China posed to buy bankrupt Huffy

Discussion in 'Road Cycling' started by [email protected], Jun 29, 2005.

  1. Just found this article posted at
    http://www.centurychina.com/cgi-bin...=33731333830393&zu=33373133383039&v=2&gV=0&p=

    I didn't know Huffy went bankrupt. Perhaps someone should let China's
    government know that Huffy is the(?) premier maker of beater bikes
    only. I wonder what the point of the acquisition is, as it certainly
    cannot be to obtain new technical skills.

    Speaking of which, I was under the impression that the PRC makes
    hundreds of millions of bikes a year already. Why they would be
    interested in a beater bike manufacturer is beyond me.

    Later,
    Nelson Chen

    __o Same road Boycott Wal-Mart, union-buster.
    _`\<,_ Same rights
    (_)/ (_) Same rules

    China poised to take over U.S. Huffy bikes
    Tue Jun 28, 2005 07:40 PM ET
    (Recasts with background on China's bid for American corporate assets,
    Huffy's history)

    NEW YORK, June 28 (Reuters) - Chinese suppliers and an agent of China's
    government are poised to take control of Huffy Corp. (HUFCQ.PK: Quote,
    Profile, Research) , a venerable U.S. brand name, as the bicycle maker
    restructures under bankruptcy protection, it said on Tuesday.

    Huffy, making bikes for Americans for more than a century, said it had
    agreed to a reorganization plan which would allow it to terminate its
    staff pension plans. The company would turn responsibility for the
    benefits over to the Pension Benefit Guaranty Corp., a unit of the
    federal government that insures pension plans.

    The proposal also would give the suppliers that make its bicycles in
    China and the China Export & Credit Insurance Corp. the right to elect
    a majority of its board of directors and earn up to 51 percent of its
    new common voting stock over five years.

    <snip>
     
    Tags:


  2. Dane Jackson

    Dane Jackson Guest

    [email protected] wrote:
    >
    > Speaking of which, I was under the impression that the PRC makes
    > hundreds of millions of bikes a year already. Why they would be
    > interested in a beater bike manufacturer is beyond me.


    Basically for the name. I imagine most of the production facilities are
    in China already.

    Also, China has been making more investments in the US lately. Which
    makes sense, they can only buy up *so* much of our debt to prop up
    the dollar. I'm sure they'll get a better return on their dollar
    by buying companies than bonds.

    --
    Dane Jackson - z u v e m b i @ u n i x b i g o t s . o r g
    "He's a born-again Christian. The trouble is, he suffered
    brain damage during rebirth." -Anonymous
     
  3. <[email protected]> wrote:

    > Speaking of which, I was under the impression that the PRC makes
    > hundreds of millions of bikes a year already. Why they would be
    > interested in a beater bike manufacturer is beyond me.


    Maybe they think the technology can be used for military applications.

    > NEW YORK, June 28 (Reuters) - Chinese suppliers and an agent of China's
    > government are poised to take control of Huffy Corp.


    > Huffy, making bikes for Americans for more than a century, said it had
    > agreed to a reorganization plan which would allow it to terminate its
    > staff pension plans.


    Oh, thats's cute. Another corporation's going to ditch their pension plan.
    And the US Govt allows it. Thank you, Mr. Bush. Another chance to screw the
    little guy.

    Art Harris
     
  4. On 2005-06-29, [email protected] <[email protected]> wrote:
    > Speaking of which, I was under the impression that the PRC makes
    > hundreds of millions of bikes a year already. Why they would be
    > interested in a beater bike manufacturer is beyond me.


    My impression is this and it may be totally of, but bear with me. China
    has stepped up war-gaming and arming itself recently. Especially buying
    equipment like amphibious landers that are obviously intended for
    invading Taiwan.

    Now all of a sudden they're on a US corporation buying spree at almost
    the EXACT same time that the US is trying to get tough with them over
    their currency. How I read this is that China sees that this may be
    their one chance to use the huge trade imbalance, before the US takes
    any action to correct that balance artificially. We know the imbalance
    won't be corrected by us manufacturing less stuff in China, so it's
    going to be by forcing China, via the WTO, to change how they trade
    their currency.

    So I see this as a long term attempt to first of all take control of
    large parts of the manufacturing sector, top to bottom. Huffy may be no
    Trek or Giant or Bianchi, but I'm pretty sure they still sell a lot of
    bikes. And if China owns Huffy (assuming Huffy isn't already made in
    China) it will forever be made in China. Those are the two competing
    nations for our cheep manufacturing business, Taiwan and China. So every
    company that is sending business to China is not sending business to
    Taiwan. They're also trying to purchase Westinghouse this week. Another
    bargain basement manufacturer of goods.

    So it looks to me at least like they're trying to take away as much
    business as possible from Taiwain. And, if they get enough leverage,
    perhaps up and down the supply chain they can influence other parts that
    are made in Taiwan. I know that may seem paranoid or nuts, but coupled
    with their war gaming and their attempt to buy Unocal, it sure looks
    like China is trying to spend the money, while they have it, on
    controlling...

    #1 - Where goods are manufactured
    #2 - Part of the West's oil supply

    If they succeed, perhaps it weakens the US and Taiwan economically and
    strategically. And no, by strategically I didn't mean Huffy. I know we
    don't use Huffies in combat. I meant Unocal.

    Just my wild-eyed conspiracy theory.

