Dorel Industries Suspends Dividend, Stock Value Plummets to Record Low, Tariffs Blamed

Oct 2, 2019
by Daniel Sapp  
hero

Cannondale, GT, Mongoose, and Schwinn's parent company, Dorel Industries, have announced that they will suspend their third-quarter dividend due to the impact of increased U.S. imposed tariffs, according to Yahoo Finance. The move comes as a result of Dorel's Board of Directors reviewing their preliminary third-quarter earnings and upon the release of the news on Tuesday, Dorel's stock fell 23% to its lowest price since 1996. The dividend declared on August 2nd, 2019 is not affected and will be paid on October 2, 2019. In addition to bicycles, Dorel owns companies related to juvenile products and home furnishings.

Tariffs were first implemented on Chinese imports over a year ago. Dorel were able to ride out the first wave of tariffs at 10% but in May tariffs were increased a second time to 25% and the issues started to hit.

bigquotesIt is prudent to suspend the dividend until the chaotic market conditions created by tariffs are normalized.Martin Schwartz - President & CEO of Dorel

Fallout from Dealing with Tariffs

The strain of tariffs and the fallout from dealing with them seem to have hit Dorel hard.

According to Marketwatch, Dorel raised prices midway into the third quarter in an effort to mitigate financial impacts of tariffs, however, that had "several negative consequences" on its business. Those consequences include not all retailers raising prices at the same time, which disrupted the retail marketplace, retailers changed their buying routines from suppliers, and new price points caused consumers to opt for different items, creating a "considerable product mix imbalance. Additionally, there have been increased warehousing costs as product demand changes have had impacts on the company's inventory balancing program.

“The impact of the increase on Dorel businesses was still unclear at the end of the second quarter. We raised prices midway through the third quarter and this has had several negative consequences. Not all competitors nor retailers raised prices at the same time or rate. Retailers have also changed their buying routines. New price points have caused some consumers to opt for different items creating a considerable product mix imbalance. As well, elevated warehousing costs are still being incurred as the shift in demand has delayed our inventory balancing program. The net result of these challenges is that Dorel Home’s expected gross margin improvement from first-half levels will be delayed to the beginning of 2020,” explained Dorel President & CEO, Martin Schwartz.

Also affecting Dorel's business is that some U.S. customers have delayed their Christmas 2019 deliveries to the beginning of the fourth quarter, Additionally, the recent rise in value of the U.S. dollar has negatively impacted Dorel's sports segments as major currencies that affect Dorel's financial results have dropped between 3% and 8%, according to Yahoo Finance.

Dorel states that sales have remained strong with their mass merchants however, gross margins are lower. On a more positive note, independent bicycle retailers and sporting good channels have continued to have strong sales and a positive outlook.

A Record Low

After the news broke on Tuesday, Dorel's stock plummeted 32%, over the course of the day, closing at $6.18 - the lowest value ever. On Wednesday, at the time of publishing this article, Dorel's stock was even lower, valued at 6$ after dipping to a low of $5.77. Additionally, there have been massive exchanges of shares - A volume of over 331,000 shares changed hands on Tuesday. In comparison, last Tuesday, a little over 20,000 shares were traded.

Read more: Giant Declares Made in China Era Over, Citing Trump Tariffs.

We have reached out to Dorel for comment and more information on how this may directly impact their bicycle brands and will provide an update in this article when we receive one.


328 Comments

  • 336 60
 Just remember, China is losing!!!!!!!! Trade wars without a plan are great!!!!!! Companies will definitely bring all their manufacturing back to the US! Best economy ever!
  • 78 2
 NEEDS MORE ALL CAPS!
  • 96 15
 Lol no. The american people will pay the china taxes. And chinese people will pay the taxes put on american goods. And I bet that american companies will just migrate to the next cheaper country which sadly won't be the us.
  • 157 45
 Well hopefully after Hair Furher gets dragged out of office because he can't open his shit spewing mouth without breaking the law the next guy (or gal) can get trade back on point.
  • 31 1
 @OneTrustMan: everything is just moving to india/taiwan/vietnam/every other country that can make the same cheap crap without getting crushed by a 25% tariff.
  • 14 1
 @OneTrustMan: They already are. Vietnam, Cambodia etc.
  • 6 0
 TERRIFIC, JUST TERRIFIC!!!
  • 21 10
 Isn't The Federal Reserve to blame for all this?
  • 18 0
 @OneTrustMan: exactly. Just saw a review on YouTube for a 2019 trek marlin.
Sticker said made in Cambodia.

Don't think for a second that big corps are going to take a hit. They moved that shit quick.
  • 54 29
 @Rucker10: kind of want him to ride it out at this point.
Keep the pressure on him so he can't pass any more trillion dollars tax cuts for the rich or any other right wing agenda.
But I think him getting impeached would allow Pence to make a run and has a better chance of winning at this point.

Down with the orange piss bag.
  • 22 1
 Winning bigly!
  • 11 1
 @stonant: like Levi's, Gap, Nike, no offence but the aforementioned and many others have produced overpriced goods from those locations for decades.
  • 38 12
 @Rucker10: Hair Furher - That's gold!
  • 28 13
 @Kamba6:

Anyone and everyone except Donald Trump! He's so g* damn brilliant, he watches TV instead of reading books and newspapers (I assume that's how most of his supporters get their "news" and "knowledge" as well).
  • 53 94
flag SlodownU (Oct 2, 2019 at 10:38) (Below Threshold)
 You people are so stupid, I don't know where to start, neg prop me all you want! The reason their stock price is falling is because no one is buying that many new bikes in general, which is why the bike companies are pushing e-bikes and changing standards/geometry every other day to drum up sales, create a new market for their goods. As far as GT and Cannondale go, I can count the number of C-dales I've seen this year out on the trails on one hand, and I've seen exactly zero GT's. Sales a little soft maybe? Simple economics 101, but keep but you go on and keep on blaming "the man".
  • 20 2
 @DirtbagMatt: TARIFFIC, JUST TARIFFIC!!!
  • 13 0
 Made in Cambodia, in factories likely subcontracted by Chinese businesses. I would like to see what conditions workers face, and the state of those communities in proximity to these factories.
  • 15 1
 @SlodownU: I know that you want to believe this, but do you really think that a 25% tariff would have no effect on a corporation that imports most of its stuff from China?
  • 4 0
 @PinkyScar: There's been a massive influx of Chinese businesses into Cambodia over the last few years. A friend of mine who has spent a lot of time there says it's unbelievable how much things have changed, and not in a good way.
  • 8 1
 @SlodownU: Did you read the article? Their bike business isn't the main driver of lower than expected profits.
  • 15 3
 @SlodownU: By that logic, wouldn't all MTB brands stock fall more or less equally? Doesn't seem to happen though. Sorry I'm so stupid. Didn't mean to upset anyone.
  • 6 9
 @Rucker10: hair fuhrer, good one...
  • 24 13
 @SlodownU: you can't explain to people literal concepts. They cant see black & white at all. They gotta blame someone else. Dorel bought a niche product like bicycles, too many brands and price points, then lost focus having absorbed too many brands & not had a better plan to claim market share. Same probably happened with their other owned products & whatever else they licensed.

