With a new lineup of motorcycles for 2022, Harley Davidson is set to continue its iconic legacy. Despite surviving numerous ownership arrangements, subsidiary arrangements, and intense global competition, Harley Davidson is more than just a motorcycle brand.
There are very few companies in the world that have become a worldwide symbol like the Harley. But as you might have heard, BMW recently bought Harley Davidson.
Now, you might have a lot of questions and that’s exactly what I’m here for. Read on to know all about this takeover and what it means for your favorite motorcycles!
A Brief History Of Harley Davidson
What we now know as a cultural symbol began in a small shed in Milwaukee in the early twentieth century. The name ‘Harley Davidson’ comes from the creators – Arthur Davidson, Walter Davidson, and William S. Harley.
Together, the trio designed a small engine that could fit on a regular bike frame and was set on building it. The first Harley Davidson model was completed and tested in 1903. Keep in mind that this was more than a century ago – and you needed to pedal the bike for it to climb up a hill. Needless to say, the Harley-Davidson trio was not satisfied.
After testing the prototype, they immediately began working on a bigger engine and loop-frame design which was perfected by 1904. This improved model was entered into a local motorcycle race at the State Fair Park. It placed fourth in the race.
Things only went up for Harley Davidson from here. Harley Davidson engines were listed in the Automobile and Cycle Trade Journal in January 1904. In the next four months, the first-ever Harley Davidson motorcycles were set to be produced.
By the end of the year, five Harley Davidson bikes were produced. With this, Carl H. Lang became the first Harley Davidson by buying three out of the five bikes. And as the next year dawned, Harley and the Davidson brothers moved out of their shed.
With this, the first-ever Harley Davidson factory was established in 1906. Currently, you and I know this place as the Harley Davidson headquarters.
The factory produced 50 motorbikes in 1906. This was a significant increase from the 5 produced in the previous year. As I said, things only went up for Harley Davidson from the moment these three minds began their journey.
In 1907, the Harley Davidson factory expanded with a second floor and boomed annual production. The year ended with a total of 150 Harley Davidson motorcycles that were sold to police departments across the country.
Thus was born a motorcycle brand that has loyal followers to this day. The company expanded with each passing year over the past century. New factories emerged, new features and designs shocked the market each time.
A Brief History Of BMW
Everyone knows BMW, but not many know what it stands for. Bayerische Motoren Werke GmbH, famously known as BMW, means Bavarian Engine Works Company.
You might have guessed that this name comes from the company’s origin in Bavaria, a German state. It also stands for BMW’s original product catalog of engines. As BMW was established long before Harley Davidson, automobiles were not as commonly used.
Bayerische Motoren Werke’s origin lies in Rapp-Motorenwerke GmbH. Rapp started manufacturing aircraft engines in 1913. It primarily provided products to the German air force during the First World War.
With its headquarters and factory in Munich, the engines produced by Rapp were used with the Gustav Otto Flugmaschinenfabrik aircraft. In 1917, people started knowing Rapp as the Bayerische Motoren Werke GmbH.
But in a turn of events, the Treaty of Versailles forbade Germany from creating aircraft engines. So, the company stopped producing any new aircraft engines after the First World War ended.
Now, BMW changed their primary product and started manufacturing built-in motors, and railway brakes. This turned out to be a success that laid the foundation for BMW’s popularity in the commercial business.
Then, in 1920, Knorr-Bremse AG, a brakes company from Berlin, took majority ownership. The two companies were integrated and shifted to Munich. With this development, Bayerische Motoren Werke GmbH was no longer an independent company. But as we know now, this was only temporary.
In 1922, Camillo Castiglioni became the primary shareholder of Knorr-Bremse AG. Castiglioni was a prominent investor and an aircraft constructor. With this development, he adopted the BMW company name.
All assets like production facilities, employees, and the company logo were transferred to the Bayerische Flugzeugwerke AG. All within the year 1922, the company was moved into Bayerische Flugzeugwerke’s factory buildings in Lerchenauer Strasse.
Finally, the name was changed to Bayerische Motoren Werke AG. With this, the BMW was once again a commercial company.
The corporate headquarters of the BMW Group are still located at the former BFW site in Munich to this day. Moreover, BFW’s founding date of March 7, 1916, is still considered to be BMW’s official birthday.
Who Owns Harley Davidson?
In 2015, Norbert Reithofer announced the friendly merger agreement between BMW and Harley Davidson Motor Company.
Norbert Reithofer was the CEO of Bayerische Motoren Werke AG (BMW) from 2006 to early 2015. “We have long felt the need to diversify our motorcycle production by adding models more attuned to the cruiser market,” Reithofer mentioned.
This merger meant that Keith E Wandell, who is the CEO of Harley Davidson stepped in as the president of the worldwide motorcycle division that includes BMW Motorrad division, Harley Davidson Motors, and Husqvarna.
“With our current BMW line, our Husqvarna line, and now the new Harley-Davidson line, we will be able to penetrate all parts of the worldwide motorcycle market.”
Wandell added that this development took the motorcycling world by surprise but “was accepted by Harley Davidson as a way to strengthen its capital base, which has never recovered from the 2008 financial meltdown.”
Additionally, this merger was aimed at streamlining Harley Davidson and BMW’s operations by combining research, development, design, and marketing components.
Hence, BMW owns Harley Davidson today.