<P> In 1969, American Machine and Foundry (AMF) bought the company, streamlined production, and slashed the workforce . This tactic resulted in a labor strike and lower - quality bikes . The bikes were expensive and inferior in performance, handling, and quality to Japanese motorcycles . Sales and quality declined, and the company almost went bankrupt . The "Harley - Davidson" name was mocked as "Hardly Ableson", "Hardly Driveable," and "Hogly Ferguson", and the nickname "Hog" became pejorative . </P> <P> In 1977, following the successful manufacture of the Liberty Edition to commemorate America's bicentennial in 1976, Harley - Davidson produced what has become one of its most controversial models, the Harley - Davidson Confederate Edition . The bike was essentially a stock Harley with Confederate - specific paint and details . </P> <P> In 1981, AMF sold the company to a group of 13 investors led by Vaughn Beals and Willie G. Davidson for $80 million . Inventory was strictly controlled using the just - in - time system . </P> <P> In the early eighties, Harley - Davidson claimed that Japanese manufacturers were importing motorcycles into the US in such volume as to harm or threaten to harm domestic producers . After an investigation by the U.S. International Trade Commission, President Reagan in 1983 imposed a 45 percent tariff on imported bikes with engine capacities greater than 700 cc . Harley - Davidson subsequently rejected offers of assistance from Japanese motorcycle makers . However, the company did offer to drop the request for the tariff in exchange for loan guarantees from the Japanese . </P>

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