Summio

YouTube video

The Rise and Fall of Harley-Davidson: Surviving Wars and Crises, But Not Gen Z

Dive into the captivating story of Harley-Davidson – from its humble beginnings in a shed to becoming a global cultural phenomenon that has weathered wars, economic downturns, and the relentless march of time.

16 min read4.5 / 5

Available in

Summary preview

The History of Harley-Davidson: From a Shed to an Iconic Brand

Hello everyone! Today, we're going to talk about a true icon of American industry, a brand that evokes a storm of emotions and debates – Harley-Davidson. Even if you're far from the world of motorcycles, you've definitely heard this name. Big, loud, heavy – these bikes have become synonymous with America, freedom, and, let's be honest, a certain lifestyle. They say that in the US, you're not really a biker at all if you haven't ridden a Harley at least once. And, frankly, there's some truth to that. The history of this company is a real blockbuster that could be the basis for a dozen Hollywood films. They've been through two world wars, the Great Depression, the 2008 global financial crisis, survived being acquired by a company that made bowling lanes, and even became the subject of one of the funniest episodes of "South Park." And yet, to be completely honest, Harley-Davidson motorcycles were never the fastest, cheapest, or most reliable in the world. You could always find something better in specific aspects. So, how did they manage to transform from a tiny shed in the backyard into a global cultural phenomenon with millions of fans? And why did this phenomenon once find itself on the brink of collapse? Today, we'll figure all of this out. You'll learn if it's true that the founders were Russian migrants Kharlamov and Davydov (spoiler: no), why a rebellious brand couldn't survive without the police, what nickname Soviet soldiers gave Harleys, and how "recycling fees" (well, almost) saved the company from bankruptcy. And, of course, the main question: can Harley survive in a world where young people prefer electric scooters? Before we begin, tell us in the comments what your first motorcycle was. Maybe it was in your grandpa's sidecar? Or did you get on your own right away? Write it down, and we'll start our dive into the legend!

The Birth of a Legend: From Russian Migrants to the American Dream

Let's start with one of the most popular myths that circulated among bikers in the post-Soviet space in the 90s. It was said that Harley-Davidson was founded by Russian emigrants Kharlamov and Davydov. It sounds patriotic and pleasing to the ego, of course, but, alas, reality turned out to be much more prosaic. In reality, the company was founded by four Americans of British descent: brothers Walter, William, and Arthur Davidson, and their friend and neighbor – William Harley. And although there were three Davidsons, the main driving force behind this whole story was William Harley, which is why his surname comes first. William Harley was born in 1880 in Milwaukee, Wisconsin. At 15, instead of loafing around or attending vocational school, he got a job at a bicycle factory. He started with the simplest work – assembly, but thanks to his technical mind and interest in mechanisms, he quickly advanced to draftsman. There, he worked on bicycle parts. A couple of years later, Harley moved to a larger enterprise where he worked with more complex mechanisms. And here's where it gets interesting: his childhood friend Arthur Davidson worked at the same factory. Arthur was involved in making patterns – wooden copies of parts, which were then used to cast real metal ones. Today, when CNC machines do everything themselves, this profession seems outdated, but back then, it was a key position. So, childhood friends Harley and Davidson found themselves not just at the same factory, but already working in tandem: Harley made the drawings, and Davidson made the patterns from them. This is another example of how large companies were founded by guys without higher education. But they weren't just lazy; they were ambitious and smart guys who became specialists before the age of 20. William Harley, unlike Arthur, didn't intend to work "for the man" his whole life. Alongside his job, he enrolled at Milwaukee University, where he studied mechanics. Work by day, study by evening, and his own experiments by night. He began developing drawings for his own motorcycle engine. The idea was promising, but also risky. Motorcycles already existed (the first appeared in 1885 in Germany), but they were perceived by society as dangerous, noisy, and unreliable "devil machines." Only daredevils rode them, undeterred by the lack of brakes or explosive engines. Moreover, motorcycles scared horses, which was a serious problem, as horses were the primary mode of transport. Vermont even passed a law requiring motorcyclists to stop when they saw a horse. For the average American at the time, the idea of buying such a thing seemed crazy. Men rode horses, not "noisy tin cans." But Harley saw it differently. He wanted to create not just a bicycle with an engine for enthusiasts, but a reliable "workhorse" for mail carriers, police officers, and ordinary people who needed to travel safely on bumpy roads. In 1901, at the age of 20, Harley designed a single-cylinder engine. He took the French

