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Get ready to pour some peanut sauce on your spaghetti as Bologna Bullets destined for the Southeast Asian markets will soon be produced in Ducati’s newly planned factory in Thailand. Being called a “final assembly” plant, the move is similar to the one that Harley-Davidson undertook late last year, where the Bar & Shield brand setup an assembly plant in India in order to side-step the extremely high tariffs the country puts on foreign-made motorcycles.



In addition to Harley-Davidson, Ducati will be joining the likes of Honda, Yamaha, KTM, and Brembo,all of whom have increased their presencein the Asian markets within the past year to capitalize on the growing economies of India, China, and Southeast Asia.



It comes with little surprise that Ducati’s union workforce is worried about the move, which could be a precursor for its jobs being shipped overseas. Like the grandstanding we saw from Harley-Davidson’s workforce (and certain media outlets), the move by Ducati would incorrectly be labeled as an outsourcing of Italian jobs to Thailand, as Ducati has already made it clear that the bikes produced in Thailand will only be sold in the Southeast Asian markets.



The situation currently facing companies outside of these markets is that fact that extremely high tariffs (up to 40% in some cases)prevent a meaningful number of units, produced in this case in Italy, to be sold in the Southeast Asian markets. To fix that problem, and to serve these growing markets, companies create local assembly factories that meet localization standards, and are thus not taxed so heavily. The result is cheaper prices on the bikes being sold in these countries, purely from the tax break alone, let alone expense being saved on the labor costs, which then spurs more sales in these countries (when you’re talking a price half of what it previously was, these extra sales boosts are often massive).



Going back to the union’s concerns, the only production that is being taken away from the Italian factory, is those bikes which would have originally been shipped to Southeast Asian markets. Also since Ducati’s new factory is a final assembly plant, presumably some of the manufacturing process for these countries would still remain in Italy. However considering that Ducati’s own Bologna factory is predominantly a final assembly plant itself (Ducati contracts most of its parts to other companies, and primarily only builds the frame and motor in-house), it is not clear what differentiates Thailand’s final assembly plant from the Bologna HQ (we’ve reached out to Ducati on this one, and are waiting for a response).



While the sky might not be falling as some have declared, there is at least a moderately reasonable concern for Ducati’s Italian factory workforce, as it is not impossible for Ducati to realize the advantages of building motorcycles in Thailand down the line, especially once the Italian company has established a stable and trained workforce in its final assembly plant. Of course this is an issue that will always loom over a domestic workforce that has high labor costs. Let us know in the comments if you’d buy a Ducati made in Thailand?.



Source: Omnimoto



The full story is in the Jan 2012 edition of the Friction Zone page 14 entitled A New Production Facility for Honda.



Corporates answer to the American peopleis the very same answer John Dillinger gave the FBI when they asked him , "why do you rob banks". His answer to them was , " because that's where the money is". To corporateyour ability to find a job is in America irrelevant. We can’t sell to you because you’re broke so we’re going to sell to those who have the money and keep right on getting richer. No wonder there isn’t any loyalty between the workers and the company.
 

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It'll be interesting to see which factory will service the Australian market. Thailand would produce savings in freight & labour cost components
 

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It ought to get interesting even more since Harley Davidson cannot export any spare parts outside the US via any dealership, on-line, etc. I guess since harley parts are made in japan and soon in Thiland too, Thiland wil be the only ones who can support all of asia and europe. That article can also be found in the same magazine as I did the one above but can get to on line since the link is broke. In your opinion how will Thilands craftmenship compare to Japans? I'm hoping those people in Thiland will have Japanese QA inspectors and have to meet Japan's specs or better. We need quality NOT quantity, with materials certs and 100 QA inspection



The full story is in the Jan 2012 edition of the Friction Zone page 14 entitled Harley Davidson Restricts Dealers Sales.



