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World War I • In 1917, the United States entered World War I and the military demanded motorcycles for the war effort. Harleys had already been used by the military in the Pancho Villa Expedition but World War I was the first time the motorcycle had been adopted for combat service. Harley-Davidson provided about 15,000 machines to the military forces during World War I. • By 1920, Harley-Davidson was the largest motorcycle manufacturer in the world. Their motorcycles were sold by dealers in 67 countries. Production was 28,189 machines.
The GreatDepression • The Great Depression began a few months after the introduction of their 45 cubic inch model. Harley-Davidson's sales plummeted from 21,000 in 1929 to 3,703 in 1933. Despite those dismal numbers, Harley-Davidson proudly unveiled its lineup for 1934, which included a Flathead with art deco styling. • In order to survive the remainder of the Depression, the company manufactured industrial power plants based on their motorcycle engines. They also designed and built a three-wheeled delivery vehicle called the Servi-Car, which remained in production until 1973.
World War II • One of only two American cycle manufacturers to survive the Great Depression, Harley-Davidson again produced large numbers of motorcycles for the US Army in World War II. • Upon the outbreak of war, the company, along with most other manufacturing enterprises, shifted to war work. Over 90,000 military motorcycles would be produced, many to be provided to allies.
The Fall and the Rise • In 1952, following their application to the US Tariff Commission for a 40% tax on imported motorcycles, Harley-Davidson was charged with restrictive practices. • In the early eighties, Harley-Davidson claimed that Japanese manufacturers were importing motorcycles into the US in such volume as to harm or threaten to harm domestic producers. After an investigation by the US International Trade Commission, President Reagan imposed in 1983 a 45% tariff on imported bikes.
Stock Price Manipulations • During its period of peak demand, during the late 1990s and early 2000s, Harley-Davidson embarked on a program of expanding the number of dealerships throughout the country. At the same time, its current dealers typically had waiting lists that extended up to a year for some of the most popular models. Harley-Davidson, like the auto manufacturers, records a sale not when a consumer buys their product, but rather when it is delivered to a dealer. Therefore, it is possible for the manufacturer to inflate sales numbers by requiring dealers to accept more inventory than desired in a practice called channel stuffing. When demand softened following the unique 2003 model year, this news led to a dramatic decline in the stock price. In April 2004 alone, the price of HOG shares dropped from over $60 to under $40. Immediately prior to this decline, retiring CEO Jeffrey Bleustein profited $42 million on the exercise of employee stock options. Harley-Davidson was named as a defendant in numerous class action suits filed by investors who claimed they were intentionally defrauded by Harley-Davidson's management and directors. By January 2007, the price of Harley-Davidson shares reached $70.
2007 Workers' Strike • On February 2, 2007, upon the expiration of their union contract, about 2,700 employees at Harley-Davidson Inc.'s largest manufacturing plant in York, PA went on strike after failing to agree on wages and health benefits.During the pendency of the strike, the company refused to pay for any portion of the striking employees' health care. • The day before the strike, after the union voted against the proposed contract and to authorize the strike, the company shut down all production at the plant. The York facility employs more than 3,200 workers, both union and non-union.
Studies and Statistics • According to a recent Harley-Davidson study, in 1987 half of all Harley riders were under age 35.Now, only 15% of Harley buyers are under 35,and as of 2005, the median age had risen to 46.7. • The income of the average Harley-Davidson rider has risen, as well. In 1987, the media household income of a Harley-Davidson rider was $38,000. By 1997, the median household income for those riders had more than doubled, to $83,000. • Harley-Davidson attracts a loyal brand community, with licensing of the Harley-Davidson logo accounting for almost 5% of the company's net revenue ($41 million in 2004).
Harley-Davidson offers factory tours at four of its manufacturing sites, and the Harley-Davidson Museum, which opened in 2008, exhibits Harley-Davidson's history, culture, and vehicles, including the motor company's corporate archives. • Wauwatosa, Wisconsin - Due to the consolidation of operations, the Capitol Drive Tour Center is closed. • York, Pennsylvania - Vehicle Operations: Manufacturing site for Touring class, Softail, and custom vehicles. • Tomahawk, Wisconsin - Tomahawk Operations: Facility that makes sidecars, saddlebags, windshields, and more. • Kansas City, Missouri - Vehicle and Powertrain Operations: Manufacturing site of Sportster and other vehicles. • Milwaukee, Wisconsin - Harley-Davidson Museum: Archive; exhibits of people, products, culture and history; restaurant & café; and museum store. Factories
Board of Directors http://files.shareholder.com/downloads/HDI/859439255x0x270343/4665262d-0900-4ca4-b455-6f7ff7cc3611/CG_BoardList.pdf
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