Schwinn Sting-Ray

Schwinn Bicycle Company

2011 Schwinn logo
Type	Subsidiary
Founded	1895
Founder	Ignaz Schwinn
Parent	Dorel Industries (Pacific Cycle)
Website	http://www.schwinnbikes.com/

The Schwinn Bicycle Company was founded by German-born mechanical engineer Ignaz Schwinn (1860–1945) in Chicago in 1895. It became the dominant manufacturer of American bicycles through most of the 20th century. After declaring bankruptcy in 1992, it has since been a sub-brand of Pacific Cycle, owned by the multi-national conglomerate, Dorel Industries.

Ignaz Schwinn was born in Hardheim, Baden, Germany, in 1860 and worked on two-wheeled ancestors of the modern bicycle that appeared in 19th century Europe. Schwinn emigrated to the United States in 1891. In 1895, with the financial backing of fellow German American Adolph Frederick William Arnold (a meat packer), he founded Arnold, Schwinn & Company. Schwinn's new company coincided with a sudden bicycle craze in America. Chicago became the center of the American bicycle industry, with thirty factories turning out thousands of bikes every day. Bicycle output in the United States grew to over a million units per year by the turn of the 20th century.

The boom in bicycle sales was short-lived, saturating the market years before motor vehicles were common on American streets. By 1905, bicycle annual sales had fallen to only 25% of that reached in 1900. Many smaller companies were absorbed by larger firms or went bankrupt; in Chicago, only twelve bicycle makers remained in business. Competition became intense, both for parts suppliers and for contracts from the major department stores, which retailed the majority of bicycles produced in those days. Realizing he needed to grow the company, Ignaz Schwinn purchased several smaller bicycle firms, building a modern factory on Chicago's west side to mass-produce bicycles at lower cost. He finalized a purchase of Excelsior Company in 1912, and in 1917 added the Henderson Company to form Excelsior-Henderson. In an atmosphere of general decline elsewhere in the industry, Schwinn's new motorcycle division thrived, and by 1928 was in third place behind Indian and Harley-Davidson.