just leather anymore," said Chris Adamec. He pointed to a new and wealthy clientele, the so-called "Rolex" riders, as a new source of demand. VH1, the MTV for yuppies, debuted a commercial in June 1998 raffling off four vintage-style Harleys and leather jackets in their "Chrome on the Range" contest. Smiling mothers holding babies posed in front of the bikes (and the American flag) at the close of the commercial suggested a new generation of Harley riders yet to grasp their first Gold Card.

With the approach of the millennium, Harley-Davidson roared into cyberspace. Besides a Lollapalooza of a party, Harley-Davidson's 95th anniversary was celebrated with a virtual Harley tour online. Visitors to Harley-Davidson's web site were invited to partake of video and audio journals of actual motorcycle mamas and daddies from Washington to Pennsylvania. Harley-Davidson has proved that heavyweight motorcycles are not just about nostalgia, whether for the early days of motorcycles or the freewheeling 1960s; the classic appeal of the Harley-Davidson motorcycle would certainly continue into the next century, and the company was poised to support continued growth.

Principal Subsidiaries

Holiday Rambler Corporation; Utilmaster Corporation; B&B Molders; Creative Dimensions; Nappanee Wood Products.

Further Reading

"Bleustein Appointed Chief Executive Officer of Harley-Davidson, Inc.," http://harley-davidson.com, June 27, 1997.

"Chrome on the Range," http://www.vh1.com, June, 1998.

Gallun, Alby, "Manufacturers Expect Growth to Moderate in '98," Business Journal Serving Greater Milwaukee, January 9, 1998.

Goldberg, Steven T., and Nancy Stover, "12 Stocks That Keep Growing & Growing & Growing," Kiplinger's Personal Finance Magazine, May 1998, p. 66.

"Harley-Davidson Celebrates First Production Motorcycles in Kansas City," http://harley-davidson.com, January 6, 1998.

"Harley-Davidson, Inc. Announces Record First Quarter Earnings and 32nd Consecutive Quarter of Record Sales," http://www.harley-davidson.com, April 13, 1998.

"Harley-Davidson Inc. Company Briefing Book," Wall Street Journal, http://www.interactive.wsj.com/inap-bin/bb, 1998.

"Harley-Davidson Mission," http://www.harley-davidson.com, 1998.

"How Harley Beat Back the Japanese," Fortune, September 25, 1989. "Joe Walsh and the Wallflowers Rock Harley-Davidson's 95th Birthday," http://www.harley-davidson.com, May 4, 1998.

"Maintaining Excellence Through Change," Target, Spring 1989.

"95th Anniversary Web Site Cruises the Virtual Highway," http://www.harley-davidson.com, May 11, 1998.

Reid, Peter, Well Made in America: Lessons from Harley-Davidson on Being the Best, New York, McGraw Hill, 1990.

"Riding the Road to Recovery at Harley-Davidson," Labor-Management Cooperation Brief No. 15 (April 1988), Washington, D.C., U.S. Department of Labor.

Roth, Stephen, "New Harley Plant Spotlights Training and Empowerment," Kansas City Business Journal, January 9-15, 1998.

Stuart, Devan, "Shop's Clothing Sales Ride Motorcycle's Popularity," Jacksonville Business Journal, January 16, 1998.

"The Success of Harley-Davidson: 89 Years in the Making," Harley-Davidson News, Milwaukee, Wisconsin, Harley-Davidson, Inc., 1992.

"Top 100 Places to Work," Dealernews, March 1998, p. 47.

"Why Milwaukee Won't Die, Cycle, June 1987.

— Etan Vlessing; Updated by Christine Ferran


Modern Design Dictionary: Harley-Davidson
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(established 1902)

Many of the products of this American motorcycle manufacturing company have become symbols of national identity, none perhaps more so than the customized Harley-Davidson chopper seen in the 1969 film Easy Rider. The potency of the brand can be inferred from the company's introduction of the Heritage Classic motorcycle in 1995. Following the marketing of the first Harley-Davidson in 1903, one of its most distinctive products was the 61 EL, known as the ‘Hog’, designed by the William Harley and William and Walter Davidson in 1936. The post-Second World War period proved a difficult one for the company, a position further undermined by the representation of ‘bikers’ as morally decadent in the 1954 film The Wild Ones. Japanese motorcycle imports such as Honda and Kawasaki increased significantly in the 1960s and in 1969, the year in which the film Easy Rider portrayed the ‘biker’ as a latter-day ‘pioneer’, the company was sold. It was reacquired by its former management in 1981 and, within a decade, the company was producing 60,000 motorcycles per year. In the 1980s and 1990s the company produced a number of Retro models including the Heritage Classic of 1995, a design that in many ways recreated the image and identity of the 1936 ‘Hog’. It offered American consumers the opportunity to purchase the image and American values of a seemingly ‘individual’ and ‘customized’ product. It was, of course, mass produced and also very distinctive in styling terms from its Japanese competitors.

 
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Wikipedia: Harley-Davidson
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Harley-Davidson
Type Public (NYSEHOG)
Founded 1903
Founder(s) William S. Harley
Arthur Davidson
Walter Davidson
William A. Davidson
Headquarters Milwaukee, Wisconsin,
United States
Key people Keith E. Wandell, CEO
Products Motorcycles
Revenue US$5.59 Billion (FY 2008)[1]
Operating income US$1.24 Billion (FY 2008)[1]
Net income US$655 Million (FY 2008)[1]
Employees 9,700 (2006)[2]
Subsidiaries Buell
MV Agusta
Website www.harley-davidson.com

Harley-Davidson (NYSEHOG, formerly HDI[3]), often abbreviated H-D or Harley, is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression.[4] Harley-Davidson also survived a media-accelerated negative image of motorcyclists, a period of poor quality control, and competition with Japanese manufacturers.

The company sells heavyweight (over 750 cc) motorcycles designed for cruising on the highway. Harley-Davidson motorcycles (popularly known as "Harleys") have a distinctive design and exhaust note. They are especially noted for the tradition of heavy customization that gave rise to the chopper-style of motorcycle.[5] Except for the modern VRSC model family, current Harley-Davidson motorcycles reflect the styles of classic Harley designs. Harley-Davidson's attempts to establish itself in the light motorcycle market have met with limited success and have largely been abandoned since the 1978 sale of its Italian Aermacchi subsidiary.

Harley-Davidson sustains a loyal brand community which keeps active through clubs, events, and a museum. Licensing of the Harley-Davidson logo accounts for almost 5% of the company's net revenue.

