Go Back  Bike Forums > Bike Forums > General Cycling Discussion
Reload this Page >

Trek plans to "right size" with 10% cuts to spending

Search
Notices
General Cycling Discussion Have a cycling related question or comment that doesn't fit in one of the other specialty forums? Drop on in and post in here! When possible, please select the forum above that most fits your post!

Trek plans to "right size" with 10% cuts to spending

Thread Tools
 
Search this Thread
 
Old 03-08-24, 05:14 PM
  #26  
georges1
Steel is real
 
georges1's Avatar
 
Join Date: Mar 2013
Location: Not far from Paris
Posts: 1,958

Bikes: 1992Giant Tourer,1992MeridaAlbon,1996Scapin,1998KonaKilaueua,1993Peugeot Prestige,1991RaleighTeamZ(to be upgraded),1998 Jamis Dragon,1992CTWallis(to be built),1998VettaTeam(to be built),1995Coppi(to be built),1993Grandis(to be built)

Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 670 Post(s)
Liked 977 Times in 648 Posts
Originally Posted by badger1
Could be wrong, but I believe that Trek no longer manufactures any production framesets in the U.S. They may still build some development prototypes in-house, though I'm not sure about that.
They stopped manufacturing their frames in the US since 2007 as far as I recall.
georges1 is offline  
Old 03-08-24, 08:03 PM
  #27  
Yan 
Senior Member
 
Yan's Avatar
 
Join Date: Jan 2006
Posts: 2,942
Mentioned: 13 Post(s)
Tagged: 0 Thread(s)
Quoted: 1963 Post(s)
Liked 647 Times in 443 Posts
Originally Posted by Smaug1
False.

From Trek's Wikipedia page, end of the very first paragraph.

By saying "nearly all" it implies that some are still US-made. (top of the line, I think)
Nope.

https://allamerican.org/investigation/trek/

Trek makes zero bikes in the USA. All Trek frames are made in Asia. The only exception is, a small number of Asia made frames are shipped to the USA for painting. Probably that's where they do their limited edition paint schemes.

I wouldn't call building a frame in Asia and then shipping it back for painting "made in USA". That's a cheat at best.

Last edited by Yan; 03-08-24 at 08:09 PM.
Yan is offline  
Likes For Yan:
Old 03-08-24, 09:16 PM
  #28  
CrimsonEclipse
Senior Member
 
Join Date: Dec 2004
Posts: 1,098
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 559 Post(s)
Liked 648 Times in 381 Posts
Originally Posted by dedhed
Frakkin youtube
12 minutes of blather to be summed up in in a single sentence at 9:50
"Regular people don't like going into bicycle stores"

Guess you need to be at lease 12 minutes to hit a level of revenue.

Companies of that magnitude do NOT "right size" to profitability.
The moment the line stops going up, they morph the company into a buyout target by firing everyone they can, and shedding old stock so the numbers look better to aspiring accountants for venture capitalists who take ailing companies, buy them on the cheap, gut them, run up debt, and go bankrupt.

Trek got greedy and elitist and is paying the price.

No sympathy
CrimsonEclipse is offline  
Likes For CrimsonEclipse:
Old 03-09-24, 02:11 AM
  #29  
georges1
Steel is real
 
georges1's Avatar
 
Join Date: Mar 2013
Location: Not far from Paris
Posts: 1,958

Bikes: 1992Giant Tourer,1992MeridaAlbon,1996Scapin,1998KonaKilaueua,1993Peugeot Prestige,1991RaleighTeamZ(to be upgraded),1998 Jamis Dragon,1992CTWallis(to be built),1998VettaTeam(to be built),1995Coppi(to be built),1993Grandis(to be built)

Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 670 Post(s)
Liked 977 Times in 648 Posts
Originally Posted by Yan
Nope.

https://allamerican.org/investigation/trek/

Trek makes zero bikes in the USA. All Trek frames are made in Asia. The only exception is, a small number of Asia made frames are shipped to the USA for painting. Probably that's where they do their limited edition paint schemes.

