Cycleurope Changes Peugeot for Puch Branded Bikes

ENSCHEDE, The Netherlands (August 23) - Cycleurope is to launch Puch branded bicycles in Germany, Austria, Switzerland, The Netherlands, Belgium and Luxembourg this September. At the same time Cycleurope will end the distribution of Peugeot bicycles in the German speaking countries as well as The Netherlands, although Peugeot will remain on board as a low-end brand in Germany and Holland until 2005, when Cycleurope will lose its license to market the famous Peugeot brand. During the Eurobike Show which will start next Thursday August 29, Cycleurope will exhibit Puch branded bicycles. The French/Swedish bike maker currently owns the Puch brand name for bicycles which has a high brand awareness in the Greman speaking countries and The Netherlands thanks to the mopeds from the old days. Puch will act as a so-called mega-brand with a complete collection of low-end MTB, trekking/city and kid's bikes. Last year Cycleurope CEO Tony Grimaldi stated during a press conference at the Paris Mondial du Deux Roues bicycle and motorcycle show about the post-Peugeot brand strategy that Puch branded bikes would be marketed in the German speaking countries and the Benelux countries and that Cycleurope would use various brands in the countries it is operating. In France Cycleurope distributes bikes under the Metéor, Gitane and Bianchi brands, while in for instance The Netherlands the new high-, mid- and low-end brands are Bianchi, Puch and Monark respectively. Belgium has been subdivided: The Flemish part follows the Dutch strategy, while the Wallonian part follows the French strategy. According to Cycleurope Benelux the Puch quality brand will be competitive priced with high margins for IBDs. (FN)