In 1960, sensing a growing demand for a small displacement motorcycle, Harley Davidson bought a 50% share of the Italian company Aermacchi, based in Varese, Italy. With a range of 8 models, a majority of which were imported to America, the company seemed to do well on both continents. The racing replicas, with the small 4 stroke motors did well but were soon to be eclipsed by the newer 2 stroke bikes. By 1974, Harley was owned by AMF and within 4 years they sold the Aermacchi Company to Cagiva in 1978.