I wouldn't call building a frame in Asia and then shipping it back for painting "made in USA". That's a cheat at best.
That is why purchased vintage Treks which at the time were fully made in the USA. As for modern Treks, I don't see myself spending on a non American made product. That would be the same thing with Cannondale which before the caad 10 frame were fully made in the USA and had better craftsmanship.
georges1 is offline  
Old 03-09-24, 02:56 AM
  #30  
Trakhak
Senior Member
 
Trakhak's Avatar
 
Join Date: Jan 2005
Location: Baltimore, MD
Posts: 5,375
Mentioned: 15 Post(s)
Tagged: 0 Thread(s)
Quoted: 2484 Post(s)
Liked 2,955 Times in 1,678 Posts
Originally Posted by georges1
That is why purchased vintage Treks which at the time were fully made in the USA. As for modern Treks, I don't see myself spending on a non American made product. That would be the same thing with Cannondale which before the caad 10 frame were fully made in the USA and had better craftsmanship.
I've encountered this reasoning before. For example, when Europcar, a car rental business, announced that they were ending their sponsorship of a professional cycling team, one of the first comments under the Cyclingnews article was from a poster who said that he would never again rent a car from Europcar and urged cyclists everywhere to boycott the company.

This was after Europcar had spent millions of euros on the sponsorship per year for a number of years. So, in essence, the poster wanted everyone to penalize Europcar and instead support car rental companies that had never spent a single euro on such sponsorships.

Your Jamis is a non-American-made product. Jamis is a U.S. company whose bikes were, like Specialized, sourced from Asia from day one. Myself, given comparable products and prices, I'd prefer to buy a bike from a company that had manufactured bikes in the U.S. for decades. That lets Jamis and Specialized out.

By the way, saying that the U.S. Cannondales had better craftsmanship is putting it rather strongly. Different craftmanship (i.e., frame welds smoothed by grinding), sure.
Trakhak is offline  
Likes For Trakhak:
Old 03-09-24, 03:23 AM
  #31  
georges1
Steel is real
 
georges1's Avatar
 
Join Date: Mar 2013
Location: Not far from Paris
Posts: 1,958

Bikes: 1992Giant Tourer,1992MeridaAlbon,1996Scapin,1998KonaKilaueua,1993Peugeot Prestige,1991RaleighTeamZ(to be upgraded),1998 Jamis Dragon,1992CTWallis(to be built),1998VettaTeam(to be built),1995Coppi(to be built),1993Grandis(to be built)

Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 670 Post(s)
Liked 977 Times in 648 Posts
Originally Posted by Trakhak
I've encountered this reasoning before. For example, when Europcar, a car rental business, announced that they were ending their sponsorship of a professional cycling team, one of the first comments under the Cyclingnews article was from a poster who said that he would never again rent a car from Europcar and urged cyclists everywhere to boycott the company.

This was after Europcar had spent millions of euros on the sponsorship per year for a number of years. So, in essence, the poster wanted everyone to penalize Europcar and instead support car rental companies that had never spent a single euro on such sponsorships.

Your Jamis is a non-American-made product. Jamis is a U.S. company whose bikes were, like Specialized, sourced from Asia from day one. Myself, given comparable products and prices, I'd prefer to buy a bike from a company that had manufactured bikes in the U.S. for decades. That lets Jamis and Specialized out.

By the way, saying that the U.S. Cannondales had better craftsmanship is putting it rather strongly. Different craftmanship (i.e., frame welds smoothed by grinding), sure.
I am well aware about my Jamis like the old Giant Tourer and old Giant Bronco that I have which are well made taiwanese bikes and I do like them. But when it comes to Cannondale and Trek , it is a different story. Cannondale is the early 90's till early 00's before its bankruptcy produced absolutely magnifisicent frames from caad3 to to caad8 optimo. On a caad10, you can notice that the smooth welds are not as well finished as on the other models. Back in the days they used to make coda cranks and coda hubs which were of high quality. I ended up buying a caad4 which was new old stock. Except titanium frame builders like Merlin, Linskey, Litespeed, Moots, Erikssen, Dean (in the past) and a very few steel frame builders like Independant Fabrication,Waterford, Gunnar,Soma that propose US made frames , US made bikes are not so common .

