Rumor Mill....no more Litespeed (or Merlin) Titanium bikes

Well tell that guy if he ever tires of it and is in the market for, well never mind… Maybe just tell him I’d like rights of first refusal assuming it has ~56cm TT :wink:

i’ll write or tell bike industry people very different sorts of things that i’ll write or tell end users. what i’m writing to chip is nothing knew for me to talk about, it’s just that i don’t think it’s important to talk to end users about branding and the virtues of just-in-time manufacturing and merchandising and whether to use field reps or office reps, and so forth.

i think titanium is a tough go right now, because the very things that caused aluminum to overtake steel (the ease of cutting and forming aluminum, the relative cheap cost of the material) now cause carbon to look impressive versus titanium. the one value of titanium seems to me to be in the manufacture of custom bikes (it’s still not very easy to make custom bikes out of carbon and have those bikes retain all the virtues inherent in carbon bikes).

this means, tho, that these ti bike makers should have slick processes for making custom bikes, that is, when a guy is a good match for a custom bike, there ought to be a very good process whereby the dealer can divine what the custom geometry is. serotta was pretty good at that, but, fumbled the ball over the past decade. litespeed was never good at being a custom bike builder. and this was because it was always more (historically) of a fabricator than a brand. it always understood manipulating titanium better than manipulating the custom bike business. litespeed is paying the price for that now. but so is lynskey i think. neither company ever designed and built a fit bike, nor a good fit process.

ABG either needed to go full bore toward generating everything it needed to be a robust builder of custom ti bikes, or it needed to de-emphasize its attachment to titanium. my guess is that it chose to do the latter, because there’s a pretty low revenue ceiling on that business. does ABG want to be cannondale? or seven? it’s probably about the same lift to try to turn yourself into one company rather than the other, so, i think it’s predictable what most of us would choose. if you’re peter hurley, who would rather build an empire, or tinker in a back room? if you want to build a $50 million bike brand, you can’t do it building custom ti. and if you’re not going to center your company around custom ti, i think ti is a heavy lift right now, esp if you’re trying to keep your own ti factory going month to month.

I give the custom Ti thing six months at the outset…and I bet ABG is more than okay with that. What I am curious about is who is going to take the burden of the warranty issues that are sure to come up - especially with the mix breed carbon/ti bastard child bikes from a few years ago. If I had a Ti Vortex for instance and it broke, I would fully expect that I would get a replacement under the lifetime warranty…I would also fully expect that bike to be Ti and also with a lifetime warranty. (note: I do have a Vortex as well as an Ultimate)

Litespeed carbon and Litespeed aluminum frames shall be under warranty for three (3) years from the date of purchase to the original owner of the bicycle. All bicycle components and additions will be warranted only by the manufacturer of the product. Litespeed is responsible only for the bicycle frame.

Litespeed purchased the burden of the warranties that were implied by pre-ABG Litespeed and as long as that brand is around is going to have to honor that in some way shape or form. This I can see as one heck of a fly in the ointment of getting out from user the burden of the tooling, inventory and paying the very gifted welders a salary that they are going to be willing to work for.

As for a “Fit” system…Sure, Serotta came up with a system and a way to build a better mousetrap (right until everyone on earth copied it). Yamagucci also had a nice system that was effective - but far too costly for most LBS to purchase and have properly trained folks on hand to use it. If however they were to partner with someone (they being Lynskey) who for instance had a system like FIST where you could get the general coordinates of where a person wanted to be in relation of a given set of tubes on a bicycle (head/BB/hub center axis) it would not be to hard to fit a frame within the given dimension. Then again, if a system such as FIST was to “partner” with one custom MFG that would just cause the others to move away from that system - unless of course that system had an option to specify the geometry and general locations (you know to the mm or so) of the center of where a given frame component was supposed to be for a given human body.

“What I am curious about is who is going to take the burden of the warranty issues that are sure to come up - especially with the mix breed carbon/ti bastard child bikes from a few years ago.”

very likely litespeed will handle litespeed warranties. i’m confident they made arrangements. i think you’re casting aspersions on a company without any data to cause concern. what if, a week after you got married, i starting posting on forum boards, “i wonder who’s going to keep chip from beating his wife?” just because i ask it in the form of a question doesn’t free me from the responsibility of my innuendo.

so, why don’t you relax, join me in a percocet, and let the grown ups in chattanooga manage their businesses? if i forum readers want to hear overhyped faux news 24/7, they can always turn on CNN.

I would need a Percocet to handle even 5 minutes of CNN.

