World’s No. 1 Bike Tycoon Passes His Revolutionary Torch to the Next Generation
The world’s largest bike maker Giant Manufacturing is undergoing transition from the old to new generation. In an interview with Nikkei Asian Review, Prof. Joseph Fan said that while the company may have made sufficient preparations, “the weakest time period of any given family business is the transition from the old to new generation.”
On 16 December 2016, King Liu, founder and chairman of the world’s largest bicycle maker Giant Manufacturing, tendered his resignation together with the company’s 67-year-old chief executive, Tony Lo. Over the last four decades, the two men transformed a tiny contract manufacturer into the world’s biggest cycling brand, with more than 12,000 dealers across 80 countries.
The founder is passing the baton to his niece, Bonnie Tu, 67, and his only son, Young Liu, 57. Tu, the company’s chief financial officer and executive vice president, will take the chairman’s seat, while Liu, the chief operating officer, will become chief executive. The moves will take effect on 1 January 2017.
Investors are closely watching the changes. Giant shares tumbled 4.5 percent in the week through 16 December 2016 to close at 188.50 New Taiwan dollars.
In an interview with Nikkei Asian Review, Joseph Fan, Professor of School of Accountancy and Department of Finance and Co-director of Centre for Economics and Finance at The Chinese University of Hong Kong Business School, said that while Giant may have made sufficient preparations, “the weakest time period of any given family business is the transition from the old to new generation.”… Read More (PDF)
This story was also reprinted in the print edition of Nikkei Asian Review‘s 22 December 2016 issue entitled “THE HUNT FOR HIDDEN ASSETS”. Please click the image below for further reading.
Source: Nikkei Asian Review
Date published: 18 December, 2016 / 22 December, 2016
Photo: Nikkei Asian Review