Competition became intense, both for parts suppliers and for contracts from the major department stores, which retailed the majority of bicycles produced in those days. Realizing he needed to grow the company, Ignaz Schwinn purchased several smaller bicycle firms, building a modern factory on Chicago’s west side to mass-produce bicycles at lower cost. He finalized a purchase of Excelsior Company in 1912, and in 1917 added the Henderson Company to form Excelsior-Henderson. In an atmosphere of general decline elsewhere in the industry, Schwinn’s new motorcycle division thrived, and by 1928 was in third place behind Indian and Harley-Davidson. Indoor cycling bikes are designed to replicate what it’s like to ride a bike outdoors, and they’re the ones that have exploded in popularity in recent years.
Bicycle manufacturing in America has declined significantly in the past several decades. But Detroit Bikes is eager to bring at least a part of the industry back to domestic soil, where demand for all manner of bikes and other outdoor equipment is booming amid pandemic restrictions. But they’re all cranking back to life in the town that taught America how to build things.
Later, Schwinn would sign a production supply agreement with Giant Bicycles of Taiwan. As time passed, Schwinn would import more and more Asian-made bicycles to carry the Schwinn brand, eventually becoming more a marketer than a maker of bikes. The company considered relocating to a single facility in Tulsa, Oklahoma, but financing the project would have required outside investors, perhaps even foreign ones. The boom in bicycle sales was short-lived, saturating the market years before motor vehicles were common on American streets. By 1905, bicycle annual sales had fallen to only 25% of that reached in 1900. Many smaller companies were absorbed by larger firms or went bankrupt; in Chicago, only twelve bicycle makers remained in business.
Schwinn is the American icon that has built some of the best-known and most-loved bicycles of all time. Schwinn models like the Aerocycle, Paramount, Phantom, Varsity, Sting-Ray, Krate, Homegrown and more are forever firmly ingrained in biking’s lexicon. A world leader in technology and fabrication, Schwinn has been an indispensable player in revolutionizing bicycling around the world. A vintage stingray being sold today could get you upwards of $3000 if it’s still in mint condition, however, the less popular models like the Schwinn Breeze could maybe bring you $250 on a good day.
A growing number of teens and young adults were purchasing imported European sport racing or sport touring bicycles, many fitted with multiple derailleur-shifted gears. Schwinn decided to meet the challenge by developing two lines of sport or road ‘racer’ bicycles. One was already in the catalog — the limited production Paramount series. The Paramount schwinn bicycles series had limited production numbers, making vintage examples quite rare today. The 1960 Varsity was introduced as an 8-speed bike, but in mid-1961 was upgraded to 10 speeds. Other road bikes were introduced by Schwinn in the early and mid 1960s, such as the Superior, Sierra, and Super Continental, but these were only produced for a few years.
Most people might not know this but Schwinn was involved in the marketing of motorscooters back in 2005. In the 50s, Schwinn changed its marketing strategy and became more aggressive when dealing with distributors; this was aimed at making the company a dominant force in the industry. By 1905, the annual sales of bikes had decreased to only 25% of the figures reached in 1900. Judith Crown, who is a senior correspondent for BusinessWeek in Chicago and worked for Crain’s Chicago Business, started the book in 1992 after she heard that Schwinn was in serious financial trouble.
Schwinn soon had a range of low, mid- and upper-level bicycles all imported from Japan. Schwinn’s standard road bike model from Panasonic was the World Traveler, which had a high-quality lugged steel frame and Shimano components. By the late 1970s, a new bicycle sport begun by enthusiasts in Northern California had grown into a new type of all-terrain bicycle, the mountain bike. Mountain bikes were originally based on Schwinn balloon-tired schwinn bicycles cruiser bicycles fitted with derailleur gears and called “Klunkers”. A few participants began designing and building small numbers of mountain bikes with frames made out of modern butted chrome-molybdenum alloy steel. When the sport’s original inventors demonstrated their new frame design, Schwinn marketing personnel initially discounted the growing popularity of the mountain bike, concluding that it would become a short-lived fad.
Schwinn first responded to the new challenge by producing its own middleweight version of the “English racer”. The middleweight incorporated most of the features of the English racer, but had wider tires and wheels. But it was too late for Schwinn to recover the ground that they had lost to Mongoose in the BMX market. Even worse, though, Schwinn had let its dealer network slip away during the 1970s. Mongoose, Specialized, GT, and others quickly moved in to take market share from Schwinn. The bicycles raced in the first Tour featured steel frames and handlebars, wooden wheel rims and big balloon tires.
In retaliation, Giant introduced its own line of Giant-branded bikes for sale to retailers carrying Schwinn bikes. Both Giant and CBC used the dies, plans, and technological expertise from Schwinn to greatly expand the market share of bicycles made under their own proprietary brands, first in Europe, and later in the United States. With their aging product line, Schwinn failed to dominate the huge sport bike boom of 1971–1975, which saw millions of 10-speed bicycles sold to new cyclists. Schwinn did allow some dealers to sell imported road racing bikes, and by 1973 was using the Schwinn name on the Le Tour, a Japanese-made low-cost sport/touring 10-speed bicycle. Schwinn developed strong trading relationships with two Japanese bicycle manufacturers in particular, Bridgestone and National/Panasonic.
W. Schwinn did not seem hampered by a lack of ambition, nor was he content to sit back and let the world famous family business rest on its laurels. With the semi-retired Ignaz Schwinn still keeping a close watch on things, Frank made some bold decisions that helped launch a second golden age not only for the Schwinn company, but the bike industry as a whole. Many German business owners in the U.S. faced considerable scrutiny and sales losses as anti-German sentiment spread during both World Wars. To compensate, some went the extra mile to flag wave and prove their American patriotism. Having made their fame on the “WORLD” bicycle, they weren’t going to try to pass themselves off as nationalists. They would, however, make a point of celebrating the “Made in the USA” aspect of the brand above the “German engineering” element.