Contents

History

Beginning

Clockwise from top left: William S. Harley, William A. Davidson, Walter Davidson, Sr., Arthur Davidson

In 1901, William S. Harley, age 21, drew up plans for a small engine with a displacement of 7.07 cubic inches (116 cc) and four-inch (102 mm) flywheels. The engine was designed for use in a regular pedal-bicycle frame. Over the next two years Harley and his childhood friend Arthur Davidson labored on their motor-bicycle using the northside Milwaukee machine shop at the home of their friend, Henry Melk. It was finished in 1903 with the help of Arthur's brother, Walter Davidson. Upon completion the boys found their power-cycle unable to conquer Milwaukee's modest hills without pedal assistance. Will Harley and the Davidsons quickly wrote off their first motor-bicycle as a valuable learning experiment.[6]

Work immediately began on a new and improved second-generation machine. This first "real" Harley-Davidson motorcycle had a bigger engine of 24.74 cubic inches (405 cc) with 9.75 inches (25 cm) flywheels weighing 28 lb (13 kg). The machine's advanced loop-frame pattern was similar to the 1903 Milwaukee Merkel motorcycle (designed by Joseph Merkel, later of Flying Merkel fame). The bigger engine and loop-frame design took it out of the motorized-bicycle category and would help define what a modern motorcycle should contain in the years to come. The boys also received help with their bigger engine from outboard motor pioneer Ole Evinrude, who was then building gas engines of his own design for automotive use on Milwaukee's Lake Street.

The prototype of the new loop-frame Harley-Davidson was assembled in a 10 ft × 15 ft (3.0 m × 4.6 m) shed in the Davidson family backyard. Most of the major parts, however, were made elsewhere, including some probably fabricated at the West Milwaukee railshops where oldest brother William A. Davidson was then toolroom foreman. This prototype machine was functional by September 8, 1904, when it competed in a Milwaukee motorcycle race held at State Fair Park. It was ridden by Edward Hildebrand and placed fourth. This is the first documented appearance of a Harley-Davidson motorcycle in the historical record.[7]

In January 1905, small advertisements were placed in the "Automobile and Cycle Trade Journal" that offered bare Harley-Davidson engines to the do-it-yourself trade. By April, complete motorcycles were in production on a very limited basis. That year the first Harley-Davidson dealer, Carl H. Lang of Chicago, sold three bikes from the dozen or so built in the Davidson backyard shed. (Some years later the original shed was taken to the Juneau Avenue factory where it would stand for many decades as a tribute to the Motor Company's humble origins. Unfortunately, the first shed was accidentally destroyed by contractors in the early 1970s during a clean-up of the factory yard.)

In 1906, Harley and the Davidson brothers built their first factory on Chestnut Street (later Juneau Avenue). This location remains Harley-Davidson's corporate headquarters today. The first Juneau Avenue plant was a 40 ft × 60 ft (12 m × 18 m) single-story wooden structure. The company produced about 50 motorcycles that year.

1907 model.
Harley-Davidson 1000 cc HT 1916

In 1907, William S. Harley graduated from the University of Wisconsin–Madison with a degree in mechanical engineering. That year additional factory expansion came with a second floor and later with facings and additions of Milwaukee pale yellow ("cream") brick. With the new facilities production increased to 150 motorcycles in 1907. The company was officially incorporated that September. They also began selling their motorcycles to police departments around this time, a market that has been important to them ever since.[8]

Production in 1905 and 1906 were all single-cylinder models with 26.84 cubic inches (439.8 cc) engines. In February 1907 a prototype model with a 45-degree V-Twin engine was displayed at the Chicago Automobile Show. Although shown and advertised, very few V-Twin models were built between 1907 and 1910. These first V-Twins displaced 53.68 cubic inches (879.7 cc) and produced about 7 horsepower (5.2 kW). This gave about double the power of the first singles. Top speed was about 60 mph (97 km/h). Production jumped from 450 motorcycles in 1908 to 1,149 machines in 1909.[9]

By 1911, some 150 makes of motorcycles had already been built in the United States – although just a handful would survive the 1910s.

In 1911, an improved V-Twin model was introduced. The new engine had mechanically operated intake valves, as opposed to the "automatic" intake valves used on earlier V-Twins that opened by engine vacuum. With a displacement of 49.48 cubic inches (810.8 cc), the 1911 V-Twin was smaller than earlier twins, but gave better performance. After 1913 the majority of bikes produced by Harley-Davidson would be V-Twin models.

By 1913, the yellow brick factory had been demolished and on the site a new 5-story structure of reinforced concrete and red brick had been built. Begun in 1910, the red brick factory with its many additions would take up two blocks along Juneau Avenue and around the corner on 38th Street. Despite the competition, Harley-Davidson was already pulling ahead of Indian and would dominate motorcycle racing after 1914. Production that year swelled to 16,284 machines.

Ralph Hepburn on his Harley racing bike in this 1919 photo.

World War I

In 1917, the United States entered World War I and the military demanded motorcycles for the war effort.[10] Harleys had already been used by the military in the Pancho Villa Expedition[11][12] but World War I was the first time the motorcycle had been adopted for combat service.[citation needed] Harley-Davidson provided about 15,000 machines to the military forces during World War I.[13]

1920s

Harley-Davidson 1000 cc HT 1923

By 1920, Harley-Davidson was the largest motorcycle manufacturer in the world. Their motorcycles were sold by dealers in 67 countries. Production was 28,189 machines.[citation needed]

In 1921, a Harley-Davidson, ridden by Otto Walker, was the first motorcycle ever to win a race at an average speed of over 100 mph (160 km/h).[14][15]

During the 1920s, several improvements were put in place, such as a new 74 cubic inch (1200cc) V-Twin, introduced in 1922, and the "Teardrop" gas tank in 1925. A front brake was added in 1928.[citation needed]

In the late summer of 1929, Harley-Davidson introduced its 45 cubic inch flathead V-Twin to compete with the Indian 101 Scout and the Excelsior Super X.[16] This was the "D" model, produced from 1929 to 1931.[17] Riders of Indian motorcycles derisively referred to this model as the "three cylinder Harley" because the generator was upright and parallel to the front cylinder.[18] The 2.745 in (69.7 mm) bore and 3.8125 in (96.8 mm) stroke would continue in most versions of the 750 engine; exceptions include the XA and the XR750.[citation needed]

The Great Depression

Harley-Davidson 1200 cc SV 1931

The Great Depression began a few months after the introduction of their 45 cubic inch model. Harley-Davidson's sales plummeted from 21,000 in 1929 to 3,703 in 1933. Despite those dismal numbers, Harley-Davidson proudly unveiled its lineup for 1934, which included a Flathead with art deco styling.[19]

In order to survive the remainder of the Depression, the company manufactured industrial powerplants based on their motorcycle engines. They also designed and built a three-wheeled delivery vehicle called the Servi-Car, which remained in production until 1973. [16]

Harley-Davidson WL

In the mid-'30s, Alfred Rich Child opened a production line in Japan with the 74ci VL. The Japanese license-holder severed its business relations with Harley-Davidson in 1936 and continued manufacturing the VL under the Rikuo name.[20]

