CNBC recently summarized the current state of bicycle salesin the USA and has the following observation on Schwinn. CNBC quotes Ray Keener, an industry veteran and editor of Bicycle Retailer as saying the following. Chicago was a major bicycle manufacturing center at the height of the “golden age” of bicycling in the 1890’s. Upon his arrival in America, Schwinn quickly found work with the Hill Cycle Manufacturing Company and rose readily to the level of plant manager.
This strategy would succeed and the Schwinn Paramountwould become part of Schwinn’s enduring legacy for quality and innovation untilthe company’s bankruptcy in 1993. Most of Schwinn’screative energy from 1910 through 1930 went into producing a well-respectedbrand of motorcycle called the Excelsior. In 1917, Schwinn purchased HendersonMotorcycle Company from its owners.
This meantthat the California entrepreneurs had an opening to develop bikes withsuspension for riding on mountain trails. Joe Breeze, Charlie Kelly, Gary Fisher, and Tom Ritchey were avid Repackriders and realized that the old Schwinns being raced on the mountainside coursehad their limitations. Schwinn needed a more decisive manager to deal with thecompany problems faced during the mid-1970s.
During the next twenty years, most of the Paramount bikes would be built in limited numbers at a small frame shop headed by Wastyn, in spite of Schwinn’s continued efforts to bring all frame production into the factory. His visionfor the company was either prescient or just plain lucky. Starting in the 1930s,he turned towards building stylish bicycles with flashy chrome and marketingthem to kids.
As an example, RadioCorporation of America changes its name to RCA Corporation to recognize schwinn electric bike itsmanufacturing of a large range of products and expansion into other countries. With thoughts on a new model, Al Fritz brought the Californiacomponents back to Chicago to develop a prototype. Everyone at Schwinn who rodethe prototype was amazed that such an awkward-looking bicycle could handle sowell. The factory quickly cranked out a new line of bikes to satisfy what theyrightly anticipated would be a new bicycle craze.
A young EdwardSchwinn, Jr. had created a youth movement among Schwinn management bringing in financialspecialists that had sometimes limited experience in manufacturing. Schwinn also was being challenged by new competitors in nichemarkets such as mountain, BMX, and high-end road bicycles. Japan and Europealso were competing with Schwinn in the US market. This was made worse by Schwinnabandoning its wholesalers who then were freed up to market these other bicyclesbrands.