Last edited by georges1; 03-09-24 at 01:53 PM.
georges1 is offline  
Old 03-09-24, 03:26 AM
  #32  
Trakhak
Senior Member
 
Trakhak's Avatar
 
Join Date: Jan 2005
Location: Baltimore, MD
Posts: 5,375
Mentioned: 15 Post(s)
Tagged: 0 Thread(s)
Quoted: 2484 Post(s)
Liked 2,955 Times in 1,678 Posts
Originally Posted by georges1
I am well aware about my Jamis like the old Giant Tourer and old Giant Bronco that I have which are well made taiwanese bikes and I do like them. But when it comes to Cannondale and Trek , it is a different story. Cannondale is the early 90's till early 00's before its bankruptcy produced absolutely magnifisicent frames from caad3 to to caad8 optimo. On a caad10, you can notice that the smooth welds are not as well finished as on the other models. Back in the days they used to make coda cranks and coda hubs which were of high quality. I ended up buying a caad4 which was new old stock. Except titanium frame builders like Merlin, Linskey, Litespeed, Moots, Erikssen, Dean (in the past) and a very few steel frame builders like Inbdependant Fabrication,Waterford, Gunnar,Soma that propose US made frames , US made bikes are not so common .
I'd prefer a U.S.-made Cannondale, out of sentiment, having sold them in a shop for years. Superior to the Asian Cannondales in ways that matter on the road? Probably not. Many people love the advanced engineering of the newer bikes, which were likely designed by Cannondale's U.S.-based engineers.

You don't mention your reasoning behind penalizing companies that once built bikes in the U.S. in favor of those that never did.
Trakhak is offline  
Old 03-09-24, 03:57 AM
  #33  
Yan 
Senior Member
 
Yan's Avatar
 
Join Date: Jan 2006
Posts: 2,942
Mentioned: 13 Post(s)
Tagged: 0 Thread(s)
Quoted: 1963 Post(s)
Liked 647 Times in 443 Posts
Originally Posted by Trakhak
Specialized, sourced from Asia from day one.
Don't forget that Specialized doesn't just make all their bikes in Asia. The company is itself is half (49%) Asian owned. It's basically a subsidiary of Merida which both owns it and makes all the bikes in their factory.
Yan is offline  
Likes For Yan:
Old 03-09-24, 04:26 AM
  #34  
Maelochs
Senior Member
 
Maelochs's Avatar
 
Join Date: Oct 2015
Posts: 15,491

Bikes: 2015 Workswell 066, 2017 Workswell 093, 2014 Dawes Sheila, 1983 Cannondale 500, 1984 Raleigh Olympian, 2007 Cannondale Rize 4, 2017 Fuji Sportif 1 LE

Mentioned: 144 Post(s)
Tagged: 0 Thread(s)
Quoted: 7652 Post(s)
Liked 3,479 Times in 1,836 Posts
When there is no r4asonable option to buy American .... I buy Quality.

If a US-made product can match the quality, I might accept a slightly higher price, but when it comes to bikes and their components .... I am not going to order a custom frame ..... Most frames are made in Taiwan or in communist China by Taiwan-owned companies .... and the quality is so good most people don't even know (many people seem to still think that "Made in America" is a stamp of quality, and for some reason many people seem to think every other country is primitive .... )

I am not a big "Downtube Decal" guy anyway. If I can impress people with brand names, I am not impressed by those people.

If trek shrinks, shuts down, whatever .... It is a market-driven economy, and if there are people who want to buy bikes, somebody will make them. There are brands all over the world most US riders have never heard of .... brands marketing bikes just like every other company marketing bikes.
Maelochs is offline  
Old 03-09-24, 09:42 AM
  #35  
unterhausen
Randomhead
 
Join Date: Aug 2008
Location: Happy Valley, Pennsylvania
Posts: 24,399
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
Liked 3,699 Times in 2,519 Posts
Originally Posted by NVFlinch
In a related event, Trek just set up a new fancy store in our town.
Trek just opened their store here in State College. I haven't been out there yet, I wonder if I know some of the people that work there. At least if someone wants a domaine, they don't have to go to philly anymore.
I was wondering if they would go through with it. I am not sure it's in a location that's going to do them any good. I actually have been out to the shopping center that it's at and haven't seen it yet. Lots of businesses have failed out there, it's part of the walmart shopping center. And they are pretty far back, I think.