An 80 cubic inch flathead engine was added to the line in 1935, by which time the single-cylinder motorcycles had been discontinued.[21]

In 1936, the 61E and 61EL models with the "Knucklehead" OHV engines was introduced.[22] Valvetrain problems in early Knucklehead engines required a redesign halfway through its first year of production and retrofitting of the new valvetrain on earlier engines.[23]

By 1937, all Harley-Davidson's flathead engines were equipped with dry-sump oil recirculation systems similar to the one introduced in the "Knucklehead" OHV engine. The revised 74 cubic inch V and VL models were renamed U and UL, the 80 cubic inch VH and VLH to be renamed UH and ULH, and the 45 cubic inch R to be renamed W.[22]

In 1941, the 74 cubic inch "Knucklehead" was introduced as the F and the FL. The 80 cubic inch flathead UH and ULH models were discontinued after 1941, while the 74" U & UL flathead models were produced up to 1948.[22]

World War II

Harley copied the BMW R71 to produce its XA model.

One of only two American cycle manufacturers to survive the Great Depression,[4][24] Harley-Davidson again produced large numbers of motorcycles for the US Army in World War II and resumed civilian production afterwards, producing a range of large V-twin motorcycles that were successful both on racetracks and for private buyers.

Harley-Davidson, on the eve of World War II, was already supplying the Army with a military-specific version of its 45" WL line, called the WLA. (The A in this case stood for "Army".) Upon the outbreak of war, the company, along with most other manufacturing enterprises, shifted to war work. Over 90,000 military motorcycles, mostly WLAs and WLCs (the Canadian version) would be produced, many to be provided to allies.[25] Harley-Davidson received two Army-Navy ‘E’ Awards, one in 1943 and the other in 1945, which were awarded for Excellence in Production.

Harley produced the WLC for the Canadian military.

Shipments to the Soviet Union under the Lend-Lease program numbered at least 30,000. The WLAs produced during all four years of war production generally have 1942 serial numbers. Production of the WLA stopped at the end of World War II, but was resumed from 1950 to 1952 for use in the Korean War.

The U.S. Army also asked Harley-Davidson to produce a new motorcycle with many of the features of BMW's side-valve and shaft-driven R71. Harley largely copied the BMW engine and drive train and produced the shaft-driven 750 cc 1942 Harley-Davidson XA. This shared no dimensions, no parts and no design concepts (except side valves) with any prior Harley-Davidson engine. Due to the superior cooling of the flat-twin engine with the cylinders across the frame, Harley's XA cylinder heads ran 100 °F (56 °C) cooler than its V-twins.[26] The XA never entered full production: the motorcycle by that time had been eclipsed by the Jeep as the Army's general purpose vehicle, and the WLA—already in production—was sufficient for its limited police, escort, and courier roles. Only 1,000 were made and the XA never went into full production. It remains the only shaft-driven Harley-Davidson ever made.

Small Harleys - Hummers and Aermacchis

Harley-Davidson Hummer

As part of war reparations, Harley-Davidson acquired the design of a small German motorcycle, the DKW RT125 which they adapted, manufactured, and sold from 1947 to 1966.[27] Various models were made, including the Hummer from 1955 to 1959, but they are all colloquially referred to as "Hummers" at present.[28] BSA in the United Kingdom took the same design as the foundation of their BSA Bantam.[29]

1971 Aermacchi Harley-Davidson Turismo Veloce

In 1960, Harley-Davidson consolidated the Model 165 and Hummer lines into the Super-10, introduced the Topper scooter, and bought fifty percent of Aeronautica Macchi's motorcycle division.[30] Importation of Aermacchi's 250 cc horizontal single began the following year. The bike bore Harley-Davidson badges and was marketed as the Harley-Davidson Sprint.[31][32] The engine of the Sprint was increased to 350 cc in 1969 and would remain that size until 1974, when the four-stroke Sprint was discontinued.[33]

After the Pacer and Scat models were discontinued at the end of 1965, the Bobcat became the last of Harley-Davidson's American-made two-stroke motorcycles. The Bobcat was manufactured only in the 1966 model year.[34]

Harley-Davidson replaced their American-made lightweight two-stroke motorcycles with the Aermacchi-built two-stroke powered M-65, M-65S, and Rapido. The M-65 had a semi-step-through frame and tank. The M-65S was a M-65 with a larger tank that eliminated the step-through feature. The Rapido was a larger bike with a 125 cc engine.[35] The Aermacchi-built Harley-Davidsons became entirley two-stroke powered when the 250 cc two-stroke SS-250 replaced the four-stroke 350 cc Sprint in 1974.[36]

Harley-Davidson purchased full control of Aermacchi's motorcycle production in 1974 and continued making two-stroke motorcycles there until 1978, when they sold the facility to Cagiva.[30]

Tarnished reputation

Replica of the "Captain America" bike from the film Easy Rider

In 1952, following their application to the US Tariff Commission for a 40% tax on imported motorcycles, Harley-Davidson was charged with restrictive practices.[37] Hollywood also damaged Harley's image with many outlaw biker gang films produced from the 1950s through the 1970s, following the Hollister riot on July 4, 1947. "Harley-Davidson" for a long time was synonymous with the Hells Angels and other outlaw motorcyclists.[citation needed]

AMF H-D Electra Glide

In 1969, American Machinery and Foundry (AMF) bought the company, streamlined production, and slashed the workforce. This tactic resulted in a labor strike and a lower quality of bikes. The bikes were expensive and inferior in performance, handling, and quality to Japanese motorcycles. Sales declined, quality plummeted, and the company almost went bankrupt.[38] The "Harley-Davidson" name was mocked as "Hardly Ableson", "Hardly Driveable," and "Hogly Ferguson",[39][40] and the nickname "Hog" became pejorative.[citation needed]

In 1977, Harley-Davidson produced what has become one of its most controversial models, the Confederate Edition. The bike was essentially a stock Harley with Confederate-specific paint and details.[41]

Restructuring and revival

In 1981, AMF sold the company to a group of thirteen investors led by Vaughn Beals and Willie G. Davidson for $80 million.[42] Inventory was strictly controlled using the just-in-time system.

In the early eighties, Harley-Davidson claimed that Japanese manufacturers were importing motorcycles into the US in such volume as to harm or threaten to harm domestic producers. After an investigation by the US International Trade Commission, President Reagan imposed in 1983 a 45% tariff on imported bikes and bikes over 700 cc engine capacity. Harley Davidson subsequently rejected offers of assistance from Japanese motorcycle makers.[43][44]

Rather than trying to match the Japanese, the new management deliberately exploited the "retro" appeal of the machines, building motorcycles that deliberately adopted the look and feel of their earlier machines and the subsequent customizations of owners of that era. Many components such as brakes, forks, shocks, carburetors, electrics and wheels were outsourced from foreign manufacturers and quality increased, technical improvements were made, and buyers slowly returned. To remain profitable Harley continues to increase the amount of overseas-made parts it uses, while being careful not to harm its valuable "American Made" image.

