SINCE its inception in 1903, Harley-Davidson has survived two world wars, a depression and the Japanese insurgence that all but wiped out the  British and American motorcycle industries by the 1960s.

 Since the management buyout from AMF in 1981, Harley has blossomed to become an icon of not just the US motorcycle industry, but the world.Recently, however, H-D has had  to weather the GFC which saw sales dip over 30 percent, the demise of subsidiary brand Buell and the disastrous MV Agusta acquisition. That's not forgetting a reported 43  percent drop in company value and company-wide restructuring and cost-cutting.

The good news is that Harley sales are up and its stock price is back up around $35 after slipping to below $9 at the height of the GFC. But there is a genuine rival on the horizon which makes no bones about its claim to final Victory, as Harley eyes emerging markets China and India.Harley-Davidson's vice president of core customer marketing Bill Davidson is the great grandson of founder Willie A. Davidson and son of Willie G. Davidson, current senior vice president and chief styling officer. Bill was recently in Australia to attend a HOG rally at Margaret River, WA, and gave up time in Sydney to update us on how Harley is faring and where it's heading after emerging from the GFC.

"The US market for Harley-Davidson is doing very well," Bill declares. "We're up about five percent and we continue to be the market leader for motorcycles above 650cc. The economy is picking up and consumer confidence is returning and people are buying Harleys, clothes and parts. We're very pleased with the US market and the international market, which is actually growing a little bit faster than the US. In the European market we have taken over second position from Honda, BMW is number one. We're up about five percent in Australia, and number one in the heavyweight market. In new markets in India and China, we're seeing growth there as well.

"Asked what proportion of Harley sales these markets will provide in the next 20 to 30 years, and Bill says, "We hope significant. There are lot of people who ride two-wheel vehicles in China and India, which are the smaller bikes so they are not used to the heavyweight vehicles. As we introduce the leisure form of riding and things like the Harley Owners Group, we're getting some great feedback from both people who have bought Harley-Davidson and our dealers. We very excited about the opportunities in those two markets."Whether there are any plans to establish a Harley manufacturing plant in China, Bill said, "Not at that moment but if that market continues to grow and we see the opportunity to do that, it is something we may consider. We do a have Complete Knockdown facility - CKD - where we send sub-assemblies from our plants in York, Pennsylvania and Kansas City, Missouri to Brazil and assemble the bikes there - and that's been working very well for us.

"Locally, Harley has launched new products and announced price reductions re-aligning with the American pricing ladder in the Softail family and Dyna range. Bill also discussed the changing nature of the American market, which has seen massive growth in the touring market.

"Our touring market is huge - it is huge. It has kind of shifted from customising Softails to people customising their touring bikes, which is staggering, and the big trend is stereos where they're connecting up their iPods and it's amazing how they sound. Dyna is growing in strength and offers really good value, it's more of Bobber look with the Fat Bob and the Street Bob, and now we're attracting a younger rider into the Sportster. We're specifically going after a younger rider in the US." (see separate news story).

Harley has started a customer-led feedback campaign where anyone can offer product suggestions via a Facebook page, but Bill is quick to point out that, "The customer-led process is not a new thing. If you go back to the 1903 and 1904 and the founding fathers, they were listening to people; what they liked, what they didn't like and what they want changed.

It was very different back then, motorcycles with no suspension, dirt roads and sprung seats, no clutches. The founders were very smart in building products that were durable, reliable and they listened not only to the end user but the formation of the early dealer network because they were at the frontline. Over time that has blossomed into a major company philosophy."There have been many Harley impersonators over the years, but none more ambitious than the Victory brand which is backed by the Polaris juggernaut. Measuring his words carefully, Bill said, "Victory is a great company.
Polaris has a great engineering team and they've been in the motorcycle market for quite some time, and we know they're not going to go away. They have purchased the Indian marque, which I think will open some opportunities for them. What's interesting to me is in the investment they are making.

It's unbelievable. For every Cross Country they sell, we sell three Street Glides. I think longevity is the key thing; if they can continue to sell at those volumes for the investment they are making. It'll be interesting to see where they go."
– Darryl Flack