Thai-Ducks

[Rincewind]

Ducati to open a factory in Thailand, Italian workers worried

posted: Thursday 16 December 2010 by Toni M.

The Ducati Motor Holding company is not immune to globalization and expanding to new and larger markets and after decades of working solely in Italy, has decided to open a new facility in Thailand (work will start in the next few days).

The company will delocalize the final assembly stage of their motorcycles destined for the Asian markets in order to get around high import duties and taxes.

Italian unions and the local regional government are worried that this may be the first step in cutting down on the work force and closing down the Bologna factory with dire consequences also to the rest of the production chain, have asked for guarantees that this won’t happen.

Gabriele Del Torchio, Ducati’s CEO said he had no comment on the question, but according to Giancarlo Muzzarelli, the regional counciller for productive activities, who met with Del Torchio on Tuesday, said that Ducati has confirmed that they are going ahead with the Asian plant, while they have no intention of decreasing their presence on Italian territory.

Del Torchio left for Thailand on Wednesday to oversee the start of the new production unit, while further discussions will take place in January.



http://www.twowheelsblog.com/post/5713/ducati-to-open-a-factory-in-thailand-workers-worried

[atadaskew]

I would never buy a Thai Ducati if they shipped them to the US or Europe.  Not because I have anything against Thai mfg, but I do detest mfgs firing their workforce to move production overseas, with no-one benefitting but the upper mgmnt.

I am wary about the claim that is is to get around high taxes, seeing that most Asian countries have no interest in large motos..

[Rincewind]

The article says the Thailand-made bikes are destined for the Asian market, so I don't think you have to worry.  As I understand it, it is like Harley's new Indian plant, which is being made to avoid high import tariffs there.

On the other hand, Triumph's Thailand-made bikes are prevalent in the US.  Many Japanese manufacturers are also outsourcing to Thailand.  

I am just wondering when I can get my desmo auto-rickshaw.  

[falconati]

Darn, I was hoping for a $5000 Hyper  

[Mr.Black]

Darn, I was hoping for a $5000 Hyper  

I was hoping for some spicy food.

[spd2918]

I would never buy a Thai Ducati if they shipped them to the US or Europe.

If they adjusted their prices by their saving you might.

[atadaskew]

If they adjusted their prices by their saving you might.

That never happens.  Jobs are cut 'here' for cost savings, mfg is shipped abroad.  Prices to the consumer, incredibly, stay the same...
Only winners? The doods on top running the show and the 3rd world workers making pennies on the dollar.

[swimmer]

That never happens.  Jobs are cut 'here' for cost savings, mfg is shipped abroad.  Prices to the consumer, incredibly, stay the same...
Only winners? The doods on top running the show and the 3rd world workers making pennies on the dollar.

+1.  Example, brand X or (xxx) makes motorcycle motorcycle jacket in Europe that sells for $500.  Brand X or (xxx) shifts production to China and jacket price stays at $500.  

[spd2918]

True, but as already posted here people will pay less for a Thai Duck (if at all).  They will either have to sell for less or sell far fewer.  The law of supply and demand is not negotiable.

Just about all of the major clothing lines are now made in China.  It's not a fair comparison.  Personally I won't buy an inferior Pakistani riding suit even though it costs a ton less than my (superior) Stich.  Many people here will.

[falconati]

For me, it's overall value.  If the Pakistani suit is of equal value and greatly cheaper, I would probably go for it.  If the 'Stich is better, I'd weigh the overall value of the quality vs the cost and make a decision.

Same with the bike - I do not care where it's manufactured, it's overall value for me.