From Shed to Factory: Early Successes and the Golden Age

By this time, another brother had joined the Davidsons – William Davidson, also an experienced mechanic. Gathering together, they occupied the Davidson family's wooden shed and began working on the second prototype. This time, the engine was already 405 cc and produced about 3 hp. It was mounted not on a bicycle frame, but on a reinforced frame. The fuel tank held 3.5 liters, and the maximum speed was 56 km/h. For those times, that was very good! Engineer Ole Evinrude, who later invented the outboard motor, helped them develop the new engine. On September 8, 1904, the first real Harley-Davidson motorcycle – the Model One – was completed. And on the same day (or around that time), it participated in its first race. Racer Edward Hildebrand took fourth place out of five, but it was already a success for equipment assembled by twenty-year-olds on the fly. Inspired, the founders began to scale up production. In January 1905, the first advertisement appeared, offering engines for self-assembly. In the same year, the first employee was hired, and by April, they were able to establish motorcycle production. Five units were sent to Chicago to the first dealer, Carl Lenz. Three out of five were sold! This was the first money that allowed them to expand. As early as 1906, the workshop moved from the shed to a real factory on Chestnut Street in Milwaukee. Today, that's Harley-Davidson's headquarters, but back then, it was a single-story wooden building half the size of a basketball court. But even this expansion allowed them to hire three more employees and sell 50 motorcycles in a year. 1907 was truly golden. William Harley received his mechanical engineering diploma and began developing new technical solutions. A second floor was added to the factory, and the walls were clad in the famous yellow brick. Sales increased to 150 motorcycles. But most importantly, the company was officially registered, and, most importantly, received its first major government order to supply motorcycles to police departments. This provided stable demand for the next decade. Sales grew by leaps and bounds: 450 units in 1908, 1150 in 1909. The legendary Bar and Shields logo appeared, presumably designed by the Davidson brothers' aunt, Jeanette. An important development was William Harley's design of a two-cylinder V-Twin engine. It produced about 7 hp (twice that of single-cylinder engines) but was smaller in size. The unique cylinder angle and shared connecting rod created an uneven firing sequence – that very signature "Pa-ta-ta-ta-ta" sound. By the way, in 1994, the company tried to patent this sound, but unsuccessfully. The first model with a V-Twin engine (1909) was not a hit, but the potential was obvious. By 1911, the first commercially successful model appeared – the 7D. It became popular among racers, especially on dangerous wooden tracks with inclines up to 50 degrees. These races were called "murderdromes" because racers died regularly. But it was in these conditions

Wartime and Biker Subculture: From Police to "Hells Angels"

Returning to Harley-Davidson. In addition to ordinary people, they conquered the hearts of high-ranking military officials as well. In 1916, a civil war was raging in Mexico, and revolutionary Pancho Villa decided to draw the US into the conflict. After a series of provocations, including an attack on the American town of Columbus (where, incidentally, Indian motorcycles were also used), President Wilson sent General John Pershing to find and punish Villa. Pershing turned to Harley-Davidson for motorcycles. This was the first instance of motorcycles being used in a US military operation. The J models with sidecars and machine gun mounts performed excellently in the Chihuahua Desert. The problem was a shortage of trained drivers. Walter Davidson, the company's president, personally trained them at military bases. This convinced the military that Harley-Davidson was a reliable partner. Pancho Villa was not caught, but for Harley, that didn't matter. A year later, World War I began. While competitor Indian supplied motorcycles to the Russian army, Harley-Davidson received a large order from Britain (500 motorcycles). And when the US entered the war, remembering their experience in Mexico, they made Harley-Davidson their main focus. Half of all motorcycles produced during the war years went to soldiers – over 20,000 units. After the war, Harley-Davidson became the largest motorcycle manufacturer in the world. Over 28,000 units were produced annually, sold in 60 countries. In 1921, they won a race with a speed exceeding 160 km/h for the first time. In 1922, a new 1200 cc V-Twin engine appeared, and in 1925 – the iconic teardrop-shaped fuel tank. But then came the Great Depression. Sales plummeted from 21,000 motorcycles in 1929 to 3,000 in 1933. Henry Ford, with his cheap cars, killed the demand for motorcycles. To survive, Harley-Davidson began actively exporting products to Canada and Europe. In 1935, they sold a license to Japan's Rikuo, effectively laying the foundation for the Japanese motorcycle industry (which would later come back to haunt the company). Other solutions also helped them navigate the crisis: in 1933, the option to order an eagle design on the tank appeared – the unofficial birth of customization. The brand began selling not just equipment, but an opportunity for self-expression. And racer Joe Petrali won all 13 races of the national championship, setting four records. By the end of the crisis, only two companies remained out of dozens of manufacturers: Harley-Davidson and Indian. Both survived thanks to government orders, niche models, and innovations. World War II gave another boost. Harley-Davidson supplied the army with a huge number of motorcycles, suspending civilian production. The backbone of the supply was the legendary WLA model, nicknamed the "Liberator." About a third of the 90,000 motorcycles produced were sent to the USSR under Lend-Lease. Soviet soldiers nicknamed them "Wolves" for their reliability and