Rather than take the fall for mis-management of a global hodgepodge of products...blame a tariff in the news. That tariff just came into being and they're dividends sure as heck are being paid out that quick.
  • 10 1
 @OneTrustMan: I think that is the point, isn't it? (In response to your 4th sentence.)
Trump wants companies to ditch China, and rightly so.
  • 2 3
 These Companies employs US workers too, so is not just China is affected. Duh, me! How bout UAW make bikes!
  • 15 6
 @Lankycrank: No, because some sell better than others, and GT’ & C-dale MTB’s sell like shit. And they also pass the prices of these tariffs right on to you. If your shedding any tears for these companies crying because of tariffs, well then their propaganda is working on you.
  • 24 11
 @PinkyScar: probably Taiwanese owned. Not Chinese owned. Taiwan is a sovereign country, in which dislike for Pooh's China is getting stronger by the day.
I'm all for ditching China and moving to any other cheap country, provided that country isn't powerful enough to pack much of a political punch. China has too much power already. The world is only going to get worse for us democracies as China rises. And don't get me started on the Hong Kongeses and sooner or later Taiwaneses. Pooh literally does not give a monkeys about honouring agreements or showing respect for people. If we keep filling our homes with crappy made in China plastic shit, and sending containers full of money back to China, it won't end well for us. Fact. Trump is someone who gets it.
  • 22 6
 Dorel is reaping what they sowed, they destroyed 2 of the biggest brands in cycling. Back in the late 90's, early 2000's, C-Dale and GT made some of the most lusted after bikes. GT had the titanium Zaskar, LTS, and then I-Drive bikes. C-Dale made the Carbon Super-V's, Lefties, and the Gemini bike that Cedric won Rampage on. Both companies were dead the second the ink dried on the Dorel deal. Today? GT is like KHS, you see sponsored riders on them, but none on the trails. I've haven't walked into a shop, anywhere, in the last 5 years that stocked GT. C-Dale has a healthy road bike business, but no one buys their MTB's. Dorel didn't let them innovate, and didn't really support them with advertisement. And whats the big innovation that both brands bring to the table? The "bold" move to Horst Linkage.
  • 12 0
 @SlodownU: meanwhile, Giant has been proclaiming rather loudly that 2019 has been their best year ever in the history of the business.
  • 6 10
flag themountain (Oct 2, 2019 at 12:12) (Below Threshold)
 Dream on, brother ! This will hurt the US for decades!
  • 54 18
 "The man is a pathological liar. He doesn't know the difference between truth and lies. He lies with practically every word that comes out of his mouth. and he has a pattern that i think is straight out of a psychology textbook. His response is to accuse everybody else of lying. Whatever he does, he accuses everyone else of doing. The man cannot tell the truth but he combines it with being a narcissist. A narcissist at a level i don't think this country has ever seen. Everything in donald's world is about donald, and he combines being a pathological liar, and i say pathological because i actually think donald, if you hooked him up to a lie detector test, he could say one thing in the morning, one thing at noon, and one thing in the evening, all contradictory, and he'd pass the lie detector test each time. Whatever lie he's telling at that minute, he believes it. But the man is utterly a moron."

~
  • 6 2
 @expat: That's funny, I just listened to that. When you nail something so hard they'll find it on the geological record in 5 million years and wonder what caused it.
  • 2 0
 Some bike cos moving production to Myanmar...
  • 23 50
flag SlodownU (Oct 2, 2019 at 13:09) (Below Threshold)
 @expat: Right, because all the politicians that came before him were honest. Hillary and Barack "lets secretly pay Iran off" Obama were poster children of veracity, right? Oh, and Barack definitely wasn't a narcissist either. Or Jimmy carter, or any of these ex-presidents who just won't go away because they think we need them so badly still. Because their grammar is better, and they spoke so well, they must be honest, no? And all the politicians that came before them weren't condescending narcissists either? Its kind of whats required to be in politics. You better go back to that psychology textbook you love so much and read exactly what a pathological liar and narcissist looks like. But I guess all your Canadian politicians are honest, and not racist or crack heads? Mayor Ford should party with Marion Barry.
  • 18 30
flag Arzeripper (Oct 2, 2019 at 13:20) (Below Threshold)
 LMAO... China's economy is crashing by the DAY... as intended. Whole supply chains are leaving that country for non tarriff countries, including "gasp" the United States. To see the lunatic left flailing about madly as China gets shellacked is hilarious. Including this foolish and sarcastic post. China has stolen TRILLIONS in intellectual property theft that is institutionalized in their system of government. Trump is CRUSHING them, and forcing them to bend down and eventually adopt fair and equitable trade and monetary practices. They import to the US uncounted $$ in goods, they take in turn next to NOTHING in $$ value from the US. So. By crushing them with tarriffs, they will have to completely revamp their system or suffer total collapse as their unemployment numbers skyrocket by the millions. Trump is winning BIGLY...and as a knock on, fixing trade with China for the rest of the world. Globalists can suck a fat one.
  • 39 16
 @SlodownU: a ha ha ha. Ya keep making excuses for him.

You could combine all those you name and compile all known lies or mistruths they have spoken and the orange piss bag would beat them in a month.

That's play no. 1 from right wing playbook. Point the finger at everyone else then lie so much no one can even keep up.

I'm sorry Jimmy Carter never said he grabs them by the pussy.
Clinton never said "why would it be Russia" then acted like he meant to say "wouldn't".

Your shit is laughable and predictable and anyone who can change the channel is not falling for it anymore.

Also everyone that doesn't agree with him complicitly is "fake news" again f*cking laughable.

They say when you are told you can only get your information from one source and you are told all others are lies....it's the first sign you are a member of a cult.
  • 34 14
 @SlodownU: first of all, no one secretly paid Iran off. after the Iran deal was signed, the money that was released was frozen assets. It was Iran's money the entire time. second, you cannot honestly compare obama (nor hillary) to the criminal failure monkey that's in office now, as far as lying/honesty is concerned. in the 8 years obama was in office how many "lies" were there? 2 maybe 3? oh, that's right, he wore a tan suit one time, and he also saluted with the wrong hand.... compare that to the cheeto moussolini who has what, 12,000 documented lies so far, 2 1/2 years into it? not to mention the actual criminal conduct, the treason, the breaking of the emoluments clause, etc, etc.

but yeah, keep "both sidesing" it. cause its definitely the same.
  • 2 5
 @Rucker10: infinitely well said
  • 8 8
 @SlodownU: you’re waki younger dumber brother, arent you?
  • 4 5
 @pargolf8: Branch Trumpidiotons.
  • 6 7
 @Arzeripper: you can suck a hairy one there ars ripper
  • 14 9
 @Arzeripper: hahahahaha. how strong is that kool aid you're drinking?

"....eventually adopt fair and equitable trade and monetary practices." when will that be? will it be before or after all the farmers go bankrupt?

China doesn't pay the tariffs. We in the US do. sorry, i understand math and econ 101 is hard, but you can learn if you put your mind to it.

and, yes, i get that admitting that you were conned by a moron who couldn't even pay a porn star off properly is difficult, and not many people would ever want to admit that they were stupider than trump... but once you do admit it, you can at least breathe easier... it's that, or continuing to support the racist criminal in office. your choice.
  • 2 1
 @neimbc: that’s not gold, it’s orange
  • 7 7
 @SlodownU: Spot on!
  • 4 3
 @adamkovics: it sounds straight out of the Faux News comments page, or perhaps Breitbart, with its casual disregard of facts or observable truth. Anyone who thinks global trade is a zero-sum game or best practiced bilaterally may have been asleep for the last half century.
  • 4 12
flag SlodownU (Oct 2, 2019 at 14:28) (Below Threshold)
 @pargolf8: @pargolf8: I not waki younger brother, you illiterate dumbass! But that faany tho.
  • 17 16
 @twozerosix: Dude, you're trying to argue with a bunch of 12yr olds, or college students riding bikes their parents bought them. If you want intelligent discussion, Pinkbike is not the place. As for the rest of you slackers, keep dreaming about those "dentist" bikes you'll will never afford, and keep blaming everyone else for your laziness and stupidity! See ya.
  • 3 1
 @jaame:
What's the point in ditching china if the US is getting screwed even more?
And the chinese companies also move to other places to dodge the taxes.
  • 17 8
 No they f*cking won't and no china isn't losing. American consumers & farmers are the ones who are losing.
  • 17 15
 @SlodownU: nope sorry busted my ass for Everything I have not 12 either.

