I have been reading about the rumors that Honda Motor Corporation is going to be buying Harley Davidson for the past week. I have been reading the expected responses from die hard loyal Harley Davidson motorcycle riders that it will never happen, it is just a rumor, etc.
Then my friend from Blawg Review sent me a link to an article in Biker News Online which contains links to articles on subject from the Associated Press, Forbes, and Reuters. I concur with Biker News Online that publications such as these do not just throw rumors out unless there is some validity to the story.
The big question is; can Honda buy Harley Davidson? Yes they can.
What most people do not realize about publicly owned companies such as Harley Davidson is that they are owned by stockholders and not just by one or two people.
I am not going to write a dissertation on what a Public Corporation is as opposed to a privately held company. However, I will tell you that once a Corporation goes public, which means shares of their stock are purchased and sold on the public stock exchange, anything is possible. Most publicly held corporations have what is called a majority stockholder who owns the largest percentage of shares in a corporation.
Corporate takeovers can be friendly or they can be hostile.
Harley Davidson was taken over years ago by AMF Corporation. Later, the management and employees of Harley Davidson managed to arrange to buy a majority share of Harley Davidson stock from AMF, which made it an independent Public company again, with the majority of shares being owned by the company.
From what I have read, such a takeover of Harley Davidson by Honda would result in a Honda that controls 60 percent of the motorcycle market. This issue brings forth another issue; even if Honda decided to purchase Harley Davidson through a friendly or hostile takeover, would Federal Anti-Trust Regulators allow such a deal to happen? Could be, you never know.
My personal take on a potential Honda takeover of Harley Davidson is that I hope it does not happen. Harley Davidson is an American Icon and a national treasure that I think should be preserved as an American Company. Harley Davidson is uniquely American just like apple pie and the 4th of July.
Furthermore, the vast amount of corporate mergers that have taken place in the past 3 decades, have very much taken away true competition in every market from consumer electronics to automobiles.
I do not know if Harley Davidson has the will, means or muscle to keep a takeover from happening. They are supposed to do what is in the stockholders interest. That is how Public Corporations operate. In the end it will be decided by the shareholders of Harley Davidson themselves. Will their greed allow Honda to take over Harley Davidson? In the free market, a lust for profit drives everything.
I hope Harley Davidson remains an American Company.
Everyone is welcome to comment on this story.
By Norman Gregory Fernandez, Esq., © 2007
Welcome, my name is 
I hope that Honda does not buy Harley Davidson. My husband has Harley Davidson stock. I hate to bring this up…….but, most Harley parts are foreign made and some bikes are not even assembled in the USA. Look at the Harley Davidson T-shirt,leather vests,chaps,handbags and saddle bags or boots and read the label and see where they are made and then look at the price tag. Shame on the American Icon. My husband saves all stock parts and new parts boxes, even a derby cover is made in Korea but it is officially licensed Harley Davidson.
This rumor about Honda, producer of designer Honda emblems- http://www.aftermarketperformanceparts.com/honda-emblems.html -buying Harvey Davidson has been all over the net. I haven’t seen anyone from among these articles, even in this one, have agreed into this action. Consequently, this might not be pursued by Honda.
Yes, Norm it is a sad day when we go into a dealership and pay $24.95 for a men’s t-shirt with the dealership name and Harley Logo on the back and the shirt comes from China. Yes, we will find out in the end if Honda is buying Harley. I agree there is something to the story when Associated Press is printing the story. Can you just imagine going into a Honda/Harley dealership??? What will the back of the T-shirts look like????? I went and looked at the part boxes and I am sorry to say that not one was manufactured in the United States.
It is harley death when this happens.
Can anyone just imagine what the T-shirts we buy at Harley dealerships will look like???
They would say it as: “Honda-Harley Davidson”…..LOL
The one thing I have seen in the many years that I have riden motorcycle is that the honda brand will out perform, cost less, be of a higher quality. “the death of Harley” as quoted from above….no…..the take over ( if in fact ) will turn the motorcycle icon in to a “real” motorcycle.
I would consider buying one then.
Honda and kawasaki both have plants in the US.
Harley is not an american made product, just assembled in the US.
I have to admit: I would absolutely laugh.
Honestly, I seriously doubt it would change HD’s product much (if at all). I just think it would be hilarious because it would irritate oh-so-many brand loyalists. Especially since a lot of loyal HD owners tend to be less than accepting of other brands (namely Honda) than most bikers.
I am a “loyalist” that would not be happy. It would be like the Cleveland Browns and Pittsburgh Steelers football teams combining. Thus a big rivalry gone forever!! I am still wondering about the back of Harley Dealerships logo shirts. I just can’t imagine a Honda/Davidson T-shirt???
