The bicycle industry catches its breath

Ludwig Döhl

 · 20.03.2020

The bicycle industry catches its breathPhoto: Hersteller
The bicycle industry catches its breath
The coronavirus is also slowing down the bike industry. While workshops in bike shops are still running, the production of new bikes and wheels is on hold at many companies.

Germany is known worldwide for three things: excellent engineering, good beer and stylish cars. This casual list probably summarises the nation's key industries well. However, the fact that other branches of industry are also important in the land of cars has been demonstrated not least by the decision that Bavarian bicycle repair shops are allowed to reopen. While the assembly lines at BMW, VW, Audi and Daimler are coming to a standstill, the service provided by bicycle mechanics is indispensable - even in a crisis as drastic as the current one.

But the German bicycle industry does not live mainly from selling spare parts and repairing flat tyres. Before Bavaria's Minister President Markus Söder imposed the exit restrictions for the whole of Bavaria ( Read here what this means for cyclists ), this extreme restriction of freedom already applied in Mitterteich, a town of 7,000 inhabitants. A strong beer festival was still taking place in the Upper Palatinate community when many people already realised how serious the situation was. The number of coronavirus cases skyrocketed. But what does Mitterteich have to do with the bicycle industry? It's down to the following link.

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  The district of Tirschenreuth is located in the Upper Palatinate near the German-Czech border. With its companies Cube and Ghost, the district of Tirschenreuth is considered one of the hubs of the German bicycle industry. On the <a href="touren/deutschland/deutschland-trail-etappenberichte-2019/a41586.html" rel="noopener noreferrer">Deutschland-Trail</a>, we found out that this region is also a great place for biking.Photo: Stefan Loibl The district of Tirschenreuth is located in the Upper Palatinate near the German-Czech border. With its companies Cube and Ghost, the district of Tirschenreuth is considered one of the hubs of the German bicycle industry. On the Deutschland-Trail, we found out that this region is also a great place for biking.  Are you keen on mountain biking? We have <a href="magazin_abo/heft_info.html?utm_source=Rand_Heft_Widget&utm_medium=Heft_Info_Button_click&utm_campaign=internal_references" rel="noopener noreferrer">all the information you need for the start of the season</a> bundled in BIKE 4/20! Order the latest <a href="https://www.delius-klasing.de/bike-04-2020-bik-2020-04" target="_blank" rel="noopener noreferrer">issue for free delivery to your home</a>, or read the <a href="en/profiles/1669d931deeb/editions" rel="noopener noreferrer">digital edition</a> for €4.49 on your computer or tablet.Photo: Delius Klasing Verlag Are you keen on mountain biking? We have all the information you need for the start of the season bundled in BIKE 4/20! Order the latest issue for free delivery to your home, or read the digital edition for €4.49 on your computer or tablet.
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From the district of Tirschenreuth into the world


Mitterteich is located in the district of Tirschenreuth. It may be hard to believe, but the rather economically weak border region with the Czech Republic is home to a hub of the German bicycle industry. This is because Ghost and Cube, two large bicycle companies, are also located in the district of Tirschenreuth. A call to Cube makes it clear that, as in the automotive industry, the production lines here are also at a standstill. However, there are no specific cases of illness due to coronavirus. There was also no sign of panic or cries for state aid, at least on the phone. Although the temporary production stop means that a five-digit number of bikes cannot be assembled for the time being, the general mood at the Upper Palatinate bicycle giant is still rather positive. Due to close contacts with Chinese producers, the company already suspected a few months ago that the start of the season would not be an easy one. But after years of boom, nobody is burying their heads in the sand.

  Cube is one of the largest German manufacturers of bicycles. According to the company, well over half a million bikes are assembled in a two-storey production line at its headquarters in Waldershof. Cube's wheel production can be seen in the foreground. The production line is currently at a standstill due to the coronavirus crisis.Photo: Hersteller Cube is one of the largest German manufacturers of bicycles. According to the company, well over half a million bikes are assembled in a two-storey production line at its headquarters in Waldershof. Cube's wheel production can be seen in the foreground. The production line is currently at a standstill due to the coronavirus crisis.

Although retailers are currently unable to sell new bikes, bike shops are not cancelling any pre-ordered bikes. Quite the opposite. "The shops are using the ban on opening to assemble the bikes they already have in stock," says Cube veteran Frank Greifzu. Bike retailers are therefore preparing for the delayed start of the season, even if they don't know when it will start. Large online retailers are even reordering goods at the moment to meet the high demand online. So it's not just toilet paper and pasta that are being hoarded, but apparently also bicycle inner tubes and entire bikes. This nation is not as bourgeois as one might have thought. The dispatch of goods from the Cube company headquarters to the dealers takes place quite regularly. Once the situation surrounding the corona pandemic has calmed down, the company intends to resume normal operations. And that will be necessary.

  The Chinese bicycle industry is already recovering. From the end of March, production capacity for bicycle frames is expected to be back at 100 per cent.Photo: Getty Images The Chinese bicycle industry is already recovering. From the end of March, production capacity for bicycle frames is expected to be back at 100 per cent.

Looking to the future: how corona could ultimately affect us

In times when many things seem unclear, at least one train of thought is obvious: If the Federal Minister of Health advises using the bicycle instead of public transportThis will have an overall positive effect on the cycling industry. And if Germans cancel their trips to Mallorca, Italy or other corners of the world, they will perhaps spend their holidays at home on their local cycle paths and trails. These are all scenarios that are currently a long way off. The coronavirus crisis has to be overcome first. It goes without saying that the call to set off seems strange just a few hours after Bavaria imposed far-reaching lockdown restrictions. But if you have a clear goal in mind, it will be easier to cope with the hardships of the coming days and weeks.

The tamers of globalisation, of all people, who are blamed by some for the spread of the virus, are now providing a ray of hope in the darkness of the crisis. While the peak of the coronavirus crisis in Germany is not yet in sight, positive signals are coming from China. The first Chinese frame manufacturers are announcing that they will be able to fully ramp up production capacities again at the end of March. This is confirmed by a reliable source. So there is life after the crisis. In China and certainly also here in Germany and Europe. And not only for the key industries, but also for the bicycle industry, which is currently operating on a low flame. Ghost - also based in the district of Tirschenreuth - did not want to comment on the current situation in the company. Only this much could be gleaned from our contact: Everyone who has an office job at the company headquarters is currently working from home. Operations are running, at least as well as can be expected in these times. And the share price of the Accell Group, to which Ghost belongs, is already pointing upwards again today after a huge slide. Apparently, the shareholders also realise that despite the coronavirus crisis, things are not so bad for the bicycle industry.

  The share price of the Accell Group (which includes Ghost, Winora, Lapierre and Haibike) is already recovering after a rapid decline. In the last 48 hours, it has risen by 11.3 per cent to just under 14 euros. Investors on the stock market also have confidence in the bicycle industry.Photo: BIKE Magazin The share price of the Accell Group (which includes Ghost, Winora, Lapierre and Haibike) is already recovering after a rapid decline. In the last 48 hours, it has risen by 11.3 per cent to just under 14 euros. Investors on the stock market also have confidence in the bicycle industry.

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