Instead, most Schwinn derailleur bikes were marketed to the general leisure market, equipped with heavy “old timer” accessories such as kickstands that cycling aficionados had long since abandoned. While the Paramount still sold in limited numbers to this market, the model’s customer base began to age, changing from primarily bike racers to older, wealthier riders looking for the ultimate bicycle. Schwinn sold an impressive 1.5 million bicycles in 1974, but would pay the price for failing to keep up with new developments in bicycle technology and buying trends. By 1950, Schwinn had decided the time was right to grow the brand. At the time, most bicycle manufacturers in the United States sold in bulk to department stores, which in turn sold them as store brand models.
But there are plenty of products where the top-end is a couple orders of magnitude more expensive than the entry-level. For example, the car market, from used junkers to brand-new custom luxury vehicles. Or the meal market, from McDonald’s to Michelin restaurants. Good mathematics doesn’t always help you when it comes to bicycle tires. For example, most “middleweight” Schwinns take 26 x 1 3/4 tires, which are hard to find, not 26 x 1.75 as used on other brands.
The new company produced a series of well-regarded mountain bikes bearing the Schwinn name, called the Homegrown series.[62] In 2001, Schwinn/GT declared bankruptcy. In the 1950s, Schwinn began to aggressively cultivate bicycle retailers, persuading them to sell Schwinns as their predominant, if not exclusive brand. During this period, bicycle sales enjoyed relatively slow growth, with the bulk of sales going to youth models. In 1900, during the height of the first bicycle boom, annual United States sales by all bicycle manufacturers had briefly topped one million. By 1960, annual sales had reached just 4.4 million.[10] Nevertheless, Schwinn’s share of the market was increasing, and would reach in excess of 1 million bicycles per year by the end of the decade. Sometime in the 1970’s, the Schwinn Chicago factory was organized by the United Auto Workers union, who felt that bicycle factory workers should be paid on the same scale as automotive workers.
It was an unqualified success, other than that it was very expensive to produce and showed little if any real profit potential. Sponsorship of 6-day riders produced a team to showcase the Paramount, the riders such as Jerry Rodman (The Michael Jordan of that time in Chicago) and the rest of the Schwinn Co. bicycle line. The 70’s also marked a time of considerable change in the high-end bicycle market. Except for Paramount, US framebuilders had pretty much died out up through the 50’s and 60’s.
F. Goodrich bicycles, sold in tire stores, Schwinn eliminated the practice of producing private label bicycles in 1950, insisting that the Schwinn brand and guarantee appear on all products. In exchange for ensuring the presence of the Schwinn name, distributors retained the right to distribute Schwinn bikes to any hardware store, toy store, or bicycle shop that ordered them. W. Schwinn tasked a new team to plan future business strategy, consisting of marketing supervisor Ray Burch, general manager Bill Stoeffhaas, and design supervisor Al Fritz. Schwinn was soon sponsoring a bicycle racing team headed by Emil Wastyn, who designed the team bikes, and the company competed in six-day racing across the United States with riders such as Jerry Rodman and Russell Allen. In 1938, Frank W. Schwinn officially introduced the Paramount series. Developed from experiences gained in racing, Schwinn established Paramount as their answer to high-end, professional competition bicycles.
A generation of people came to believe that bicycles were inherently heavy, dangerous and unreliable. Marc Muller, a young new Schwinn engineer, was given the responsibility to head up the project. The Paramount operations were moved to Waterford, Wisconsin, where the Paramount was reborn with a modern factory and workforce. Schwinn then partnered with 7-Eleven, establishing a team including Eric Heiden. When 7-Eleven decided to hit the big time in racing, Schwinn went its own way due to a lack of funding. Schwinn was, however, able to recruit an up-and- coming rider named Lance Armstrong to its ranks.
In time, the Paramount came in a variety of models but remained expensive to produce and purchase. Designating the width with a fraction instead of a decimal usually signifies a straight-sided rim, not a hook-edge rim. There are similar problems with other Schwinn tire sizes.
You might think that these are the same, but they are not. By the end of the 60’s, resentment inside the factory over these lugs and shells was so high that when the supply finally ran out in the late 60’s, Schwinn sourced the Prugnat lugs as a substitute. The builders loved it, but the move was not popular among dealers and riders, since most people favored the carefully filed and beautifully ornate Nervex lugs. Schwinn compromised by keeping the Prugnat bottom bracket shell while returning to the Nervex lugset.
Unable to produce bicycles in the United States at a competitive cost, by the end of 1991 Schwinn was sourcing its bicycles from overseas manufacturers. This in turn led to further inroads by domestic schwinn ebike and foreign competitors. Faced with a downward sales spiral, Schwinn went into bankruptcy in 1992.[59] The company and name were bought by the Zell/Chilmark Fund, an investment group, in 1993.