The True Story of America’s Greatest Vehicle
TEXT and LAYOUT by
LIAM GREENAMYRE
otorcycle riders say that it’s hard M to explain the feeling to somebody who hasn’t ridden. They speak of a heightening of senses - hearing the roar of the engine, feeling the wind whip by, and being in touch with the open road and great expanses of the outdoors. They speak of a feeling of power during a roll-on, or the thrill of leaning through a turn. But more than anything else, they speak of freedom. Of escaping An early racer powers from everyday life, of an adventure that is through a not about the destination, but about the curve on a dirt journey itself. track No motorcycle can capture the thrill of riding quite like a Harley-Davidson. Although Harley-Davidson enjoys unparalleled customer loyalty and a dedicated connection to riders, the company’s journey through the years has not been an easy one. Despite more than once coming to the brink of collapse, Harley-Davidson has withstood the test of time to become not only the longest-standing motorcycle manufacturer in the world, but also a tes-
tament to the strength of American ingenuity and persistence. merica at the dawn of the twenA tieth century was quite a different place
from what it is today. Although the Industrial Revolution had begun to change the lives of everyday Americans, many were still without electricity. Streets were made of cobblestone, gravel, or even dirt, and no highways existed to transport people between cities. People walked from place to place, or rode bicycles or horses if they were lucky enough to own one. Travelling across the country was a lengthy and dangerous prospect. At the turn of the century, Milwaukee was a typical manufacturing town. It was notorious for brutal winters, fuelled by the freezing winds blowing off of Lake Michigan, but it was home to a number of successful mills and factories. Plants were often staffed with immigrant labor who
The founders and associates outside the factory in 1910.
endured rough and dangerous conditions to provide for their families. Yet it was here that two lifelong friends would create the first Harley-Davidson motorcycle, a vehicle that would go on to leave an indelible mark on America’s future. rthur Davidson and Bill HarA ley were next-door neighbors, and had
worked at the same metal fabricator in their early twenties. They were also avid hobbyists in their spare time, spending after-hours tinkering and inventing. The two became fascinated with the idea of creating a motorized bicycle from the ground up. Enlisting the help of a friend from the plant, Arthur and Bill spent their nights and weekends in the Davidson family basement at 315 North 37th Street, building each part from scratch. They toiled for The first Harley-David- several years, recruiting Arthur’s brother son motorized Walter and building a ten by fifteen shack bicycle in Davidson’s backyard, which bore the name “Harley Davidson Motor Co.” on the door. After two years of la-
bor, they created their first prototype engine. It was single cylinder motor with displacement of just 106 cubic centimeters, and the pair found that it lacked the power to get up many of Milwaukee’s steep hills. And so they returned to the drawing board. They created another, larger prototype with another engine design, and by 1906 the company was selling fifty motorcycles per year. The Harley-Davidson legend had begun.
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or the average American, owning a motorcycle was an expensive and potentially risky investment. It would likely replace their horse or bicycle, and customers were not yet convinced that these machines were trustworthy, safe or reliable. It was with this in mind that HarleyDavidson’s racing heritage began. The industry’s first race events were endurance competitions – long-distance races over
An early model HarleyDavidson, still featuring pedals to start the engine
In some races, riders had to sprint to their bikes, kick start them, and race to the finish line.
every type of rugged terrain – and the company aimed to prove that its motorcycles could withstand any test. In 1908, Harley’s fifth year of production, Walter Davidson entered the first competition both for the company and for himself as a rider. Competing against more than sixty other riders, Davidson rode for two days through 365 miles of New York’s Catskill Mountains. He not only won the race, but did so with a perfect score. Davidson revealed after the race that he had been so confident in the motorcycle that, unlike other riders, he hadn’t even bothered to carry spare parts. Word of this feat spread fast, and Harley-Davidson’s reputation began to grow. Endurance competition, however, was not the only form of motorcycle racing.
