http://www.bicycleretailer.com/bicyc...ent_id=1777416

The jist of it is that C-dale corporate is hemmoraging cash and losing money on every motorized unit it sells.

 

interesting article, looks like the hard core enviro moutain biker sect(it is a religion IMO) really resents them trying to get into motorsports...

the only thing saving the motor division is the quads.... from the article:

"If there's a bright spot, it's Cannondale's high-end competition ATV, which sells for more than $12,000. Dealers can sell them if they can get them."

 

Just think how many they could sell if they advertised here. [img]i/expressions/face-icon-small-happy.gif[/img]

 

I don't know if it has anything to do with the bike riders. It has all to do with the morale of the bicycle divisions employees. They built C-dale into a world class bike company, only to see it being frittered away in the motorsport division. That is to take nothing away from the quad. I haven't seen one, but I know that they are spoken highly of.

The real question is this. Will Cannondale be around next year? When a company the size of C-dale is forced into a cash and carry situation with suppliers, it is usually one step away from bankruptcy.

 

i'm not sure i'd go that far with it...
i'm still saving my nickels for the Gas Gas

 

As an investor in Cannondale I must say this. I'd be willing to bet alot of "options" are on the table about this publicity they are receiving. Lets all keep in mind a couple of things:

1. Cannondale is working on this problem. The reason they cannot comment is that they are a publically traded company. To do so could lead investors one way or another on speculative news. I think we all know of the Enron story. Anyway, I've talked with a few larger dealers and got their opinion on the latest news. They all said why would C'Dale then invest in promoting '04 and '05 models. Cannondale is not going anywhere but forward.

2. Don't be surprised if you see the Motorsports Division break off from C'Dale and become its own entity. If I had to speculate I would say that's the case. This is probalbly an option they are considering.

Either way I feel C'Dale is going nowhere but up. So look for some good news shortly.

 

It kills me that people would clammer about no new high tech ATV's and than not support a company that is making them. Price can't be the only issue. Are they more that a Z-400 or 400EX yes, do you need to add money to the Z and EX to bring them up to the Cannondales stock less. YES.

We took a small risk by buying a new quad and have paid for it in down time for some of us.

If half of the people who are thinking about a new quad conceder the Cannondale models than most of this would go away.

Support for the Cannondale only helps US the quad riders, and Americian workers.

They may spin the motor sports div. and slow down production of the bikes, for the better selling quads. That's what I would do anyway.

Not that worried, with the union in the state it is in it can only get better.

Every optimistic,

Smitty

 

I think the C-Dales are the way of the future with their Fuel Injection, and their Race Ready Quads, they are so far ahead of everybody else on the devolopment side of the sport.

The major obstical for me, and the reason that I won't be purchasing one in the near future, is the lack of a dealer within 200 miles of me. I personaly think that getting more dealers to carry C-Dales is going to be one of their "Make or Break" issues. Can't buy what you can't find.

 

That option makes more sense than any other that I've heard. Montgomery nearly bankrupted both himself and C-Dale corporate trying to get the motorsport division off the ground. My feeling is that he wants to get back to his core business.

 

The motosports div will stay intact. The costs associated with the start up of that div have already been incurred. The debt will be paid off through a secondary rights offering to existing share holders. By 2006 the motorsports revenue will be twice that of the bike division.

MikeR, what brand of bicycles do you sell at your bicycle store?