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Cannondale to stop making bikes in U.S.

I was disappointed -- but not surprised -- to learn that Cannondale bikes no longer will be produced in the United States.

I have been a loyal Cannondale rider since 1985 because I've found Cannondale's stiff aluminum frames best suited to my cycling style. The fact that both of the Cannondales I've purchased were made in the United States was an added bonus.

According to a press release from Cannondale's new owners, Dorel Industries, the company will cease to make bicycles at its Bethel, Conn., facility. The Bike Biz blog noted that all but the lower-end bikes have been made outside the United States for some time, but all manufacturing will cease at Bethel in 2010.

Instead, Bethel will be part of Dorel's "Worldwide Centers of Excellence" and will serve as global headquarters and innovation center for high-end and enthusiast bicycles for Cannondale, Schwinn, GT and Mongoose.

Dorel also plans to switch its Bedford, Pa., facility to a bicycling testing facility and an site for inside sales and service, and customer service.

In typical public-relations speak, Dorel tried to put the best spin on the fact 200 jobs will be lost in Bedford. "In shifting Bedford's operations away from bicycle frame manufacturing by 2010, CSG (Dorel's Cycling Sports Group, formerly the Cannondale Sports Group) will be able to take full advantage of the strengths and capabilities of the new Taichung, Taiwan-based Center of Excellence in manufacturing oversight, sourcing, testing and quality control. Therefore, headcount at Bedford will be reduced from the current 300 employees to approximately 100 by the end of 2010.

The other Centers for Excellence are Basel, Switzerland (for high-end and enthusiast bicycles sold/marketed in Europe), Madison, Wis. (for global mass market products) and Vancouver, British Columbia, (for active lifestyle and urban apparel and footwear).

Labels: bicycles, Cannondale

Roger 0 comments links to this post 7:06 PM

Wednesday, February 06, 2008

Cannondale goes Canadian

As the owner of two Cannondale road bikes, I read with great concern that Montreal-based Dorel Industries has purchased Cannondale Bicycle Corp. The purchase is reported as an all-cash transaction valued between $190 million and $200 million, VeloNews reported this week.

Dorel also owns Pacific Cycle, the parent company of Schwinn, GT and Mongoose.

As a result of the acquisition, Dorel’s recreational/leisure segment, which includes Pacific Cycle, InStep, Playsafe and Roadmaster, will be split into two separate divisions, VeloNews reported. The Cannondale Sports Group, which will target the independent bicycle dealer and be separate from the mass-market line, will include Cannondale, Sugoi, GT and the company’s other premium bicycle brands, presumably Schwinn and Mongoose. Cannondale Sports has already stated that it plans to seek acquisitions of similar high-quality brands.

Bethel, Conn.-based Cannondale Bicycle Corp. also includes the Sugoi Performance Apparel Co.

CyclingNews.com reported this about the sale:

"As with any event of this nature, speculation as to how this will affect Cannondale's corporate structure and product line have run rampant but (Cannondale President and CEO Matt) Mannelly and (Pacific Cycle President Jeff Frehner) Frehner were quick to dispel any rumors. According to them, there are no plans 'at this point' to move production overseas (other than items that are already produced in Asia, that is), Cannondale designers and engineers will still be able to pursue their trademark 'out of the box' style of research and development, and the company will remain very distinctly focused on the enthusiast independent bicycle dealer) market."

For more than 20 years, I've been happy with the quality of Cannondale bicycles. Their aluminum frames are well-suited for a larger cyclist such as myself. The fact that both of my Cannondale bikes were made in the United States is a bonus.

Let's hope Cannondale's new owner not only keeps up the quality of the bikes, but continues to make bicycles in the United States.

Labels: bicycles, Cannondale, United States

Roger 1 comments links to this post 4:49 PM