Ducati to build Thai factory...now confirmed

[kopfjäger]

Also if one were to make a trip to the factory, I heard they have killer Thai food there.

[J5]

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?

resale ?? how was the resale value on the 999 you bought , bet the 1st owner is still rolling in his sleep on how much of a bath he took on it

fact the bikes will not become cheaper in aus unless the head office says so

people will buy any bike they want if they like the bike , they will buy a brand if they like the brand after all people buy harleys and lets face it they arent that good a motorcycle

my prediction is low end bikes that are volume will be made in thailand cue base monsters

highend products will stay in italy

who wants to bet that a scooter will be on the way out of a thai factory ?

[ab]

So is Ducati joining the ranks of litter bank soon?

Ps.  Outsourcing jobs sucks !!!!  Those of u that think u r immune, stop fooling yourselves .

[Bladecutter]

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

News flash:

Your current Ducati isn't 100% Italian made, designed, and sourced parts.
Neither is mine.

I'm okay with that.

Now, if they start buying Kawasaki Ninja 250's, painting them Red, and slap labels on them saying that they are Ducati 250's, then I have a bone to pick.

You know, like how Jaguar rebadged a Ford Mondeo as a Jaguar X-Type.

When a lesser brand takes a premium vehicle, and makes it one of theirs (Chrysler Crossfire = Mercedes SLK, Chevy/Geo Prism = Toyota Corolla, Pontiac Vibe = Toyota Matrix, etc), that's not so bad, as it usually doesn't dilute the Premium Brand (Mercedes SLK's are still worth double to triple what a Chrysler Crossfire is worth on Cars.com), but its a quality vehicle that the lesser brand couldn't have made, save their souls, at that point in time.

But, when you take a vehicle from the lesser car company, slap some new sheet metal and badges on it, and tell your customer base that this is the new Hotness from Jaguar, then you have a serious bone to pick.

In this case, all the parts for the future Ducati's in the Asian market are still being sourced by Italy. The engines and frames are still being built in Italy, just that all the parts are collecting in Thailand, and being assembled there.

Think of how many of the parts that are included in a current Ducati are initially built in Asia. Forks, wheels, wiring harness, voltage regulator, etc. Think of how much money Ducati will most likely save having all those parts shipped from their originating plants to the Thailand plant instead of first to Italy. Lower initial shipping parts for part suppliers, plus lower or no Import tariffs for their Asian market, equals greater earnings for Ducati, which means more shiny new Ducati's for us for years to come.

The one question I have is how many more bikes will be sold in the Asian market with the change in price due to the removal of the tariffs? How many people in that market would have bought the Ducati of their dreams, but couldn't because of how many extra dollars (change this over to the local currency, if you wish) the bike cost because of the imposed tariffs?

Seriously, how much extra are these tariffs adding to the price of a Ducati in those markets?

BC.

[Privateer]

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.

so those of us not in the asian market need not be concerned?  That's my take away. 

Would we be so up-in-arms if they moved final production to the US?

[ducpainter]

so those of us not in the asian market need not be concerned?  That's my take away. 

Would we be so up-in-arms if they moved final production to the US?

Personally...

I don't want the UAW anywhere near my motorcycle.

Talk about raising costs.

[Triple J]

so those of us not in the asian market need not be concerned?  That's my take away. 

Exactly...seems most are missing that point. It is a move to lower the cost of motos in the Asian markets since they're hit with heavy import fees in that region.

I don't think it will affect the US market in any way.

[J.P.]

I had an AMF Harley "made in Italy" stamped on it. Sucked on toast.
Guess now Ducati won't have an excuse

[mitt]

News flash:

Your current Ducati isn't 100% Italian made, designed, and sourced parts.
Neither is mine.

I'm okay with that.

I am totally OK with parts coming from all over the world if there is good reason for it.  All motorcycle mfg's do it out of necessity - why not use the experts out there instead of trying to do your own.  Brakes from Italy, ignition and injection from Germany, tanks from Italy, suspension from Japan and Sweden     But when all that stuff is assembled in some factory that is as generic as a honda factory, then I might as well buy a honda.  I am not saying this is the case yet, but the slope runs downhill pretty quickly.



mitt

[muskrat]

Exactly...seems most are missing that point. It is a move to lower the cost of motos in the Asian markets since they're hit with heavy import fees in that region.

I don't think it will affect the US market in any way.

I'll bet you $100 that will change in 5 years time.  

