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Harley Davidson the 90s

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 bro...

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