This Day in Harley-Davidson History – June 16, 1981 – “The Eagle Soars Alone” Buyback deal signed Harley-Davidson, acquired by American Machine and Foundry in 1969, was purchased back from AMF by a group of 13 Harley executives just 12 years later. Because of AMF’s support during those years, Harley was able to remain the leader in heavyweight motorcycle sales, despite the fiercest competition the foreign manufacturers could provide. Still, employees were excited by the new prospects as the company regained its independence.
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VINTAGE 1977 Harley Davidson Southern Edition Pub Style Wall hanging. Excellent condition Original wooden frame. Disavowed by the factory for years, and unknown even to most Harley riders, 1977's Confederate Editions are a fascinating footnote in the history of Harley-Davidson, and may be the most collectible Harley ever. Harley-Davidson has 'tweaked' a long-time policy which bans its dealers from selling t-shirts bearing the Confederate battle flag symbol. HD released this statement. Harley-Davidson Bans Battle Flag On Dealership Shirts. Harley-Davidson released a Confederate Special Edition model with the flag painted on the gas tank.
It is rare in America that a company has the opportunity to “un-merge,” to stand on its own after having been part of a larger organization. Following months of negotiation and scores of meetings with legal and financial experts, Harley-Davidson once again became an independent company.
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With around $75 million invested in securities and cash (including the officer’s own money), there was strong incentive to run the most efficient, responsive operation possible. To commemorate the buy-back, approximately two dozen company officers, along with their wives and select motorcycle press, made a cross-country motorcycle trek from the production facilities in York, PA to Harley-Davidson’s main offices on Juneau Avenue in Milwaukee.
This 900-mile independence journey was also a ride to support the Muscular Dystrophy Association, now the official charity of HOG. The ride followed a host of ceremonies at York which included the signing of documents that marked the ownership change, and pulling the first “new Harley-Davidson” motorcycle off the assembly line. This 4-day celebration began a new chapter in the company's exciting future.
Years produced: 1977 Total production: 299 Claimed power: 61hp @ 6,200rpm Top speed: 115 mph Engine type: 997cc OHV, air-cooled V-twin Weight: (wet) 220kg (485lbs) Price then: $3,127 Price now: $8,000-$20,000 MPG: 44 Disavowed by the factory for years, and unknown even to most Harley riders, 1977’s Confederate Editions are a fascinating footnote in the history of Harley-Davidson, and may be the most collectible Harley ever. 1977 was an interesting time in America. The year before, citizens had been giddy with patriotic pride as the entire population settled into a year-long celebration of the country’s bicentennial. Patriotic expressions were the order of the day, and naturally, manufacturers got into the act as well. Harley-Davidson introduced special “Liberty Editions” of its bikes featuring red, white and blue detailing, while Ford marketed a special red, white and blue Pinto.
Talk about putting lipstick on a pig. As it happens, it was also the heyday of “Southern Rock.” Bands like Lynyrd Skynyrd, The Allman Brothers, Black Oak Arkansas and Marshall Tucker were the new cultural vogue, regularly showcasing their roots in visual shorthand with large confederate flags as backdrops for their stages. The rise of Southern Rock gave the South a new cultural cachet, while also unfortunately spawning Billy Beer, Hee Haw and, in 1979, The Dukes of Hazzard. So what’s this have to do with motorcycles? For Harley-Davidson, it was the motivation behind the most unknown model in the company’s history. State of the industryIn 1976, motorcycle sales were booming, thanks in large measure to a continuing oil crisis. The lion’s share of product came from Japan, the once-great British bike industry limping to a self-inflicted death from outdated technology, short-sighted management and recurring labor strikes.
But the Big Four — Honda, Kawasaki, Yamaha and Suzuki — were enjoying unparalleled success with their less expensive, technologically superior twins and fours. Harley-Davidson, which held 21 percent of the over-700cc market in the U.S., was already charging Japan with “dumping” — selling motorcycles cheaper in the states than other markets. That’s what John Davidson, then-president of Harley-Davidson, alleged in the early 1970s when the motorcycle business was doing well world-wide. “The Japanese established production schedules that were much higher than mid-Seventies demand for their products,” he contended. “They chose the U.S. To unload their excess production.” (Following strong lobbying from H-D, on April 1, 1983, the International Trade Commission imposed new tariffs on all Japanese motorcycles 700cc and above.) Harley-Davidson was still in an unhappy alliance with American Machine and Foundry (AMF) that would continue until a company buyback in 1981. The 1969 merger with AMF had brought engineering and marketing experience, as well as a generous influx of cash.