Time to take your ball of shit and crawl back under that rock you came from.

See this is what happens when the other side gets to speak. Truth comes out then you run back to Fox news and wrap yourself in a warm blanket suck your thumb because you can watch Tucker tonight and he will make it all better.

Funny watching the guy from cnn plead that just because he is REPORTING WHAT IS HAPPENING doesn't make him a liar or fake news.

People like you will be left behind. If you refuse to see what's right in front of you there is no helping you.

What's more likely: Trump said something about having a moat with alligators and snakes at the border and then asked aids to look into the cost.OR
the New York times just made some batshit crazy story up?

He literally wants to see imigrants torn to pieces like it's a f*cking Roman coliseum.

When this shits over you can do what you like to tell everyone else LOVE IT OR LEAVE IT. GTFO
  • 4 2
 @SlodownU: man, I can't help it. Its like eating french fries with gravy and cheese curds, you can't stop.

Everyone should know by now that forums or bulletin boards do nothing to change opinions or challenge 'conventional wisdom'. I should know that too.
  • 4 2
 @SlodownU: wow bud
  • 3 0
 @Kamba6: That clueless state enemy Powell and his sky-high interest rates are to blame, of course!!
  • 7 8
 @SlodownU: Trump spends his days accusing others of that which he’s obviously guilty. You know, like a narcissist. It stands to reason his supporters would do the same. So hey, good for you that your trust fund paid for all your crap, but realize no matter how loudly you shout into your monitor you know in your heart of hearts you didn’t earn jack shit.
  • 1 0
 @mixmastamikal: does "/s" insert the sarcasm font ?
  • 1 0
 @reverend27: I noticed that the Marlins were actually put together better when the moved to Cambodia. Less warranties coming back too
  • 2 0
 @twozerosix: and CNN and MSNBC are?
  • 4 0
 @reverend27: are you f*cking serious? What is happenening? Like Russian collusion?
  • 1 2
 @SlodownU: ooh, testy. I missed the part when I said all the other things you just did. . It's a quote. you don't have to agree with it and yes all politicians are dishonest to some degree but I do agree with it. I agree with it because I see it with my own eyes, every day. Psychology textbook? who mentioned that? No idea where that came from, you're plucking shit out of thin air and making something of it, but I guess that what the Trumpettes do best.
  • 2 1
 @SlodownU: Did the kettle just call the pot stupid?
  • 1 0
 @OneTrustMan: pretty sure thats what hes doing with north korea, lots of cheap labour there to help kims new mate out
  • 2 1
 @bizutch: The tariffs are real. Stock doesnt represent the current value, it represents the value in 6 months. No way that a 25% increase in costs is an "excuse of mismanagement". Companies are lucky if they have a 25% profit margin.
  • 1 0
 AMEN !
  • 1 0
 Wrong son.... move to the ????????Then speak your mind.... @themountain:
  • 3 0
 @reverend27: Cambodia is a fairly common bike manufacturer. Like for many many years prior to this trade war.
  • 3 3
 Orange man bad
  • 2 0
 @HurricaneCycles: Giant is not an american Company bro
  • 1 0
 @Rucker10: Orange you sick of winning !
  • 6 1
 @Rucker10: I like how the new upvote/downvote counter shows that there are 44 people who probably ride bikes made in China and think that their bikes will now be manufactured in the US. With all the new coal jobs offering great privatized health care there is just so much new employment opportunities coming to 'Murica!
  • 1 0
 @stonant: careful your bike frame came from taiwan. and all good bikes also . usa made bikes have asian dry trains and suspension
  • 112 12
 There’s a lot of words PB users won’t understand.
  • 199 21
 *There are
  • 51 28
 @man-wolf: "a lot" is singular, not plural. the subject of the sentence isn't "words".
  • 40 1
 You mean: there are many words in this article which will not be understood by pinkbike users.
  • 45 18
 Yet they will Blame Obama.
  • 8 6
 @consularship: yup. can confirm
  • 18 6
 @consularship: 'Words' are countable, therefore plural not singular. Therefore 'There are'. (As opposed to uncountable like 'water', 'There is a lot of water'.)
  • 14 41
flag pinnityafairy (Oct 2, 2019 at 9:08) (Below Threshold)
 @man-wolf: who cares this isn't English class and none of these comments need to be graded English at the end of the day it's all about communicating and you understood completely what he was saying so I think the mission is accomplished please enjoy my punctuation
  • 2 1
 @endlessblockades: Deep Fake
  • 69 11
 Upholding standards for proper communication is what separates us from animals and anyone who watches Fox News.
  • 17 22
flag pinnityafairy (Oct 2, 2019 at 9:19) (Below Threshold)
 @samdeatley: I just threw my poop at you
  • 10 3
 @samdeatley: It irks me to see Fox News headlines like "Man finds $5G in his Underwear.". $5G!?! What is this a hip-hop music video!?
  • 13 3
 @consularship: Wrong. In this unique grammatical case, “a lot of” acts as adjective (or modifier) to the object- “words” which is obv plural. There are words. There are a lot of words.
  • 7 0
 @DirtbagMatt: Yes. But it’s not even a unique case. All such quantifiers (a couple of, a number of) are considered adjectival. Hence the noun thus qualified determines the verb form, not the quantifier.
  • 25 10
 Here is a few anyone on the planet should understand: Donald Trump is about the dumbest motherf*cker I've even observed. If his Ukraine calls make just 1 thing clear it's this: DT is in this to enrich himself.
  • 10 0
 *There are a lot of grammar police on PB.*
  • 10 2
 @consularship: Just for the sake of ending it...."The ambiguity here comes from “a lot of” appearing to be a noun phrase when it’s actually used as an adverb, like “many”. While a singular verb is appropriate with nouns that define the plural into a singular group, “a lot of” refers to a quantity rather than a grouped unit – modifying the verb as “many” would. So the verb agrees with the noun that “a lot of” qualifies, rather than “a lot”. We can therefore have either “are a lot of” or “is a lot of” depending on the noun. Mostly, we will use “There are a lot of” with countable nouns, when we discuss plurals, and “There is a lot of” with uncountable nouns"

Ex: There are a lot of apples. (countable item)
There is a lot of meat. (portionable item)