While you're in this Friction Zone magazine check out whats coming to the USA when it comes to reestrictions on ANY motorcycle modification. Article entitled Europe Proposes Ban on Modification




http://www.fz-videos.com/online.html
 

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High tarriffs on products sold to the south east asin market means the west cannot export to there HMMMMMM.
Cant 2 play that game or do our politicians have no ball's
Wilf
 

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wilf wrote:
High tarriffs on products sold to the south east asin market means the west cannot export to there HMMMMMM.
Cant 2 play that game or do our politicians have no ball's
Wilf
Our elected leaders have sold out to the highest bidder...:yelling:
 

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wilf wrote:
High tarriffs on products sold to the south east asin market means the west cannot export to there HMMMMMM.
Cant 2 play that game or do our politicians have no ball's
Wilf
The few that have any have tiny ones, that's why you only see them play golf!
No football, no Basket Ball, not even base ball! Only the games made for players with tiny balls!

Some may play Ping Pong, but we don't see them, in that case they are playing with their tiny little balls in private! :ROFL:
 

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i don't find the statement re moving GL production to thailand - could you point me to it, please? thx.
 

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TwoBigCats wrote:
i don't find the statement re moving GL production to thailand - could you point me to it, please? thx.
I the article -- Full story is in the Jan 2012 edition of the Friction Zone page 14 entitled A New Production Facility for Honda- it clearly says the Gold Wingplant is moving from Japan to Thiland



As long as each part has material certs and the QA is overlooked by the Japanese I guess we're safe. If not then willall be rding by the seat of out pants. We'll see. This may be the last motorcycle I ever own. Who knows maybe it will retain it's value becasue the parts are from japnn and assmebled in the USA.:?
 

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scons wrote:
It'll be interesting to see which factory will service the Australian market. Thailand would produce savings in freight & labour cost components
Savings for the company profit log only:readit:
 

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Well I guess it makes scince for honda to move the GW to the new center of power and wealth in the world. They have always been far sighted that way . as in moving GW to the states when they where the worl power
Wilf
 

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As I said before. Corporates answer to the American peopleis the very same answer John Dillinger gave the FBI when they asked him , "why do you rob banks". His answer to them was , " because that's where the money is".As far acorporateis concerned, your ability to find a job in America is irrelevant to us andyou will not get in our way of becoming richer. We can’t sell to you because you’re broke and will be for a few decades, so we’re going to take our business to those who have the money. No wonder thereno loyalty between the workers and company.
 

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nvrpc wrote:
TwoBigCats wrote:
i don't find the statement re moving GL production to thailand - could you point me to it, please? thx.
I the article -- Full story is in the Jan 2012 edition of the Friction Zone page 14 entitled A New Production Facility for Honda- it clearly says the Gold Wingplant is moving from Japan to Thiland
thx for that. the landing page for the jan issue pdf on friction zone is 404 (The requested URL /PDF/FRICTION_ZONE_January2012.pdf was not found on this server.) so i'll check back another time.

thx again, much appreciated.
 

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If I identify with a product I have a concern about the nationality. I don't see a Triumph as an English bike when it's made in Thailand. An Italian Harley isn't a Harley.

Some of the third world countries still have the stigmas of cheap inferior product histories.
 

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I'd be very surprised if Honda moved Goldwing operations to Thailand. They just made a huge investment in the new state of the art facility in Japan.

The 2012 model used a lot of the leftover parts from the US plant in Ohio. The new generation of wings are in the works and I'm presuming will come out of that factory in Japan.

The US is still the biggest market for wings. They're just too big for the Asian and European markets, who tend to prefer smaller cc bikes.
 

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Japan said in the article that the yen is going down and the cost of labor in japan is too high, therefore all operations are moving to Thailand and this include HD spare parts. So much for their ALL AMERICAN STEEL motorcycle they've been shoving down the motorcyclist throats for decades. Now they have to admit their bike is a JAP bike too and eat crow. :badgrin:
 
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