To keep lending cash available, HDFS said it would continue to access the unsecured-debt capital markets. The finance unit recently enhanced its credit underwriting and collection activities and raised interest rates on consumer loans.

Management "assured us that they have been shored up and will continue retail financing to the consumer," Bentley said.

The recent challenges are the latest chapter in Harley-Davidson Inc.'s storied history -- one that began in 1903 in a 10-by-15-foot wooden shed in Milwaukee to its present position as the top U.S. motorcycle company. Net sales were $5.73 billion last year.

The company was a subsidiary of AMF Inc. from 1969 until June 1981, when a group of 13 Harley-Davidson executives bought the company in a leveraged buyout.

It averted bankruptcy in 1985 when it secured a new lead lender on the last day of the year, followed by a highly successful IPO in July 1986.

Harley-Davidson enjoys strong repeat business as brand loyalty runs deep.

"There's still that mystique," said Tom Hannum, owner of Hannum's Harley-Davidson, a second-generation Harley dealer that has locations in Media and Chadds Ford. "It's an absolutely amazing culture."

Wael Gamaly, 45, a real estate investor from Langhorne, rode 5,000 miles in August on one of his seven Harleys, from Las Vegas to Milwaukee, to attend the 105th anniversary party of Harley-Davidson.

Gamaly, a longtime member of HOG -- Harley Owners Group -- just purchased a first Harley, a black 883 Sportster, for his wife, Marcia.

"It's the style -- being all-American," said Gamaly of his fondness for H-D bikes. As he spoke, he raised his right sleeve to show off a tattoo of a Harley-Davidson shield surrounded by flames.

For Ron Lysebo, 58, of Manville, N.J. -- who has a gray beard and wore a black-leather do-rag with matching jacket and boots -- his fully customized Harley-Davidson 1970 Chopper was a reflection of him.

"My bike is old school. Nothing like the fancy ones coming out," Lysebo said Sunday, while holding a beer at the outdoor bar of Fran's Pub in New Hope, a popular biker hangout.

"You look at me, that's where I'm from."

While male baby boomers have been Harley-Davidson's core market for decades, the company is now catering more to women and ethnic groups to grow market share.

Local Harley dealers, like Brian's, sponsor "Bike Nights" in Northeast Philly to introduce younger riders to the brand and "Women's Rides" to build rider confidence and camaraderie. New marketing brochures feature women and tout safety courses at Harley dealerships.

Based on 2007 U.S. retail sales of new Harley-Davidson motorcycles, about 12 percent were to women, up from 2 percent a decade ago. Minorities represent about 7 percent of new buyers.

Darlene Robbins of Egg Harbor City, N.J., made the move three years ago from the back of a Harley to the front. That's when she joined the Shore chapter of Women in the Wind, a riding club that promotes a positive image of women on motorcycles.

Robbins, nicknamed "Heelz," because she wears leather boots with four-inch heels when she rides, is in the hunt for a new Harley to add to her 2004 HD Low Rider, and vows to continue to "buy American."

"Bad economy or not, I will buy a new Harley," said the business owner, 49, and mother of two grown sons, "as long as I can have it made safe for me to ride."

But Debbie Wagner, 41, of Bridgewater, N.J., plans to ride out the rough economy and make do with her 2005 Sportster.

"I'd love to have a bigger Harley for the longer trips," she said, "but I can't afford it right now."

Contact staff writer Suzette Parmley at 215-854-2594 or sparmley@phillynews.com.

-----

To see more of The Philadelphia Inquirer, or to subscribe to the newspaper, go to http://www.philly.com.

Copyright (c) 2008, The Philadelphia Inquirer

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:HOG,

A service of YellowBrix, Inc.