Irvine Bicycle Parts Maker Initiates Massive Recall
In what is being called the bicycle industry’s largest-ever safety action, Shimano American Corp. and its Japanese parent company said Wednesday they are recalling more than 2.5 million bicycle cranks installed on two-wheelers worldwide.
The voluntary recall, prompted by reports of rider injuries from broken cranks, includes 1 million bicycles in North America, according to the U.S. Consumer Product Safety Commission, which will monitor those returns.
The defective cranks--the components that connect the bicycle pedals to the frame--have been installed in more than 200 models of mountain bikes sold under at least 49 brand names since 1994.
Shimano American executives at the company’s Irvine headquarters said they have received at least 630 reports in North America of the cranks breaking while in use, resulting in at least 22 rider injuries ranging from cuts to fractures.
They also said that the parent company, Shimano Inc. in Sakai City, south of Osaka, is voluntarily recalling more than 1.5 million of the faulty cranks in Europe.
Industry watchers calculate the North American recall alone could cost Shimano more than $15 million if all affected mountain bikers brought in their cycles for repair.
Consumer response isn’t likely to be that high, consumer protection officials said. But a company spokesman acknowledged Wednesday that the safety action is nevertheless going to cost the company a bundle.
“It’s going to be in the millions,” said Shimano American spokesman John Bogler. “We sold quite a few of those cranks.”
Shimano Inc. is one of the world’s leading manufacturers of bicycle components, including cranks, brakes, shifters and derailleurs. It also makes fishing tackle and automotive components. Last year, it reported net income of about $87.9 million on sales of about $1.2 billion, based on Wednesday’s yen-to-dollar exchange rate.
The 76-year-old firm has built a rock-solid reputation for its high-quality parts and has captured more than 90% of the components market for mountain bikes, said Michael Gamstetter, editor of Bicycle Retailer & Industry News magazine. About 60% of the 12 million bicycles sold in the United States each year are thick-framed, knobby-tired mountain bikes.
Gamstetter said the recall is the biggest in the company’s history and the largest-ever for the U.S. bicycle industry.
“In this industry, a recall of 50,000 units would be considered huge,” Gamstetter said. “We can’t remember anything bigger.”
The faulty cranks were manufactured from mid-1994 to mid-1995 and were installed mainly on low- to mid-priced mountain bikes sold under a host of well-known brands such as Trek, Cannondale, Huffy and Schwinn.
Shimano had thinned and lightened the crank arms on that particular model to give the components a sleek design. But consumer complaints eventually revealed that the slimmer arms “break under certain stress loads,” Bogler said.
The company received a few complaints as early as 1995, he said, but wasn’t fully alerted to the problem until late last year and early this year when complaints began to pour in.
The federal Consumer Product Safety Act requires companies to report product defects that could be a potential hazard to consumers.
Consumer Product Safety Commission officials said Shimano came forward last month to report the defect and volunteered to perform the recall.
“They’ve been very upfront with us,” said agency spokeswoman Jane Francis. “Their cooperation has helped to speed the recall.”
Bogler said Shimano is placing ads in a number of cycling magazines to spread word of the recall. In addition, he said the company has contacted as many as 7,000 bicycle dealers throughout North America to instruct them how to participate in the process.
Bogler said Shimano American will reimburse bike shops $15 plus postage for each faulty crank that they remove and replace with new ones provided free of charge by Shimano.
Based on the $15 reimbursement figure alone, Shimano faces a potential liability of $15 million to replace all the faulty cranks in North America. Although that’s unlikely to happen, federal officials suspect that a large number of owners will respond because even low-end mountain bikes cost several hundred dollars.
“My guess is that the response rate will be pretty good,” said agency spokesman Rick Frost. “People have paid a lot of money for these bikes, and they’ll want to get them in and have this done.”
The defective cranks are part of the Altus, Acera and Alivio groups of components and are numbered FC-CT90, FC-M290 and FC-MC12. The numbers are located on the back or inner side of the right crank arm.
The product safety commission advises consumers owning bicycles with the defective cranks to stop using them immediately.
Bogler said that consumers should first contact their local bike shop to see if the dealer has made arrangements with Shimano American to replace the part. Otherwise, they can call the company toll-free at (800) 353-4719 to get the location of the nearest authorized repair shop.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Recall Effort
Shimano American Corp. will recall more than 1 million cranks installed in mountain bikes in North America since 1994. The make and model numbers involved:
Make: Alivio, Acera and Altus; check for one of these names on the front of the crank
Model numbers: FC-CT90, FC-M290 and FC-MC12; check the back or inner side of the right crank arm for one of these numbers
Some bicycle brands involved: Bianchi, Cannondale, Diamondback, GT, Giant, Huffy, Motiv, Murray, Raleigh, Schwinn, Trek and Univega
Getting Help
If you have one of these cranks, stop using your bike immediately. To arrange for free replacement and installation:
* Contact your local bicycle dealer; or
* Call Shimano, toll-free, at (800) 353-4719
What’s a Crank
Bicycle cranks connect the pedals to the frame. The cyclist gains speed by propelling the crank, which pulls the chain and powers the rear tire.
Sources: U.S. Consumer Product Safety Commission, Shimano American Corp., What’s What