Speed racing was also popular, taking place on large wooden tracks with high, steep banks. To add to the danger, the tracks would quickly become extremely slippery – early motorcycles vented oil after running it through the engine. Many racers died or were seriously injured. Although the founders declined to participate, riders nonetheless used Harley-Davidsons and helped to raise awareness of the company’s motorcycles.
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purred by a growing reputation for quality and reliability, Americans began to find many commercial uses for Harley-Davidsons. Deliveries could be completed in half the time and without the need to feed and house a horse. The United States Postal Service soon followed suit. In 1908, Harley made its first sale to the Detroit Police department, and orders A racer on the from other police forces began to roll in. perilous board By the Great Depression, more than 3,000 tracks police departments around the country were enforcing the law using Harley-Davidsons.
Harley-Davidson’s first sale to the military came in March of 1916, after the Mexican general Pancho Villa led an expedition into America and killed several citizens in Columbus, New Mexico. The War Department requested motorcycles to use in the Southwest’s desert terrain, and Harley-Davidson delivered, with custom motorcycles including sidecars that could be used with mounted machine guns. The War Department was impressed not only with the quality of the bikes, but also the speed at which they were delivered. So began Harley-Davidson’s long association with the armed forces. Police departments were In the first year of World War I, the some of the War Department purchased nearly half earliest comof Harley-Davidson’s entire production mercial buyers for the year – more than 18,000 motorcyof Harleys. cles. The bikes were used in scouting missions and to transport messages, and more
than 90,000 ended up being used in the war effort. Most of the bikes shipped to Europe ended up staying there, having the unintended consequence of establishing the company’s reputation overseas. y 1920, Harley-Davidson was the largest motorcycle manufacturer in the world and sold bikes in 67 countries. The period after the war was difficult, however, with a troubled economy and the explosion of the automobile. When the Great Depression hit, only Harley-Davidson and one other company were able to weather the storm, though there had once been over 150 competitors. Harley had to adapt quickly, and was only barely able to survive. It was during this time that the company introduced its three-wheeled, utilitarian Servi-Car and began to diversify its styling at a time when it could not afford to develop new engines and prototypes. Harley-Davidson went from offering only olive-green bikes with tank lettering to of-
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An American soldier takes cover behind his HarleyDavidson WLA during training
fering a more diverse color selection and the opportunity for custom paint jobs – a selling point that remains one of Harley’s core competencies even today. hen World War II broke out W in 1939, Harley-Davidson responded to
increased demand by unveiling the WLA, a military version of their 45 WLD. This new model was used for everything from scouting to overall reconnaissance, and was loved for its abilities on rough terrain and in tight spaces. By the time the United States entered the fray, almost every bicycle the company manufactured was being used for the war. Shortages of materials meant that civilians often had to wait for replacement parts, but the war again paid dividends for Harley. Returning soldiers often wanted to continue riding, and civilian demand increased significantly after the war. In 1953, rival manufacturer Indian closed, leaving Harley-Davidson as the only American motorcycle manufacturer. Lifting the import tariffs, however, opened the door to stiff competition from British motorcycles including Norton and Triumph, and the U.S. soon saw an influx of smaller Japanese bikes. Although foreign
competitors were a serious challenge to Harley-Davidson, they helped to solidify the concept of an American motorcycle. The period after World War II heralded a sea change in motorcycle culture. What started with a small number of riders – a break from the norms of society, a distinctive style, and a certain lawlessness – came to be associated with the motorcycle itself, and would change perceptions of the machine for generations. Groups of riders began using their motorcycles as an unmistakable statement of self-expression. They began modifying their motorcycles, stripping them down to make them lighter and faster. They would remove the front brakes and fenders, replace the heavy wheel with a lighter rim and tire, mount smaller seats directly to the frame, and shorten or “bob” the rear
Bikers ride through traffic in New York City
