Harley-Davidson

By 1981, Harley-Davidson was dying. AMF (American Machine and Foundry) had acquired the company in 1969 and turned it into a volume operation, cutting quality to boost output. 'Harley-Davidson: The Eagle Soars Alone' was the company's marketing tagline. In reality, the eagles were leaking oil all over the showroom floor.

Japanese manufacturers Honda, Yamaha, Kawasaki, and Suzuki were eating Harley's lunch with bikes that were faster, more reliable, and cheaper. Harley's market share dropped from 75% to 25%. The bikes were so unreliable that riders carried tool kits and spare parts. 'Harley-Davidson' became shorthand for American decline.

In 1981, thirteen Harley-Davidson executives, led by Vaughn Beals, executed a leveraged management buyout, purchasing the company from AMF for $80 million. They revamped quality control, adopted Japanese manufacturing techniques (just-in-time inventory, statistical process control), lobbied for temporary tariffs on Japanese imports, and rebuilt the brand around heritage and community. The Harley Owners Group (H.O.G.) turned customers into evangelists. By the mid-1980s, Harley was profitable again. By the 1990s, there were waiting lists.