Taken from www.englishlessonsbrighton.co.uk/there-is-a-lot-of-vs-there-are-a-lot-of
  • 2 2
 @man-wolf: *there is
  • 1 1
 @SunsPSD: that was a perfect phone call. Dump even said so...
  • 58 2
 Time to start making GTs in Huntington Beach again.
  • 35 8
 you gonna work in the factory?
  • 67 1
 @sjmitch10: You offering me a job?
  • 7 0
 santa ana for the real oldschool
  • 3 0
 Do the HB Strut! Creepy Crawl off the pier!
  • 2 0
 @sjmitch10: You wouldn't????
  • 17 1
 GT sure ruled the neighborhood back in the day when I was on a BMX 20in. I sure do wish I had my old GT Pro Performer back. Flatland stuff used to be so much fun when you could ride literally anywhere with a group of buddies. I didn't need shuttle rides lifts and hundreds of dollars worth of safety gear and matching kits. Do you remember the simpler times?
  • 7 1
 @pinnityafairy: you know there are companies that still make BMX bikes...
  • 3 0
 @Power171: and unfortunately I'm not a teenager anymore
  • 2 0
 That's it right there.
  • 7 2
 @TheR: How well can you weld? Better than a robot? I hope so, because R2-D2's resume says he doesn't need health insurance. Now how many pre existing conditions do you have?
  • 11 1
 @sjmitch10: I don't weld. I do carbon lay-up. No pre-existing conditions. You gonna make me an offer, or are you just wasting my time?
  • 8 0
 @pinnityafairy: Nothing is stopping you from starting a biker gang with husbands/fathers from your neighborhood and roaming the streets to hop off curbs
  • 7 0
 @LaXcarp: I’d join that gang.
  • 2 0
 And cannonade in Pennsylvania!
  • 1 0
 @LaXcarp: we are already doing it on these things called mountain bikes
  • 6 0
 @sjmitch10: I used to work in the robotics welding industry. Every robotic welding station always had a skilled human to do the repair welding. Robots are never perfect because the materials always very a little and so do the fixtures from load to load. The robot does not know when it's tip is full of spatter and continues to weld destroying parts and so on. At the end of the day the the robot can produce more problems than a human if it does not have a skilled human babysitter.
  • 4 6
 @TheR: I think you are barking up the wrong tree. You should send your resume to the people in charge of hiring for the job you want. Here is the address.
Cycling Sports Group 1 Cannondale Way
Wilton, Connecticut 06897
United States
Unless you just want to vent about your frustrations to strangers on the internet instead of changing your situation. If that is the case, then yes continue to ask me for a job in the hypothetical factory I don't own.
  • 2 1
 @pinnityafairy: Good point. What did you do in the industry? How was the healthcare coverage?
  • 3 0
 @sjmitch10: I worked for a company called GSA which was General seating of America. We made the metal seat frames for Hondas and many other auto manufacturers. Health Care coverage LOL you are a funny guy. The work conditions we're rough and hot the job was dirty the pay sucked The people were horrible to work for. We used Moto man and FANUC robots with Panasonic power supplies. I used to program the Moto man welders make adjustments to welds do repair welding. I would also do maintenance on fixtures and destruct welded parts for quality.
  • 2 1
 @Highlander406: I miss those good old boys in Pennsylvania. I was a Cannondale rider for life until my first experience dealing with the new buyers. Now I despise the brand. 2 Ballistic cracking fails and left hung out to dry on warranty both times.
  • 3 0
 @simonusedtoskate: Makes me think another Santa Ana manufacturer could help (S&M). I think moeller still uses equipment from the old gt location
  • 6 0
 US manufacturing is not impossible: I work at a 3000 employee manufacturing facility in a rural area. Starting pay for entry job is 17.25 with merit increase to $20 in the first year. Health insurance is $350/mo for a family. We have robotic lines and manual lines, the manual lines out produce the robotic lines. Median home price in county is $165k.
  • 2 0
 @pinnityafairy: I had a CAAD9 made in the USA until this spring when I sold it. My wife had a Scalpel Made in the USA until a few years ago. Made in the USA was one reason I bought Cannondale.
  • 6 1
 @sjmitch10: Are you serious? You don't seem like much fun to work for. I decline your job offer.
  • 2 2
 @pinnityafairy: That sounds both challenging and sucky at the same time. Thanks for the insight! You hearing the description of your new job @TheR ?
  • 10 0
 @sjmitch10: welding is a wonderful skill to have in your bag of tricks. I have used every job as a stepping stone to learn and perfect skills. If the employer sucks as soon as I perfect the skill I dumped them and move on to the next skill set I would like to learn. I now have a big enough bag of tricks that I have not had a job since 2008. I work for myself and will never go back to a 40 hour work week for unappreciative slave-driving bastards. I have had some wonderful jobs but they have all been at small mom-and-pop shops with subpar pay. Sometimes the quality of life a job provides is much more important than the pay. At the end of the day free time is the most valuable thing you can have not money.
  • 2 1
 @Highlander406: I have 2 perps his n hers 1 Gemini 3 super V,s. All Handmade by a human in Pennsylvania USA. The perps still go down the hill well. It also always puts a smile on my face to outride a modern-day glamour Boutique carbon fiber Wonder on an old outdated handmade aluminum 26 inch bike. Puts a smile on my face every time.
  • 2 0
 @LaXcarp: Hang on cowboy, houses for less than a million bucks! Hang to my maple syrup I'm a coming!
  • 1 0
 @LaXcarp: and how long will those robots run without humans? Exactly people. If you're scared of the robot just unplug it.
  • 5 0
 All day, pinkbikers bitch about how expensive American made bicycles and components are. Mike Laird will happily sell you that American made bmx tho
  • 1 1
 @pinnityafairy: I don't know what the point to your comment is. My point is that our human based lines out produce the robotic lines
  • 1 0
 @justincs: Some of the best MTB in the country out your back door as well
  • 1 0
 @LaXcarp: my point is robots are only as good as the skilled human programming it and Babysitting it. Without a skilled human being a robot is completely worthless.
  • 1 1
 @pinnityafairy: You're also giving the impression that its a 1:1 ratio of robot to employee. I can take a line that has 50 employees and replace it with 1 robot and 5 employees.
  • 2 0
 @LaXcarp: then your next big challenge will be to find the five employees smart enough to maintain the robots. You will also have to keep those human beings enticed with pay good enough so they do not bail on you. Your robots are only as good as the people controlling them. Good luck with that because I'm one of them and I no longer work for factories.
  • 1 0
 @LaXcarp: also if you think one robot can replace 45 employees please share what you're smoking
  • 1 0
 @pinnityafairy: OK we literally do that at my company as we speak and we are investing $500m over the next 5 years to further accomplish this. All of the equipment we use is propriety and self designed, by said "smart enough" people. Sounds like you work for a garbage company and I work for an industry leading company. We wont be hiring you.
  • 2 0
 @LaXcarp: see how that industry-leading company treats you and the other employees when the economy has a downturn. You'll be sitting next to the curb just like the garbage. Those who depend on others to provide them a paycheck will always end up struggling when the economy gets rough. Also how many days off a week does your great company give someone? Nothing like spending your life being a slave to a company. Work is for mules and donkeys.
  • 1 1
 @pinnityafairy: 5 weeks of vacation for new hires. I work in a recession proof business, if our business falls apart its because the S has hit the fan in the US and then we have way bigger problems on our hands
  • 2 0
 @LaXcarp: if you believe that you are working in a recession-proof business I feel truly sorry for you. I also do not believe that your company gives five weeks vacation to first-year hourly employees. You can fool some of the people some of the time but you cannot fool all of the people all of the time. I used to be just like you and dedicate myself to Employers and believe in them. Then one day I woke up and decided I would just do it for myself and never looked back. Why would anyone want to go work for someone else to make them money when you could do the same thing for yourself independently? Have you ever worked for yourself? Enjoy the freedom to pick and choose what you do? If you've not experienced this you will never understand my point. Good day and enjoy your wonderful job.
  • 1 0
 @pinnityafairy: Trust me, I'm neither fooled nor dedicated to the degree you think I am. I know very well that employers don't care about their employees for the most part. We do it strategically to out compete area business' because our demand for employees is high (3000). I job hop every few years purely for my own compensation/benefits benefit. The benefit of not doing it for my self is I don't have to deal with the stress of when/where will my next job come, and all the other what ifs that come along with being the man. I do my job and go home to my family every day and flip that switch off.

