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Bike Company Merger
 

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PLee
Joined: 08 Dec 2003
Posts: 3465
Location: Brooklyn, NY

4/12/17 8:06 AM

Bike Company Merger

Big corporations control a lot of brands!

http://fortune.com/2017/04/11/worlds-biggest-bike-company-merger-pon-accell/

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JohnC
Joined: 10 Jan 2004
Posts: 1924
Location: Glastonbury, Ct

4/12/17 9:37 AM

I don't know. That article describes an industry that's not very concentrated at all, seems to me. Those two Dutch companies, if they merged, would control several well-known brands, but they'd only have about 5% of the worldwide market. I believe Giant is the biggest bike maker, and this merger would put the combined Dutch company in their range. Compared to say, cars, where Toyota, Volkswagen and GM each sold about 13-15% of the total cars sold worldwide last year, it's still pretty fragmented industry.

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Dave B
Joined: 10 Jan 2004
Posts: 4511
Location: Pittsburgh, PA

4/12/17 3:55 PM

Yes, a slightly bigger fish in a small pond.

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Jesus Saves
Joined: 16 Jun 2005
Posts: 983
Location: South of Heaven

4/13/17 10:18 AM

The nature of the bike is business is that a big corporation is unable to control the industry. A company like Giant may make frames and forks, but sources other parts from other companies. As a consumer, I could easily purchase all of the components (parts) that make up a bicycle and assemble it myself.

There is no way I could do such with a car even is I am the most skilled mechanic, engineer, purchaser, logistics expert, etc. in the world. Cycling industry is not as capital intensive as other industries, like cars, and therefore posses much less of barrier for firm/individual to enter the market as a supplier.

As for cars, Tesla needs to scale very quickly, like increase their sales 100xs over the next year to survive. They currently have a market capitalization which exceeds Ford Motor company - crazy. More likely scenario is for them to be bought out by another car company. Other mature, established car companies like Subaru and Mazda will need rapid growth in order to survive in a global market. Expect more car company consolidation.

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Dave B
Joined: 10 Jan 2004
Posts: 4511
Location: Pittsburgh, PA

4/13/17 4:54 PM


quote:
Other mature, established car companies like Subaru and Mazda will need rapid growth in order to survive in a global market. Expect more car company consolidation.

Suzuki and Mitsubishi's car divisions are already on life support. The current market just can't support as many entrants as it has now and it will only get worse as China and India try to get into the market. There are going to be both consolidations and outright failures.

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dddd
Joined: 11 Jan 2004
Posts: 3126
Location: NorCal

4/13/17 8:24 PM

Mitsubishi has a huge corporate base to rely on, even as the car division makes no net profit or goes in the red. I read that Mitsubishi keeps selling cars as it is a sort of glamorous/sporty/sexy image thing for the industrial giant's image, perhaps to improve shares value(?).
Euro-4 emissions regulations have finally arrived and have put unprecedented pressure on small motorcycle companies to make or break, and I assume it's the same for the smaller of the auto builders. Some of the motorcycles will be significantly heavier and more expensive this year as a result.

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Steve B.
Joined: 19 Jan 2004
Posts: 628
Location: Long Island, NY

4/13/17 10:53 PM

Suzuki pulled out of the US car market maybe 7 years ago.

I recall my wife liked the SX-4, right before she bought one the dealer closed.

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dddd
Joined: 11 Jan 2004
Posts: 3126
Location: NorCal

4/14/17 12:05 AM

I think it was 12 years back when Isuzu pulled out of the US (car and light truck) market. They still have a presence with their box trucks and such.
I bought my '88 Isuzu P/U when it was their all-new body style (that a subsequent decade of Honda-badged Isuzu SUV's would also wear). It is the only new 4-wheeled vehicle that I ever bought, and has been the most reliable, by far. Routine-replacement parts like O2 sensor, timing belt/tensioner and water pump cost only a fraction of what most car's parts cost, and the parts are still readily available through the aftermarket and mega-distributors.

I guess it was Kia and Daewoo that merged some years ago, Daewoo was done but was apparently acquired and is now in with Kia and effectively, Hyundai.

I would have thought that by now VW would have new owners, but I guess they were big enough to weather the storm (so far) after their smog test scandal.[/i]

Mazda shares platforms and build sites with Ford, so should be ok as long as they keep an attractive lineup of cars, maintaining their sportier style.

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Sparky
Joined: 08 Dec 2003
Posts: 15528
Location: Portland, OR

4/14/17 12:43 AM

"would have thought that by now VW would have new owners, but I guess they were big enough to weather the storm "

And them some....

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Marc N.
Joined: 12 Jan 2004
Posts: 396
Location: Israel

4/14/17 4:14 AM

Fear not

You don`t have to worry about VW as in 2016 , the VW group was the largest selling car manufacturer in the world.

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Dave B
Joined: 10 Jan 2004
Posts: 4511
Location: Pittsburgh, PA

4/14/17 5:55 AM


quote:
Mazda shares platforms and build sites with Ford, so should be ok as long as they keep an attractive lineup of cars, maintaining their sportier style.



Mazda and Ford may still have some supplier relationships but Ford divested any ownership stake in them several years ago. AFAIK, Mazda's current cars are entirely Mazda designs, and better for it too.

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henoch
Joined: 12 Jan 2004
Posts: 1453

4/14/17 8:02 AM

Yes, Mazda and Ford parted ways a few years ago and Mazda's cars have improved tenfold since then.

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