German Daily Press Picks Up Hub Gear Dumping Case

MUNICH, Germany (July 16) - The renowned German newspaper 'Süddeutsche Zeitung' picked up the ongoing dumping case claim of US bicycle component maker SRAM against its Japanese competitor and world market leader Shimano. The author expressed his surprise about the huge amount of bureaucratic expense the EU Commission is putting in such a tiny segment as hub gears for bicycles. But he also realizes that the German bicycle industry is following this case with serious concern. According to the article both the German bicycle industry and specialist retailers hope that SRAM won't win this case against Shimano." Such a verdict would be a catastrophe for our entire industry", Berthold Lönne, chairman of the ZIV (German Bicycle Industry Association) board, is quoted. And Georg Honkomp, chairman of the strong German bicycle buyers group ZEG, warns: "If the EU is taking a decision against Shimano hundreds of jobs will move into the Eastern European countries." Lönne is also quoted by blaming SRAM for this "unfounded claim": "While for us this is a declaration of war, for the Americans it is just a sportsmanlike contest." Lönne also refers to the different sense of justice of both "charismatic bosses" - US-American Stan Day on the one and Japanese Yoshizo Shimano on the other side - are standing for. This gap is part of the different company cultures. SRAM boss Stan Day doesn't understand the German industry's concerns: "If Shimano continues its unfair competition for German producers there is no chance and no challenge to further develop any new innovative products." With this statement Day has a direct eye on his German-based gear hub production in Schweinfurt. The dumping case is especially discussed in Germany, where over 50% of the European market for hub-geared bicycles lies. A final decision of the EU Commission will be announced in September.(JB)