Unfortunately, federal mandates meant much of the engineering money was directed toward safety and anti-pollution features, not new product development. Furthermore, the public balked at “The Great American Freedom Machine” being built by a bowling ball manufacturer, and H-D bristled at AMF’s heavy-handed management. It’s long been fashionable to attack AMF/H-D’s quality control during this period, but the worst problems were mostly contained by the mid-1970s. The 1970s motorcycle boom appeared to have a positive effect on quality, as H-D found itself overwhelmed trying to meet demand.
The Super Glide Part of Harley’s re-emergence could be attributed to a model introduced at the start of the decade — the Super Glide. Combining the FL’s frame, rear suspension and 74ci Shovelhead engine with the XL Sportster’s front fork assembly, smallish headlight and 19-inch front wheel, Willie G. Davidson created the 1971 FX Super Glide, a bike that would capitalize on the “chopper craze” and save Harley-Davidson. Wearing a fiberglass “boat tail” fender washed in patriotic red, white and blue trim, Fat Bob tanks and kick-start only, the FX Super Glide is generally credited as the first factory custom. A change to a more standard Sportster seat and rear fender in 1972 boosted sales, as did the introduction of the electric-start FXE Super Glide in 1974, whose sales dwarfed the kick-start model.
To commemorate the country’s bicentennial in 1976, Harley released the Liberty Edition — a successful limited-run paint and trim scheme for the Electra Glide, Super Glide and Sportster — consisting of a metallic black base color with eagle and American flag decals on the tanks, fairings and saddlebags. The late 1970s would be filled with numerous special editions and commemorative models, most likely to obscure the fact that little technical innovation was happening.
In 1978, Harley would release the popular 75th Anniversary models, but not before introducing a most unusual, and still-controversial, limited production bike, the Confederate Edition. Lasting stigma Then there’s the politically incorrect elephant in the room. The real reason this model is so unknown — never appearing in a single official Harley history, and, we suspect, why Harley-Davidson refused to even acknowledge its existence until just recently (see letter, left) — is the rebel flag adorning the tank. What is generally referred to as a rebel or Confederate flag is more properly identified as the Battle Flag of the Confederacy.
It is also correctly identified as the “Southern Cross.” This flag was never utilized as a political flag for the Confederate States of America. There were several others used in this capacity, but all bore more resemblance to an American or current state flag. The Battle Flag is a flashpoint of controversy and raw emotion. To many Southerners, the Battle Flag is a symbol of cultural pride and heritage, representing the battle for states rights and independence from an overbearing federal government. The NAACP and many African-Americans see it as a painful reminder of slavery, racism and oppression. This leads many Americans to view the Battle Flag in the same light as a swastika, putting a lot of political and social weight on what is still just a motorcycle. So, are the Confederate Editions valuable investments, pariahs — or both?
Steve Edmondson, who has owned two CEs, says they might bring a little more from an interested party, “but nothing outrageous.” Former CE owner Matt Berthold (that’s his old bike on page 46) adds, “I think this is the perfect example of having to find the right buyer. I’ve seen Confederate Editions go on the Internet for $20,000 — I know I didn’t get anywhere near that after a couple of years of trying to sell my Confederate Edition XLCH.” Former CE Harley owner Jeff Gerken sees things differently. “I think they are going to be a blue chip investment. I sold my Confederate Edition FXE Super Glide to a collector in North Carolina,” Jeff says.
He let his go for around $13,000 in 2006 and thinks they’re worth much more than that now. Perhaps, but they’ll need to hit a little higher on the collector radar screen before that happens. As it is, they’re simply a casualty of war, a forgotten foot soldier in Harley’s mid-1970s bid to re-engage the market it almost lost, and a model The Motor Company would apparently just as soon forget. MC Steve Edmondson’s Confederate Edition Registry (804) 541-4040. Motorcycle Classics is America's premier magazine for collectors and enthusiasts, dreamers and restorers, newcomers and life long motorheads who love the sound and the beauty of classic bikes.
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