Harley Passes GM—The Lessons for the Agurbs®

This past week Harley-Davidson passed General Motors in market value, $17.7 billion vs. $16.2 billion, despite the fact that GM sales of $193 billion are 38 times Harley’s. Both companies started within a year of each other (Harley in 1907 and GM in 1908), have been close to bankruptcy (Harley in 1985 and GM in 1992), and have faced stiff Japanese competition for many years.

However, Harley has built a marvelous brand since a management buy-out in 1981. It has leveraged its unique American heritage to create incredibly strong customer loyalty and passion for the product.

We just completed a new Harley dealership here in Effingham that is built like a barn, right along the interstate. Have you ever noticed how many of these unique Harley dealerships you see from the interstate? It isn’t an accident. It is part of their strategy of building the brand.

The lessons for agurbs®? It is important to build your brand and stay close to your customers. And, it isn’t always the big guy that wins.