To accomplish this, in the mid-1980s Schwinn
purchased a one-third share of a China Bicycles factory in Hong Kong (Crown and
Coleman 1996). The goal was to reduce its reliance on it main Asian
manufacturer Giant. With the Hungary and Hong Kong ventures and with the
Greenville plant, Schwinn planned to be secure a bicycle supply base that was
not overly dependent on one manufacturer. Family businesses rarely last longer than the three
generations, so the surprise is that the Schwinn family-owned bicycle company
lasted so long. Jonathan Ward (1987) in
his work on family business succession indicated that 30 percent of businesses
last through the second generation.
This is the full history of Schwinn as a family company from 1895 to 1992. I also have separate posts for different time periods that are the same as those in this article. The reason for them is that many people don’t want to skim through the whole history to find information on a particular time period. Do you want a bike that they can simply ride up and down the street or around the park? The affordable, indoor cardio solution designed to keep you active.
Eventually, Schwinn was not able to pay the Asian
manufacturers for these unsold bicycles. The bankers perceived the trouble at
the Greenville factory and the misadventure in Hungary as a hit to their
confidence that Schwinn could manage its financial woes. This combined with
lower Schwinn bike sales set in motion a series of actions that put the company
under financial stress starting in the 1990s.
The new factory in Greenville Mississippi never generated a
positive cash flow and also was destined to be closed. In retrospect, the failure to upgrade the
Chicago factory to make high-end bicycles was a profound mistake. Debates raged inside Schwinn about whether to abandon its
“Made in America” identity.
For many people the Schwinn brand is one that is steeped in nostalgia. One of its most famous models – the kid’s Sting-Ray bike – was the bike that every child schwinn tricycle wanted to own in the late 1960s. Its iconic ape-hanger handlebars and banana seat were copied by many other manufacturers after they saw Schwinn’s success.
The new frame and component technology incorporated in the Paramount largely failed to reach Schwinn’s mass-market bicycle lines. W. Schwinn, grandson Frank Valentine Schwinn took over management of the company. But it was too late for Schwinn to recover the ground that they had lost to Mongoose in the BMX market.
The motorcycle
division of Schwinn took up all the creative energies of the company, and the bicycle
division limped along barely surviving its plight. But by purchasing new bicycle companies
during industry consolidation, intentional or not, Schwinn was positioning
itself for the next phase of its bicycle business. For over a decade, the Schwinn has set the standard as the cycle studio workhorse. The sturdy steel frame, heavy perimeter weighted flywheel, traditional chain drive, and direct pressure brake give this bike the strength to keep it moving ride after ride.
To take advantage of
lower wages and favorable exchange rates, many US companies were beginning to manufacture
products in Asia. As an example, Radio
Corporation of America changes its name to RCA Corporation to recognize its
manufacturing of a large range of products schwinn mountain bike and expansion into other countries. Schwinn started the decade
selling 500 thousand bicycles in 1960 and reached close to 900 thousand by 1970
(Petty 2007). The company also was not resting on its laurels because it was busy
introducing popular new models.
The popularity of Schwinn would make it a national icon and carry it
through the next several decades. With the manufacturing capacities in Europe and Asia decimated,
the company became one of the dominant bicycle manufacturers in the USA. Within
two decades that included a pause for World War II, Schwinn did not miss a
beat. Frank W. Schwinn had changed a failed motorcycle business and a floundering
bicycle company into a powerhouse that was on its way to becoming an American
cultural icon. Once he arrived in Chicago he worked for a series of bicycle companies. In 1894 he had a chance meeting with a fellow German immigrant named Adolph Frederick William Arnold.
However, choosing the perfect one is challenging as there are a lot of options out there in the market. Road bikes are made with a lightweight frame and aerodynamic seating position. You can go for hybrid bikes that can be used on roads and on tough terrains. The other models include cruisers, folding and specialty bicycles.