Cycle News - Archive Issues - 1990's

have to produce a more reliable prod uct, The introduction of the Evol ution motor in 1983 improved H arl eyDavidson 's reputation. The new rubbermounted motors didn 't leak oil, and the bikes were much more tolerable to ride than the pa st rigid-mounted pow erp lants that vibrated considerably. Efforts to "clean up" dealerships were mad e. Replacing the dark, gl oomy sho ps were noon signs and brightly colo red s ho wroorns that were more inviting to the average perso n: JUSt when things began to look up for Harl ey-Davidson , the compa ny was dealt an other blow in 1985. Fear of an ap proach ing recess io n a nd worries a bo u t th e a mo u n t o f co m pe ti ti ve j apan ese machinery that would be available when the protective tariffs exp i red made Citicorp execu ti ves u neasy. Ci tico rp in for med H arl eyDavidson that they would need to find another lend er. After m u ch co nfusio n , H arl eyDavidson closed a deal with Heller Financial , .a Ch icago based firm, on December 31, 1985. T he dea l went through with o nly minu tes to spa re, but ha d. it not, Harley would have been forced to file for Chapter I I in bankruptcy co urt and face liq uidation of the company. In 1985 Ha rley-Davidson went public, and offered two mi llion shares of common stock at $1I a share and raised over $20 mi llion. , In 1987 the compa ny anno unced that it no longer needed the special tariffs to compete with the japanese motorcycle manufacturers, and petitioned the International Trade Commission for earl y termination of the five-year tariffs. H arley- Davidso n, o nce agai n , con trolled the su perheavyweight ma rket with a 61% market share. Since then , Harl ey-Davidson 's success has continued to grow in leaps and bounds. H a rl eys have become th e vehicl e o f cho ice for movi e stars , musi ci ans , doctors, lawyers a n d managers. Demand for th eir motorcycles is outrunn in g th e su pp ly, a nd ma ny moto rcycles are sold by deal ers before they are even mad e. T he stock, that originall y sold for $ ) I a sha re, was h o vering ju st below 60 at the tim e of thi s writing, And with the recent burst in motorcycle Harl ey-Davidson in particu lar - popularity, many dealerships around the count ry are enjo ying their best sales figures since the 1970s. Bike sales are up , and Harl ey dealers everywhere complain that they don 't have eno ug h motorcycles o n th eir showroom floors , as they often sell ou t far before the "selling season" is over. " It's on ly February, and I on ly have 20 Harl eys left," said Butch Donahue, owner of Delano Sport Center, a multiline dealership in Delan o, Minnesota. "That means that I've already sold 90% of my allotment for the year." Delano Sport Center also carri es three other brands of motorcycles, plus ATVs and personal watercraft, bu t Donahue ' says mu ch of his dea lership's current success is d ue to Harley-Davidson . T ho ugh Donahue credits the recent flood of RUB en thusiasts with abo ut 50% of his Harley busi ness, he feels tha t his streng th lies in his die-ha rd; longtime customers. " ''I'd say the RUBs make up about half of our sales, and tha t's grea t. It's good to see new ent husiasts , as well as older guys that used to ride years ago, get back on Harl eys, but I have the feeling that thi s may be just a temporary thing," said Don ahu e. " If I can keep 25% of these' new guys around after the craze passes, I would consi der it a great success. My goa l is to build a stro ng relationship with these new enthusiasts, (Above and left ) New, used and customized Harleys fill the showroom, while clothing and accessories flood the parts department at Bartels' HarleyDavidsonin Culver City, California. " Over 75% of our customers cust omize th eir bikes ," said owner Bill Bartels. (Below left) The Dyna-Glide Custom features the new rubber-mounted-engine frame design. (Below) The moredependable Evolution V-Twin motor that helped HarleyDavidson "clean up" th eir reputa tion. > while maintaining a good rapport with the gu ys that have been around for 20 or 30 years." On the other end of the spectrum, Bill Bartels, owner of the well known Los Angel es-area H a rl ey-Da vidso n dealership, feels that the RUB customers are his bread and butter. "The RUBs are a neccessity. T he Harley craze is a sign of the times, and I don' t feel that they're short-term custo mers. I thi nk this is a genuine trend of Americanism," said Bartels . "We get a lot more RUBs than "real" Harl ey guys. From a busi ness poi n t of view, the older gu ys aren' t really grea t cus to mers. T hey do a ll the work them selves, wh ereas a RUB doesn 't know how, so he'll just bring it into the shop," Thou gh Bartels and Donah ue have different ideas abo ut how lon g the current trend will last, both agree about its origin. "The R UBs are typically over 40 years old, 'and many of them used to ride a lon g time ago but for som e reason or an other were forced to quit," said Donahue. " Now that they 're older they can afford a bike, and many of; them rode Harleys when they were younger." "They come in all shapes an d sizes," Bartels said. "A lo t of them are being reaquainted with an old love - ridi ng . Then there's the new cus tomer. Riding is exciti ng and glamorous to them. After all, it's a lo t more fun cruising down Mu llho lla nd Drive on a H ar ley than in a Porsche. It's the new yupp ie toy." " I th in k a big part of the recen t rise in Harley-Davidson's popu larity is due to the fact that they finall y updated their product," said Donahue. " For a whi le, the Harl eys weren't up to par, bu t now they are. " I thi nk they're perfectly targeted for the rig ht type of rider. An older person is probab ly not going to want a fast, japanese racer, but a Harley cruiser is more his style," said Dona hue. "S ure, the Harl ey costs more, but the people they're aimed at can afford them. Besides, a Har ley ma y end up being che a p er a nyway . The last time I checked, it was about $300 to insure a Harley for a year, but a fast sport bike is incredibly expe nsive to insure." Both Bartels and Donahue take their roles as Harl ey dealers one step further - they go racing. Unl ike j apanese motorcycle dea lersh i ps, who often spo nsor motocross, off-road o r road race teams, both Bartels an d Don ah ue field dirt track racing teams, an d Bar tels backs several road racers. " Raci ng is the backbon e of motorcycling, that's where the research and development comes from," said Bartels. " Racing also prov ides good exposure, it shows the world that Harl eys can do so methi ng other than j ust p utt aro und." But as thousands of new Harley ent h usiasts have discovered, you can have fun just putting around. CN 23

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