Hold on people !
I love the Harley as much as the next guy but we are now talking about survival.
Let’s look at what Harley has been doing to put food on the table lately. China and Mexico come to mind ? The all American Icon has turned it’s back on what it stands for.
If you want to talk about a commitment to the North American , you need not look any further than Honda itself. With aproximately 80% of it’s content in automobiles being North American (The big 3 don’t come close) , as well as the fact they are commited to building the products where they are sold, it is hard to think of them as the Japanese enemy anymore. Honda builds great products and you can be sure their aim would be to preserve the American ideals. Afterall , their own bikes are mainly maunufactured in Ohio with most of the parts coming form local suppliers.
Let’s face it, the war ended along time ago and it is time to put the us against them attitude to bed.
If you want to see Harley survive you should be happy a successful , financially secure , North American manufacturer like Honda is interested.
John Mendol is correct and his comment well stated. It is like the Pittsburgh Steelers becoming bed buddies with the Cleveland Browns……….. The United States no longer grows enough food to feed our country.
John Mendol’s claim is mostly correct. The Honda GoldWing is more of an American Motorcycle than the Harley, although neither can be classed as American Made due to content rules.
I like the comradeship HD promotes and the “family” concept. It is marketing, true but it seems to work. HD has cult creation like Starbucks or Apple computers.
I don’t believe Honda would care to continue that. Honda has no reason they think to celebrate America or the military or any of the traditions we hold dear. Harley does that and appeals to a segment that is proud to be American.
I just went to a Honda site to see the motorcycles and I had to first wade through all the cars and SUVs which are what Honda cares about. Seems the bikes are an after thought.
I sincerely hope Honda does not but HD. (What about regulatory considerations??) However if they do, it would certainly be an end to an era of expressive motorcycling. Insted of displaying my American/POW flag on the back of my bike, I guess I would get a Starbuck banner and learn to go poetry readings insted of bike rallys.
Fords now make a Harley Davidson line truck. The Hallmarks stores now carry merchandise that has Harley Davidson on the logo and these items are most often made in China.You do not have to go to a licensed Harley Dealership to buy Harley merchandise. I was in Lake George, New York last weekend and there was Harley merchandise in most every store. I bought my Harley shirt from McDermotts Harley Davidson and it was made in China. I would recommend that anyone who would like to ride in a beautiful place hit Lake George, NY for the Americade next summer.
at long last we might be able to buy a harley that has performance and reliability.
I am a Harley Davidson Loyalist, I am reading in this column that alot of people are saying that alot of Harley Davidson parts and clothing are made in China, and Tawiian, can you imagine if all of that stuff was American made, you would not be able to afford it. Shame on the Greedy American workers who gets 20.00/hour or more to make this stuff. You would not be able to afford it. You wonder why companies go outside of the United States. Shame on the Unions. You think people would learn from the steel companies but I guess not. If this takeover happens I will most certainly by myself a Victory.
Norm: Your comment is so right. Sir, I agree with you 100%. Want to run for President? This country needs somebody with your brains and knows the laws. AMEN!!!!!
A Honda/Harley merger would put them at 65% of the US motorcycle market, according to Forbes. Yamaha would come in 2nd at 16%. No way the FTC would let that happen, which is probably why nothing more has been heard about the whole thing in months.
Aside from anti-trust issues, though, Harley would have benefited and improved in such a merger. Access to Honda’s technology, funding, and operating under their more effecient business model would have rejuvenated the marque. And let’s not get purple-faced about the prospect of “Honda-Davidson” merchandise. Honda would have kept themselves and HD as disassociated as possible in marketing, in order not to tarnish HD’s aura. Much like Yamaha has spun off its cruiser line into the Star brand.
I will be “purple faced”!! I do not want a Honda logo on my Harley Shirt!!! Just doesn’t seem proper. It is just too hard to swallow to walk into a show room and see Honda’s and Harley’s side by side for sale. I think if they merge they should have different buildings for each,like Chevrolet has their dealerships and General Motors has their dealerships but they are one.
Well, lets face the truth Honda is a huge company all over the world they have the funds to buy HD. But I do think it will not be the good thing to happen. Honda and Harley is and has for long long years competitive against Harley. And I do think that it should stay that way. But if it will happen what can we do A Honda is a Honda and Harley will stay the American Icon. One thing I’m sure is that Honda will surely adress all Harley. They are relaible.
Best regards,
Rafael E. Maduro
VTXofAruba
Whats the diff…the parts are already from china?
