After the success of their first three models of motorbikes, Harley and the Davidson boys all plunged themselves wholeheartedly into the newly formed company. Walter Davidson became the company’s first president, while his brother William handled much of the human resources, and Arthur handled sales and the establishment of a dealer network. William Harley served as the company’s chief engineer and treasurer. Together, the four worked day and night to get their business off the ground and running. “We worked every day, Sunday included, until at least ten o’clock at night,” recalled Walter Davidson. “I remember it was an event when we quit work on Christmas night at eight o’clock to attend a family reunion.”
In 1905, the company began running small advertisements in the Automobile and Cycle Trade Journal, offering just their engines for sale to those who wanted to assemble their own machines. The boys were still making complete motorcycles, but on a limited basis; in their first year as a company, they had built just a dozen bikes from inside their backyard shed. Sales were growing and by 1906, Harley and the Davidson’s were able to open their first factory.
It was a modest 40 x 60 foot single story building, but this new factory on Chestnut Street allowed the boys to produce 50 motorbikes in their first year. Today, this location continues to serve as the company’s corporate headquarters. After one year, a second floor was added along with new production facilities. In 1907, the company had manufactured 150 motorcycles. That same year, they became an officially incorporated company.
The success of Harley-Davidson was such that it inspired the creation of over 150 imitators. However, try as they might to replicate the Harley-Davidson bikes, few other companies would survive through to the end of the decade. By 1913, their original factory was demolished in order to make room for a new five-story building that would take up two city blocks. The company was dominating motorcycle racing, and by 1914, was producing over 16,000 bikes.
When the U.S. was brought into World War I, the American army asked Harley-Davidson to provide more than 20,000 machines for their country’s military forces. By 1920, the company had become the largest manufacturer of motorcycles in the world, producing close to 30,000 a year, which were being sold in 67 countries. When a Harley-Davidson bike became the first to win a race at over 100 mph, the company had solidified its position as a leader in the industry.
The Great Depression would see sales of Harley-Davidson bikes drop from 21,000 to just 4,000. To survive, the company began manufacturing the Servi-Car, a newly designed three-wheeled delivery vehicle, as well as building industrial power plants using the technology from their motorcycle engines. However, they continued to make improvements to their engines, and became one of only two American companies along with the Indian Motorcycle Co. to make it through the Great Depression. In the early 1940s, Harley-Davidson again joined the American war effort, producing over 90,000 motorbikes for the military.
Under the leadership of Harley and the Davidson brothers, the Harley-Davidson Motor Company grew to become the largest manufacturer of motorbikes in the world. The years after the death of its original founders would not be easy for the company; a takeover by American Machinery and Foundry would see a reduction in the quality of bikes as well as multiple labour disputes. In fact, the company came close to the brink of bankruptcy. However, after being bought out by a group of thirteen investors, the company rebounded. Using the Japanese Just in Time system and exploiting the retro nature of their bikes, Harley-Davidson managed to regain the ground it had lost under AMF.
Today, with billions of dollars in sales and over 9,000 employees worldwide, Harley-Davidson remains a global leader in the manufacturing of motorcycles.
Revving its Engines: Harley-Davidson Goes Hog Wild
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