BenRidin

Carlton Reid Today, 12:02am

Car giant takes stake in bicycle industry, acquiring Specialized from Mike Sinyard and Merida of Taiwan.
General Motors has acquired Specialized Bicycle Components, reports the San Jose Business Journal. The boards of directors of both companies approved the acquisition earlier today. The acquisition is expected to be completed in the third quarter of 2008 pending regulatory approval in the US, Canada and Europe. Terms of the all-share acquisition from Specialized Founder and President Mike Sinyard and Merida of Taiwan were not disclosed.

The deal does not include GM acquiring any of the 19 Specialized Concept Stores, a retail formula launched in 2006. All Specialized Concept Stores are independently owned.

GM's vice president, Environment, Energy and Safety Policy, Flora Lopi, said:

"In light of global concerns about climate change, GM has been at the forefront in developing new transportation choices that limit our impact on the environment. GM's engineering and marketing and distribution expertise combined with Specialized's branding among cycling enthusiasts make this a winning combination for GM investors and consumers."

Specialized founder and president Mike Sinyard said:

"All of us here at Specialized are thrilled to be a part of GM.

"Specialized will maintain commitment to the IBD as well as now being available across the nation in GM dealerships. These are quality retail outlets, not big box discounters. Specialized will never be available in mass merchants.

"The acquisition by GM will enhance the service to the specialty retail channel, increase investments in dedicated merchandising programs, introduce sales efforts in mainstream outlets, support advocacy and the activity of cycling, invest and expand in Europe and, most important, bolster an already strong research and development budget.

"We will introduce some interesting advances in bike technology at the Interbike trade show later this year, especially in the area of transportation cycling, the fastest growing sector of the bicycle market in the US."


Sinyard is contracted to stay on through until the end of March 2009. Robert Kruse, currently executive director of Vehicle Integration, Safety, Regional Chief Engineers and Performance Division for GM's North America engineering staff will work alongside Sinyard. No other management changes have been announced. Kruse is a keen road cyclist, having three times ridden RAGBRAI, a newspaper-sponsored annual bike ride across Iowa.

GM Chairman and CEO Rick Wagoner said:

"We're starting our second century at a time of fundamental change in the way we address our transportation needs. In addition to our leadership role in developing the next generation of more sustainable technologies in hybrid and alternative fuel engines, we'll leverage the unique synergies of the bicycle community to introduce some of our ideas for addressing critical issues concerning energy, the environment and globalisation."

General Motors Corp is the world's largest automaker. Founded in 1908, GM has 274,000 employees worldwide. With global headquarters in Detroit, GM manufactures cars and trucks in 35 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling.

Specialized Bicycle Components was founded in 1974 by Mike Sinyard. The company sold a large minority stake to Merida of Taiwan in 2001.

The San Jose Business Journal reports there's to be a conference call with Sinyard and Robert Kruse, pictured above, later today. BikeBiz.com will book a slot on the call so stay tuned for an update this afternoon.

If you have a question for Sinyard or the GM execs, use the comments system below and we'll aim to use some of your questions during the conference call, which starts at midday, US mountain time.

kb5ql

WTF???

Does this mean we're going to start seeing some plug-in Specialized Hybrid-drive bikes soon?

I fail to see the "corporate synergies."

SesameCrunch

Check the date of the "news" release....

t4mv

Aren't you starting a little early?.... Oh wait, maybe not, if you're on EDT.

ride_lite

Ummm...note the time of the release (hint it's EST which means its tomorrow)......

ifox

hmm, mine says "Monday, March 31, 2008 - 13:49 PM PDT".
An early April Fools?

kb5ql

Now to post some BikesDirect april fools stuff over in the Road Forums...

x136 

The San Jose Business Journal page is a hoax. Look at the URL, click on the header image, and look at that URL. Then search the real San Jose Business Journal website for the story. Ain't there.

johnny99

You folks have no sense of humor. At least wait until April 2 before you spoil the joke.

gpelpel

The story started in the UK and was first put on line on 4/1 @ 12:04am local time.

ifox

man, I need to work less

gpelpel

And from Australia this amazing technical revolution. Wrap carbon around your steel or aluminum frame and gain both stiffness and lightness.

https://www.cyclingnews.com/tech.php?...arbon_wrapit08

ifox

New format of TTT in TdF '09 is better

Gee3

I already signed up to get the first Specialized Bettini Gold Edition GMC Denali bike from Wal Mart!

Don't be jealous!

ifox

Oh, that famous carbon wrap on the frame. It does make me jealous

redspoke

I was looking forward to the 8-passenger Stumpjumper myself.

nachomc

whew, I was pooing a little reading that article

gpelpel

Do hold your breath on that!
The way these big companies operate is to buy annoying and dangerous competition then kill the company and its products. Next in line are Trek and all other bike companies. Before you will know it bikes will be part of the extinct species. No more of those little pesky 2 wheel things preventing the big SUV from ruling the road.
That's what GM has in mind, make you forget that it's possible to go from point A to point B without using a drop of gas.