Marlon Brando straddled one in The Wild One and Elvis owned one before he became famous, making it one of the world's most desirable brands.

But yesterday Harley-Davidson, the motorcycle maker, was given a less appealing image when the Milwaukee-based group said it was dismissing 8 per cent of its workforce and cutting production.

As the group admitted that the slowdown in the United States had seen sales of its motorbikes fall by almost 13 per cent in America alone during the first quarter of the year, it also gave warning that earnings for the year would fall by as much as a fifth.

Worldwide sales of the motorcycles also fell, down 6 per cent in the first quarter, compared with 12.8 per cent in America.

Net profit for the period ended March 30 stood at $187.6 million (£94.8 million) compared with $192.3 million for the same period the year before. Revenue increased 11 per cent to $1.31 billion.

The company, whose FXDF Fat Bob motorcycle sells for $14,795, is cutting production to avoid key markets being flooded by a product that is branded on its scarcity value.

The shares fell to a 52-week low of $34.10, down 3 per cent from Wednesday's closing price. They have traded as high as $66 in the past year.

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