Ducati to build Thai factory...now confirmed

[Duc Fever]

I wonder if all this will cause an up-tick in the resale value of our "pure" Italian thoroughbreds 

[Stinky Wizzleteats]

A Ducati that runs on Green Curry Chicken. 


MMMMMM.....Green Curry Chicken. 

[duc996]

Ducati going down the drain

[jerryz]

http://www.motoblog.it/post/27441/du...edono-garanzie

For those who don't read Italiano

A translation ............

Ducati Motor Holding will open a new factory in Thailand, in order to relocate the final stage of production of resources devoted to the Asian market, in order to circumvent the duties.

The unions have called for guarantees on future plans of the company, with the fear of a loss of production in Bologna, for Asia.

Giancarlo Muzzarelli, Regional Minister for Productive Activities, Trade unions and Workers, became involved and reassured -

"Ducati will not reduce its activity in the main plant, as confirmed also by Gabriele Del Torchio, who spoke at yesterday's meeting at the offices of Viale Aldo Moro"

Concluding that the commissioner "has confirmed the commitment to go ahead with the new plant in the face of market changes, we addressed the situation with realism and concreteness. "

So the unions have taken the ball and demand guarantees, with a clear, precise and explicit agreement that will contain all stages of the production cycle in Bologna.

The decisive meeting will take place in January, when meeting with employees to explain word for word the Thai project.

Muzzerelli reassures: "Bologna will do what it does today"

15 Pages of talk on this Ducati Forum

[ungeheuer]

Business is business.  More units = lower cost per unit .... usually.  This could result in either lower selling prices or greater profitability for the company. 

Yeah, yeah, yeah. We know. All very sound and logical.  But the purchase of an overpriced ITALIAN motorcycle is not a buying decision based in sound logic, is it?!  You do it out of.... lust.... or love.... or some other irrational driver of desire.  We're talking Ducati here not make the beast with two backsing Kelvinator.  Business is more than just business when the primary purchasing motivations are emotional, rather than rational. 

If you think for a minute that Ducati care what you think about their production facilities you are sadly mistaken.

What? "Made in Italy" means nothing to the existing and aspiring client base?? 

I would be out if my bike was made outside of Italy.  It is part of the attraction IMO.

Yup, me too.

[ducpainter]

No need for a separate thread.

[Grappa]

The really sad thing to me is the twisted, convoluted system that exists where it's cheaper to manufacture the parts for the bike in one place, then ship all the parts to another for actual assembly. 

I would prefer the bikes were still manufactured, assembled, built, etc in Italy, but I don't know if it would damage the brand that much after poking around the web a bit.  Was going to make the point that if Gucci or Prada manufactured in Asia, then they would lose some of their image.  Then I did a quick google search and realized that they DO manufacture a lot of their wares in Asia.   

[Triple J]

Ducati Motor Holding will open a new factory in Thailand, in order to relocate the final stage of production of resources devoted to the Asian market, in order to circumvent the duties.

^^ That's the key statement in the announcement. They aren't doing it to save money in manufacturing, they're doing it so they can sell their bikes cheaper in Asian markets since they apparently won't be hit with an import fee if they're assembled in Thailand.

[Grrrly]

I don't care where my bike is made as long as I can get parts when/if I need them, and now maybe this means we can actually get parts in the summertime. 

[ducatiz]

+1!

[Betty]

Ducati Motor Holding will open a new factory in Thailand, in order to relocate the final stage of production of resources devoted to the Asian market, in order to circumvent the duties.

^^ That's the key statement in the announcement. They aren't doing it to save money in manufacturing, they're doing it so they can sell their bikes cheaper in Asian markets since they apparently won't be hit with an import fee if they're assembled in Thailand.

Which is why it is such a big deal for the Australian market. Because of a trade agreement with Thailand it should make the bikes cheaper in Australia ... for a marque that has traded on exclusivity for so long (Ducati has a significant history in Austrlia from what I have been led to believe) this could be disastrous for resale values.

But if new bike prices do not fall, the market for I-Thai-lian bikes could be significantly diminished ... who is going to pay a significant premium for a Thai bike when a Japanese one is so much cheaper? I would think there will be a seriously long 'adjustment period' with regard to pricing. Considering the Australian dollar has improved more than 50% over the Euro in the last two years for no change in retail pricing levels (yes I know it is more complicated than that) ... I would expect there to be more plundering of the Australian market to come.

Considering there are still quite a few 'Ducatisti' that believe Ducati stopped making 'real' Ducatis when they moved away from bevel drive to rubber bands ... can you imagine the divide once bikes are built in Thailand?

[one]

don't worry...
it will be an assembly plant...not a manufacturing plant..
definitely a good news for me in Malaysia 

[duc996]

Well as long as they manufacture it in Italy i guess it would be good,i'm just glad mine was made and assembled in the mother land,everything is being outsourced this days.

[chixstrip]

Some might feel this is a move away from "Italian" image, but i'm sure the bikes coming out of that assembly plant wont lose any of its character. To put things in perspective, Ducati sells maybe 20,000 bikes a year compared to Bimota's 20 bikes a year (i just pulled these numbers out of my butthole so pls don't quote me on it!), so, as a Ducati-owner, being exclusively Made in Italy is not much of an issue to me.
If cost-cutting measures HAD to be put in place, i'd rather it come in the form of cheaper labor rather than crappier parts.
I think its a step forward for the company, given the growing influence of the Asian consumer.  ... plus I'm all for cheaper bikes.

[hillbillypolack]

IMHO there is no upside to this. It's strictly about margins, not building equity in an established Italian marque.

For example. Your new bike drops what, 40% when it comes time to sell it?  And the necessary add-ons required for proper running don't even add to it's value.

Now imagine that depreciation being accelerated through imported content and higher sales volumes (IE Honda). Yes the OEM sells more, but it's devaluing the bike for the owner.

 I know BMW has set up single cylinder production in SE Asia, not sure what other assembly is done there.

I likely won't be getting another new Ducati, but if I do, it had better have 100% Italian content.