HDhistory.com - The Modernization Of Harley Davidson

The Beginning, or The End? - Harley Davidson's Modernization

- Many lifelong Harley enthusiasts and bikers know the truth behind the burgeoning success of Harley Davidson, they did their homework and realized they were catering to the wrong market. By cashing in on classic designs from days gone by, they were able to tap into the RUB (rich urban biker) going through a midlife crisis and sell him a peice of history that reminded him of his adolesence and charged him a pretty penny for it. Although it was a slow progression taking almost 20 years, it's easy to spot the trend right from the beginning, and that trend was profit at all cost! The product went from being affordable and easy to work on and modify, to expensive, bloated and impossible to get parts for. Need a new tail light lens for that Fatboy? You have to buy the whole tail lamp assembly at an overblown price from the dealer, and ten to one the part is stamped "Made In China", as H-D now outsources most small parts. The "Factory" as it is known today, keeps such a tight reign on it's dealers and an even tighter reign on prices.

- The marketing of the name Harley Davidson has gotten so out of control, that it no longer carries the weight of belonging to a solid reliable product. Now you'll find everything from officially licensed Harley toilet paper to Harley Barbie and everything in between, not to mention how most dealerships now carry some bikes, but they have a whole warehouse of clothing to sell you with HD stamped all over it instead of a good supply of parts to keep you running. The following is a step by step timeframe as to what many consider the downfall of Harley Davidson.

1981 On February 26, 1981, a group of thirteen senior Harley-Davidson executives, led by Vaughn Beals, signed a letter of intent to purchase the company from AMF. Settled by June 16, 1981, the executives celebrated with a ride from York to Milwaukee. 1981 production: 41,586 motorcycles.

1983 To get Harley owners more involved in the sport, the company formed the Harley Owners Group (H.O.G.), now the largest factory-sponsored motorcycle club in the world. Also in 1983, tariffs were imposed on Japanese motorcycles 700CC or larger in response to unf air trade practices. Instead of relying on their reputation and trying to regain their market share with better product, Harley sought to control it without putting any effort into being a better competitor.

1984 After seven years of development, Harley-Davidson introduced the 1340CC V2 Evolution engine. Designed for high reliability with a minimum of scheduled maintenance, the engine produced more power at every speed. While the Evo is still mocked by hardcore enthusiasts, it has built a reputation for endurance and reliability with only a few known weak spots.

1986 Harley-Davidson returned to public ownership by offering two million shares of common stock and a concurrent offering of $70 million principal amounts of subordinated notes due 1996.

1987 In March 1987, Harley-Davidson petitioned the International Trade Commission for early termination of the tariffs on Japanese motorcycles. In July, Harley-Davidson was approved for listing on the New York Stock Exchange. Are we seeing a pattern now?

1988 The 1988 product line featured the first 74 cu in Sportster, with 1200 CCs of power. Also, to mark the company's 85th anniversary, a cross-country ride was held, benefiting the Muscular Dystrophy Association. 1988 production: 47,325 motorcycles. The Sportster, long touted as a "girly" bike is now the fastest Harley manufactured when fitted with the 1200cc power plant.

1996-97 With the introduction of the Heritage Springer Softail, Harley-Davidson forged into the future by staking claim to its biggest asset -- the past. It was evident to the marketing gurus that the young professionals they were catering to wanted nostalgia and could well afford to pay for it.

1999 The introduction of the "next" generation of Harley engines, the Twin Cam 88. With more engineering than ever before, this new breed of engine has yet to prove itself. The first engine with fuel injection, it has suffered teething problems, most notably in an under designed clutch assembly.

Next - Harley-Davidson Goes Water Cooled!

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