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Discussion Starter · #1 · (Edited)
A little birdy tells me that C'dale finally made the decision to manufacture their frames overseas. The era of frames that are made in the USA is ending. Inevitable but sad. I know some of their carbon is already done in on the Pacific Rim.....

http://www.dorel.com/press/2009/DII_RLconsolidation_ENG_VF1.pdf

In shifting Bedford’s operations away from bicycle frame manufacturing by 2010, CSG 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.
 

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Here's the whole press release I just received...

Here ya' go!

Sorry for the strange layout....They sent this out in Adobe, and I just cut and pasted the text....I also found it interesting that they chose NOT to release this yesterday, as I think everyone would have thought it was an April Fools Day joke. The release is dated today, April 2, 2009.

Dorel’s Recreational/Leisure Segment Launches Worldwide Centers of Excellence Strategy

• Bethel, CT to be expanded into world-class Innovation Center
• New focus for Bedford, PA facility

MONTREAL and BETHEL, CT – April 2, 2009 – In a continuation of its on-going strategy to become the global innovation leader in the recreation and leisure markets, Dorel Industries (TSX: DII.B, DII.A) today announced that its Recreational/Leisure segment has launched a multi-faceted Worldwide Centers of Excellence program.
Five Centers of Excellence are being established around the world, with each location focused on market leadership in a specific market segment or expertise. These centers will be based in:

• Bethel, CT (global headquarters and innovation center for high-end and enthusiast
bicycles);
• Basel, Switzerland (for high-end and enthusiast bicycles sold/marketed in Europe);
• Madison, WI (for global mass market products);
• Vancouver, British Columbia, Canada (for active lifestyle and urban apparel and
footwear); and
• Taichung, Taiwan (for coordination of sourcing, testing and quality of Asian
suppliers/partners)

New Innovation Center

Key to the Centers of Excellence strategy in North America are plans to consolidate all North American product development, marketing and business management functions for all four cycling brands (Cannondale, Schwinn, GT and Mongoose) to Bethel, CT within the newly named Cycling Sports Group (formerly the Cannondale Sports Group).
The Bethel location will be expanded into a world-class Innovation Center for all of Dorel’s
Recreational/Leisure brands and products. This will help integrate brand teams to power
innovation and to more fully capitalize on the unique potential of each of the CSG brands.
“Our vision is to create the most innovative and admired company in the recreation and leisure marketplace, and to become a global leader, which is why the Dorel segment was established in the first place,” said Robert Baird, President of Dorel’s Recreational/Leisure segment. “The strategy for transforming that vision into reality requires a unified, collaborative, and highly engaged workforce, relentlessly committed to innovation and supported by management in rapidly advancing the quality of the products and services we deliver. Dorel has acquired several top companies with superior product lines and some of the strongest brand equities in the recreation and leisure sector, including the acquisition of both Cannondale Bicycles and SUGOI Performance Apparel in early 2008.

“The Cannondale purchase led us to segment our bicycle business to provide best-in-class service to the distinct retailer categories. Mass market bikes are sold to consumers through Pacific Cycle, while high-end specialty retailers have been our channel of choice for premium and enthusiast bikes through CSG. Naturally, Cannondale and CSG are key components of our commitment to our Independent Bicycle Dealers (IBD) as we realize how critical IBDs are to the cycling community and to us. In addition to the plans outlined above, and to ensure we delight our customers with our distinctive brands, innovative products and impactful in-store programs, we are also consolidating our North American CSG operations to two locations from five.”

A new mission for Bedford
In addition to its global headquarters in Bethel, CT, CSG will create one of the best bicycle testing laboratories in the world at its
facilities in Bedford, PA. CSG will also begin to focus its existing operations in Bedford on:

• final bicycle and Headshok assembly,
• CNC machining,
• testing and quality control,
• bicycle warranty repair,
• inside sales/service, distribution and
• customer support/administration (including a new call center on-site).

