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Schwinn Bicycle Company has been around nearly as long as the bicycle itself.  Founded be Ignaz Schwinn, it was by far the biggest name in American bikes throughout the 20th century.

The Beginning

Ignaz Scwhinn was a middle aged mechanical engineer when he founded his company in Chicago in 1895.  He timed his start in the business well because this marked the beginning of America’s great love affair with the bike.  Unfortunately, Schwinn soon fell victim to America’s other great love, the automobile.  Believing that the best defense is a good offense, Schwinn aggressively bought out his smaller competition, creating for himself a near monopoly in the bike industry.

The Great Depression Leads to Great Expansion

Schwinn passed his aggressive style onto his son, the now famous F. W. Schwinn.  When the Great Depression threatened bike sales, the younger Schwinn redesigned the traditional model to resemble a small motorcycle and gave it the fanciful name Aerocruiser.   This led to the development of nationwide bicycle races and a new boom that lasted through World War II.

The Fifties Were Fabulous for Bikes

As the post-war babies learned to ride their bikes around the burgeoning suburbs, Schwinn bikes remained the market leader, rebranding his company to make sure the Schwinn bicycle would be seen as the only acceptable bike for American children.  He also joined with other, smaller companies to persuade Congress to levy tariffs on bikes made outside the US.

Unfortunately, Schwinn’s aggressive business style came back to haunt the company when the United States Supreme Court found it guilty of restraint of trade and ordered the company to break up its singular manufacturing unit into four smaller plants around the country.

Missing the Boat of Bikes

In spite of this set back, Schwinn might have continued to expand and prosper had they not largely missed the boat on the wildly popular 10 speed bike in the early 1970s.  Soon every teen in America wanted one of these multi-gear racers.  Adults liked them to and, as gas prices rose, so did the sale of bicycles.  Soon riding a bike to work was seen as a trendy and environmentally responsible alternative to gas guzzling cars.

Schwinn also failed to recognize the value and popularity of BMX bike racing until they lost out on that market, too.  While they tried to cash in on American interest in mountain biking, it again proved to be too little too late.   Thus, by the end of the 1970s the company was in real trouble.

Manufacturing and Labor Problems

Troubles with labor and manufacturing plagued Schwinn for the remainder of the 20th century.  As more and less expensive bikes continued to pour into the country from China and Japan, the company was unable to keep costs low enough to compete.  Schwinn also suffered when compared to increasingly popular United States Companies such as Trek and Cannondale.

Final Demise

America’s national tragedy of September 11, 2001 overshadowed Schwinn’s more personal business tragedy.  That was the day that the remainder of Schwinn’s assets were sold in bankruptcy court.  Though the brand continues to be sold in some low price markets, the company itself has never recovered.

About the Author

Melissa Cameron understands what it is like to need balance in a busy day with a spouse, children and elderly parents. When she does have a bit of spare time, she enjoys working out on her Schwinn recumbent bikes and writing and has realized her dream of becoming a freelance writer.  She writes health articles and reviews health equipment including the Horizon fitness elliptical review and other home gym equipment.