Cannondale news..

NJ-XC-Justin

KY-DH-Freddy
So it's anybody's guess what'll happen in the long run now. Probably a lot more outsourcing to China/Taiwan. Probably a lower level of entry-level bikes coming in around $300. But we'll see. Quality difference or not, so many people buy Cdale for the Made in the USA sticker and pride that I just can't picture someone thinking they could remove that and sales remain remotely the same.

It's pretty clear they're doing this "separate division" BS so people don't associate Cdale with Pacific.

A positive spin on this is that Mongoose has done really well in the past few years. Some high-level bikes, some nice technology, and real money being spent on top pros (Steve Romaniak just joined recently, along with Bryn Atkinson and Eric Carter amongst others). And outside of dropping Brian Lopes, GT has done real welll in recent years too.
 

jbogner

NYCMTB: President
JORBA.ORG
So the rumors came true.

I can't imagine that being owned by Dorel is worse than being owned by a private equity group. I think the amazing thing through all of this is that the purchase price for Cannondale will end up being 190-200 million. Didn't Pegasus pick up Cannondale for around 20 million a few years ago? That's a nice return on their investment- somebody at Cannondale has been doing something right over the past 5 years. I'm sure Dorel won't take actions that might tarnish the value of their high-end brand acquisition.

The real question now is what does Dorel do with Mongoose and GT? Do they put them under the management of the Cannondale group and market them to IBD's, or do they cut out the top-end models and leave them as big box brands? Will Dorel create a multi-tiered IBD model with less expensive Asian-made GT's and Mongooses piggybacking into IBD's alongside their higher-end and partly-American-made Cannondales? Or do they rebrand those cheap GT's and Mongooses as "Cannondale?" We'll see how they play it.

One thing's for sure, though- with 200 million in debt financing, Dorel has to be looking to expand and grow the Cannondale business...
 

Bike N Gear

Shop: Bike N Gear
Shop Keep
So the rumors came true.

I can't imagine that being owned by Dorel is worse than being owned by a private equity group. I think the amazing thing through all of this is that the purchase price for Cannondale will end up being 190-200 million. Didn't Pegasus pick up Cannondale for around 20 million a few years ago? That's a nice return on their investment- somebody at Cannondale has been doing something right over the past 5 years. I'm sure Dorel won't take actions that might tarnish the value of their high-end brand acquisition.

The real question now is what does Dorel do with Mongoose and GT? Do they put them under the management of the Cannondale group and market them to IBD's, or do they cut out the top-end models and leave them as big box brands? Will Dorel create a multi-tiered IBD model with less expensive Asian-made GT's and Mongooses piggybacking into IBD's alongside their higher-end and partly-American-made Cannondales? Or do they rebrand those cheap GT's and Mongooses as "Cannondale?" We'll see how they play it.

One thing's for sure, though- with 200 million in debt financing, Dorel has to be looking to expand and grow the Cannondale business...

Purchased for 58 Million, sold for 200, less than 5 years later. Not bad for Pegusus. We'll see how it affect us.
 

jdog

Shop: Halter's Cycles
Shop Keep
Great timing for Dorel with the Loonie being so strong.

Just with the exhange change they got 30% more for their money than 5 year ago. Not bad.

C-dale can make a bigger splash with some real money behind them.

I have my fingers crossed.
 
man that blows, i was hoping to get a c-dale as my next bike since i wasn't too happy of the quality of my china made trek.
 

NJ-XC-Justin

KY-DH-Freddy
man that blows, i was hoping to get a c-dale as my next bike since i wasn't too happy of the quality of my china made trek.

At this point there is little to no difference from one country to another amongst the big makers with regards to frame quality -- the frames being made in Taiwan are arguably as good as any Cannondale (minus the sanded welds, which one could argue does nothing for durability or performance). Frames by Spesh, Giant, IronHorse and most Santa Cruzes are all Taiwanesse and receive few frame quality complaints.

It's a feel-good purchase and the pride of buying American and that's pretty much it. Though if you've got the cash, I'm sure you'd be real happy with a Seven, IndyFab or Moots.
 

Norm

Mayor McCheese
Team MTBNJ Halter's
You can make my bike in the pits of goddamn Tora Bora just as long as it's faster than anything else out there for all I friggin care.
 

jimvreeland

Endurance Guy: Tolerates most of us.
Most of the bikes are already outsourced, so it won't effect too much I don't think...
 
Top Bottom