Ford F-150 Super Crew
Harley-Davidson edition

The "Sturgis" model, boasting a dual belt-drive, was introduced. By 1990, with the introduction of the "Fat Boy", Harley once again became the sales leader in the heavyweight (over 750 cc) market. At the time of the Fat Boy model introduction a story rapidly spread that its silver paint job and other features were inspired by the World War II American B-29 bomber; and that the Fat Boy name was a combination of the names of the atom bombs (Fat Man and Little Boy) that were dropped on Nagasaki and Hiroshima respectively. However, the Urban Legend Reference Pages lists this story as an urban legend.[45][46]

1993 saw the replacement of the FXR frame with the Dyna, though it was revived briefly from 1999 to 2000 for special limited editions (FXR2,FXR3 & FXR4).

In 2000, Ford Motor Company added a Harley-Davidson edition to the Ford F-Series F-150 line, complete with the Harley-Davidson logo. This truck was a Super Cab for model year 2000. In 2001, Ford changed the truck to a Super Crew and in 2002 added a super-charged engine (5.4 L) which continued until 2003. In 2004, the Ford/Harley was changed to a Super-Duty, which continues through 2009. Ford again produced a Harley-Davidson Edition F-150 for their 2006 model-year, as well.

Building started on $75 million 130,000 square-foot (12,000 m2) Harley-Davidson Museum in the Menomonee River Valley on June 1, 2006. It opened in 2008 and houses the company's vast collection of historic motorcycles and corporate archives, along with a restaurant, café and meeting space.[47]

Buell Motorcycle Company

Harley-Davidson's association with sportbike manufacturer Buell Motorcycle Company began in 1987 when they supplied Buell with fifty surplus XR1000 engines. Buell continued to buy engines from Harley-Davidson until 1993, when Harley-Davidson bought forty-nine percent of the Buell Motorcycle Company.[48] Harley-Davidson increased its share in Buell to ninety-eight percent in 1998, and to complete ownership in 2003.[49]

In an attempt to attract newcomers to motorcycling in general and to Harley-Davidson in particular, Buell developed a low-cost, low-maintenance motorcycle. The resulting single-cylinder Buell Blast was introduced in 2000,[50] and was made through 2009, which, according to Buell, is to be the final year of production.[51] On October 15, 2009, the company issued an official statement that it would be discontinuing the Buell line and ceasing production immediately.[52]

Claims of stock price manipulation

Harley Davidson Inc (NYSE:HOG) stock price (source: ZenoBank.com)

During its period of peak demand, during the late 1990s and early 2000s, Harley-Davidson embarked on a program of expanding the number of dealerships throughout the country. At the same time, its current dealers typically had waiting lists that extended up to a year for some of the most popular models. Harley-Davidson, like the auto manufacturers, records a sale not when a consumer buys their product, but rather when it is delivered to a dealer. Therefore, it is possible for the manufacturer to inflate sales numbers by requiring dealers to accept more inventory than desired in a practice called channel stuffing. When demand softened following the unique 2003 model year, this news lead to a dramatic decline in the stock price. In April 2004 alone, the price of HOG shares dropped from over $60 to under $40. Immediately prior to this decline, retiring CEO Jeffrey Bleustein profited $42 million on the exercise of employee stock options.[53] Harley-Davidson was named as a defendant in numerous class action suits filed by investors who claimed they were intentionally defrauded by Harley-Davidson's management and directors.[54] By January 2007, the price of Harley-Davidson shares reached $70.

2007 workers' strike

On February 2, 2007, upon the expiration of their union contract, about 2,700 employees at Harley-Davidson Inc.'s largest manufacturing plant in York, PA went on strike after failing to agree on wages and health benefits.[55][56] During the pendency of the strike, the company refused to pay for any portion of the striking employees' health care.[57]

The day before the strike, after the union voted against the proposed contract and to authorize the strike, the company shut down all production at the plant. The York facility employs more than 3,200 workers, both union and non-union.[58]

Harley-Davidson announced on February 16, 2007, that it had reached a labor agreement with union workers at its largest manufacturing plant, a breakthrough in the two-week-old strike.[59] The strike disrupted Harley-Davidson’s national production and had ripple effects as far away as Wisconsin, where 440 employees were laid off, and many Harley suppliers also laid off workers because of the strike.[60]

MV Agusta Group acquisition

On July 11, 2008 Harley-Davidson announced they had signed a definitive agreement to acquire the MV Agusta Group for $109M USD (€70M). MV Agusta Group contains two lines of motorcycles: the high-performance MV Agusta brand and the lightweight Cagiva brand.[61][62] The acquisition was completed on August 8.[63]

On October 15, 2009, Harley-Davidson announced that it would divest its interest in MV Agusta.[52]

Steps toward export to India

In August 2009, Harley-Davidson announced plans to enter the market in India, where, according to press releases, it expects to start selling its motorcycles in 2010. The company has established a subsidiary to be located in Gurgaon, near Delhi, and has begun the process of seeking dealers.[64] Plans to enter the Indian market have been delayed for several years, due to high tariffs and emissions regulations. The pollution regulations have recently changed, but the tariff problem is yet unresolved.[65]

In 2007, U.S. Trade Representative Susan Schwab and the Minister for Commerce and Industry of India Kamal Nath had agreed that Harley-Davidson motorcycles will be allowed access to the Indian market in exchange for the export of Indian mangoes.[66] However, India had not specified emission standards for motorcycles over 500 cc displacement, effectively prohibiting the import of Harley-Davidsons, along with most models of other manufacturers.[67] Plans to export to India were also held up by import duties of 60% and taxes of 30%, which effectively doubled the sale price.[68] A Harley-Davidson spokesman said the company thinks demand is high enough to overcome the tariffs, and chief operating officer Matt Levatich said they would continue to push for lower tariffs.[65]

Brand value

According to Interbrand, the value of the Harley-Davidson brand fell by 43% to $4.34 billion in 2009. The fall in value is believed to be connected to the 66% drop in the company profits in two quarters of the previous year.[69]

Harley-Davidson engines

V-twin in a HD Road King

The classic Harley-Davidson engines are two-cylinder, V-twin engines with the pistons mounted in a 45° "V". The crankshaft has a single pin, and both pistons are connected to this pin through their connecting rods.[5]