In R10C’s defense, I had the very same thoughts when I heard this news. I own two Litespeeds and worry about how warranty issues will be handled. I had the same worries when Aegis went under and I had a relatively new T2 in the basement. I am not trying to cast aspersions, but I would really like to know the “arrangements” that Litespeed has in mind if my 6 month old Siena cracks. As far as I can tell, the new C-series Litespeeds have a shorter headtube that would be less than ideal for me. I guess I could at least try to sell the frame if that were the replacement policy… Do you anticipate Litespeed staying in the ti business? If so, maybe my concerns are not a big deal. However, even if they have a very small boutique line, repairs/replacements might be very slow or unavailable.

I am getting tired of buying bikes from smaller companies. I have a Moots that I love and hopefully they can hold their own as a small company with a lean overhead and cult-like following. My next bike will probably have to be a Trek/Cervelo/Specialized, because I am sick of plunking down $2-3k for a frame with a “lifetime warranty,” only to find out 6-12 months later that the company is either out of business or radically different (read: out of the ti business). I like the idea of getting something a little different, but I also like to think that I am not wasting my money.

“In R10C’s defense, I had the very same thoughts when I heard this news. I own two Litespeeds and worry about how warranty issues will be handled.”

did you have these very same worried when cannondale shut down its manufacturing facility?"

“I had the same worries when Aegis went under and I had a relatively new T2 in the basement.”

yes, and if a bike company goes under, i can understand your concern. but these folks appear to have shut down a part or all of their U.S. based manufacturing processes. which means they’re now like specialized or cannondale or cervelo or felt. i don’t mind anyone having questions. i don’t mind people thinking that they might be best off buying bikes from large companies. what i mind are unfounded innuendos that harm corporate efforts, so, that’s why i responded to chip’s post.

That was not at all what I intend. My question is “what will happen”, and “rumor”. I have no doubt at all that ABG has a plan to handle any potential future warranty issues (presuming that one would end up with a carbon ride in the case of a failure of their Ti ride). More over the heartbeat of what the general thought is of Litespeed leaving the Ti business all together, if it is chalked up to the end of the non-compete with Lynskey and what the heck is going to happen to Merlin.

Worrying about a warranty before a purchase to me is just silly in a way…even GM was looking as if there was going to be warranty issuess, companies fail all the time and it is what it is. My question was more that if the MFG of my washer stopped making washers, and mine fails…am I going to end up with a new stove.

“That was not at all what I intend.”

nevertheless, as you see, that is the sort of response generated in the minds of your post’s readers, which is why you should be careful what you post and how you phrase it.

That is the schtick though…historically, when you think Litespeed you think Titanium. Just last Sunday I was on a ride with a guy telling me that my Ultimate was in fact not at all a Litespeed as “titanium is not that color”. As a long time fan (yes I am aging myself) of Litespeed, and using the “But I will never again need to purchase a bike” line with the woman I was able to get my first Litespeed - that aspect is now gone. A warranty does not cover some of the what we see semi-common fratures due to impact/abuse that is far more common with carbon than Ti.

So, at the end of the day this is IMO a sad end of an era if Litespeed does in fact stop making Ti. I fully understand ABG’s rational behind the move to carbon, they do need to play head to head on a cost per unit (post mould) with the other players like Cervelo, Specialized, Giant. I think that ABG is going to have to have one heck of a media blitz to get over the hump of the expectation of Ti on their bikes. Gerard as we have seen in the past few years has been able to pull off the impossible and is now the owner of “the” bike to own (and have his bikes ever proven themselves!).

The Litespeed change to carbon is going to be an interesting one. I do have to wonder though if keeping the Litespeed name is worth the heritage of the brand…while being such an alteration of what it was that created the brand. I have little doubt that you have laid in bed thinking “what the hell were they thinking” when ABG took over QR and changed the bikes drastically. Not to infer that I had any (as I didnt) sweat equity into Litespeed and what it was - I have to wonder “What the hell are they thinking” when it comes to the name Litespeed and the move to carbon.

Behind closed doors I am willing to bet that you have thoughts on this whole thing…and I bet you giggle a bit as I know that you know the “real” story…

Yeah but he only giggles because of the percocet. :slight_smile:

 I'll just mourn the loss of a few more US jobs to Asia.  I've generally gone out of my way to buy frames that are built here, and have had a couple litespeeds and (still have) a Merlin Mountain frame.  I often buy used, but of the new bikes I've purchased, most have been US made, and that included several aluminum Cannondales over the years, as well as the Merlin.  Recently though, I bought a Spot bike, and ended up finding that they produce frames both here and in Taiwan, and I had the latter...bummer, as I try to keep a few "locals" employed with the purchases I make.

I’ll preface my comments by freely admitting that me arguing with you about the bike business seems like a bad idea, but who ever said that I had good sense…

I understand why Litespeed would do what it appears they, in fact, are doing. I suppose that makes Litespeed more like Specialized and the others you mentioned. However, when I made my purchases of the Siena and Saber (both in the last 12 months), I bought a Litespeed, not a “Litespeed.” I think that based on what I am reading, it is reasonable to foresee that Litespeed will not be able to replace or repair ti bikes in the not so distant future. That, IMHO, creates a very real problem for us Litespeed owners who, unlikely as it may be, might have to call upon Litespeed to honor the lifetime warranty. In the event that a ti Litespeed breaks under warranty, I imagine that Litespeed will offer a carbon replacement bike and that is really not the same as a replacement ti bike.

