CZ in negotiations to buy Colt
- Thread starter bradg
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CZ buying Colt would likely help Colt with some of their QC issues. American gunmakers could learn a thing or two from CZ - like walnut, blued steel and accuracy do a popular quality gun make.
I hate to say it, but this is a dupe. It's already been discussed.
https://www.mdshooters.com/showthread.php?t=252815
https://www.mdshooters.com/showthread.php?t=252815
Thanks for sharing the story. When you hit 50 posts (contributions to the Introductions subforum don't count), you will get access to other parts of the forum. There are folks that initially post a lot to try to get this access, but mods knock them down.
- Feb 4, 2013
- 28,175
You don't have enough posts.
Duckncover
Member
does this mean the value of Colts made before this possible acquisition would go up in value?
EarnestT
In the hollow
I hope so!
So, I am miss reading this. The article says that CZ is buying Colt Manufacturing which is the subsidiary corporation that does civilian sales of products manufactured by other companies with the Colt name engraved on them. It doesn't mention Colt Defence which is the producer of the actual military and police ar-15 based products. So is this just the purchase of the civilian IP for CZ? Sort of like Charles Daily? Are we looking at foreign-made 1911's with a colt name slap on them for marketing?
TheOriginalMexicanBob
Ultimate Member
Colt Defense LLC absorbed the New Colt Holding Company in 2013 and the Colt's Manufacturing Company. Colt Canada is a subsidiary.
If the sale goes through which is likely, it's up to the new parent to decide what gets made and where and what products get kept or dropped. Many think the Single Action Army will go away as it's a very low volume product still being made for historical legacy value...and it's doubtful CZ gives a damn about Colt's historical legacy...only the markets it services and profits it can provide.
Whether Colt can be moved from CT may not be easy...there are union contracts that would have to be negotiated or voided...various laws that forbid moving with avoiding unions as a reason...a notoriously anti-gun and pro-union new administration...and anti-gun Senators and Representatives in CT that would presumably try and block a gun company from leaving the state regardless of how much they hate the company but love the tax revenue and unions more. Many of Colt's long time vendors and forging suppliers are located close to them...moving could possibly make raw materials more expensive due to added shipping costs and negating savings in moving to lower wage areas. All that's just supposition but there's lots of competing reasons for or against moving operations.
While it might take some time I would think Colt would be stuck in CT for some time before CZ could move them to more favorable locations for manufacturing.
If the sale goes through which is likely, it's up to the new parent to decide what gets made and where and what products get kept or dropped. Many think the Single Action Army will go away as it's a very low volume product still being made for historical legacy value...and it's doubtful CZ gives a damn about Colt's historical legacy...only the markets it services and profits it can provide.
Whether Colt can be moved from CT may not be easy...there are union contracts that would have to be negotiated or voided...various laws that forbid moving with avoiding unions as a reason...a notoriously anti-gun and pro-union new administration...and anti-gun Senators and Representatives in CT that would presumably try and block a gun company from leaving the state regardless of how much they hate the company but love the tax revenue and unions more. Many of Colt's long time vendors and forging suppliers are located close to them...moving could possibly make raw materials more expensive due to added shipping costs and negating savings in moving to lower wage areas. All that's just supposition but there's lots of competing reasons for or against moving operations.
While it might take some time I would think Colt would be stuck in CT for some time before CZ could move them to more favorable locations for manufacturing.
All CZ has to do to dodge the union is buy all the branding, TDPs, and jigs, and then let Colt the company declare bankruptcy. Anyone wants a job after that, they can apply at CZ like everyone else.
Apparently, Colt has been trying to leave Connecticut for a while. https://www.courant.com/business/hc-biz-colts-union-lawsuit-20180305-story.html
The new 1903 pistols are contract made, supposedly the ar's are, as wells as the single action armys. https://usarmamentcorp.com/
They also gutted many departments in the last few years. https://www.thefirearmblog.com/blog...op-director-employees-company-rumored-gutted/
It would be interesting to see what the actual terms of the sale are but it seems like it is just a brand name and maybe a few buildings.
The new 1903 pistols are contract made, supposedly the ar's are, as wells as the single action armys. https://usarmamentcorp.com/
They also gutted many departments in the last few years. https://www.thefirearmblog.com/blog...op-director-employees-company-rumored-gutted/
It would be interesting to see what the actual terms of the sale are but it seems like it is just a brand name and maybe a few buildings.
TheOriginalMexicanBob
Ultimate Member
The Colt 1903s are license built by US Armament...there is a difference between license built and contract made.
Many components are supplied by vendors such as frames and cylinders which Colt techs machine and finish. Barrels are purchased as blanks and Colt does the machining. The Single Action Army is still made by Colt...something like 135 monthly which is a pretty low volume number. The AR rifles are done the same way...various vendors supply the raw forgings which Colt finishes. The company has had some outsourcing of certain AR lesser expensive lines such as the Expanse series.
Having casting and forging operations is a very expensive undertaking and various EPA regulations are in play...it proves better for Colt and other gun companies to receive the raw forgings from companies that specialize in such operations rather than do it in-house anymore...let someone else do that and be responsible for the employee salaries and long term benefits and healthcare and have your company do the things that they can do best. Most AR companies buy their raw forgings from various foundries rather than set up a very expensive in-house operation.
Many components are supplied by vendors such as frames and cylinders which Colt techs machine and finish. Barrels are purchased as blanks and Colt does the machining. The Single Action Army is still made by Colt...something like 135 monthly which is a pretty low volume number. The AR rifles are done the same way...various vendors supply the raw forgings which Colt finishes. The company has had some outsourcing of certain AR lesser expensive lines such as the Expanse series.
Having casting and forging operations is a very expensive undertaking and various EPA regulations are in play...it proves better for Colt and other gun companies to receive the raw forgings from companies that specialize in such operations rather than do it in-house anymore...let someone else do that and be responsible for the employee salaries and long term benefits and healthcare and have your company do the things that they can do best. Most AR companies buy their raw forgings from various foundries rather than set up a very expensive in-house operation.
War is good for gun manufacturers, peace is bad for gun manufacturers.
sickpuppyz
your mom sends me care packages
I don't think they are leaving US soil. Other than that if you can't put out a quality product you either shut down or get sold for peanuts. Considering CZs track record this should be a welcomed move to revive an american icon.
TheOriginalMexicanBob
Ultimate Member
Colt has unfortunately made a habit of tying its fortunes to government contracts at the expense of the civilian market. While there is nothing wrong with government contracts...they are a source of good income...the fact is they go away just as quickly. Under various corporate owners Colt has suffered in commercial sales while the corporate overlords sucked them dry for the M16 contracts for years while they all but laid the law enforcement market at S&W's feet and failed to upgrade and modernize the factory.
Colt may not be the only gun...or any...company that was bled dry by holding companies then have their carcass was dumped by the road for the vultures.
Bertfish
Throw bread on me
1940s Indian
Ceded the domestic market to a smaller company called Harley Davidson because they poured all effort towards the war contracts
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