This design causes the pistons to fire at uneven intervals. This is due to an engineering tradeoff to create a large, high-torque engine in a small space. This design choice is entirely vestigial from an engineering standpoint, but has been sustained because of the strong connection between the distinctive sound and the Harley-Davidson brand. This design, which is covered under several United States patents, gives the Harley-Davidson V-twin its unique choppy "potato-potato" sound. To simplify the engine and reduce costs, the V-twin ignition was designed to operate with a single set of points and no distributor, which is known as a dual fire ignition system, causing both spark plugs to fire regardless of which cylinder was on its compression stroke, with the other spark plug firing on its cylinder's exhaust stroke, effectively "wasting a spark." The exhaust note is basically a throaty growling sound with some popping. The 45° design of the engine thus creates a plug firing sequencing as such: The first cylinder fires, the second (rear) cylinder fires 315° later, then there is a 405° gap until the first cylinder fires again, giving the engine its unique sound.[70]

Harley-Davidson has used various ignition systems throughout its history - be it the early points/condenser system, (Big Twin up to 1978 and Sportsters 1970 to 1978), magneto ignition system used on 1958 to 1969 Sportsters, early electronic with centrifugal mechanical advance weights, (all models 1978 and a half to 1979), or the late electronic with transistorized ignition control module, more familiarly known as the black box or the brain, (all models 1980 to present).

Starting in 1995, the company introduced Electronic Fuel Injection (EFI) as an option for the 30th anniversary edition Electra Glide.[71] With the introduction of the 2007 product line, EFI is now standard on all models, including Sportsters.[72]

In 1991, Harley-Davidson began to participate in the Sound Quality Working Group, founded by Orfield Labs, Bruel and Kjaer, TEAC, Yamaha, Sennheiser, SMS and Cortex. This was the nation's first group to share research on psychological acoustics. Later that year, Harley-Davidson participated in a series of sound quality studies at Orfield Labs, based on recordings taken at the Talladega Superspeedway, with the objective to lower the sound level for EU standards while analytically capturing the "Harley Sound."[citation needed] This research resulted in the bikes that were introduced in compliance with EU standards for 1998.

On February 1, 1994, the company filed a sound trademark application for the distinctive sound of a Harley-Davidson motorcycle engine: "The mark consists of the exhaust sound of applicant's motorcycles, produced by V-twin, common crankpin motorcycle engines when the goods are in use". Nine of Harley-Davidson's competitors filed comments opposing the application, arguing that cruiser-style motorcycles of various brands use a single-crankpin V-twin engine which produce a similar sound.[73] These objections were followed by litigation. In August 2001, the company dropped efforts to federally register its trademark. However, legal counsel for the company claims that the Harley-Davidson still holds trademark rights in the sound even without a registration.[74]

Electra Glide "Ultra Classic" in Bristol

Big V-twins

  • F-head, also known as JD, pocket valve and IOE (intake over exhaust), 1914–1929 (1000 cc), and 1922–1929 (1200 cc)
  • Flathead, 1930–1948 (1200 cc) and 1935–1941 (1300 cc).
  • Knucklehead, 1936–1947 61 cubic inch (1000 cc), and 1941–1947 74 cubic inch (1200 cc)
  • Panhead, 1948–1952 61 cubic inch (1000 cc), and 1948–1965, 74 cubic inch (1200 cc)
  • Shovelhead, 1966–1984, 74 cubic inch (1200 cc) and 80 cubic inch (1345 cc) since late 1978
  • Evolution (aka "Evo" and "Blockhead"), 1984–2000, 80 cubic inch (1340 cc)
  • Twin Cam 88 (aka "Fathead") 1999–2006, 88 cubic inch (1450 cc)
  • Twin Cam 88B (counter balanced version of the Twin Cam 88) 2000–2006, 88 cubic inch (1450 cc)
  • Twin Cam 96, since 2007, 96 cubic inch (1584 cc)
  • Twin Cam 103, 2003–2006, 2009, 103 cubic inch (1690 cc) (engines for C.V.O. models)
  • Twin Cam 110, since 2007, 110 cubic inch (1802 cc) (engines for C.V.O. models)
Evolution Sportster cruising around downtown Buenos Aires

Small V-twins

  • D Model, 1929–1931, 750 cc
  • R Model, 1932–1936, 750 cc
  • W Model, 1937–1952, 750 cc, solo (2 wheel, frame only)
  • G (Servi-Car) Model, 1932–1973, 750 cc
  • K Model, 1952–1953, 750 cc
  • KH Model, 1954–1956, 900 cc
  • Ironhead, 1957–1971, 900 cc; 1971–1985, 1000 cc
  • Evolution, since 1986, 883 cc, 1100 cc and 1200 cc
V-Rod on the show room floor

Revolution engine

The Revolution engine is based on the VR-1000 Superbike race program, developed by Harley-Davidson's Powertrain Engineering team and Porsche Engineering in Stuttgart, Germany. It is a liquid cooled, dual overhead cam, internally counterbalanced 60 degree V-twin engine with a displacement of 69 cubic inch (1130 cc), producing 115 hp (86 kW) at 8250 rpm at the crank, with a redline of 9000 rpm.[75][76] It was introduced for the new V-Rod line in 2001 for the 2002 model year, starting with the single VRSCA (V-Twin Racing Street Custom) model.[77][78]

A 1250 cc Screamin' Eagle version of the Revolution engine was made available for 2005 & 2006, and was present thereafter in a single production model from 2005 to 2007. In 2008, the 1250 cc Revolution Engine became standard for the entire VRSC line. Harley-Davidson claims 123 hp (92 kW) at the crank for the 2008 VRSCAW model. The VRXSE Destroyer is equipped with a stroker (75 mm crank) Screamin’ Eagle 79 cubic inch (1300 cc) Revolution Engine, producing over 165 hp (123 kW).

Model designations

Harley model designations are a sequence of letters and numbers, combined in limited ways. The sequences can be long, as in the 2006 model designation FLHTCUSE.

The first letter may be one of the following:

K ('50s flathead small twin), E, F (1936-* single cam OHV big twin), U, V (1930-48 four cam flathead big twin), D, G, R, W (flathead small twin), X (Sportster OHV), or V (VRSC)

since 1984 only F (Big Twin), X (Sportster) and V (V_ROD) have been used regularly.

Letters are appended singly or in pairs, as follows:

B (BLACKED OUT ie Street Bob, Night Train, and Cross Bones models), C (Classic or Custom), CW (Custom Wide (2008 Softail Rocker)) D (Dyna chasis or Softail Deuce), E (Electric start), F (Fat Boy (1990–present); Fat Bob (2008–present) or Foot-shift (1972 and prior)), H (HANDLE BAR/ FRONT END MOUNTED FAIRING. ie bat wing fairing/quick release windsheild.), I (Fuel injection), L (Low Rider)), N {(Nostalgia as in Softail Deluxe/Nostalgia/Special) and Nightster in Sportster family} P (Police), R (Race, Road King, or Rubber-mount), S (Sport, Springer), ST (Softail), T (FRAME MOUNTED FAIRING), WG (Wide Glide), SE (Screamin’ Eagle), U (Ultra) X (FLHX Street Glide), sport in Dyna models, and Street Glide in Touring models.) XT (T-Sport Dyna Model).

