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Suffering Bike Systems Enters Alliance with Biria

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NORDHAUSEN, Germany (29 August 2000) — German Biria Bike Group (BBG) and Bike Systems GmbH & Co. Thüringer Zweirad KG have decided to enter a “strategic alliance” in the areas of R&D, development and logistics. Together they form Bike Systems Betriebs- und Beteiligungs-GmbH, based in Nordhausen, Germany. While OEM bicycle manufacturer Bike Systems will concentrate […]

NORDHAUSEN, Germany (29 August 2000) — German Biria Bike Group (BBG) and Bike Systems GmbH & Co. Thüringer Zweirad KG have decided to enter a “strategic alliance” in the areas of R&D, development and logistics. Together they form Bike Systems Betriebs- und Beteiligungs-GmbH, based in Nordhausen, Germany. While OEM bicycle manufacturer Bike Systems will concentrate on production, BBG will be responsible for purchasing.
Bike Systems’ main shareholder and general manager Werner Müller denies rumors that BBG will acquire some or all of the company’s shares. “It’s not a takeover or acquisition. It’s an alliance both companies are counting on.”
With an annual production of 600,000 bicycles (350,000 by BBG; 250,000 by Bike Systems) the new alliance is now the largest bike producer in Germany, both companies claim. Future production is estimated at 800,000 units, a number that would make the cooperation the third largest producer in Europe.
There is however a dubious side to the alliance, not broached by either party. Bike Systems had few other options than to enter such an alliance, as the company recently requested a suspension of payments. Both companies declined to provide details into the suspension of payments and financial details. (JB)

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