Some companies pulled back on staff during the pandemic. They sold everything they had right at the beginning, and didn't think they needed sales staff because they could sell everything they got in. I imagine this puts them at a disadvantage now.
unterhausen is offline  
Old 03-09-24, 09:25 PM
  #36  
Pouhana
Junior Member
 
Join Date: Sep 2017
Location: South Bay
Posts: 91

Bikes: Fuji Nevada 29, Trek 820, SE BIG Mountain 29

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 40 Post(s)
Liked 10 Times in 10 Posts
Originally Posted by badger1
Could be wrong, but I believe that Trek no longer manufactures any production framesets in the U.S. They may still build some development prototypes in-house, though I'm not sure about that.
A few years ago we visited Wisconsin. At that time all bikes under a certain fairly high price point imported.They did not take us thru the rag and glue production. Top secret.
Pouhana is offline  
Old 03-09-24, 09:53 PM
  #37  
Pouhana
Junior Member
 
Join Date: Sep 2017
Location: South Bay
Posts: 91

Bikes: Fuji Nevada 29, Trek 820, SE BIG Mountain 29

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 40 Post(s)
Liked 10 Times in 10 Posts
Originally Posted by CrimsonEclipse
Frakkin youtube

12 minutes of blather to be summed up in in a single sentence at 9:50

"Regular people don't like going into bicycle stores"


Guess you need to be at lease 12 minutes to hit a level of revenue.


Companies of that magnitude do NOT "right size" to profitability.

The moment the line stops going up, they morph the company into a buyout target by firing everyone they can, and shedding old stock so the numbers look better to aspiring accountants for venture capitalists who take ailing companies, buy them on the cheap, gut them, run up debt, and go bankrupt.


Trek got greedy and elitist and is paying the price.


No sympathy
Our localTrek dealer does incredible volume. He had a lot in his warehouse but during covid, told me it would run 17 months to get a shipment. We had a few old time shops close because they couldn't get inventory. Some shortages came from covid workers not able to work.Sales were strong and I see many over ordered and recently cancelled orders.

Sales slowdown overstock inventory and now shops and factories are paying higher interest rates to finance inventory.


It isn't a management problem if a Trek store loses a sale because someone got a good deal from another store that is going out of business.
Pouhana is offline  
Old 03-09-24, 10:23 PM
  #38  
CrimsonEclipse
Senior Member
 
Join Date: Dec 2004
Posts: 1,098
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 559 Post(s)
Liked 648 Times in 381 Posts
Originally Posted by Pouhana
Our localTrek dealer does incredible volume. He had a lot in his warehouse but during covid, told me it would run 17 months to get a shipment. We had a few old time shops close because they couldn't get inventory. Some shortages came from covid workers not able to work.Sales were strong and I see many over ordered and recently cancelled orders.

Sales slowdown overstock inventory and now shops and factories are paying higher interest rates to finance inventory.


It isn't a management problem if a Trek store loses a sale because someone got a good deal from another store that is going out of business.
k...
CrimsonEclipse is offline  
Old 03-10-24, 09:09 AM
  #39  
Sy Reene
Advocatus Diaboli
 
Sy Reene's Avatar
 
Join Date: Feb 2015
Location: Wherever I am
Posts: 8,639

Bikes: Merlin Cyrene, Nashbar steel CX

Mentioned: 14 Post(s)
Tagged: 1 Thread(s)
Quoted: 4737 Post(s)
Liked 1,533 Times in 1,004 Posts
Originally Posted by Yan
I needed a random small part last year and went to a Trek shop down the street. The guy looked at me like he was learning a new English word for the first time. The way these shops are run nowadays, if something didn't come out of the Trek factory box, then they don't know what it is. Totally useless shops.
Similar story -- I just wanted the local Trek shop to install a Stages left crankarm on my Chorus 11s. They didn't have a 10mm with enough extension to do so, eg. this simple ~$20 tool:
Sy Reene is offline  
Old 03-11-24, 09:19 AM
  #40  
Smaug1
Commuter
 
Smaug1's Avatar
 
Join Date: Jun 2022
Location: SE Wisconsin, USA
Posts: 540

Bikes: Main Bikes: 2023 Trek Domane AL3, 2022 Aventon Level.2 eBike, 1972 Schwinn Varsity, 2024 Priority Apollo 11

Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 238 Post(s)
Liked 323 Times in 196 Posts
Originally Posted by Yan
Nope.

https://allamerican.org/investigation/trek/

Trek makes zero bikes in the USA. All Trek frames are made in Asia. The only exception is, a small number of Asia made frames are shipped to the USA for painting. Probably that's where they do their limited edition paint schemes.

I wouldn't call building a frame in Asia and then shipping it back for painting "made in USA". That's a cheat at best.
Thanks for the correction. I deleted my original post.
Smaug1 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.