Custom Vehicle Operations models can also have a number (2,3,4) added.

Note that these conventions for model designations are broken regularly by the company.

Current model designations

2001 883 Sportster Hugger
  • Sportster With the exception of the street-going XR1000 of the 1980s and the XR1200 most Sportsters made for street use have the prefix XL in their model designation. For the Sportster Evolution engines used since the mid 1980s, there have been two engine sizes. Motorcycles with the smaller engine are designated XL883, while those with the larger engine were initially designated XL1100. When the size of the larger engine was increased from 1,100 cc to 1,200 cc, the designation was changed accordingly from XL1100 to XL1200. Subsequent letters in the designation refer to model variations within the Sportster range, e.g. the XL883C refers to an 883 cc Sportster Custom, while the XL1200S designates the now-discontinued 1200 Sportster Sport.
  • Dyna models utilize the big-twin engine (F), small-diameter telescopic forks similar to those used on the Sportster (X), and the Dyna chassis (D). Therefore, all Dyna models have designations that begin with FXD, e.g., FXDWG (Dyna Wide Glide) and FXDL (Dyna Low Rider).
  • Softail models utilize the big-twin engine (F) and the Softail chassis (ST).
    • Softail models that use small-diameter telescopic forks similar to those used on the Sportster (X) have designations that begin with FXST, e.g., FXSTB (Night Train), FXSTD (Deuce), and FXSTS (Springer).
    • Softail models that use large-diameter telescopic forks similar to those used on the touring bikes (L) have designations beginning with FLST, e.g., FLSTF (Fat Boy), FLSTC (Heritage Softail Classic), and FLSTN (Softail Deluxe).
    • Softail models that use Springer forks with a 21-inch (530 mm) wheel have designations that begin with FXSTS, e.g., FXSTS (Springer Softail) and FXSTSB (Bad Boy).
    • Softail models that use Springer forks with a 16-inch (410 mm) wheel have designations that begin with FLSTS, e.g., FLSTSC (Springer Classic) and FLSTSB (Cross Bones).
  • Touring models use Big-Twin engines and large-diameter telescopic forks. All Touring designations begin with the letters FL, e.g., FLHR (Road King) and FLTR (Road Glide).
  • Revolution models utilize the Revolution engine (VR), and the street versions are designated Street Custom (SC). After the VRSC prefix common to all street Revolution bikes, the next letter denotes the model, either A (base V-Rod), B (discontinued), D (Night Rod), R (Street Rod), SE (CVO Special Edition), or X. Further differentiation within models are made with an additional letter, e.g., VRSCDX denotes the Night Rod Special.
    • The factory drag bike, the VRXSE Destroyer, uses X instead of SC to denote a non-street bike and SE to denote a CVO Special Edition

Model families

Modern Harley-branded motorcycles fall into one of five model families: Touring, Softail, Dyna, Sportster and VRSC. Model families are distinguished by the frame, engine, suspension, and other characteristics.

Touring

The touring family, also known as "dressers", includes three Road King models and Electra Glide models offered in various trim. The Road Kings have a "retro cruiser" appearance and are equipped with a large clear windshield. Road Kings are reminiscent of big-twin models from the 1940s and '50s. Electra Glides can be identified by their full front fairings. Most Electra Glides sport a fork-mounted fairing referred to as the "Batwing" due to its unmistakable shape. The Road Glide has a frame-mounted fairing, referred to as the "Sharknose". The Sharknose includes a unique, dual front headlight.

Touring models are distinguishable by their large saddlebags, rear coil-over air suspension and are the only models to offer full fairings with Radios/CBs. All touring models use the same frame, first introduced with a Shovelhead motor in 1980, and carried forward with only modest upgrades until 2009, when it was extensively redesigned. The frame is distinguished by the location of the steering head in front of the forks and was the first H-D frame to rubber mount the drivetrain to isolate the rider from the vibration of the big V-twin.

The frame was modified for the 1994 model year when the oil tank went under the transmission and the battery was moved inboard from under the right saddlebag to under the seat. In 1997, the frame was again modified to allow for a larger battery under the seat and to lower seat height. In 2007, Harley introduced the 96 cubic inch motor, as well the 6 speed transmission to give the rider better speeds on the highway.

In years past, these touring models have become favorites with several local and state police agencies, such as the Chicago Police Department, the Los Angeles Police Department, the Iowa State Patrol, and several others.

In 2006, Harley introduced the FLHX, a bike designed by Willie G. Davidson to be his personal ride, to its touring line.[79]

In 2008, Harley added anti-lock braking systems and cruise control as a factory installed option on all touring models.[80] Also new for 2008 is the 6-gallon fuel tank for all touring models.

For the 2009 model year, Harley-Davidson has redesigned the entire touring range with several changes, including a new frame, new swingarm, a completely revised engine-mounting system, 17-inch (430 mm) front wheels for all but the FLHRC, and a 2-1-2 exhaust. The changes result in greater load carrying capacity, better handling, a smoother engine, longer range and less exhaust heat transmitted to the rider and passenger.[81][82] Also released for the 2009 model year is the FLHTCUTG Tri-Glide Ultra Classic, the first three-wheeled Harley since the Servi-Car was discontinued in 1973. The model features a unique frame and a 103 ci engine exclusive to the trike.[83]

Softail

2002 Softail Heritage Classic.

These big-twin motorcycles capitalize on Harley's strong value on tradition. With the rear-wheel suspension hidden under the transmission, they are visually similar to the "hardtail" choppers popular in the 1960s and 1970s, as well as from their own earlier history. In keeping with that tradition, Harley offers Softail models with "Springer" front ends and "Heritage" styling that incorporate design cues from throughout their history.

Dyna

2005 Dyna Super Glide Custom.

Dyna motorcycles feature big-twin engines and traditional styling. They can be distinguished from the Softail by the traditional coil-over suspension that connects the swingarm to the frame, and from the Sportster by their larger engines. On these models, the transmission also houses the engine's oil reservoir.

In 2006, Harley-Davidson released a line-up of five Dyna models: Super Glide, Super Glide Custom, Street Bob, Low Rider, and Wide Glide.

In 2008, the Dyna Fat Bob was introduced to the Dyna line-up featuring aggressive styling, including a new 2-1-2 exhaust, twin headlamps, a 180 mm rear tire and a 130 mm front tire.

The Dyna family uses the 88 cubic inch twin cam from 99-06. From 2007-and on the displacement was increased to 96 cubic inches. This was the result of the factory increasing the stroke to 4 3/8" inches.

