Schwinn Bicycle Company a separate deal with the China Bicycle Co. (CBC) to produce bicycles to be sold under the Schwinn brand. In retaliation, Giant introduced its own line of Giant-branded bikes for sale to retailers carrying Schwinn bikes. Both Giant and CBC used the dies, plans, and technological expertise from Schwinn to greatly expand the market share of bicycles made under their own proprietary brands, first in Europe, and later in the United States. By 1990, other United States bicycle companies with reputations for excellence in design such as Trek, Specialized, and Cannondale had cut further into Schwinn's market. Unable to produce
Trek Bicycle Corporation 3-tube carbon composite model, the 2500. Thus began Trek's foray into carbon fiber. That same year, to keep up with rapidly growing sales, Trek added another of manufacturing space to its Waterloo headquarters. In 1988 Trek introduced "Trek Wear," marking the company's entry into the cycling apparel business. A year later Trek expanded into foreign markets, opening subsidiary offices in the UK and in Germany. That same year Trek introduced its Jazz brand of bicycles, a collection of entry-level and kids’ bikes designed by Trek but manufactured in Taiwan. Jazz bicycles were discontinued in 1993. 1989 was a pivotal year