But I will challenge you to expand your thinking outside of the niche your expertise lie's in. It will benefit you in most areas of life.
  • 1 0
 I'm always open to New Challenges and Adventures in life. Most times searching for challenges that others cannot complete or do. My motto in life is when it is too tough for others is just about right for my wife and I. Free time is the only thing that matters to me in life now. I also get quite a chuckle out of dropping fellow Riders half my age on outdated equipment. At the end of the day I think we both love bikes. Cheers to that and hopefully we run into each other one day on the trail.
  • 25 0
 The article didn’t really do a good job of pointing it out, but keep in mind Dorel is a large conglomerate that has many types of businesses not just outside of bikes, but outside of sporting goods. Kids products, toys, home furnishings, etc. No way to know how this might effect bikes, or what effect bikes had on these results without more information.
  • 5 0
 When big monopolies start to struggle you can be damn sure the rest of us will soon there after
  • 13 1
 Lota about Tarrifs here which had an impact...but I cant help but think this company was clearly being mismanaged for a while. Are the masses really clamoring for these brands?? GT has seen a resurgence but that's about it. Poor Mongoose used to be decent in the BMX, now it's all Chinese Walmart garbage for the most part. Schwinn? Lol
  • 7 1
 I was thinking along the same lines. This appears to be where bike companies go to die.
  • 2 0
 Cdale has always been big with the road and xc crowd, and they signed The Rat, although he doesn't seem to be putting much content out. GT mtb lineup is great and they've got freaking Martin Maes. It does seem weird they'd invest in a Cdale DH project when GT's DH bike is already solid. Maybe not the best choice of invest $$ there.

Schwinn and Mongoose are both department store bikes that are likely hardest hit by tarriffs, but what can they do? It takes time and money to move factories to Vietnam or some other country.
  • 12 0
 Never going to happen. It will shift to Taiwan probably.
  • 6 0
 Time frame involved in shifting production from a factory that was physically built and paid for to another country is not as feasible as you are thinking.... You cant just pick it up and move it. You can only shift so much production, they don't just have un-used factories waiting to build stuff for you in Taiwan.
  • 3 0
 Wonder how China would like that. After seeing the cop shoot the protestor in HK, I don't imagine China would simply allow a mass exodus of mfg to its little island 'Republic'.
  • 3 0
 @Jsmoke: True to a point. Problem is that Taiwan produces a massive amount of bikes for various manufacturers already. It would not be a stretch for them to contract with someone else. A 25% tariff is a massive motivator. If everything becomes 25% more expensive (it is the consumer who pays in a tariff war), and the company wants to remain competitive, switching is a realistic option. We are not talking about something as complicated as a car production line. We are talking about jigs and molds. Things that can be moved and/ or recreated relatively easily. You eat any up front costs for long term stability. We will not be placing massive tariffs on our buddy Taiwan, who buys so much of our military goods, any time soon.

I am sure the companies that produce products for all of the other majors, and minors, will be waiting with outstretched arms.
  • 12 0
 Time to buy some stock
  • 18 0
 insert stonks meme here
  • 8 0
 @dirt2g: ya I hope the web developer job posting that pinkbike has is for someone to allow images (memes) to be posted into comments
  • 30 23
 If you thought 2008 was bad (in the US), brace yourself. Interest rates can't get much lower to help fend off a recession or help the economy recover. Thanks GOP! Although, if you have the liquid capital, you'll probably love it, real estate values will drop and you'll be able to pick up some prime property at rock bottom prices Wink
www.reuters.com/article/us-global-markets/global-stocks-fall-to-lowest-in-month-on-u-s-growth-worries-idUSKBN1WH02N
  • 28 22
 Post an screenshot of your short positions and/or put option holdings if you want to be taken seriously when speaking about recession. If you are that sure recession is coming, you can easily make millions off of decreasing stock price.

If you don't have any of those in your account, then please for the love of god shut the f*ck up about the economy.
  • 9 3
 @phops: I don't short, too risk averse. You come across as very knowledgeable, so what's your take on the economy? Most indicators that I've seen are pointing toward a global slowdown, and likely recession in early 2020. But I don't short, so I'll shut the f*ck up.
  • 11 18
flag phops (Oct 2, 2019 at 9:48) (Below Threshold)
 @chacou:

Cool, so you feel that leveraging against recession is too risky, which by definition means you think that there is a high chance recession won't happen.
  • 8 3
 @phops: It's more that I have very limited capital that I'm not willing to bet on a recession happening. I'm protecting my family from a recession in other ways, like reducing debt and increasing savings and liquid capital. I hope that one doesn't occur, but it's appearing more likely that we'll experience one.
  • 6 0
 I haz degree in this, and am banking heavily on just this
  • 12 2
 @chacou:

The idea that you can say that a recession is going to happen, while simultaneously thinking its too risky to bet on it, is cognitive dissonance - you either have to be sure that it will happen, in which case you would be dumb not to bet against it, or you have to take the (more realistic) stance of that it may or may not happen.

The fact is, nobody can predict the stock market - this is a cold hard fact. You go look at the "Housing Bubble V2" predictions, and all the charts that people make, and every single chart looks different for the same period of historical data in the past - you think any of them have it right?. Its insanely easy to take any data and make it fit any narrative that you want when it comes to markets. All the financial forecasters do this because its easy money for them, since there are very little consequences of them being wrong.
  • 4 12
flag SlodownU (Oct 2, 2019 at 10:42) (Below Threshold)
 @chacou: You don't short, you have very little capital, doesn't sound like you have a lot of skin in the game. You should just stop talking now while you think you're ahead.
  • 10 1
 @phops: Post an screenshot of your leveraged long positions and/or call option holdings if you want to be taken seriously when speaking about recession. If you are that sure recession is NOT coming, you can easily make millions off of increasing stock price.

If you don't have any of those in your account, then please for the love of god shut the f*ck up about the economy
  • 1 0
 double post.
  • 7 0
 @phops: This is the dumbest thing that I've ever heard. There are many other ways to hedge against a recession, all which would be recommended for the average person before short selling.
  • 2 0
 @SlodownU: The only thing that makes me think a recession might not come is the fact that everyone is saying a recession WILL come...and as you know 1 out of 100 economists are right about what will happen...hindsight is always 20/20 though.
  • 1 1
 @diego-b: This market is also getting impossible to predict, everyone is trading on emotions and not fundamentals.
  • 2 0
 @SlodownU: you're assuming a lot about me. Best of luck on your investments.
  • 1 2
 @sino428:

Im not talking about methods of hedging against recession, Im talking about putting your money where your mouth is, or vice versa, realizing where your money is and not speaking otherwise.

Having a financial safety net in case something goes wrong isn't hedging against recession, its simple economic preparedness for any financial situation such as large medical bills.
  • 1 3
 @xeren:

Do you also realize that saying that "you don't have enough information about recession happening" is by far not the same thing as claiming "recession won't happen"?

I personally don't have enough free money floating around to make enough money off of stock market to offset the short term capital gains tax, and I sure as shit can't predict the trend in a year. I just max out 401ks (which is essentially a leveraged long term position with the added safety net of company matching to offset the losses), and dump extra money into low risk index funds no matter if they are going up or down. But I also don't shitpost about how great the economy is doing.
  • 8 1
 @phops: no you are saying ridiculous things about "easily making millions off of decreasing stock price". Just because someone thinks a recession will happen doesn't mean they are 100% sure to the point of risking large amounts of money on. That doesn't mean they can't make the predictions. I can say I think that the Yankees will beat the Twins tomorrow night. Just because I'm not betting it doesn't mean I can't have a serious discussion about it.

Also your comment about making millions pretty much shows you don't know what you are talking about. Gains on short sales are essentially limited to 100% return on investment, and that's a best case (and highly unlikely) scenario where the shorted stock goes to zero and becomes worthless. In order to realistically make "millions" a person would have to already have many millions to begin with in order to have the necessary collateral to borrow that much stock (to short) in the first place.

