Here are the facts: A few weeks ago, American Classic closed their factory doors in Taichung. After 35 years in the bike business, the brand seems to be done. Forty workers in Taiwan and the United States have been given severance pay and let go. Their demise is being described as a “cash flow” issue. The brand experienced declining sales in 2016, hoped to bolster things with OE sales and when that didn’t materialize, the funds weren’t there to keep things rolling.
Those are the facts—sad, simple and tidy—but they don’t really say much to me about the reality of things. I am, frankly, saddened to see American Classic on the rocks. This isn’t a brand that rolled out “me too” products. Bill Shook, the engineer and founder of American Classic, was never a man at rest. The former national team racer was an absolutely ruthless innovator who was always willing to spit the status quo in the eye.
Bill Shook and American Classic were consistently ahead of the curve when it came to building hyper-light, but surprisingly durable wheelsets. The brand had their glitch moments—I won’t deny that—there were freehub issues at times and sometimes those ultralight aluminum rims could have withstood the hits better... But one thing you could count on Shook to do was to push the limits of things—that was true, even in recent years when you might expect the brand to coast. Instead, they were pushing the limits of wide rims and questioning whether
there are better ways than the conventional Boost 148 approach to build a stronger rear wheel.
Look, a brand doesn’t get to celebrate 35 years in this business because they phone it in.
But if I’m going to be completely candid here, I’ll just say this: Bill Shook and his partner, Ellen Kast, are two of the nicest damned people I’ve met in my life. They are also two of the smartest, wittiest and completely passionate (to the point of nuttiness) people I know when it comes to bikes.
While there is a lot of time and attention spent on cultivating a Brand of Cool in the bike industry, Shook and Kast never, ever gave a crap about any of that. They loved engineering. They loved riding bikes. They loved talking to customers who would wander up into their booth and press Bill Shook for hours about the merits of ceramic bearings or some minute detail about the tooth profile on one of his pawls. Shook and Kast always took the time to listen to those customers. Year in and year out.
Let me tell you: that is a rare damn thing in this world.
I don’t know what’s ultimately in store for the couple or their brand. According to
Bicycle Retailer and Industry News, American Classic is currently in negotiations to sell its trademarks and other intellectual property. Bill Shook is reportedly still at it, working away on designs and available for consulting.
While most people are counting American Classic out, I personally hope it’s not the end.
Staaan? (randy marsh voice)
Hm Taichung. Is that in Kansas or Illinois or what?
'American' Classic
Now enter some random brand scooping up the name as their in-house component company pumping out generic crap with a classic name. Salt in the wound.
That's one way, anyways.
Good luck with the consumer led future your marching towards.
Plus, as a patent holder the deck is stacked against you nowadays. If the person taking the IP from the patent holder looses in one forum, they get a chance to call Mulligan and try over (and over again) in a different forum until they get the result they want. The infringer only needs to win once, while the patentee has to prevail every single time. All of this before any court of appeals ever gets involved.
Profit is to a company as air to a human. We need air to survive, but breathing is not a purpose in itself.
Accepting profit as a purpose is to promote crony capitalism, which is unsustainable, and will ultimately lead to a breakdown of the market, if not civil society.
Of course hype equals consumers equals capital, but in my mind if two bikes are near identical in price and spec and one company spends more on marketing, purely visual elements like decals and color matching...the less likely I am to buy that bike. In this example I think plugging YT and Canyon into the equation, or Commencal and Canyon, works perfectly.
In my opinion they're all more than sufficient, but canyon has the most ingenious design and attention to detail of the three.
I make no judgement of the current landscape, but hype and good 'gram skills count for a lot.
Seriously: sad to see AC go but won't be surprised to see their work pop up other places in the future.
I had the chance to ride for them this year, and will keep the wheels rolling for another few more! 35 years ain't nothing, and they won't be gone for too long... I can tell you that, they will find a way of a comeback.
Love you guys, you can be proud of what you have built.
I don't know much about the company but I would have sponsored some good athletes. Brought on board some ambassadors who are just as passionate as they are to spread the word.
In order to keep afloat in business is to understand and accept change.
