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GT sold again?

1683 Views 2 Replies 3 Participants Last post by  rdawson808
Apparently GT...well Dorel sports (so GT C'dale, Swchiwnn and Mongoose)n got sold to Pons.
Not sure what that means... maybe good, Pons also own Santa Cruz and Cervelo...maybe bad, who knows
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Dorel always struck me as a bizarre owner for a bike company. Dorel's main business is cheap home furnishings and baby furniture. I don't know the logic for their acquisition of Cannondale back in the day, other than that Cannondale was cheap (they blew up when they inexplicably thought they could make it in the motorcycle business and diverted too much money away from R&D in the cycling business). It might have been that they thought they could offer retailers like Target or Walmart a more attractive package by complementing the baby furnture/play equipment line with the Schwinn and low-end BMX brands. At least they didn't screw up the high-end stuff too badly.

Pons is probably going to be a better owner for these brands than either Dorel or a private equity owner, who will harvest cash aggressively, cut costs and underinvest in R&D. So this is probably the best outcome for the high end brands. Not sure what Pons will do with the low-end Schwinn junk. Maybe they cut it back, as it's too expensive to maintain brand momentum when cheap no-brand or store-brand bikes will give retailers a $5 or $10 extra profit per unit.
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Pons has recently bought out a NorCal shop chain, Mikes Bikes. And since other brands are doing this too, I'm assuming it will continue. So one plus could be availability of GT bikes.
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