Sure there are some very rich people or hedge funds that might do that, but you suggesting that someone on the Pinkbike comment section could do it is ridiculous.
  • 1 2
 @sino428:

But people aren't saying "I think recession is going to happen". People are saying "recession is around the corner", or "recession is coming".

The millions was a sort of a hyperbole. But for most people, who have good credit, you can easily take out loan or trade on a margin, hedge on the recession, and then make close to a half a mill back depending on the loan amount. And even then, if you own a house and have good equity in it, which a lot of people do, you can refinance that, get the cash, and use that as well.

The way it would work is that you borrow stock and sell it (short position), buy put options, then when the stock hits bottom, you buy back the stock (giving you a net profit), exercise put options (giving you more profit) , then you use your profits to go long, and then when the stock makes its way back up, you end up with quite a bit of money.

The point is not to encourage people to do that, because most everyone would agree that this is dumb, but to highlight the inconsistency between claiming something is going happen and not actually believing it, which people have trouble with. I just want people to be honest when they speak about their supposed knowledge of economy.
  • 2 0
 @phops: Manufacturing sector is already in recession, car sales this month tanked, fed is pouring money into the overnight credit market to keep it from drying up (this is the most worrying one for me), consumer confidence dropped significantly last month, we've had an inverted yield curve since the spring, and Europe is even more f**cked than usual with Brexit looming and consistent negative interest rates.

The chance of a full recession has increased very significantly over the past year (or we may already be there since we usually find out afterwards). I'd say we're at a 50/50 chance of a recession within the next year and I've been reducing my equity allocation since mid-summer by selling equities and buying bonds and REITs.
  • 3 0
 @phops: Why are you explaining a short sale to me? I know exactly how it works. I get what you are trying to say, but suggesting that 1) average people can make millions by short selling is wrong and 2) that average people should even try to get into short selling in any capacity is also wrong, no matter how confident someone might be of a downturn. There are many reasons for this. Mainly the risk reward is just not there. My only point is that discrediting someone's argument about a possible recession simply because they haven't loaded up on a short portfolio is ridiculous.
  • 1 1
 @sino428

I don't think you are understanding what Im saying. Im not harping on people who are saying recession is possible, Im harping on people who are saying recession is gonna happen.
  • 1 0
 @phops: I'm sure I'm kicking a hornets nest here, I agree that thinking the economy is slowing down due to uncertainty of the future of the republic, IMO mostly due to the current administration and political/tribal polarization that seems to be the new "game" in this country. I also think people are starting to experience firsthand that the fairy tale of infinite economic growth is coming to an end. newrepublic.com/article/155214/delusion-danger-infinite-economic-growth Just a thought, considering the historical trends don't go back that far, and mostly apply to a world pre-globalization. Anyway, best of luck with your investment portfolio.
  • 3 0
 @chacou: The truth is that while people like to simply talk about "the economy" like its just this one simple thing, "the economy" is so complex that its almost impossible for anyone to sit here in the internet as say in a couple sentences why the economy is slowing. Some of it is uncertainty, some is the current administrations trade polices, some is just a cyclical as you pointed out (it has to slow at some point), some is technology and automation, some is interest rates, and some is the other 100 factors that I haven't mentioned and know nothing about.
  • 11 4
 Apparently cheaping out on carbon layups and refusing to honor your warranty for manufacturing errors in frame construction actually has an impact on your brands profitability?

But wait, you cant admit that years of eroding brand value and screwing over your customers is actually your fault..... blame the tarrifs!

F Dorel
  • 3 9
flag burshkadursh (Oct 2, 2019 at 9:50) (Below Threshold)
 your rant has nothing to do with this article. try reading it first?
  • 3 1
 @burshkadursh: they’re obviously talking about carbon layup of home goods. I’m sure they read the article, specifically the line about “ independent bicycle retailers and sporting good channels have continued to have strong sales and a positive outlook.”
  • 10 0
 Iron Horse bikes are still being made??
  • 2 0
 walmart and target
  • 9 0
 I love how everyone all of a sudden is an Economist
  • 10 1
 Stop the Politics PINK BIKE!
  • 6 2
 So my inlaws voted for Nixon both times, and even though they have knowledge of all that has been disclosed over the years, they still think he was one of the greatest presidents we have had.

I just finished an article that looked at the risks of decoupling our economy from China, the summary of which is "it could get much worse if the trade war doesn't cease". The two previous trade wars led to the greatest economic recessions in history.

Let's get someone in office who has some modicum of self control and is willing to listen to professionals
  • 5 0
 I highly doubt the tariffs are the sole reason for their profit decreases. Who really buys Mongoose and Schwinn anymore? Cannondale and GT are not the most popular bike brands either.
  • 4 0
 I’m all for any where, but China manufacturing. China labor camps and poor treatment of its minority’s population means its time we stock trading with them period forget tariffs we need an embargo. A free Hong is needed and is currently playing out in streets.
  • 4 0
 YA ...make it in the U.S.....or in Canada if yous want a price break....they should have passed the manufacturing and labour savings to the consumers and earned more by selling and making more!!!
  • 3 0
 I'm no economics expert but when you put 25% tarrifs on a country that makes almost all of the stuff we buy. We buy a hell of a lot less. There are no American companies making shoes or phones or any of the stuff we buy. When less money is being spent it is a bad thing for the economy is it not?
  • 3 0
 Moving the entire manufacturing process to a different country like many have mentioned here is very costly and time consuming. There's legal, finding the factory, training workers, QA, red tape etc etc. I don't think many companies can afford to do that, plus they might have locked contracts with those factories in China. This is good news for all of us who appreciate things made in the country they are being sold in employing local people. This is only bad news for the globalists (the millionaires).
  • 3 0
 That's what happens when you bring out new models every year...you create a fragile business which catches pneumonia when the world is sick. Make a good product that can be used and appreciated for a decade. Unfortunately the CONSUMER too is STUPID and creates this predicament as it rewards companies that bring out new product year after year...why? Because the consumer is MATERIALISTIC and STUPID. We will see 100's in the bike industry come and go in the coming year...I can think of several right now
  • 5 2
 As a Libertarian, watching a bunch of extreme Leftist Socialist get up in arms over taxes is freaking hilarious. Maybe you should inform your socialist boy Bernie how taxes aren't paid by the producer but by the consumer. Welcome to basic economics fools.
  • 3 1
 $$$ talks, but manufacturing in the US is too expensive. What's going to happen is Taiwan and Vietnam will pick up a lot of the slack and start growing. Maybe some other Asian or Latin American countries. Meanwhile, US citizens will end up paying higher prices anyway because the companies got away with raising prices before they systems were moved over to a new country. If you think they're not going to drop prices knowing what the public was willing to pay, then I got a bridge and some new tech cryptocurrencies to sell you.

Guess who wins?
  • 2 0
 Correction:

If you think they're going to drop prices knowing what the public was willing to pay, then I got a bridge and some new tech cryptocurrencies to sell you.
  • 12 0
 Manufacturing in the US doesn't have to be too expensive. You just have to chase the leading technological improvements rather than settle for the status quo.
  • 16 10
 More like poor management, but blame Trump for their problems...
  • 5 3
 How? You cannot manage for a 25% jump in the cost of doing business.
  • 3 0
 @jmhills: Putting politics aside, from the link with the article above, concerning Giant bicycles:

The 25% tariffs have apparently added $100 on average to the price of bicycles made in China and shipped to the US.

