SRAM Adopts Another
posted March 1, 2004
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Bike magazine went to the SRAM Corporation's headquarters in Chicago for a behind-the-scenes glimpse of what goes into developing their products at a time when SRAM has announced their interest in buying Avid, the well-known brake company. SRAM has a history of acquisitions, owning both Sachs and RockShox, and now has Avid in their crosshairs. We spoke with SRAM and RockShox public relations and media manager Michael Zellman and toured their Chicagoland facility to find out more about the current state of the company and where they are heading in the future.
Bike: Recently there has been news about the SRAM Corporation buying yet another bicycle company to go with Sachs (purchased in 1997) and RockShox (purchased in 2001). What was behind the most recent purchase of RockShox?
M.Z.: We have a history of strong acquisition. We made an investment in [RockShox]; then we made a stronger investment by modifying it in a way that works for SRAM, but also kept the heart of RockShox, which is one of the most recognizable brands in mountain biking. The product has a tremendous history; in fact, we invested millions in the company-factories, research, technology, everything-just to maintain it at a high level.
Zellman taking a lap around SRAM's 150-yard indoor track.
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SRAM Corporation has announced that it's pursuing Avid. Are there any plans to change Avid's lineup of components?
Avid is still Avid. Until the purchase is finalized, we cannot comment on that. In terms of changing products, we want to continue the progression of RockShox as a leader in suspension.
In terms of product overlap, has there been any thought to SRAM brakes and Avid brakes when the Avid deal goes through?
As far as going into this year, SRAM is not supporting its brakes-you will not see our brakes in the product catalog. It hard for people to understand; products come and go, but its not necessarily because of Avid.
What does RockShox have in store for the bicycle world in 2004?
You'll see a dramatic change from RockShox this year. At least two new fork platforms will be introduced, and on the SRAM side a ton of new stuff from the drivetrain side of things to follow up on the X.0 series. The entire year will be filled with product launches.
A view of half of SRAM's machine shop.
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Has there been any thought at SRAM as to offering a gruppo set up with drivetrain, shocks and brakes, all sold as a package?
We are trying to provide everything. We want to be a choice company, offering choice alternatives. We are the only company in the world that offers drivetrain and suspension and it's definitely something we're keeping in mind as far as offering the entire gruppo.
Since the acquisition of RockShox, has SRAM engineering been incorporated into the research a design of new RockShox products and vice versa?
We have incorporated engineers, sales and marketing from RockShox in Colorado Springs, Colorado, to the Chicago office. Product development for RockShox has stayed in Colorado Springs. We have 40 some employees there who still do the same things they did before [they were bought]-the whole operation was pretty seamless. We did move manufacturing to improve cost savings, but it was a huge investment for the company. Our manufacturing happens in several locations including Portugal, Spain, Germany, Ireland, China and Taiwan.
Lou, the head Chicago machinist, showing me how to measure machined parts with light.
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We have teams of engineers who can jump from suspension to drivetrain to whatever. The product development teams in Colorado Springs can do the same things but are more focused on suspension. Everybody in this company has been brought up to speed on suspension and drivetrain so we are not forsaking anything.
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