Think we will see a lot of American companies hit by the new tax laws. Companies that manufacture over seas are in the line of fire.
Makes me wonder about brands like Specialized and Intense, will we see carbon frames made in the states or will there be an aluminium revival?
The new tax laws don't contain any additional import taxes (assuming you're talking about the US tax bill).
Shame to see them go. However... Good news. I hear there is a certain company trying to buy them out
Distributors had difficulting in getting shops to stock them.
My experience of a carbonator wheels was bad. Rim failed on a 4” drop and I was denied warranty. Hubs very slow to pick up.
Miss....
Its a poor reflection of the state of the industry currently - direct to market brands (usually me too brands as they rarely innovate and simply ride the coat tails of the true product innovators) get lauded by consumers because they win points in the biggest metric the consumer requires - price. But they wont be companies pushing the boundaries and researching and developing new product because that costs money, and the consumer doesn't see value in the next five years of development, only the price NOW. It fits with the online business model of serving customers who believe they know better than established brands, a common theme these days.
When the dust settles in a few years, and more true innovators like AC have gone, we will probably be left with a bunch of "me too" companies that will struggle to fill the quality void left. And if consumers think these companies wont ramp up pricing (the direct to market guys have already began to do) as the competition disappears then they aren't as clued up as they think they are. Loss leading is this industries biggest problem and fits the model of either previously failed and now relaunching companies (Marin, Whyte recently in the UK?) or those who are trying to buy your business. Its short term, and unfortunately something that is very appealing to what increasingly looks like a dumbed down market. The problem is, a true innovator like AC cant compete for this market on price as they have too much respect for their consumers and they strive to produce the best product they can, not the best Price Point they can.
I am sure to most here this will make no sense - why pay more? But the result in a few years appears to be a rather unpalatable industry run by massive multinationals with huge marketing budgets. But then, once you've got the taste for the Koolaid.....
No need to give us updates, final factually based results is all we need. Pipe down & get to work Busta!
1. You need the confirmation of your peers that the product is cool. You are ignorant enough to accept the word of a marketer, someone who is paid to make you want their gear.
2. Marketing costs money, which comes from margin. AC spent on innovation, not kool aid for the above consumer. Thats better for AC customers who get the benefits, and the industry evolves. Marketing funds comes from the same pot of cash - not some magic pot of money. So one company strives to improve for the future, while one just wants your money now.
Your unnecessarily harsh statement means i wont be apologising for being brash.
@BiNARYBiKE Consumer Demand does not exist on it's own. In vast majority of cases, at least when it comes to bicycles it is manufactured. You don't know you want something until you see it presented to you.
Busts-nut -> not quite. You took the term “marketing” and replaced it with “advertising”, then laid your biases around advertising within the cycling industry before you made that comment.
Think marketing strategy, brand awareness, sending products out for review, product rollout events, athlete sponsorship, oe (which sounds like they were trying to break into), and yes advertising too.
Bustedcrimes -> I agree around the industry consolidation point. I’m wondering how much d2c bike brands will force smaller companies out of business.
Also, eThirteen did it right. A small company who built awesome products and gradually got the word out about them. and now they have an OE relationship with Santa Cruz and YT, speccing their wheelsets and drivetrain widgets. I’ve seen plenty of eThirteen product buzz and reviews in recent years. They built the products, awareness, and got the OE contracts too.
Surprisingly durable is not as good as actually durable.
Pushing for ultralight weight just means your shits the weakest.
And being passionate to the point of nutty will not get you where you need to be.
Sorry guys.
It’s tough because in a sea of competitive wheelsets you need a dialed marketing plan.
Last year whilst researching wheelsets I struggled to find an 29” Wide Lightning or equivalent from AC that was in stock anywhere.
You hate to see this happen but it will continue.
Separate comment but frame companies are gonna keep feeling the squeeze. YT’s 2018 Jeffsy base model is $2300 which is unprecedented for a proven, high end bike at an “affordable” price point. Ironically it just needs a decent wheelset.
I was assuming it was the i22.5 version which is cheaper and moar flexy but their site shows it as the i30 so damn, that is a nice wheelset to include on a $2300 bike. Yeah I’d take it over an S1 too.