So it does make one wonder, given the price of a mid-level ($3,000) mtb bike (or higher level), how much does this effect the price of these bikes? It does seem a company could very well manage that average $100 for a bike. Understandably, it could be more on higher end bikes.
  • 1 3
 @kwcpinkbike: politics aside answer for you (all numbers totally made up but realistic for a generic product)

Cheap Bike raw material cost (AL/Steel): $40
Factory labor to create a frame: $60
Factory operating cost: $40
Factory profit: $60 - frame cost to Bike company: $200

Component kit: $1000
Bike company operations/bike (design, sales, distribution etc): $200
Bike company profit: $100 - bike cost to retailer: $1500

Retailer operations/bike (store, storage, etc): $500
Store margin: $1000 - most of which you negotiate down at the end of the season
bike retail - $3000


So there you have it. Companies that design and sell things generally need ~40% margin on something to make a ~10% profit. That's how losing a measly $100/bike ruins the business model for _The Owners_ aka shareholders, who don't see said bike company as a good investment.
  • 2 0
 @kwcpinkbike: you need to be a CEO, "very well manage that average $100", I'd love to see you do that and succeed in an industry with so many choices and a changing distribution model that is subject to the latest trends measured in half degrees, grams, and mm.
  • 6 3
 @jmhills: stale brands to begin with. Unrealistic sales expectations to begin with from lack luster brands. Keep blaming Trump everything. Liberal parrot.
  • 1 0
 @Sardine: your numbers aren’t even close. Most companies are between 30-50% margin with dealers at 20-45% depending on price point.

At least it isn’t the 400% mark up of prescription eyewear that 75% of Americans need.
  • 1 0
 @usedbikestuff: margin is not profit. ALL of your operating costs come out of your margins (aka income). Look at an earnings statement of any public company. Like, seriously, no sarcasm or irony, look at an earnings statement and learn what it all means. Its the same reason that plumbers and electricians aren't all millionaires after charging $120/hr (bout $240,000 yr!). We should all be more financially literate.
  • 1 0
 @jmhills: You act like the US is the only country who buys goods.
  • 1 0
 @sburback: No, we are not but there is no arguing that we are the largest market.
  • 1 0
 @Beez177: That is funny considering I never mentioned anything about the brands themselves. That was your addition. I did not even know that Iron Horse was still around (it actually made me sad to see what they have become). I have not blamed Trump specifically but there is no denying that a 25% tariff creates issues for regular people. If you want to get in to politics, thats fine. The people hurt the most by this? It is not the bike rider. It is the people that make up his base. It is the lower and lower middle class voter (that statement is backed up by actual survey and exit poll information). It is also the farmers who are losing market for their product, that very likely might not make a full recovery. That is not being a "liberal parrot". That is an actual fact. Not a Trumpian "alternative fact".
  • 4 0
 @jmhills: Ok, would you rather China continue to manipulate the world's economy? Why is it the Guerilla Gravity can make frames cheaper than other brands made overseas????
  • 6 0
 Guerrilla gravity frames look better and better every day Smile
  • 4 0
 Hell yeah they do!
  • 14 9
 Meh, none of those brands has produced a decent bike in years.
  • 21 1
 I mean I am not a huge fan but GT is building bikes "decent" enough to win EWS. So I mean theres that. . .
  • 3 10
flag freeridejerk888 (Oct 2, 2019 at 9:15) (Below Threshold)
 You mean sponsoring a rider good enough. Bike doesn’t matter as much at that level. Plus fox can make suspension good enough for even shit frame designs now a days @mixmastamikal:
  • 2 0
 @freeridejerk888: Its deff mostly the rider, but you gotta have a good bike too.

The new GT Fury is a dh bike I'd love to own.
  • 3 6
 @mixmastamikal:

Top Riders can go on any brand and win easily.
  • 2 0
 It's fun to compare an awesome rider like Win Masters, with his teammate Mae's. We have great and we have even more great! GT holds up for those guys, so there is that too.
  • 1 0
 @freeridejerk888: Rofl and how many pro teams have you ran oh wise one. All f1 carz are da same silly redbull
  • 1 0
 im betting them selling to REI might be more of the problem alot of shops dropped them after that
back in the late 80's early 90's you could buy a trek at sams club and if memory serves me right it hurt treks business shops started dropping them and same for schwinn ect ect just seems strange it only seems to effect cannomdale (doral) and no one else hummmmm ?
  • 2 1
 You are uninformed. This is an industrywide shift.
  • 2 1
 Occom's Razor......

is it tariffs that are seemingly only hurting GT/Crackandfail...errr, Cannondale......or is it that that company makes shit bikes and can't sell them!?

I don't see a problem with Yeti and Santa Cruz.....
  • 2 0
 Yes, Yeti and Santa Cruz are made in Taiwan by contract manufacturing firms, likely Giant.
  • 1 0
 @tempest3070: all three at at VIP. At least they were. Bikes is a small segment for Dorel. Toys r us going under and loss of contracts with Walmart would have more of an impact that them just closing doors on selling gt or Cannondale the next day. Bad news is Walmart kept pacific afloat
  • 3 1
 Let's stay out of politics pink bike........ehnes the last time you bought a cannondale, we never cared about the lefties anyways. Make american bikes again. Big red white and blue flag.
  • 1 1
 You're too broke to afford American made shit
  • 4 0
 that envy - only 20%? here we pay 60% of taxes Frown
  • 2 1
 So would it not make sense for them to import into a European hub to offset the US import tariffs, if they an swallow 25% then it goes to show just what huge margins are involved from sourse to the retail floor.
  • 1 2
 Have you ever worked in a shop? Margins are thin my guy
  • 3 0
 @wakismomshouldhaveaborted: I own 4 shops, I understand P&L and how margins work exceptionally well, you only have to look at the prices of 2019 model bikes now that the focus is on selling 2020 models to see that even with up to 50% off the rrp there is still some margin left.
  • 2 2
 Smart companies are selling stocked inventory prior to tariffs that’s a fact you can call Evil and ask them why they’re having the Shred N Save sale. I did and I also bought one. And know your facts these tariffs are temporary.
  • 1 1
 From the article, I now know Dorel Industries makes the following bikes: Cannondale, GT, Mongoose, Iron Horse, and Schwinn

So I wonder, how much difference is there in similar level frames concerning quality? I would suspect that all these bikes are made in the same factory?
  • 3 0
 They’re not. Some factories specialize in carbon, others in aluminum, others in steel. Even within a single brand you’ll have multiple factories for bikes at different price points, and even sometime multiple factories making the same thing for different markets.
  • 1 1
 The fact that Pinkbike made this a lead story says to me...there is more in the pipeline for the core bike brands (Cannondale & GT) that is being made public...

It was only 15 months ago that CSG sold Sugoi and Sombrio. Where are the bikes not going to be sold to? Would Pon/Derby or one of the big kids (Specialized or Trek) buy up Cannondale to take the 10% of the market the brand owns?