    Preston
     
  5. gds

    gds Guest

    Preston Crawford wrote:
    > How I read this is that China sees that this may be
    > their one chance to use the huge trade imbalance, before the US takes
    > any action to correct that balance artificially.


    Interesting post! But on the currency question--don't you think that a
    fixed rmb/US$ exchange is already a bit "artificial?"
     
  6. Gary Smiley

    Gary Smiley Guest

    Compared to the bikes they ride in China, Huffies are high-end.


    >
    > Speaking of which, I was under the impression that the PRC makes
    > hundreds of millions of bikes a year already. Why they would be
    > interested in a beater bike manufacturer is beyond me.
    >
     
  7. maxo

    maxo Guest

    On Wed, 29 Jun 2005 18:01:34 -0400, Gary Smiley wrote:

    > Compared to the bikes they ride in China, Huffies are high-end.


    I'll take a Flying Pigeon over a disposable Huffy MTB any day...
     
  8. dgk

    dgk Guest

    On Wed, 29 Jun 2005 12:04:18 -0500, Preston Crawford
    <[email protected]> wrote:

    >On 2005-06-29, [email protected] <[email protected]> wrote:
    >> Speaking of which, I was under the impression that the PRC makes
    >> hundreds of millions of bikes a year already. Why they would be
    >> interested in a beater bike manufacturer is beyond me.

    >
    >My impression is this and it may be totally of, but bear with me. China
    >has stepped up war-gaming and arming itself recently. Especially buying
    >equipment like amphibious landers that are obviously intended for
    >invading Taiwan.
    >


    They won't need a war to take over the US. They are buying it as our
    military/corporate state allows. After all, what do multinational
    companies care about countries? They are global. They want to break
    down national boundries and destroy labor protections.
     
  9. Leo Lichtman

    Leo Lichtman Guest

    Dear Lord. If they get both Huffy and Unical, what will be left?
     
  10. di

    di Guest

    <[email protected]> wrote in message
    news:[email protected]
    > Just found this article posted at
    > http://www.centurychina.com/cgi-bin...=33731333830393&zu=33373133383039&v=2&gV=0&p=
    >
    > I didn't know Huffy went bankrupt. Perhaps someone should let China's
    > government know that Huffy is the(?) premier maker of beater bikes
    > only. I wonder what the point of the acquisition is, as it certainly
    > cannot be to obtain new technical skills.
    >
    > Speaking of which, I was under the impression that the PRC makes
    > hundreds of millions of bikes a year already. Why they would be
    > interested in a beater bike manufacturer is beyond me.
    >
    > Later,
    > Nelson Chen
    >
    > __o Same road Boycott Wal-Mart, union-buster.
    > _`\<,_ Same rights
    > (_)/ (_) Same rules
    >
    > China poised to take over U.S. Huffy bikes
    > Tue Jun 28, 2005 07:40 PM ET
    > (Recasts with background on China's bid for American corporate assets,
    > Huffy's history)
    >
    > NEW YORK, June 28 (Reuters) - Chinese suppliers and an agent of China's
    > government are poised to take control of Huffy Corp. (HUFCQ.PK: Quote,
    > Profile, Research) , a venerable U.S. brand name, as the bicycle maker
    > restructures under bankruptcy protection, it said on Tuesday.
    >
    > Huffy, making bikes for Americans for more than a century, said it had
    > agreed to a reorganization plan which would allow it to terminate its
    > staff pension plans. The company would turn responsibility for the
    > benefits over to the Pension Benefit Guaranty Corp., a unit of the
    > federal government that insures pension plans.
    >
    > The proposal also would give the suppliers that make its bicycles in
    > China and the China Export & Credit Insurance Corp. the right to elect
    > a majority of its board of directors and earn up to 51 percent of its
    > new common voting stock over five years.
    >
    > <snip>
    >


    This could be justice, since the corporate executives who closed the U.S.
    manufacturing factories and moved it all to China will probably loose their
    jobs also.
     
  11. Mike Kruger

    Mike Kruger Guest

  12. "Mike Kruger" wrote:
    > "Leo Lichtman" wrote:
    >> Dear Lord. If they get both Huffy and Unical, what will be

    > left?
    >>

    > Maytag.
    >
    > Oh, wait...


    Or IBM PCs

    Art Harris
     
  13. Tom Keats

    Tom Keats Guest

    In article <[email protected]>,
    "Arthur Harris" <[email protected]> writes:
    >
    > "Mike Kruger" wrote:
    >> "Leo Lichtman" wrote:
    >>> Dear Lord. If they get both Huffy and Unical, what will be

    >> left?
    >>>

    >> Maytag.
    >>
    >> Oh, wait...

    >
    > Or IBM PCs


    Or Boeing.


    cheers,
    Tom

    --
    -- Nothing is safe from me.
    Above address is just a spam midden.
    I'm really at: tkeats [curlicue] vcn [point] bc [point] ca
     
  14. The Wogster

    The Wogster Guest

    Mike Kruger wrote:
    > "Leo Lichtman" <[email protected]> wrote in message
    > news:[email protected]
    >
    >>Dear Lord. If they get both Huffy and Unical, what will be

    >
    > left?
    >
    > Maytag.
    >
    > Oh, wait...
    >
    >


    Actually Norco, CCM and Raleigh assemble bikes in Canada. If you can't
    get US assembled bike, how about a Canadian one....

    W
     
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