Shop New & Used Parts Next, Schwinn made the colossal error of acquiring a dilapidated bicycle factory in Budapest, Hungary. The cost for controlling interest was more than $1 million. This was a year after 1987’s record breaking $7 million profit. The plant needed to be overhauled. It was outdated in every way. There was a lot of money to be saved on labor, but after that, it wasn’t even an improvement on the Chicago factory that Schwinn had closed. Hungarian labor proved to be lackadaisical in the crumbling former Eastern block. In 1988 the average Hungarian could make more money on the black market than as a legitimate worker for Schwinn. 1987 proved to be Schwinn’s best year. Without another banner year, the company couldn’t purchase the number of bikes from the Hungarian plant that it had projected. Volume at the Budapest factory was too low to reap the benefits of economies of scale. Schwinn, the largest bike seller in America was juggling production from Giant, China Bicycles, the Hungarian plant, and its own Greenville factory in Mississippi.

The company that should have been commanding the deepest discounts from materials and parts suppliers was losing money because it had splintered its manufacturing so poorly. In Europe for instance, the Budapest factory was a minor player and couldn’t command discounts from suppliers. Quality was never on par with Giant’s bikes. A recall from a faulty brake in 1991 cost Schwinn $1 million by itself. Schwinn would never recover. Every problem that Schwinn had in manufacturing their bikes was felt by the dealers. If there were delays, the dealers had to scramble to get bikes from other brands. If the parts failed, the dealers had to handle the complaints even if Schwinn backed up the bikes with replacement parts. Higher costs for Schwinn went straight to the showroom floor and cut directly into dealer profits. Schwinn assumed that its reputation would allow retailers to collect higher prices, but with quality suffering Schwinn quickly lost its clout with those selling Schwinn bikes.

The dealers began turning to other brands. Schwinn attempted to throw its weight around, taking away dealer “authorization” and the benefits and protections that came with it. One dealer saw his sales drop 10% after he lost his Authorized Dealer status. The next year, sales were back because of other brands. In the late 80s Schwinn had made it clear that it would be moving away from Giant. Giant, in turn had become a direct competitor. But Schwinn would never be able to fully rid itself of Giant manufactured bikes. In 1990, Ed announced that Schwinn would be aggressively severing all ties with the manufacturer. A year later Schwinn had to go back to Giant because their other factories couldn’t keep up. Schwinn just didn’t have access to the capacity they needed. Therefore, Giant continued to have access to Schwinn’s latest plans. Giant became less flexible on price and other services. They started calling Schwinn dealers and offering bikes almost identical to Schwinn’s models (produced at the same factory, even) at a lower cost.

Giant made itself into a liability for Schwinn. Schwinn recognized the issue, but was powerless to do anything. Managers started jumping ship in 1990 after a year of losing money. That same year, Schwinn lost a patent lawsuit related to the Air-Dyne, one of the company’s most important bread winners. Meanwhile, the Greenville factory lost $7.6 million dollars in 1990. The plant was closed in 1991. The banks to which Schwinn owed $64 million began to get nervous. motorcycle helmet paint jobs in phoenixThey began to call in the loans as quickly but quietly as possible. triumph motorcycles for sale melbourneAll lenders were afraid of a rapid descent into the abyss, but hoped things would drop slowly enough for them to get their money out.custom motorcycle seats barrie

By the early 1990s, Michael Sinyard’s Specialized was grossing $170 million per year. Schwinn filed bankruptcy in 1992 (just 3 years short of its centennial) and was purchased by the Scott Sports Group in 1993. By 1994 Schwinn had left 100 years of history behind, pulling out of Chicago and settling down in Boulder, Colorado. Scott took the company in a completely different direction. Almost all of the old lines were phased out within a couple years and Scott introduced a whole new type of Schwinn. motorcycle helmet price in dubaiThe Homegrown mountain bike line was their new racing bike. motorcycle salvage yards near omaha nePriced between $1200 and $3000 in 1995, these top-of-the-line stock racers featured the latest aluminum frames.used motorcycles bournemouth motorbikes for sale bournemouth

Used Bikes For SaleFollow us on Facebook, Twitter, Instagram, or Subscribe to stay abreast of future builds. The Grand Budapest Hotel is a lovely Wes Anderson film that features many early vehicles. The most prominent may be the motorcycle that Willem Dafoe’s character rides, a 1929 BMW R11. The bike is a relative unknown outside of classic motorcycle circles. No explanation would be complete without a bit of back story, so let’s delve shallowly into BMW’s history. icon mens anthem mesh motorcycle jacketPrior to WWI, BMW did not exist. Bayerische Motoren Werke rose from the ruins of the WWI-era aircraft manufacturer Rapp Motorenwerke. As part of the Versailles Armistice Treaty ending WWI, BMW was prevented from building aircraft, so turned to motorcycle production. The idea was to provide an economical means of transportation to a nation devastated by war. One of the first bikes that BMW produced was the R11.

This model was produced between 1929 and 1935. The unit was used in the movie for historical accuracy because it would have been one of the few bikes available in the area, era, and setting of the film. Engine: air cooled, 745cc, two-cylinder four-stroke Boxer, side valve that was capable of 17.95 hp at 3,400 rpm. It bike was shaft driven and had a top speed of 62 mph. The wet-sump, longitudinally mounted engine had a compression of 5.5:1. Gearbox: a manual three-speed gearbox was changed by a dry, single plate, cable operated clutch. Dimensions: the bike was 83 inches long, stood 35 inches high, and had a 54 inch wheelbase. It had a curb weight of 357 lbs. Other notables: the R11 was built on a double cradle steel frame. The brakes were single drum and the bike rode on tires that measured 3.5 inches by 26 inches. The R11 in The Grand Budapest Hotel is outfitted with ski outriggers for riding in snowy conditions. If that sounds far-fetched, it actually isn’t, as tested by this image and others uncovered by Clem at the BMW R1200R forum.

The BMW R11 was replaced by the BMW R12. The R12 was introduced at the German Automobile Exhibition in February 1935. Both the R12 and the R17,introduced at the same time, were the first motorcycles in the world to feature hydraulically dampened telescopic forks. Engine: could have either of two designations: M 56 S 6 or 212. Both were air-cooled 750cc twin-cylinder, four-stroke boxer with a flathead. The engine produced 18 hp and had a top speed of 62 mph. Two-carb variations of the R12 used a battery ignition, but the single-carb iterations had a magneto ignition that was independent of the battery. Drivetrain: these were shaft driven units that sported a four-speed manual gearbox. Other notables: the front suspension featured a telescopic fork that was hydraulically dampened. These were all hardtail units, with a springed seat for rider comfort (as little as it offered). There were drum brakes front and rear. Additionally, most R12s came with an attached sidecar.