In shifting Bedford’s operations away from bicycle frame manufacturing by 2010, CSG 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 total cost of the overall re-organization plan is expected to be no more than US$4.5 million, the majority of which will be related to employee re-location and severance. These costs will be incurred over the course of 2009 and 2010. Once completed, the Company
expects to realize annualized cost savings of up to US$4 million.

“Today is the beginning of a very exciting period for Dorel’s Recreational/Leisure business,” said Jeff McGuane, President CSG North America. Mr. McGuane, who has been with Cannondale since 1994 and most recently was President of CSG International, was named to his new post last month.
“We have realized significant benefits from identifying and acquiring strong brand leaders in the recreation and leisure industries, as well as driving organic growth from our existing businesses. However, for us to continue on our quest to remain competitive and to
become the world’s premier provider in delivering the top recreation and leisure brands and products that consumers trust and want, we must continue to simplify and streamline our operations to help us drive forward. Creating the Center of Excellence in Bethel,
consolidating our CSG resources within North America to two main locations, and leveraging the manufacturing resources at our Taiwan-based Center of Excellence are critical steps along the path of achieving our objective – becoming the global innovation leader in the recreation and leisure segment,” concluded Jeff.

Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Established in 1962, Dorel creates
style and excitement in equal measure to safety, quality and value. The Company’s lifestyle leadership position is pronounced in both
its Juvenile and Bicycle categories with an array of trend-setting products. Dorel’s powerfully branded products include Safety 1st,
Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose and SUGOI in
Recreational/Leisure. Dorel’s Home Furnishings segment markets a wide assortment of furniture products, both domestically produced
and imported. Dorel is a US$2 billion company with 4700 employees, facilities in eighteen countries, and sales worldwide.
3
Caution Concerning Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature
concerning the future performance of Dorel Industries Inc. These statements are based on suppositions and uncertainties as well as on
management's best possible evaluation of future events. The business of the Company and these forward-looking statements are
subject to a number of risks and uncertainties that could cause actual results to differ from expected results. Important factors which
could cause such differences may include, without excluding other considerations, increases in raw material costs, particularly for key
input factors such as particle board and resins; increases in ocean freight container costs; failure of new products to meet demand
expectations; changes to the Company’s effective income tax rate as a result of changes in the anticipated geographic mix of
revenues; the impact of price pressures exerted by competitors, and settlements for product liability cases which exceed the
Company’s insurance coverage limits. A description of the above mentioned items and certain additional risk factors are discussed in
the Company’s Annual MD&A and Annual Information Form, filed with the securities regulatory authorities. The risk factors outlined in
the previously mentioned documents are specifically incorporated herein by reference. The Company’s business, financial condition, or
operating results could be materially adversely affected if any of these risks and uncertainties were to materialize. Given these risks
and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
 

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It's just a matter of time, as expected they moved the production to Asia to cut cost and increase profit margin. Sad day for Cannondale fan hold on to your System & Super Six and Caad 9 for now.
 

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There is only one bike that is moving from the US to Asia. The Synapse Carbon and Slices are already made in Asia and those still sell well. The CAAD 9s, Synapse Alloys, and Alloy MTBs will still be made in the US. The Slices and Synapse Carbon models didn't suffer any sales problem becuase they are made in Asia. It's almost come to the point where if you don't buy an Asia made carbon frame you should treat it as suspect. With the exception of the small niche' manufacturers in the US......... one of which sells and Asian made frame that people seem to jerk off to all the time.............

The Alloy still will still be US made................... That's what they do well; better than anyone else in the industry infact.


Further, Since the "Journalism" part of Journalism part seems to be lacking at VeloSnooze, Dorel will be moving Schwinn and GT to the Bethel area, so while they'll loose the Jobs at Cannondale, they'll be bringing more jobs to the Bethel area in the long run........ It's not as if we're going to see a re-run of the South Park Jobs episode play out on the east coast.


