BikeBiz Bicycle and cycling retail news
Email from John Acres of BiGHA:
1. Giant Manufacturing has not won its case in July of this year. This case goes to trial on January 11 of 2005 in Federal Court in Eugene, Oregon.
Two rulings were made in July by the presiding judge:
BikeE did not pay Giant for some bicycles it received, a fact I have never contested.
Giant is not entitled to the 42% annual rate of interest they demanded on the amount owed.
The upcoming trial will determine what amount Giant owes to BikeE for product and component defects.
Ms. Tu claims Talking about the recalls, it was the products they made in USA in their own small work-shop… and The demise of BikeE was BikeEs shoddy workmanship.
These statements are false and Ms. Tu knows it. Heres why:
BikeE purchased over 12,000 fully-built bicycles from Giant and EACH had defective parts. These bicycles were built in Giants facilities in Taiwan and shipped to BikeE in dealer-ready boxes. The shoddy workmanship of these Giant-built bicycles required BikeE to execute an expensive recall.
Giant also sold BikeE components for use in its US-made bicycles. These component were also faulty and triggered a separate recall.
Giant consistently refused to meet its responsibility for these defects and further demanded that BikeE prepay for the components required to make recall repairs. Giant suddenly, and without warning, declared BikeE in default and refused to make further shipments. This notice came even though BikeE was well within the payment timeframe Giant had customarily allowed. BikeE had no alternative but to close its doors.
Thankfully, BikeEs day in court is soon to come.
2. BikeE recently filed a NEW and ENTIRELY SEPARATE lawsuit against Giant Manufacturing.
BikeE alleges the defective components Giant supplied are part of a larger pattern of conduct to destroy BikeE and eliminate yet one more obstacle in Giants goal of dominating the bicycle market with its own brand. This new lawsuit is completely independent of the January trial and its outcome.