When I bought my ti Litespeeds, I purchased them based on a) reputation as a long-time leader in building ti bikes and b) the lifetime warranty. It is reasonable to believe that at least 50% of the rationale behind my purchase no longer exists. I really did want ti bikes and I really do want a ti replacement/repair in the event something happened that was covered under the warranty. To add to the problem, it appears that the C1 geometry is different from the ti Siena, so there may very well be fit issues to contend with as well. I have a bit of a bad taste in my mouth after hearing this news and I think that it may well be justified.

To be fair, I have always had great customer service when I called Litespeed. I ordered an extra set of decals and dropouts for my Saber and they were on my door step a few days later. I am sure that Litespeed will not simply abandon their warrant obligations. I just wish that they could have remained a US made ti bike company.

Do you think that Litespeed knew they were going this route when I bought my Saber last summer? Or when I bought my Siena this spring? Just wondering…

Question posted:

Who would like to play with rumors that Litespeed is no longer going to be producing Ti bicycles in TN? I have it from a good source that ABG does not even own the building where they once made Ti bikes…

Answer:

We currently do own the building and are still producing titanium bikes in it. It is under contract to be sold later this summer. It was listed for sale for about a year. We have entered into an agreement to move to a different space prior to the closing where we will continue to produce titanium bicycles.

Mac McEneaney
Director of Sales, North America

Question:

ut the rumor is that ABG sold their bicycle production facility in the US…and guess to who…

Answer:

Lynskey Performance has entered into an agreement to purchase the faciltiy.

Mac McEneaney
Director of Sales, North America

Question:

Maybe a new “blade” will finally come to market…

Answer:

The likelihood exists that you will see one in the future.

Mac McEneaney
Director of Sales, North America

Question (or more accurately off-target statement):

I would say that it is a safe bet that moving trucks could be seen at ABG and new (old) folks will be moving in.

Answer:

No, they won’t show up until mid-July.

Question (or more accurately off-target statement):

I would bet that Litespeed go to 100% Asian carbon bikes (who ever made that decision I hope breaks their leg tripping over a porcupine).

Answer:

Litespeed has no plans to go 100% carbon, 100% Asian, or to trip over porcupines.

Question (or more accurately off-target statement):

Merlin will be odd man out and the brand will all but fold.

Answer:

Merlin’s unit sales are down, mostly due to high demand for Litespeed titanium through several of our overseas distributors. There are no plans to fold Merlin.

Can I leave my name and title off for the rest of my answers?

Quantanna Roo will be another mystery…things are a changin…

More:

Hurley said the new office will be twice the size of the old one, while the new factory will be cut in half.

Very telling.

Answer:

If you’ve ever been to our current facilities, they are not very well set up for office space - inside sales, customer service, R & D, meeting space, etc… Aren’t meeting our needs. There are favorable market conditions for moving to Chattanooga and helping with the revival of some areas in the city. There were huge parts of the factory that were used for inventory that is now being housed in Los Angeles (keep in mind that Qunitana Roo is a huge part of ABG business). We simply don’t need the factory space that we once did.

Statement:

ABG never pulled any punches about their position in the industry - “Make money for their investors” (and god bless them for it).

I guess “response” is the appropriate header here:

It is true that the owners of the company are investors, but the CEO (as an active owner/investor) is a cyclist and triathlete who also wants to put the best products possible under people. He rides everything we design and put out for sale.

Statement:

At any rate, and at the price point. Litespeed is now a direct competitor with Cervelo (road), Giant and a few other 500lbs Gorilla’s. At the price point they are at with the C1 they are right there, or even higher in MSRP than the R3…not sure that is where I would want to be in the market. Not sure how long they can sustain that while Gerard is making bikes that win races left and right and Giant is making bikes for the world. No longer can they count on a “Lifetime warranty” and a material that folks used to lust after.

Response:

As a company, we have pursued pro tour and continental teams to ride our product. We had great success when Lotto-Adecco rode our products. One thing we’ve heard over and over again in discussions with teams is the need for high-end carbon fiber framesets. If we ever wanted to be under pros again, this was the direction we needed to go. We spent two years designing this frameset so that it met the needs of athletes testing it and what teams demand. Our C1 frameset is high-end and expensive, but our C3 probably offers the best value and performance of any $3000 bike in the market. Our dealers love the product and support it. We’ve got elite racers all over the country riding and winning on Litespeed carbon bikes. There’s nothing wrong with bikes that are designed and tested in Chattanooga and manufactured overseas alongside every other manufacturer in the world.