Cannondale Corp. (BIKE) Message Board

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Non-Tech : Cannondale Corp. (BIKE)

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To: Jeff Walberg who wrote (57)	2/15/1998 11:00:00 PM
From: Maverick	Read Replies (1) of 103

I'm a former BIKE investor who also happens to be a motorcyclist and a mechanical engineer. Cannondale is making a big mistake if they attempt to enter this market. Manufacturing a motorcycle, EVEN IF they outsource engines, is an engineering undertaking well beyond their abilities. A good comparison would be going from automotive to aerospace. And if the engineering problems weren't enough, the production of motorcycles is not currently that profitable. Everyone seems to think it is because of the rejuvenation of Harley Davidson, but that is an isolated case. Most manufacturers are struggling to break even on their motorcycle lines, generally relying on other products to prop them up. And recent American upstarts who are trying to jump HD's bandwagon are failing because they cannot offer the only thing that makes a Harley sell - heritage. BIKE is WAY out it's league, and does not have the resources (engineering OR capital) for this undertaking. Note that Ducati, a world renowned motorcycle builder, recently embarked on an effort to build their own engines instead of outsourcing. So far, it's been a disaster.

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