Sportster

2002 Sportster 883 Custom
2003 Harley Davidson XL1200 Custom Anniversary Edition

Introduced in 1957, the Sportster is the longest-running model family in the Harley-Davidson lineup.[citation needed] They were conceived as racing motorcycles, and were popular on dirt and flat-track race courses through the 1960s and 1970s. Smaller and lighter than the other Harley models, contemporary Sportsters make use of 883 cc or 1200 cc Evolution engines and, though often modified, remain similar in appearance to their racing ancestors.

Up until the 2003 model year, the engine on the Sportster was rigidly mounted to the frame. The 2004 Sportster received a new frame accommodating a rubber-mounted engine. Although this made the bike heavier and reduced the available lean angle, it reduced the amount of vibration transmitted to the frame and the rider.[84] The rubber mounted engine provides a significantly smoother ride for rider and passenger, allowing longer trips.

In the 2007 model year, Harley-Davidson celebrated the 50th anniversary of the Sportster and produced a limited edition called the XL50, of which only 2000 were made for sale worldwide. Each motorcycle was individually numbered and came in one of two colors, Mirage Pearl Orange or Vivid Black. Also in 2007, electronic fuel injection was introduced to the Sportster family, and the Nightster model was introduced in mid-year. In 2009, Harley-Davidson added the Iron 883 to the Sportster line, the newest in the Dark Custom series.

In the 2008 model year, Harley-Davidson released the XR1200 Sportster in Europe, Africa, and the Middle East. The XR1200 had an Evolution engine tuned to produce 91 bhp (68 kW), four-piston dual front disc brakes, and an aluminum swing arm. Motorcyclist featured the XR1200 on the cover of its July 2008 issue and was generally positive about it in their "First Ride" story, in which Harley-Davidson was repeatedly asked to sell it in the United States.[85] One possible reason for the delayed availability in the United States was the fact that Harley-Davidson had to obtain the "XR1200" naming rights from Storz Performance, a Harley customizing shop in Ventura, Calif.[86] The XR1200 was released in the United States in 2009 in a special color scheme including Mirage Orange highlighting its dirt-tracker heritage. The first 750 XR1200 models in 2009 were pre-ordered and came with a number 1 tag for the front of the bike, autographed by Kenny Coolbeth and Scott Parker and a thank you/welcome letter from the company, signed by Bill Davidson.[citation needed]

VRSC

V-Rod in a gravel driveway.

Introduced in 2001, the VRSC family bears little resemblance to Harley's more traditional lineup. Competing against Japanese and American muscle bikes and seeking to expand its market appeal, the "V-Rod" makes use of an engine developed jointly with Porsche that, for the first time in Harley history, incorporates overhead cams, and liquid cooling. The V-Rod is visually distinctive, easily identified by the 60-degree V-Twin engine, the radiator and the hydroformed frame members that support the round-topped air cleaner cover. Based on the VR-1000 racing motorcycle, it continues to be a platform around which Harley-Davidson builds drag-racing competition machines. The V-Rod has gathered an enthusiastic following in the U.S., Europe and Australia, and an annual Rally at the Kansas City production facility has been organized by Max Millender and the members of a 21,000+ member strong internet discussion forum www.1130cc.com. Bill Davidson has presented Mr Millender with a signed airbox cover to recognize the contribution the forum has made to the VRSC platform which continues to evolve with models like the Night Rod Special (VRSCDX).

In 2008, Harley added anti-lock braking systems as a factory installed option on all VRSC models.[80] Harley also increased the displacement of the stock engine from 1130cc (69ci) to 1250cc (73.6ci), which had only been previously available from Screamin' Eagle, and added a slipper clutch as standard equipment.

VRSC Models Include:

VRSCA: V-Rod (2002–2006), VRSCAW: V-Rod (2007–2009), VRSCB: V-Rod (2004–2005), VRSCD: Night Rod (2006–2008), VRSCDX: Night Rod Special (2007–2009), VRSCSE: Screamin' Eagle CVO V-Rod (2005), VRSCSE2: Screamin' Eagle CVO V-Rod (2006), VRSCR: Street Rod (2006–2007), VRSCX: Screamin' Eagle Tribute V-Rod (2007), VRSCF: V-Rod Muscle (2009).

VRXSE

The VRXSE V-Rod Destroyer is Harley-Davidson's production drag racing motorcycle, constructed to run the quarter mile in under ten seconds. It is based on the same revolution engine that powers the VRSC line, but the VRXSE uses the Sceamin' Eagle 1300cc "stroked" incarnation, featuring a 75 mm crankshaft, 105 mm Pistons, and 58 mm throttle bodies.

The V-Rod Destroyer is not a street legal motorcycle.

Environmental record

The Environmental Protection Agency conducted emissions-certification and representative emissions test in Ann Arbor, Michigan, in 2005. Subsequently, Harley-Davidson produced an "environmental warranty." The warranty warrants the first and following owners after, that each vehicle is designed and built free of defects in materials and workmanship that cause the vehicle to not meet EPA standards.[87] In 2005, the EPA and the Pennsylvania Department of Environmental Protection confirmed Harley-Davidson to be the first corporation to voluntarily enroll in the One Clean-Up Program. This program is designed for the clean-up of the affected soil and groundwater at the former York Naval Ordnance Plant. The program is backed by the state and local government along with participating organizations and corporations.[88]

Paul Gotthold, Director of Operations for the EPA, congratulated the Motor Company:

“Harley-Davidson has taken their environmental responsibilities very seriously and has already made substantial progress in the investigation and cleanup of past contamination. Proof of Harley's efforts can be found in the recent EPA determination that designates the Harley property as ‘under control’ for cleanup purposes. This determination means that there are no serious contamination problems at the facility. Under the new One Cleanup Program, Harley, EPA, and PADEP will expedite the completion of the property investigation and reach a final solution that will permanently protect human health and the environment.”[88]

Harley-Davidson has also purchased most of Castalloy, which is a South Australian producer of cast motorcycle wheels and hubs. The South Australian government has set forth "protection to the purchaser (Harley-Davidson) against environmental risks."[89]

Factory tours & museum

Harley-Davidson Museum in Milwaukee.

Harley-Davidson offers factory tours at four of its manufacturing sites, and the Harley-Davidson Museum, which opened in 2008, exhibits Harley-Davidson's history, culture, and vehicles, including the motor company's corporate archives.[90][91]

  • Wauwatosa, Wisconsin - Powertrain Operations: Sportster and Buell powertrains, Screamin' Eagle performance parts, and remanufacturing.
  • York, Pennsylvania - Vehicle Operations: Manufacturing site for Touring class, Softail, and custom vehicles.
  • Tomahawk, Wisconsin - Tomahawk Operations: Facility that makes sidecars, saddlebags, windshields, and more.
  • Kansas City, Missouri - Vehicle and Powertrain Operations: Manufacturing site of Sportster and other vehicles.
  • Milwaukee, Wisconsin - Harley-Davidson Museum: Archive; exhibits of people, products, culture and history; restaurant & café; and museum store.

