Open Letter to Motorsports??

Message

cdaledave89 · #1 Post by **cdaledave89** » Wed Feb 05, 2003 11:47 pm

After reading Cannondale's "open letter to the past, present, and future customers" that is on their website - I snapped. I am tired of management's apathy for the motorsports division and e-mailed this to them, in response:

Dear Cannondale,

As a very loyal owner of one of your "motorsports" products (2002 Speed), I am becoming increasingly concerned over the lack of information regarding the fate of the motorsports division. I just read the "open letter" from Mr. Montgomery where he referred to the "cash drain" of motorsports, the motorsports "project", and the "distraction of motorsports". It seems as though the management has turned their backs on all of the loyal motorsports customers and supporters. As an early Cannondale supporter and owner for nearly a year and a half (Speed #72), I am absolutely outraged. Many loyal owners of your product are quite concerned whether they will be able to get parts, service, or warranty work. Your company only seems too anxious to sweep the motorsports division under the rug and forget about it. Many owners of your product have backed Cannondale unconditionally - even through tough times of product recalls, updates, and warranty work. If it wasn't for the loyal Cannondale owners acting as your "salesmen", I don't think you would have sold half as many units as you did. Your advertising and marketing efforts were sparse and half of your dealers were clueless about what they were selling, how to service it, and which part was which. Many, many units were sold as a result of word of mouth, praise, and personal "test rides" from owners like myself. Your management is well aware of the impact of internet forums like atvconnection.com, cannondaleriders.com, and cannondaler.com which also helped to promote the products. In fact, Scott Montgomery used to visit those sites regularly. We haven't seen him around those parts for nearly six months. It wouldn't hurt to drop in and calm (or confirm) our fears with a little information.

How about an "Open Letter" to the motorsports customers of past and present to let THEM know what the FUTURE will be? I am quickly losing faith in a company that I once believed in. Without some type of update from Cannondale management, I can no longer support Cannondale Corporation. I will ALWAYS support the Cannondale motorsports product and vision.

Sincerely,

Dave Walnoha

Redman · #2 Post by **Redman** » Thu Feb 06, 2003 12:06 am

Dam, you got mad skills! I hope they take your letter seriously, though, and not just have a secretary read it. I do hope it falls into the hands of the Montgomery's.

cannondale27 · #3 Post by **cannondale27** » Thu Feb 06, 2003 12:52 am

Very well put and fair I am sure it will be read by the higher ups.

LapTraffic · #4 Post by **LapTraffic** » Thu Feb 06, 2003 12:59 am

Nicely done. Please let us know if they respond at all. Did you email them or snail mail?

Where did you see the open letter" you referred to?

Thanks!

Knight440 · #5 Post by **Knight440** » Thu Feb 06, 2003 1:35 am

Sorry to say there wont be a responce to this:( SEC will make sure of this, they can't say much about his right now just hang in there! worst case it could be a tough few months but this ant over yet!!!!

jcv440 · #6 Post by **jcv440** » Thu Feb 06, 2003 3:12 am

Very nice letter Dave! You really spoke for all of us on that one. I hope it raises an eyebrow...

cdaledave89 · #7 Post by **cdaledave89** » Thu Feb 06, 2003 5:51 pm

QUOTE

Originally posted by LapTraffic
Nicely done. Please let us know if they respond at all. Did you email them or snail mail?

Where did you see the open letter" you referred to?

Thanks!

Thanks. I emailed this letter to them. The "open letter" that I was referring to appears on the "Investors" page of the Cannondale website along with the formal announcement of Chapter 11. You can go there and read it - I'm too lazy to post a link or copy it here.

I was just trying to offer my opinion and a voice for the motorsports division to Cannondale, since the letter said that they have received so much support from the bicycle dealers and customers. I understand the SEC rules, but if they can make vague statements about the future of the bicycle division, then they should be able to say SOMETHING about motorsports. I'll keep you guys posted if I get a response.

Knight440 · #8 Post by **Knight440** » Thu Feb 06, 2003 6:34 pm

To our customers; past, present and future -

As you may already know, Cannondale announced on January 27th our plans to file to restructure our company under Chapter 11 of the Bankruptcy Code. We also announced that we have suspended the operations of our motorsports division. We took this step in order to facilitate a financial restructuring that will eliminate the continuing cash drain associated with the motorsports division. While we complete the restructuring through the Chapter 11 process, our bicycle business will continue to operate without interruption. In fact, we are shipping bicycles and other cycling products, and we are servicing warranty issues, on a daily basis.

It is critical that you know that our bicycle division is not going out of business. Our goal is to preserve and strengthen our core bicycle business so that we can continue to produce innovative cycling products, just as we have throughout the duration of the motorsports project.

For our customers and dealers, our intention is that the filing will hardly be noticed at all. We have received a commitment for substantial post-petition financing from our lenders, and we expect this interim financing, which is subject to Court approval, to provide adequate funding for all obligations incurred after the filing, as well as our ongoing operating needs during the restructuring process.

We hope that the only difference you'll notice will be an anticipated improvement in our performance. With our interim financing in place, we're actually in a better position to order parts from our suppliers than we have been in recent months. As a result, we're looking forward to smoothing out our production and delivery of bicycles. Without the distraction of motorsports, we'll also be much more focused on bringing new, innovative technologies to market.

Many companies that have filed for reorganization - including Harley-Davidson, Macy's, and Toys 'R' Us - have strengthened their businesses and are performing very well today. We're very hopeful and optimistic that ours will be a similar success story. In the meantime, our plan is to provide our customers and dealers with the best possible service and support.

Thank you for your understanding, and for the many, many messages of support we have received.

Sincerely,

Joe Montgomery
Founder & President

btolenti · #9 Post by **btolenti** » Thu Feb 06, 2003 8:05 pm

Way to give up on all your loyal motorsports customer, Mr. Montgomery....

Man, I wish I had bought a Suzuki....

Redman · #10 Post by **Redman** » Thu Feb 06, 2003 10:40 pm

Well I am sure you won't have to worry about the montgomerys to much longer. With the buyer hopefully coming through they will probably rename the quad and have nothing to do with cannondale again.

Just do not be mad at the quad! It did nothing to you.