BritTwit said:
Why else would a company like Triumph, a company I'm sure that is well aware of the importance their brand name to nation of origin brings, farm out the production of their bikes to a low wage, low tax, low environmental control region in Asia?
Cost benefit?
Of course, you are right, that IS why they do it.
But my point is, they don't need to, here's some points to ponder:
If Triumph needed to build bikes in Thailand to make a profit... why is most of the rest of the range, which are in highly cost competitive categories, still produced in the UK?
The UK now produces more cars, at a higher profit, than ever before. Most of the companies involved are (sadly) not UK owned, but production is in the UK, and is very successful.
Two of the most productive automotive plants in Europe are in the UK.
The automotive world is extremely competitive and high labour content, so the above two points are actually very interesting and telling.
Outsourcing to low cost countries is short sighted. Instead of driving out the waste in their processes, companies are just relocating the waste!
Low cost countries do not stay low cost! Then companies have to either lose the cost advantage, or relocate again. I recently worked for a client who were looking to relocate for the 4th time in 12 years! That is damned expensive. And very disruptive. And not very smart.
The cost of relocation is usually not properly accounted for. Neither is the cost of long and complex supply chains. A factory in Thailand to supply the Asian market IS a smart idea. A factory in Thailand to supply a global market with a British branded product is not.
Being British is actually an important part of the Triumph brand (hence their extensive use of the Union Flag). Think what would happen to Harley sales, and brand, if they imported their bikes into US from Thailand.
Nevertheless, irrespective of all of the above, the new Bonnies WILL be a huge success. It just seems a shame I think. And whichever way you look at it, its (at least) one point to Norton!