The production flow for these bicycles began with frame fabrication in the handbuild part of the Chicago Schwinn factory; a low-volume production area. Frame tubes were mitered in a jig by machine, and then the remaining fabrication work (brazing, filleting, braze-ons, and finishing) was done by hand. The seat and down tubes, as well as the top tube on the largest frame sizes, are slightly oversize at 29.5 mm in diameter.
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This policy was the same whether distribution took the form of the so-called Schwinn Plan deliveries to retailers or agency and consignment arrangements, or whether it took the form of sales by Schwinn to wholesalers and resale by them to retailers. The record shows that this policy was implemented largely through request and persuasion by Schwinn. We agree, and, upon remand, the decree should be revised to enjoin any limitation upon the freedom of distributors to dispose of the mongoose bmx bike Schwinn products, which they have bought from Schwinn, where and to whomever they choose. We are here confronted with challenged vertical restrictions as to territory and dealers. These are not horizontal restraints, in which the actors are distributors with or without the manufacturer’s participation. We have held in such a case, where the purpose was to prevent the distribution of automobiles to or by “discounters,” that a “classic conspiracy in restraint of trade” results.
Only time will tell whether or not that the iconic Swhinn brand is now in good hands. In October 2021, Pon Holdings of the Netherlands approved the purchase of the brands Schwinn, Cannondale, GT, and Mongoose from Dorel Industries for $810 million. The Schwinn brand joins other brands already owned by Pon Holdings that include Gazelle, Cervélo, FOCUS, Santa Cruz, Kalkhoff, and Faraday. Wilson, Some Problems Relative to Franchise Arrangements, 11 Antitrust Bull. It should be noted that, since the start of this litigation, Schwinn has taken over 30% of the wholesaling of its products by vertical integration.
Interestingly, Schwinn’s 1970’s catalogs didn’t really differentiate the fillet-brazed CrMo models either. They were simply shown on the next catalog page, right before the Continental page. No separate catalog or distinct section for “lightweight touring and racing bicycles,” and no detailed discussion of the benefits of seamless CrMo tubing and fillet brazing. Schwinn’s catalog copy for the last fillet-brazed Superior ( ) did begin to mention “hand made” and a little more on fillet brazing. Again, perhaps Schwinn didn’t highlight the fillet brazed models for fear of overloading its handbuild capacity. On bikes with original paint the model decal, “CrMo” decal on the seat tube, bullet-pointed seatstay tops, and round “Schwinn-Chicago” badge on the head tube will indicate one of Schwinn’s fillet-brazed 10-speed bicycles.