The first Goldwing was built in Marysville Ohio in 1975 and continued until the plant is converted to produce Honda trucks, I think that Honda wants to build a trike but because of an agreement with the US gov. over injuries that happened on their atv trikes they can not legally do it so they are going to make the Goldwing in Japan and build their own trikes.
You are right Sandie. Our nation has pimped most of it’s manufacturing capability to third world nations to cut cost. Harley Davidson has done the same thing on many of it’s items.
Our nation has probably already forgot how to mass manufacture many items and products.
Nonetheless I hope Honda does not buy Harley.
The point of my article is that the rumor is also in the mainstream media now, i.e., Associated Press, Reuters, Forbes, etc.
Publications like these don’t write stories unless there is some basis for the story. Interestingly neither Honda or Harley are denying the rumors.
In the end we will find out won’t we!
Norm
Let’s just hope it does not happen!
Norm
God AMF was bad enough; “Harley Davidson-Honda.” It makes me sick thinking about it.
Oh god help me………..
I don’t know Dave. Are you saying American workers should work for a buck an hour like the Chinese?
If Americans were paid like 3rd world workers how could they buy a house, pay for rent, get medical insurance, or even afford to live for that matter?
I don’t know about unions, but I do know that you need money to live in this country. I don’t expect American workers to be paid slave wages like they do in Communist China or in India.
I do know one thing, all of our manufacturing is being shipped overseas because of the slave wages being paid over there. In the end for us to compete our workers would have to accept slave wages. It really is a shit sandwich!
Norm
It would be a very bad news if Honda’s going to buy Harley. Yes, Harley’s products are not American made and just being assembled in US, but it is already an American icon.
As I ride my wing on the roadway and a harley approaches, we throw our hands down to honor we are bikers.Different makes and pride of course. A status that has endured for a long time. That is not the answer to the questions, it’s all about the money
Harley and Honda are two different manufacturers. I can not imagine the legendary motorcycle production by the manufacturer. It’s like the Alfa Romeo wants to buy Volksvagen.
Harley Davidson-Honda… Haha what a joke!
Honda Davidson.. honestly I don’t like the sound Harley Davidson signature is something that cannot be erase even for decades or centuries. Harley Davidson produce many cool big bikes and for sure many riders will be sad if their bike will be team up to Honda.. I don’t have any grudge over Honda but when I hear the word Honda first thing that comes to my mind is Cars not bikes. So hoping that Harley Davidson can be independent as always.
I’m so glad this didn’t happen. Honda would have just messed everything up, changed things to try and update the brand, etc. It always happens with takeovers.
Harley will NEVER be sold to any other company. They are still very profitable and no one comes close when it comes to competition. They will always be the classic American bike sellers.
I’m reaallly happy this didn’t go through. Would you imagine the mess it would’ve made!?!
Yes, I can. : ] It would be a real mess. Kinda like stepping in dog poop.
Can you imagine walking in to a dealership and see the Harleys lined up by the Hondas? Not me.
I am totally aggravated when I go to our local dealership to purchase stock harley Davidson parts and see they are made in China. It makes me so sick. We need to make the items we need in the USA, here in the USA. It really makes my blood boil when I pay top dollar for the Harley Davidson name and I am keeping jobs in China : [
: ] Made with pride In the USA is lacking on darned near everything I buy at The harley Dealerships.
It wouldn’t surprise me one bit, Harley’s are 50% Japanese now, shocks, forks, brakes, electrical, etc. Eventually you have a dozen companies controlling everything in this country. Free market my a$$.
My HONDA is American made. Honda VTX made in Marysville, OHIO by American union workers using American Steel, American Aluminum etc etc. Considering Harley went to Honda plants in the USA decades ago to learn how to make a better motorcycle (fact) I think it rather fitting. My Honda doesn’t want to be a Harley. Never will but it seems Harleys want to be Hondas… Like copying the VTX 110ci engine size, finally stepping up to EFI, counter balanced engines and even learned a thing or two about quality… LMAO! If HONDA owns HARLEY then after a few years it might be good enough quality for me to buy one.
I have been riding my whole life road all brands. Street and motocross.Honda always had the best brakes,shifting,steering and reliability best on earth just like on TV.
Honda refused to buy the old tech, stuck in the past engineering company, known as the Harley-Davidson Motor Company, years/decades ago. Why would a cutting edge company like Honda want a stuck in the 50s company to drag them down? Harley hasn’t had a new idea, in almost 100 years. The last new for Harley idea, VRod, still barely sells in the showroom, was only 30 plus years behind the rest of the world. Just look at the motors, suspensions, frames, tire tech…. Wait that covers the entire motorcycle.
The only change I would like to see in a Harley is the heat that comes off the engine.