The Japanese Threat and Corporate Wars: Salvation Through Tariffs

But the eastern neighbors, to whom Harley-Davidson had once sold a license, were not sitting idly by. Honda, Yamaha, Suzuki, Kawasaki – these Japanese companies stormed the US market in the late 60s. Honda launched the campaign "The nicest people ride a Honda" (a direct jab at bikers). Yamaha and Kawasaki promoted light and fast bikes, contrasting them with the bulky Harleys. Suzuki offered convenient urban transport – economical and easy to maintain. It worked. Japanese motorcycles became serious competitors, and Harley's sales began to decline. The pressure intensified. In 1969, the descendants of the founders, who managed the company, made a difficult decision: to sell Harley to the American Machine and Foundry (AMF) corporation. AMF produced amusement equipment (bowling lanes, billiard tables) and was completely unrelated to motorcycles. The result was predictable – a failure. AMF went the route of optimization: simplified production, reduced staff, cut costs. But along with costs, quality also dropped. If in the early 60s Harley controlled 75% of the American heavy motorcycle market, by the early 80s their share had fallen to less than 20%. AMF realized that Harley-Davidson didn't fit their business model and in 1981 sold the company to a group of investors for $80 million. Under the new management, the quality of the motorcycles significantly improved. One of the key investors was William D. Davidson, a grandson of the founder. However, Japanese manufacturers had already captured a significant market share, offering cheaper and more reliable bikes. It was almost impossible to dislodge them. If not for one "but" – the intervention of the US President. In 1983, Harley-Davidson appealed to Ronald Reagan with a request to impose tariffs on imported motorcycles over 700 cc. Reagan, calling it a "bet against America," raised tariffs from 4% to 49%. This severely impacted sales of Japanese motorcycles and gave American manufacturers an advantage. In 1986, Harley-Davidson went public, its stock grew, and profits reached millions. In the 90s, Willie Davidson designed the FXD model, which appeared in the second "Terminator" movie, reigniting interest in the brand. Sales peaked in 2006: over 260,000 motorcycles in the US, with profits around $1 billion. It seemed the brand had finally overcome all its troubles. But in 2008, the global financial crisis hit. Sales plummeted, and stocks crashed by 86%. The company tried to reach new audiences (women, African Americans, youth) through marketing and more compact models, but the effect was minimal. In 2009, the company recorded a loss of $55 million. To survive the crisis, Harley-Davidson returned to what it did best: big, loud motorcycles. It worked, and profits began to rise again.

Aging Audience and the Search for the Future: Electric Bikes and Premiumization

However, behind the outwardly impressive figures lay a serious long-term problem – an aging audience. In 1985, the average age of a motorcycle owner was 27, in 2003 – 41, and by 2018 – already 50 years old. The core customer base was steadily aging, and there was no one to replace them. The brand failed to capture the millennial and Gen Z generations, as their predecessors – the baby boomers – had done. Moreover, it was the baby boomers, who made the brand successful, who cemented its reputation as a motorcycle for "hooligans," which repelled young people. The company found itself squeezed between a loyal but aging audience and the need for future growth, which was impossible with that audience. Matt Levatich became the new CEO. He tried to attract a new audience through a buy-back program: you buy a new Sportster, return it after a year, get the full amount bac