Harley-Davidson History,1980-1989: Back to the Future

Harley came into the 1980s reclaiming their company, determined to rebuild, and giving a nod to their classic roots.

As the 1970s drew to a close, Harley-Davidson was still in a state of flux. To stay solvent in the market, they had gotten into business with AMF. While the deal was necessary to keep the company afloat and fight off the rising threat of foreign manufacturers; it was an imperfect union. However, as the 1980s approached, Harley-Davidson had gotten stronger. And this new decade was to see the company stand again on its own; and get back to the business of building great motorcycles.

The first order of business was to send AMF back to the bowling alley. In 1981 a group of 13 investors, including Willie G. Davidson, bought back the company from AMF for $80 million. This historical buyback was appropriately named “The Eagle Soars Alone.”

And soar, it did. With the AMF monkey off their back, Harley then turned their attention to the tariffs that were cramping their sales.

Facing competition from Japanese bike manufacturers, H-D felt that theirs was an uneven playing field. They reached out to the U.S. International Trade Commission who conducted an investigation. In 1983 President Ronald Reagan placed a 45% tariff on imported bikes with engine capacities greater than 700cc to be in effect for 5 years.

Harley began to produce better bikes with new capabilities, and soon they were regaining their reputation. Their customer base came back, grew, and sales began to rise. By outsourcing manufacturing of some parts, they produced a higher quality and durability compared to the 1970’s bikes.

Pride of ownership was growing, and “Harley Owners Group,” aka “H.O.G.”, was formed. The factory-sponsored motorcycle club boasted impressive numbers.

The inclusion of retro Harley styling definitely contributed to the success from this era. Not only were the bikes of the 1980s simply better in terms of performance, they had their edge back. Given a groundswell of 1950s nostalgia in the American zeitgeist, Harley took a cue from its past to define a new vision. Subsequently, the bikes aesthetically incorporated classic elements from the past with new engines and technology. It proved a big hit among bikers.

S.J. Bryan

Longtime automotive journalist S.J. Bryan has been covering the automotive industry for over five years and is an editor with Ford Truck Enthusiasts and regular contributor to F-150 Online, Harley-Davidson Forums, and The Mustang Source, among other popular auto sites.

Bryan first discovered her passion for all things automotive while riding in her parent's 1968 Ford Mustang. The automotive expert cut her teeth growing up riding on Harleys, and her first car was a Chevy Nova. Despite her lead foot, Bryan has yet to receive a speeding ticket.

The award-winning former playwright was first published at age 18. She has worked extensively as a writer and editor for a number of lifestyle and pop culture publications. The diehard gearhead is a big fan of American muscle cars, sixth-gen Ford trucks, and Oxford commas.

S.J. can be reached at sherryjbry@gmail.com.