The Story Of How Harley-Davidson Raced to the Top
Harley-Davidson needs no introduction; it's been America's favorite motorcycle company for 114 years. But it wasn't an instant success story for the legendary motorcycle company, so let's look back at some of their highs and lows.
1. Humble Beginning
The story of the $10.7 billion company had a small and simple beginning. Before there were Harley-Davidsons cruising on our streets, there was William Harley and Arthur Davidson, two best friends from Milwaukee, tinkering with engines. They experimented in 1901 with making normal pedal bikes go faster by installing a small motor designed by William Harley in it, however, it took some failures before their prototypes were any good. By 1904 they had a more powerful engine design, and a reliable motorized bicycle using a frame designed specifically for the motor. By the end of 1904 they sold their first three Harley-Davidson motorcycles.
In 1905, the two friends hired their first employee, followed by five more employees the year after. Just like that, the legendary company had started, and in 1906, the company produced 50 motorcycles, only to triple that the next year by producing 150.
2. The Next Level
In 1907, the company took a large leap forward towards success, starting with William Harley attending the University of Wisconsin for an engineering degree. Once he graduated, he went back to being in charge of product development, and got the first of 67 patents. Arthur Davidson, on the other hand, used his enthusiasm to become the official sales manager of the company. Arthur eventually traveled the world recruiting dealers, some of which are still in the dealer network today. Walter Davidson became the general manager and president of Harley-Davidson Inc, and was the main business development person. Still the dedicated start up company, the founders would work seven days per week, sometimes late into the night. By 1908 they were making and selling 450 bikes a year.
3. Race to the Top
In a literal race to the top, Walter gained publicity by winning the 1908 Federation of American Motorcyclists' 175-mile race through New York's Catskill Mountains. This win was especially sweet, as Indian Motorcycle was also competing in this race with a factory entry, and were much better known in the Northeast. In the very same year, Harley-Davidson sold their very first motorcycles to law enforcement, and by 1909 they were selling more than 1,100 bikes a year
4. Big Expansion
In 1913, the company had moved into a huge 300,000 square-feet plant, and over 1,500 employees were working in it. Arthur was successful in getting into the Japanese market when he recruited a distributor there. When WWI broke, Harley-Davidson started making motorcycles for military use, eventually selling 20,000 bikes to the government by the end of the war.
8. Harley-Davidson Today
The new management and ownership operated differently, building a good relationship with their employees and customers as a key to the success of the brand. With happy employees leading to higher quality, and better fit and finish, sales gained momentum. Listening to their customer and enthusiast base, and building bikes that embrace the lifestyle made them again one of the best loved brands in the world. Even at their premium price, Harley sells more large displacement bikes than any one and claims to be the biggest motorcycle company in the world. It took innovation, hard work, and sacrifice, but the company today is worth more than $10 billion.
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6. The End of the Original Founders
Not too long after the Motor Company introduced the Knucklehead engine in 1936, the founders started passing away, leaving the company to go on without them. William Davidson, died in 1937, shortly after the introduction of the legendary engine, when he was only 66 years old. In 1942, Walter Davidson was next, passing away at the age of 65, followed by William Harley the next year. Arthur Davidson died in a car accident in 1950 at the age of 69, by by that time Harley-Davidson was a robust company. By then, Harley had sold more than 120,000 bikes to the US government and allied forces in WWII, and had also introduced the Panhead.
7. Harley-Davidson After the Founders
The company did not stop after the founders passed away, and the evolution of America's favorite motorcycle company continued. In 1969, American Machine and Foundry bought the company, bringing with them some bad corporate business think, but also development money for modernization. The transition was rough, however, and new large displacement bikes from Japan, and a labor strike cause a big drop in sales. Things were looking dire for the company, with bankruptcy and liquidation looming, until a group of enthusiast executives (including Willie G. Davidson) purchased the company for $80 million in 1981.
5. Biggest in the World
By 1920, Harley-Davidson had officially become the biggest motorcycle company in the world, producing 28,000 motorcycles each year and distributing them through 67 countries. After the 1929 market crash things took a turn for the worse, and Harley were selling just a little over 3,500 motorcycles by 1933.
