Born To Be Wild

As the Japanese sport bike makers begin to constrict the motorcycle market, Harley-Davidson has been forced to alter its practices and develop new ways to keep sales rising. In an almost catch 22 situation, Harley must change enough to capture the buying power of Generation Y, but must also not change enough to lose the loyalty and support of the very strong baby-boomers. Having produced a 37% annual return since its IPO in 1986, Harley has turned the free-spirited cruising pastime into a lifestyle once again. Thirty years ago, most bikers were thought of as beard bearing, rough and ready types but now, that average income of a Harley owner is $76,000. In any case, Honda has been increasingly constricting the global market while Harley makes effort not to lose its throne. Through Buell Motorcycles, Harleys sport bike subsidiary, the introduction of technologically advanced "sportfighter" bikes may prove to be a substantial answer to Harley's prayers. Many investors have planned on selling short, saying Harlye will soon lose its footing. In any case, Harley must acquire the loyalty and buying power of Generation Y to boost sales and keep the wheels rollin.