[OT]

Honda quality isn't so bad.....with a properly trained and supervised workforce, there's no glaring reason why a MC made in Thailand is destined to become a POS - after all, it's not made in China 

FWIW -  there are lots of forums/fora here and elsewhere dedicated to things called "mods", wherein Ducati (Monster) owners pregnant dog about their stock Italian-made bikes and lust after way-overpriced, very-little-value-added parts (DP or otherwise) to 'improve performance'.... 

If one must spend a lot of money on an Italian-made bike, then consider the Bimota - it's essentially an extensivley modded Monster right from the box...or just get an MV 

[hillbillypolack]

News flash:

Your current Ducati isn't 100% Italian made, designed, and sourced parts.
Neither is mine.

I'm okay with that.

Now, if they start buying Kawasaki Ninja 250's, painting them Red, and slap labels on them saying that they are Ducati 250's, then I have a bone to pick.

You know, like how Jaguar rebadged a Ford Mondeo as a Jaguar X-Type.

When a lesser brand takes a premium vehicle, and makes it one of theirs (Chrysler Crossfire = Mercedes SLK, Chevy/Geo Prism = Toyota Corolla, Pontiac Vibe = Toyota Matrix, etc), that's not so bad, as it usually doesn't dilute the Premium Brand (Mercedes SLK's are still worth double to triple what a Chrysler Crossfire is worth on Cars.com), but its a quality vehicle that the lesser brand couldn't have made, save their souls, at that point in time.

But, when you take a vehicle from the lesser car company, slap some new sheet metal and badges on it, and tell your customer base that this is the new Hotness from Jaguar, then you have a serious bone to pick.

In this case, all the parts for the future Ducati's in the Asian market are still being sourced by Italy. The engines and frames are still being built in Italy, just that all the parts are collecting in Thailand, and being assembled there.

Think of how many of the parts that are included in a current Ducati are initially built in Asia. Forks, wheels, wiring harness, voltage regulator, etc. Think of how much money Ducati will most likely save having all those parts shipped from their originating plants to the Thailand plant instead of first to Italy. Lower initial shipping parts for part suppliers, plus lower or no Import tariffs for their Asian market, equals greater earnings for Ducati, which means more shiny new Ducati's for us for years to come.

The one question I have is how many more bikes will be sold in the Asian market with the change in price due to the removal of the tariffs? How many people in that market would have bought the Ducati of their dreams, but couldn't because of how many extra dollars (change this over to the local currency, if you wish) the bike cost because of the imposed tariffs?

Seriously, how much extra are these tariffs adding to the price of a Ducati in those markets?

BC.

Please consider the remainder of my post as well.

Additionally, I think the owners of the Ctype Jags also took a beating on resale because they were rebadged Mondeos, per your analogy.

[chixstrip]

Good resale value didn't even cross my mind when was considering whether to buy my Monster.
Never viewed it as an investment. I simply liked the bike and it was just a question of whether I could afford it or not.

[Betty]

Good resale value didn't even cross my mind when was considering whether to buy my Monster.
Never viewed it as an investment.

I think 'investment' and 'resale value' should not be used so close together.

Resale value is not really relevant for most people on this forum I would think. But it is an issue for the type that had a 1098 with termis, etc but then 'had to' have the 1198S with traction control, termis, etc, etc.

Which group of people do you think are more important to Ducati?

[ungeheuer]

I don't think it will affect the US market in any way.

Yet.

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.

Key statement.... or spin?  Its a nice (and possibly perhaps even somewhat true) rationale for a SE Asian factory..... a line that can be run so as to soothe any "undue" concerns of the existing Italian workforce and worldwide customer base alike:  Nothing will change folks, except that we'll be able to sell in markets where import duties previously made us prohibitively expensive.  A win/win.   But who really thinks that once this production facility is up and running.... once its a fait accompli.... that little-by-little more and more production wont leak from Italy (expensive) to Thailand (cheap)??  Of course they're not gonna come out and say (even if it is their actual intention, which I doubt but I exaggerate to make the point) "Just as soon as we can establish a low-cost facility in Asia we'll be done here in Europe, so start looking for a job now Giuseppe".....  

First step to market/workforce acceptance:  Dont worry.  Nothing bad is going to happen.   Jobs are safe, brand integrity is intact.  This is in addition to, not instead of   .

Maybe.  But I wouldnt bet on it turning out entirely that way in the long term.