Management Giants
Harley Davidson
Probably the most famous motorcycle in the world.

William S. Harley and Arthur Davidson
110 years of freedom
The Harley-Davidson motorcycle has become an American icon. Recognized around the world, it is a symbol of America's inventiveness, rugged individualism and pioneering spirit. Ironically, what would become one of the world's largest and most widely recognized motorcycle manufacturers was born out of pure and simple laziness.
Around the turn of the century, a new invention was sweeping across America-the bicycle. This two-wheeled wonder enabled individuals to travel farther and faster than ever before possible, and millions took off to explore the country with pedal-power.
But this wasn't enough for 21-year-old draftsman William S. Harley and 20-year-old pattern-maker Arthur Davidson. In 1901, these two boyhood friends embarked on a quest to "take the work out of bicycling." Their dream was to build a motorized bicycle that would enable people to travel reliably and as fast as the technology of the time would allow.
In 1901, William S. Harley, age 22, 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 worked on their motor-bicycle using the north side 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 testing their power-cycle, Harley and the Davidson brothers found it unable to climb the hills around Milwaukee without pedal assistance. They quickly wrote off their first motor-bicycle as a valuable learning experiment.
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 rail shops where oldest brother William A. Davidson was then tool room 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.
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.
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.
Harley-Davidson works in 1911
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.
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.
World War I
In 1917, the United States entered World War I and the military demanded motorcycles for the war effort. Harleys had already been used by the military in the Pancho Villa Expedition but World War I was the first time the motorcycle had been adopted for combat service. Harley-Davidson provided about 15,000 machines to the military forces during World War I.
1920s
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.
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).
Great Depression
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.
In order to survive the remainder of the Depression, the company manufactured industrial power plants 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.
World War II
One of only two American cycle manufacturers to survive the Great Depression, 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.
Over 90,000 military motorcycles, mostly WLAs and WLCs (the Canadian version) would be produced, many to be provided to allies.
Harley-Davidson received two Army-Navy ‘E’ Awards, one in 1943 and the other in 1945, which were awarded for Excellence in Production.
Small Harleys: Hummers and Aermacchis
As part of war reparations, Harley-Davidson acquired the design of a small German motorcycle, the DKW RT 125, which they adapted, manufactured, and sold from 1948 to 1966. Various models were made, including the Hummer from 1955 to 1959, but they are all colloquially referred to as "Hummers" at present. BSA in the United Kingdom took the same design as the foundation of their BSA Bantam.
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.
Tarnished reputation
In 1952, following their application to the US Tariff Commission for a 40% tax on imported motorcycles, Harley-Davidson was charged with restrictive practices.
In 1969, American Machine 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 and quality declined, and the company almost went bankrupt. The "Harley-Davidson" name was mocked as "Hardly Ableson", "Hardly Driveable," and "Hogly Ferguson", and the nickname "Hog" became pejorative.
In 1977 - following the successful manufacture of the Liberty Edition to commemorate America's bicentennial in 1976.] - Harley-Davidson produced what has become one of its most controversial models, the Harley-Davidson Confederate Edition. The bike was essentially a stock Harley with Confederate-specific paint and details.
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. 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.
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.
In response to possible motorcycle market loss due to the aging of baby-boomers, Harley-Davidson bought luxury motor home manufacturer Holiday Rambler in 1986. In 1996, the company sold Holiday Rambler to the Monaco Coach Corporation.
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.
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. In 2002, Ford added a super-charged engine (5.4 L) which continued until 2003. The 2003 model bore badges celebrating the 100th anniversaries of both companies. In 2004, the Ford/Harley truck was changed to a Super-Duty, which continues through 2009.
Ford resumed production of the Harley-Davidson Edition F-150 for their 2006 model-year, as well.
The Ford-F150 Harley-Davidson Edition continues in production for the 2013 model year.
Building started on $75 million 130,000 square-foot (12,000 m2) Harley-Davidson Museum in the Menomonee 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.
Brand culture
According to a recent Harley-Davidson study, in 1987 half of all Harley riders were under age 35. Now, only 15% of Harley buyers are under 35, and as of 2005, the median age had risen to 46.7.
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.
Harley-Davidson attracts a loyal brand community, with licensing of the Harley-Davidson logo accounting for almost 5% of the company's net revenue ($41 million in 2004). Harley-Davidson supplies many American police forces with their motorcycle fleets.
Harley-Davidson motorcycles have long been associated with the sub-cultures of the biker, motorcycle clubs, and Outlaw motorcycle clubs, or one per centers.
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 live hog as their mascot. Following a win, they would put the hog on their Harley and take a victory lap. 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, in 1999 when the appellate panel ruled that "hog" had become a generic term for large motorcycles and was therefore unprotectable as a trademark.
On August 15, 2006, Harley-Davidson Inc. had its NYSE ticker symbol changed from HDI to HOG.
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, 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. HOG members typically spend 30% more than other Harley owners, on such items as clothing and Harley-Davidson-sponsored events.
In 1991, HOG went international, with the first official European HOG Rally in Cheltenham, England.
Today, more than one million members and more than 1400 chapters worldwide make HOG the largest factory-sponsored motorcycle organization in the world.
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.
In 2008, HOG celebrated its 25th anniversary in conjunction with the Harley 105th in Milwaukee 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 motorcycles, the four men were inducted into the Labor Hall of Fame.
Clockwise from top left: William S. Harley, William A. Davidson, Walter Davidson, Sr., Arthur Davidson









