The demise of Harley Davidson

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Harley invested millions in marketing to create an in-your-face tough-guy image that simply isn't connecting with younger riders. This decision was made years ago, aimed at attracting Baby Boomers who didn't see themselves as hippies, but it's left a lasting, dated impression of the brand in the minds of most Americans.

But Harley is also a victim of the political environment it created. Unable to stave off foreign competition, all-American Harley once asked the Reagan administration to protect its market share with tariffs. The administration complied, which set a dangerous precedent for Harley as a politically protected American manufacturer. So when Europe imposed retaliatory tariffs on American goods in response to recent U.S. trade policy, they targeted three all-American categories: blue jeans, bourbon, and big motorcycles. Sales were already struggling in the U.S.; they tanked in Europe. To dodge the tariffs, Harley tried to move some production to local markets, but that backfired when the company was lambasted by President Donald Trump and other politicians for outsourcing labor. Even Harley's most loyal customers saw the move as betraying the company's blue-collar American roots.

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