It's a good move for Cannondale. Moreover, this was something that was going to happen no matter who owned the company. I think/hope every knows that most of the companies are already working on 2012 bikes and product............. that would mean that Cannondale was planning this move prior to the Doral acquisition. I wouldn't look at this as Dorel making them do it............... thats they way it's going to be played out on forums and by "news" sources (like VeloSnooze). We'll see the whoo-is-me-boo-hoo-no-'Merican-made-frames stuff every where. We'll also see the ever popular "Death of an American Company" argument. The "I'll never buy a Cannondale again" argument. The trite "they sold out" will be seen and over used.

For everyone that will cry and moan about it............. I'd better see your ass on the American Champ Madone replica . Of course this brings up quite a problem for some. You want American carbon but "refuse" to pay for a Crumpton or a Parlee Z1-3 (as the 4 is Asian *tisk tisk*) but wouldn't be caught dead on a Trek............... what's a cheap, morally superior, Ethnocentrist to do?

As I've said many, many, many times; I'll be on a 2010 super even if it was made on the moon.


Starnut
 

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STARNUT said:
Of course this brings up quite a problem for some. You want American carbon but "refuse" to pay for a Crumpton or a Parlee Z1-3 (as the 4 is Asian *tisk tisk*) but wouldn't be caught dead on a Trek............... what's a cheap, morally superior, Ethnocentrist to do?

Ruegamer!
 

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Starnut,

Will the Si crank work with Super Record 11 ?
 

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STARNUT said:
There is only one bike that is moving from the US to Asia. .

For everyone that will cry and moan about it............. I'd better see your ass on the American Champ Madone replica . Of course this brings up quite a problem for some. You want American carbon but "refuse" to pay for a Crumpton or a Parlee Z1-3 (as the 4 is Asian *tisk tisk*) but wouldn't be caught dead on a Trek............... what's a cheap, morally superior, Ethnocentrist to do?

As I've said many, many, many times; I'll be on a 2010 super even if it was made on the moon.
Starnut
Seems that the chip is on your shoulder.

I can say that since Cannondale is going overseas, it is one less reason to buy one. Since I will have to buy an imported frame, I suppose it opens the door for me to consider all makers now, but I am not necissarily happy about it. I suppose I could spend the big bucks and get a custon or a litespeed that's made here.

My last Cannondale lasted me 17 years and my current one is only 1 years old, so I suppose I have time.
 

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STARNUT said:
....On topic, Liquigas is racin' an Asian made Cannondale *gasp* :yikes: .....
Racing and WINNING on their Asian made Cannondales :thumbsup: I'm sticking with my 'Dales as well. :cool:
 

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RB no one said you had to buy an "imported" frame. There are plenty of US made options. There are 20-30 domestic manufacturers that would be willing to build and sell you a frame............ plus there is always Trek.

I have no chip on the ole' shoulder. The irrational whining and complaing that is about to start...... *edit* that has started, is unfounded. I'm not whining about them moving production. Those that, irrationally, subscribe to the "American made=only viable option" way of thinking are most likely to have chip on said shoulder.

Thus.......... the reason I wrote:

STARNUT said:
I wouldn't look at this as Dorel making them do it............... thats they way it's going to be played out on forums and by "news" sources (like VeloSnooze). We'll see the whoo-is-me-boo-hoo-no-'Merican-made-frames stuff every where. We'll also see the ever popular "Death of an American Company" argument. The "I'll never buy a Cannondale again" argument. The trite "they sold out" will be seen and over used.

For everyone that will cry and moan about it............. I'd better see your ass on the American Champ Madone replica . Of course this brings up quite a problem for some. You want American carbon but "refuse" to pay for a Crumpton or a Parlee Z1-3 (as the 4 is Asian *tisk tisk*) but wouldn't be caught dead on a Trek............... what's a cheap, morally superior, Ethnocentrist to do?


Starnut


Starnut
 

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We got this email this morning. I am not sure where you got your information, but Cannondale will not be making any US frames anymore.