fender. Groups of these riders, clad in black, military-style leather jackets, began to garner a bad reputation. The situation came to a head in the summer of 1947, at a motorcycle rally in Hollister California. Thousands were in attendance – many times more than had been expected. Bikers were forced to sleep on sidewalks and in parks. In the crowded, alcohol-fueled environment, things began to get out of hand. Fights broke out, and more than Life magazine fifty were arrested for public intoxication, published this reckless driving, and disturbing the peace. staged photo There were sixty reported injuries, three to sensationalof them serious. ize what had The national press, however, took the happened in Hollister. story and sensationalized it. Life magazine featured staged photos of public disorder, and reported that the bikers had ‘taken over the town,’ riding their bikes into bars and restaurants and terrorizing
citizens. With the release of the movie The Wild One, partially based on the events in Hollister, Hollywood had found a new bad-guy arche- A scene from The Wild type – motorcycle gangs. arley-Davidson was deeply conH cerned about the deteriorating reputation
of motorcyclists. But they would soon find that to be the least of their problems. The company had become the target of hostile takeover attempt by the manufacturing conglomerate Bangor Punta, maker of everything from guns to yachts to aircraft. Harley-Davidson’s leadership realized that in order to stay viable, they needed to be acquired by a company that shared their vision and had the deep pockets to help them in the next stage of their development. In January of 1969, the company closed a deal with American Machine and Foundry. AMF quickly made its presence felt in Harley-Davidson’s factories. They insisted on putting the AMF logo alongside Harley-Davidson’s on the motorcycles’ gas
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tanks, and wanted to turn the company into a high-volume manufacturer with a focus on nothing but the bottom line. The quality of the bikes declined, and rider loyalty began to deteriorate. Sales slipped with the recession of the 1970s, and AMF was not seeing the quick return on investment they had hoped for. AMF began looking for a buyer for Harley-Davidson, but found the market cold. One afternoon, Harley’s CEO called a meeting and proposed an exciting, but highly risky maneuver: a highly leveraged buyback of the company by the company’s leaders. Although the move was financially perilous for the buyers, on June 16, 1981, Harley-Davidson once again became an independent company. Word spread quickly in the motorcycle community, and riders were seen covering or painting over the AMF logo on their The Harleymotorcycles and memorabilia. The shirts Davidson buyback team printed for the occasion summed up all the excitem e n t – “The Eagle Soars Alone”.
H a r l e y - D av i d s o n’s troubles, however, were far from over. In 1983, Ronald Reagan and the International Trade Commission granted the company’s request and imposed a 40% tariff on heavy motorcycles imported from overseas, allowing the company to continue to compete. But by 1985, the company was still in trouble and in danger of insolvency. In October of that year, the company’s lead lender told Harley-Davidson that it would no longer continue lending to them above their credit limit. The company had until the end of the year to find new financing, or Harley-Davidson would go bankrupt. The company’s CEO and CFO approached every major lender on Wall Street, only to be rejected. Finally, the securities firm Dean Witter made a verbal commitment. But panic struck yet again when Dean Witter announced that there was no way they could close the deal before the new year. On December 31, 1985, Harley-Davidson CFO Rich Teerlink begged the company to keep their office
A HarleyDavidson dealership spray paints over the AMF logo
Ronald Reagan’s 1987 visit to the Harley manufacturing plant
open late, then literally ran desk to desk to gather the needed signatures. The money was transferred with literally minutes to spare, and Harley-Davidson avoided bankruptcy by the narrowest of margins. Less than six months later, the company conducted an Initial Public Offering, making its stock available to the public for the first time. The stock was met with great enthusiasm and continued to perform well. 1986 and 1987 were landmark sales years, and in March of 1987, the company made a bold and unprecedented move. With a year left before the ITC tariffs expired, Harley-Davidson announced that it was strong enough to compete with any company in the world, and requested that the tax protecting the company be lifted. The media had a field day with this
announcement, and soon a letter came announcing Ronald Reagan’s intention to visit Harley-Davidson’s York plant. On this momentous occasion, President Reagan declared that American business, given the opportunity to compete fairly, could take on any competition the world had to offer, thus cementing HarleyDavidson’s legacy as not only a maker of legendary motorcycles, but a triumph of America’s dogged determination in the face of any challenge.
Racer Joe Petrali finishes a race at Hornell, New York