That is the bigger question here...
  • 1 0
 25% Tariff to bring in materials from China to Manufacture in the US
2.5% Tariff to bring in materials from China to Manufacturer in CANADA and MEXICO
Why would anyone manufacture in the US?
  • 4 2
 Good. Those rich oppressors wont get their blood money checks this quarter.
  • 2 0
 Oh darn!
I won’t get that dividend this quarter to purchase my carbon headset spacer I’ve been saving up for Frown
  • 1 0
 One of the effects of all this is Cannondale won’t be producing the dh bike to sell to consumers. They turned it into an advertising exercise. :-/
  • 1 0
 It always was
  • 1 0
 @usedbikestuff: the guy I met said they actually discussed it, but they don’t think the sales numbers are there. I think they are stuck in trying to find the quiver killer all mountain / enduro / dh bike.
  • 1 0
 @yzedf: yup, business case didn’t support it. My source > yours

Gt fury is fine. Two shocks rly. One works fine for everyone else
  • 2 0
 For every dh component sold you'll sell 100 xc components. Fred's got the money to subsidize the cool shit
  • 4 0
 Stonks ⬇️
  • 3 0
 Trump its even in my f..ing Pinkbike, NOOOOOOOOOOOOOO!!!!!!!!!!!!!!!
  • 1 0
 Move business back to the west? Nope........ Next booming continent is Africa and the middle east . Cheaper labor, less tax and virtually no law.............
  • 3 0
 Make them GT"S in Huntington Beach again!!!
  • 1 2
 If you think this is bad, just wait America...
25% tariffs on European cheese (amongst other things) have just been announced courtesy of the whole Boeing/Airbus subsidies debacle.
Your Cheddar, Stilton, Parmesan, Brie etc. are about to get VERY expensive, and production can't be moved to Taiwan I'm afraid!
Good luck with your own home-grown plastic squirty cheese...
  • 2 0
 Where are those dickheads going with my Ironhorse Sunday?
  • 7 4
 Maga!
  • 2 5
 Trumpy Dumby!
  • 1 0
 Suspending dividends does not stabilize your stock price. It saves cash for bankruptcy lawyers.
  • 8 10
 The upvote/downvote split of this post are very telling about the popularity of trump these days. There are a shocking number of right wing mountain bikers, and a couple of years ago, opinion of Trump here at PB was pretty evenly split.
But these days, it's overwhelmingly anti-trump, with only a few maga cultists sticking their necks out.

So happy to see most have realized the truth about that con artist
  • 4 1
 It's quite a ride watching the US from afar right now. But it's so hard to follow, when is Chomsky gonna write about this?
  • 5 3
 As an older American, one who remembers Nixon, it's hard to see history repeat so soon. Hopefully the trend continues and we can recover from this disaster.
  • 4 13
flag sumarongi (Oct 2, 2019 at 15:21) (Below Threshold)
 @brodoyouevenbike:

flag sumarongi (58 mins ago)

Lol. How much does it cost to import a frame to Norway? Oh yeah a solid 25% that’s right.

Funny how you virtue signaling cucks criticize our president for adopting you same policies.

Chomsky was Hugo Chavez’ hero.
Norway is so the next Venezuela.

You literally have an entire generation of people who don’t know how to do anything but pump oil and write grant proposals. Pathetic
  • 6 1
 @sumarongi: "Norway is so the next Venezuela."

baaahaha
  • 4 3
 @xeren:

Tell me what happens when they run out of oil? Sell Nobel prizes to the highest bidder? They already do that

They f*ck’d
  • 6 6
 @xeren:

Venezuela used to be the wealthiest country in the Southern Hemisphere, because of oil, but then socialism happened and now they have to eat their pets.

Norway has done a good job of putting their oil wealth aside, but their society is being hollowed out from the inside with graft and rent seeking, and a social welfare state that is a huge anchor on the economy. They could go either way but unless they reform they are f*ck’d
  • 7 2
 @sumarongi: You're so full of your own shit. Next you'll deny global warming and Sandy hook
  • 6 5
 @wakismomshouldhaveaborted:

Am I full of shit?

Norway’s economy is 70% sweet global warming inducing oil. Yet they like to tell the rest of the world how much they care about the environment while they buy Tesla’s and kill and eat whales. Tell me they are not f*cked when the oil runs out
  • 2 0
 @wakismomshouldhaveaborted: honestly, it’s not worth it. He is either just a troll for fun, in which case your giving him what he wants, or he is just living in the right wing bubble, and actually believes what faux news tells him. Either way, save your energy.
  • 2 0
 Blame it on the Roadies...
  • 1 0
 you don't even need to read the whole article and the one word comes to mind!
  • 1 0
 So this means spare parts will be even more available from GT then? Lets see 0*0=?
  • 2 0
 Ends justify the means right?..didnt anyone read 'rules for radicals '?
  • 2 0
 All the more reason to RideGG.com!
  • 1 0
 Canadian Parent Company with an american sub-brand, made in china.. Not one bit surprised.
  • 15 13
 Thanks Donald!
  • 16 13
 Exactly. I can't believe these politicians don't realize the only ones who suffer during trade wars, are the consumers, from the country who started the war! Morons! Thanks Donald! Have fun at the impeachment hearings!
  • 24 8
 @mybaben: Trump doesnt care about the common people. And he never did.

He is trapped in his destructive egomania and will never escape.
  • 1 2
 Trump-mung@NotNamed:
  • 3 9
flag sumarongi (Oct 2, 2019 at 14:08) (Below Threshold)
 Lol. Take your Janteloven and shove it up your ass Noogin. Maybe you should worry about your own country. How much does it cost to import a frame to Norway? A solid 25%. Hypocrite.

Go back to pumping climate wreaking fossil fuels and killing whales, and use the proceeds to buy American Tesla’s to make yourself feel better. Maybe you can write a proposal and get a grant with some of that dirty money, from the government, for something useless
  • 3 0
 If you look at the data, the impact of tariffs haven’t even reached consumers yet. That will hit consumers in the coming months and there will be hell to pay. This put Dorel on a deeper slope of decline but if you look at their stock since 2015, it has trended down.
  • 5 1
 @sumarongi: You and Lot of other Americans will See the benefit of your president.

You dont fu#k around with the supplier of 90%+ of technical goods (+more ofc) you consume.

Youll pay the price sadly.
  • 3 2
 @sumarongi: you certainly woke up on the right side of bed. That was a nice little online tantrum - quite like a toddler reaction - and quite like I expect to see from you man-child president. Grow-up mate!
  • 2 4
 @grugged:

Where’s your sense of humor? I mean you guys turned the Nobel prize into a big joke?
  • 1 0
 Only the strong ones will survive!
  • 11 11
 who gives a fuck about these corps anyway......keep what you got!! fuck the rich!! LOL!!!
  • 5 0
 being vulgar is not descriptive
  • 8 9
 millennial blind anger and rage. embrace diversity, unless religious or financial.
  • 1 0
 HAHAHAHAHAHA.... That is all
  • 1 0
 Iron horse still makes bikes...really
  • 1 0
 I looked it up. So sad. I still ride my ARS 7.0. Great bike.
  • 2 1
 Here comes the orange fury...
  • 2 4
 This trade war is just another extortion attempt by the Trump administration. The same way they extorted Qatar to bail out the Kushners. The same way they're extorting Ukraine to end the Russian sanctions.
  • 1 0
 And yet Walmart Viathon bikes are going strong?
  • 3 3
 I love when PB readers think they know about politics and the economy when 99.9% don't work in either.
  • 5 3
 Uh all Americans should inform themselves of the goings on of politics. It's how democracy works dumbass
  • 1 1
 @wakismomshouldhaveaborted: Thank you for proving my point about the level of intelligence here surrounding the topic. Your ability to not state your point without using profanity speaks volumes.
  • 3 2
 Trump 2020 make american bikes again
  • 1 0
 This is what tariffs are meant to do. I don't see why this is even news.
  • 1 0
 Sell your stocks, a crash is coming.
  • 1 0
 Came here for the comments....Most fun I've had all day.
  • 1 0
 Robert Baird screwed this whole thing up.
  • 1 0
 Shynnnah!
  • 2 1
 VERY LEGAL AND VERY COOL
  • 1 0
 Buy buy buy!
  • 2 4
 too bad so sad.
Below threshold threads are hidden

Post a Comment



Copyright © 2000 - 2019. Pinkbike.com. All rights reserved.
dv56 0.096182
Mobile Version of Website