Harley-Davidson culture

Harley Davidson Cafe theme restaurant located in Las Vegas, NV

According to a recent Harley-Davidson study, in 1987 half of all Harley riders were under age 35.[92] Now, only 15% of Harley buyers are under 35,[92] and as of 2005, the median age had risen to 46.7.[93][94][95][96]

The income of the average Harley-Davidson rider has risen, as well. In 1987, the median household income of a Harley-Davidson rider was $38,000. By 1997, the median household income for those riders had more than doubled, to $83,000.[92][clarification needed]

Harley-Davidson attracts a loyal brand community,[97] with licensing of the Harley-Davidson logo accounting for almost 5% of the company's net revenue ($41 million in 2004).[98] Harley-Davidson supplies many American police forces with their motorcycle fleets.[99]

Harley-Davidson motorcycles has long been associated with the sub-cultures of the:

Origin of "Hog" nickname

Beginning in 1920, a team of farm boys, including Ray Weishaar, who became known as the "hog boys," consistently won races. The group had a hog, or pig as their mascot. Following a win, they would put the pig (a real one) on their Harley and take a victory lap.[100] In 1983, the Motor Company formed a club for owners of its product taking advantage of the long-standing nickname by turning "hog" into the acronym HOG., for Harley Owners Group. Harley-Davidson attempted to trademark "hog", but lost a case against an independent Harley-Davidson specialist, The Hog Farm of West Seneca, NY,[101] in 1999 when the appellate panel ruled that "hog" had become a generic term for large motorcycles and was therefore unprotectable as a trademark.[102]

On August 15, 2006, Harley-Davidson Inc. had its NYSE ticker symbol changed from HDI to HOG.[103]

Harley-Davidson Riders Club of Great Britain

The Harley-Davidson Riders Club of Great Britain (est 1949) was the first British riders club (as opposed to motorcycle club) and organized national rallies and ride-outs from the outset. The 1982 rally began a popular run of events, probably due to the good fortune of having William G. Davidson attending his first rally outside the U.S., in Great Britain. He is thought to have been more than curious to discover how the secret "Evolution Motor" had found its world exclusive on the cover of the spring edition of the HDRCGB magazine, the "Harleyquin", but having a forgiving nature, Willie G. returned in 1984, along with Vaughn Beals and Len Thomson to officially show off the Evolution engine by bringing a test ride fleet to the second Brighton International Super Rally run by H.D.R.C.G.B.. The demonstration rides were the first at any European Rally. The club now has circa 1800 members throughput the U. K., U.S.A. and Europe not forgetting their founder member in Australia. The club is split into regions and most hold rallies during the summer culminating in the clubs International Rally.

Harley-Davidson 2004 Heritage

Harley Owners Group

Harley-Davidson established the Harley Owners Group (HOG) in 1983 to build on the strong loyalty and fraternity of Harley-Davidson enthusiasts as a means to promote not just a consumer product, but a lifestyle. The HOG has also served to open new revenue streams for the company, with the production of tie-in merchandise offered to club members, numbering over one million strong. Other motorcycle brands,[104] and other and consumer brands outside motorcycling, have tried to imitate the Harley-Davidson's success in this endeavor by creating factory-sponsored community marketing clubs of their own.[105] HOG members typically spend 30% more than other Harley owners, on such items as clothing and Harley-Davidson-sponsored events.[106]

In 1991, HOG went international, with the first official European HOG Rally in Cheltenham, England.[107] Today, more than one million members and more than 1400 chapters worldwide make HOG the largest factory-sponsored motorcycle organization in the world.[108]

HOG benefits include organized group rides, exclusive products and product discounts, insurance premium discounts, and the Hog Tales newsletter. A one year full membership is included with the purchase of a new, unregistered Harley-Davidson.[109]

In 2008, HOG celebrated its 25 anniversary on conjunction with the Harley 105th in Milwaukee Wisconsin.

Anniversary Celebrations

Beginning with Harley-Davidson's 90th anniversary in 1993, Harley-Davidson has had celebratory rides to Milwaukee called the "Ride Home".[110] This new tradition has continued every 5 years, and is referred to unofficially as "Harleyfest," in line with Milwaukee's other festivals (Summerfest, German fest, Festa Italiana, etc.). This event brings Harley riders from all around the world.[111][112] The most recent event, "The 105th" was held on August 28-31, 2008.[113] The 105th anniversary celebration saw events held in Milwaukee, Waukesha, Racine, and Kenosha counties, in Southeast Wisconsin.

Labor Hall of Fame

Because William S. Harley, Arthur Davidson, William A. Davidson and Walter Davidson, Sr. used and believed in H-D products and relied on the dedication of its employees to produce quality motorcycles, the four men were inducted into the Labor Hall of Fame.[114]

See also

Notes

  1. ^ a b c Harley-Davidson's annual income statement via Wikinvest
  2. ^ Standard and Poor's 500 Guide. The McGraw-Hill Companies, Inc.. 2007. ISBN 0-07-147906-6. 
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  4. ^ a b http://www.popularmechanics.com/automotive/new_cars/1268626.html?page=2
  5. ^ a b Nelson, Gregory J.. "United States Patent Application: 0060260569". appft1.uspto.gov. http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=11136081&OS=11136081&RS=11136081. Retrieved 2008-04-27. 
  6. ^ Herbert Wagner, 2003. At the Creation: Myth, Reality, and the Origin of the Harley-Davidson Motorcycle, 1901–1909 (Madison: Wisconsin Historical Society Press), pp.22-28, 42-44.
  7. ^ Wagner, 2003. pp.45-62.
  8. ^ Wagner, 2003. pp.68-81, 118.
  9. ^ Wagner, 2003. pp.124-25.
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  12. ^ The Mexican Revolution, 1910-20. Osprey Publishing. 2006. p. 61. ISBN 9781841769899. 
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  113. ^ The 105th
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References

  • Bach, Sharon, & Ostermann, Ken, eds. 1993. The Legend Begins: Harley-Davidson Motorcycles, 1903–1969 (Harley-Davidson, Inc.)
  • Mitchel, D. (1997). Harley-Davidson Chronicle - An American Original. Publications International Limited. ISBN 0-7853-2514-X. 
  • Wagner, Herbert, 2003. At the Creation: Myth, Reality, and the Origin of the Harley-Davidson Motorcycle, 1901–1909 (Wisconsin Historical Society Press)
  • Wilson, H. "The Encyclopedia of the Motorcycle" Dorling-Kindersley Limited, 1995 ISBN 0 7513 0206 6

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