The History of Cannondale Bikes
Since its founding in 1971, Cannondale Bicycle Corp. has become widely known for producing innovative, high-quality bicycles. From humble beginnings, Cannondale became the first high volume producer of aluminum framed cycles. The once privately-held company has undergone a series of changes in ownership, leading to a backlash from loyal customers.
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History
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It was 1971 in Connecticut when Joe Montgomery founded a small business focused on making camping equipment and supplies. After setting up shop in a small area above a pickle factory, he named his venture "Cannondale" after the local train station. In the same year the company was founded, it released the industry's first bicycle trailer. Over the next couple years, Cannondale added cycling bags, packs and clothing. The accessory items were included in the L.L Bean Catalogue, helping Cannondale accumulate the needed capital to break into bicycle manufacturing.
First Bicycles
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Funded by the success of its soft goods line and child toting bike trailer, Cannondale introduced its first bicycle in 1983, a touring model with an asking price of $350. The following year, it released road racing and mountain bikes. The innovative, aluminum-framed cycles were lighter and more flex-resistant than the industry standard steel frames. Consumers and dealers immediately recognized the handcrafted quality that set Cannondale apart. The company's revenue compounded exponentially as it became known as the premiere bicycle manufacturer. By 2000, the product line consisted of more than 80 models.
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Appeal and Development
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The company motto of the '90s, "Speed is our Friend," has meaning on several levels. Dedicated to producing the fastest bicycles in the world, Cannondale has collaborated with and sponsored some of the top professional cycling teams. Their product feedback has enabled the company to make continual improvements. Up until the late 2000s, "Handmade in the USA" appeared on the frame of every Cannondale cycle. The domestic production of the bikes allowed the company to control the quality and the amount of time from research and development to market release.
Changes in Ownership
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When Cannondale became a publicly traded company in 1995, it was valued at $22 million. By 2003, a decline in the global bicycle market prompted the financially struggling company to file Chapter 11 bankruptcy protection. Within months, Pegasus Partners II L.P. purchased the bicycle manufacturer's assets at auction. In February 2008, Pegasus sold Cannondale for $200 million. The purchaser, Dorel Industries, is a U.S. distributor of Chinese- and Taiwanese-produced bicycles, including the brands Schwinn, GT, Roadmaster and Mongoose.
Future Plans
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In April 2009, Dorel Industries announced intent to cease U.S. production of Cannondale bikes. The impact of the move will be felt most at the company's Bedford, Penn., manufacturing facility. More than two-thirds of the work force will be eliminated as the building becomes a customer-service-oriented facility. It is difficult to speculate how the changes will affect the image of the company, which has built a reputation on producing high-quality bicycles in the U.S.A.
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