Dear Valued Retailer:



Independent Bicycle Dealers are critical to our success. That’s why we want to do all we can to help you drive your business forward. As one of our valued partners, I wanted to immediately share with you some exciting developments that we believe will enable us to better deliver against your high expectations.



Specifically, we announced two major initiatives today. First, we have launched a worldwide Centers of Excellence Program. In addition, we have decided to consolidate our Cannondale Sports Group (CSG) offices in North America to two key locations from the present five offices. Our Bethel, CT location will also be expanded into a world-class Innovation Center for all Recreation & Leisure Segment brands and products.



Second, we have a new mission for our Bedford, PA facilities where we will focus on:

· final bicycle and Headshok assembly,

· CNC machining, testing and quality control,

· bicycle warranty repair, and

· inside sales/service, distribution and customer support/administration (including a new call center on-site).



As part of this transition at our Bedford facilities, we will also shift bicycle frame manufacturing outside of the U.S. after 2010 and utilize the full advantage of the strengths and capabilities of the new Taichung, Taiwan-based Center of Excellence in manufacturing oversight, sourcing, testing and quality control.



Finally, we have changed the underlying name of CSG to the Cycling Sports Group to better reflect our mission and ambitions as a company.



Naturally, these are exciting times for CSG. We will continue to work to further accelerate our product innovation, build great brands, and delight our Consumers and Partners – including you.


Thank you for your ongoing support and for being a critically important part of the CSG team.



Sincerely,

Dave Manchester,

Senior Vice President of Sales North America

Cycling Sports Group
 

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The fact that they are rolling Cannondale into the same division as the other brands will probably kill Cannondale's identity as a unique bike as much as anything.

The Six they sell now isn't much of a Cannondale either. It looks like a bunch of other carbon bikes on the market, likely all sourced from the same maker with just different stickers and paint on them.

What's the point in being in the bike business if you don't want to do something different? There are much more lucrative businesses to be in.
 

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robertburns3 said:
What's the point in being in the bike business if you don't want to do something different? There are much more lucrative businesses to be in.
Which affordable alloy frames do Cannondale's competitors manufacture in the US? Where are all the forks that are no different to the Lefty?

Cannondale does plenty that is different. But they are also a mass-manufacturer so by necessity they do plenty more that is generic. That's the way it goes.
 

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Does it really matter?

Specialized, Scott, Cervelo are all made in China.

How many pro teams are on bikes NOT made in Asia?

Bbox is on Time
Cofidis is on Look

Anyone else? Not sure where Milram's Focus bikes are made.
 

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FondriestFan said:
Does it really matter?

Specialized, Scott, Cervelo are all made in China.

How many pro teams are on bikes NOT made in Asia?

Bbox is on Time
Cofidis is on Look

Anyone else? Not sure where Milram's Focus bikes are made.
Aren't the higher end Treks for Astana still made in Wisconsin? Looks are manufactured in Tunisia. I think Time is one of the few brands that is manufactured at HQ.
 

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danielc said:
Aren't the higher end Treks for Astana still made in Wisconsin? Looks are manufactured in Tunisia. I think Time is one of the few brands that is manufactured at HQ.
Look owns their own factory in Tunisia.

So, we have:

Time
Look
some Treks
high-end Colnagos

Pretty much it for the top manufacturers once Cannondale moves to Asia.
 

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De Rosa still does their own stuff in house, Ugo still welds some of the Ti frames, so they say. A lot of the small Italian manufacturers build their bikes from a "plug and chug" Dedacciai kit where they can request special geometry. They glue it together and paint it. There is no R&D (Dedacciai did it already) or development. They did however manufacture a frame so..................


Merckx just built a "joint factory" in France or Italy. If by "joint" they mean share then it's not theirs. If by "joint" they mean more than one person owns it but one one company uses it for manufacturing then I guess....... well, I guess it doesn't make a whole lot of difference does it? :lol:

Starnut
 
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