′S Essay, Research Paper
In 1991 Harley Davidson installed a state of the art paint facility, which cost $31 million. The paint facility became fully operational in 1992. The opening of the paint factory in 1991 brought in a low net income ($36,972) for the year. Also, in 1991 Karen Davidson a fashion designer and a 4th generation of Davidson in the company designed Harley’s new MotorClothes line. This line of clothing was thought to be for on and off the bike. The MotorClothes took Harley Davidson into a whole new era. They opened a clothing store in the Bannister Mall in Kansas City, which sent sales through the ceiling. Now there are Harley Outlet Stores in every state and country. In 1991 Harley Davison also had low Capital Expenditure, they did not grow much that year. In 1992 Harley Davidson buys into a company called Buell Motorcycle Company. Since 1992 Buell Motorcycle company has become one of the largest Harley Dealers in the US and it has helped Harley’s net income to rise. Some production problems occurred in the York, PA paint shop that caused a worldwide shortage of product, which brought sales and Capital Expenditures down for 1992. The demand was high but the supply was very low. In exactly four years, Harley Davidson stock had soared from the original issue price of $11.00 a share to around $56.00 a share. By the end of 1992 Harley Davidson stock continued to rise to the high $77.00 a share. Harley Davidson was able to keep both rider and investor confidence. In 1993 Harley Davidson celebrates its 90th anniversary in Milwaukee with a yearlong birthday party. This anniversary brought the opening of the beautiful new museum and the visitor’s center in the Milwaukee area. Harley Davidson was become huge and nobody could compete. Capital Expenditure continued to rise every year. Meaning that Harley Davidson continued to grow, with no intent to give up. The opening of the museum and visitor’s center brought sales down until 1994, when sales rose nine times as much as they were in 1993. This brought so much to the company of Harley Davidson. In 1994, Capital Expenditure began to rise ($89 Million, 1994). In 1995, Harley Davidson came out with many new bikes, including the classically styled FLHR Road King. This brought sales up almost $10,000 more than the last year. Then in 1996, Harley grew so big that they had to open another Parts and Accessories Distribution Center in Franklin, Wisconsin. In 1996 Net Sales grew to $166,028 and there was no time for Harley to slow down. People were craving Harley’s like ice cream; new styles, new colors, and leather were in and Harley had it all. With Capital Expenditures growing to $186 Million in 1997 Harley had grew again. They opened a Product Development center next to the Capital Drive plant in Milwaukee. Harley also opened a new Building Plant in Kansas City where the very first Harley Davidson Sportster was produced. As sales continue to grow ($174,070, 1997), Harley looks on to their 95th Anniversary in 1998. 1998 brings them a new assembly facility in Manaus, Brazil; this is the first operation outside of the US. Also, some of the top export markets include, Canada, West Germany, Japan and Australia. Harley Davidson also has established markets in almost every nation in the world. In 1998 Harley Davidson buys the remaining 49% of Buell Motorcycle Company. Erik Buell is named Chairman of Buell Operations. Net sales in 1998 are $213,500, much higher than the last years. In 1999 Sales continued to soar high. As Buell introduced the new single cylinder motorcycle, Rider’s Edge Academy introduced a beginner’s rider course available through Harley and Buell. Along with this brought new safety rules for riders. Then in 2000, Harley Davidson had record-breaking net sales of $347,713. Capital Expenditure grew to nearly $204 Million dollars. Harley Davidson’s current plan is to continue growing and to continue giving the people what they want. They are planning to start their 100th year celebration in July 2002. The 100th year will be a yearlong celebration that goes all over the world. It will end in Milwaukee where it was all started!!