What's going on in the cycling industry this month? Industry Digest is a peek behind the curtain and showcases articles from our sister site, Bicycle Retailer and Industry News. In each installment, you might find patents, mergers, financial reports and industry gossip.
E-bike regulation discussion an ‘eye-opener’ for industryBy: Steve Frothingham // Bicycle Retailer and Industry News
The closing session at this year’s Bicycle Leadership Conference was not the flashiest or the best attended. But it probably was the most sobering 60 minutes of the two-day conference. “It was a real eye-opener,” said Claudia Wasko, the general manager of Bosch’s North American e-bike business, after the session. Session moderator Larry Pizzi said he sensed the interest in the audience.
“I can tell you, from the stage I was looking out and I saw people standing up so they could take pictures of the slides,” he said after the session.
There wasn’t a lot of new information. Instead it was a fresh overview of federal e-bike regulations, some of which go back two decades. The review highlighted the steep penalties that could come from non-compliance — bankruptcy-inducing fines and other regulator actions that could set back the entire industry.
“That was a rather sobering discussion for probably 50% of the people in that room,” said an industry attorney who sat in on the session.
Merida reports 133 bikes stolen from container at rest stop in EnglandBy: Bicycle Retailer and Industry News
Merida Bikes reported the theft of 133 bikes on Thursday from a container at a Southampton port that was on its way to its logistics facility here.
The container locks were cut before more than half of the 210 bikes were stolen. Merida said its logistics partner instructs all drivers to park only at secure facilities. The theft occurred at Fleet Services lorry park (rest stop) on the M3 motorway that's equipped with CCTV and ANPR cameras.
Zwift announces staff layoffs and halt to trainer plansBy: Bicycle Retailer and Industry News
Zwift has announced significant staff layoffs and a "pause" to its much-anticipated hardware development program.
California Worker Adjustment and Retraining Notification (WARN) records show that Zwift let go 63 workers at its facility in Long Beach, effective July 11. The company may also have let workers go in other states.
The company had been working on its own range of smart bike and direct-drive trainer offerings, but the development had experienced delays and proved more complex than first anticipated, as discussed in the From the Top podcast, with a launch previously expected sometime this year.
However, following similar layoffs at Wahoo and Peloton, Zwift has now decided to lay off staff and halt the development of its hardware range.
Specialized releases new Globe e-bike brandBy: Bicycle Retailer and Industry News
Specialized on Tuesday announced a new line of e-bikes under the Globe brand, which Specialized has used in the past for city bikes.
The company said Globe will let independent bike shops compete with D2C-only e-bike brands. Globe will be a new business unit and "an extension of the Specialized brand that will focus on bringing more fun to local living while reducing the number of car, truck, and SUV trips needed for everyday transportation."
TIME re-enters US market with frames and complete bikesBy: Bicycle Retailer and Industry News
TIME Bicycles is officially re-entering the U.S. market under its new ownership and with a new IBD sales group. For the first time since the brand was acquired from Groupe Rossignol, it will have complete bikes, a new gravel model and a supply of frames in the U.S.
"There was a long list of things we didn't have until now," said Tony Karklins, the CEO of Cardinal Cycling Group, which bought the brand from Groupe Rossignol last year.
Time continues to manufacture frames in its factory in Slovakia; complete bikes for the U.S. are being assembled in a new Arkansas facility.
Osprey's Layne Rigney leaving CEO postBy: Bicycle Retailer and Industry News
Osprey Packs announced Thursday that CEO Layne Rigney will leave the company at the end of the day following nearly six years. Rigney recently guided Osprey through the Helen of Troy acquisition.
Going forward, the Osprey executive team will report to the Helen of Troy Home & Outdoor leadership team.
“We want to thank Layne for his partnership and dedication throughout the acquisition and integration,” said Larry Witt, Helen of Troy Home & Outdoor president. “Osprey thrived under Layne’s leadership, and he played a pivotal role in ushering the brand into this next stage of growth.”
Amid layoff reports, Wahoo announces acquisition of RGT CyclingBy: Bicycle Retailer and Industry News
While several former employees of Wahoo Fitness have told BRAIN in recent days that they had been laid off, the company on Tuesday announced it had purchased RGT Cycling, a virtual cycling platform.
The former employees tell BRAIN that Wahoo has let go around 50 employees, across several departments and at its facilities in Georgia; Boulder, Colorado; Reno, Nevada; and Tasmania. One former employee said he'd been told Wahoo trimmed its workforce by 20%. A Wahoo spokesperson told BRAIN the impact of the changes is "very minimal."
"Last week strategic changes were made to support the growth and development of Wahoo," the spokesperson said. "We didn’t take these decisions lightly, but we made them to ensure Wahoo can maintain focus on new innovative products and services. The needs of athletes are evolving and our areas of emphasis need to do the same. We greatly value the contributions of our talented colleagues and are committed to supporting impacted team members in their transitions."
Shimano asks SRAM-owned Hammerhead to remove Di2 functions from its head unitBy: Bicycle Retailer and Industry News
Hammerhead, the GPS cycling computer startup acquired by SRAM in January, says Shimano asked it to remove at least some Di2 functions from its Karoo 2 head units.
Hammerhead announced the move in a post Thursday on the Support FAQ section of its website. It was first reported on DCRainmaker.com. Shimano and did not immediately respond to inquiries from BRAIN on Friday. A Hammerhead representative shared a company response below.
The Karoo 2 currently has functions that allow it to show the battery level of Shimano's Di2 system and to use the buttons on top of some Di2 road levers to switch screens on the head unit. Hammerhead said that with a software update next week, users will lose "a small subset" of Di2 functions. It indicated it is negotiating with Shimano to return the features.
Park Tool issues a 'stop use and inspect' notice for some crank-puller toolsBy: Bicycle Retailer and Industry News
Park Tool has issued a Stop Use and Inspect Notice for their CCP-22, CCP-44 and CWP-7 crank pullers due to an out-of-spec nut may cause damage to cranks during removal.
Some, but not all, tools sold between October 2021 and April 2022 may be affected by the out of spec threading on the nut.
The notice applies to Park Tool CCP-22, CCP-44 and CWP-7 Crank Pullers. Some, but not all, tools purchased between October 2021 and April 2022 may be affected.