Cannondale is gone .

[Dhphat]

Basically Cannondale is a prestige brand selling bikes at premium prices - it would be commercial suicide for Dorel to move it down-market. And why would they?

Because in the past 3 months over 30% of there dealers have stopped ordering bikes, and are in the process of pulling them from there floor. Just because the name pacific was in the air.

 

[Anthony]

Basically Cannondale is a prestige brand selling bikes at premium prices - it would be commercial suicide for Dorel to move it down-market. And why would they?

Because in the past 3 months over 30% of there dealers have stopped ordering bikes, and are in the process of pulling them from there floor. Just because the name pacific was in the air.

But even if that were true, why would ruining Cannondale by moving it down market solve the problem? Surely it would only make it worse. If you were Dorel, and you were thinking of spending $200m on buying a company and then found that it was losing 30% of its business, would you go ahead regardless? It doesn't make sense to me. Nobody spends that kind of money on buying a prestige company unless they want it to remain a prestige company.

 

[cchris2lou]

Just look at what they have done with the other brands .

they are not interested in selling expensives bikes , they cost a lot to make and develop and the margins are quite small .
What is more profitable is a lower priced bike , but with a good name and reputation .

Dont expect to see a Cannondale team much longer and no more spectacular innonvations .

 

[Dhphat]

Basically Cannondale is a prestige brand selling bikes at premium prices - it would be commercial suicide for Dorel to move it down-market. And why would they?

Because in the past 3 months over 30% of there dealers have stopped ordering bikes, and are in the process of pulling them from there floor. Just because the name pacific was in the air.

But even if that were true, why would ruining Cannondale by moving it down market solve the problem? Surely it would only make it worse. If you were Dorel, and you were thinking of spending $200m on buying a company and then found that it was losing 30% of its business, would you go ahead regardless? It doesn't make sense to me. Nobody spends that kind of money on buying a prestige company unless they want it to remain a prestige company.

They may want to remain a prestiges compnay but its not possible w/ these owners. I know 4 of the top 10 cannondale dealers have already pulled out. If a prestiges shop isn't selling your bike how can you be a prestiges company? Dorel has never improved a bike company that they have aquired. look for them to shake as much money out of them as they can and watch it turn into another mongoose. Its sad.

 

[Anthony]

Just look at what they have done with the other brands .

they are not interested in selling expensives bikes , they cost a lot to make and develop and the margins are quite small .
What is more profitable is a lower priced bike , but with a good name and reputation .

Dont expect to see a Cannondale team much longer and no more spectacular innonvations .

Well, we'll see, but I think when you say 'they' you're actually talking about Pacific not Dorel. Pacific obviously made some serious errors when they took over Schwinn/GT and everybody now recognises this. But Dorel only bought Pacific in 2004 and since then they've been rowing Pacific back from those earlier mistakes. GT is now a respectable company again and in view of what Dorel has done since 2004 I don't see any reason whatever to assume that Dorel will do with Cannondale what Pacific initially did with GT, quite the contrary.

How down market is this?
http://www.gtbicycles.com/usa/eng/defau ... id=19#2623

 

[Chris H]

didn't they screw their finances a few years ago trying to make motocross bikes - seem to remember hearing thats why they were sold then. Just conjecture....

 

[cchris2lou]

Time will tell .

it is tru that this year GT are good , and very good value for money .