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kawashima
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PostPosted: 15:50 - 18 Sep 2009    Post subject: Kawasaki to shift production to Thailand Reply with quote

A little bit old news but
Quote:
Kawasaki To Move Large-displacement Motorcycle Production To Thailand
Kawasaki to move 650cc-and-larger motorcycle production to Thailand to help cut costs—other manufacturers probably will follow

According to a report in Japan’s Yomiuri Shimbun newspaper, Kawasaki plans to begin moving production of its large-displacement motorcycles from the company’s main Akashi Works factory in Japan to its existing facilities in Thailand next year in order to cut production costs. The motorcycle manufacturers have been suffering heavy losses due to sluggish sales in the current sagging economy, forcing them to look for various methods to cut costs, and moving production facilities to countries with lower labor and operating costs is a common step.

Kawasaki—like most of the other Japanese manufacturers—already operates a production plant for small and midsize motorcycles in Thailand that are made for the Southeast Asian markets. According to the report, Kawasaki Heavy Industries, Ltd. (KHI) produced about 150,000 motorcycles at the Akashi Works factory, and approximately 110,000 motorcycles at its current Thailand plant during the fiscal year 2008; in the current fiscal year, KHI plans to reduce output of the Akashi factory to about 100,000 units as demand in the main markets for larger motorcycles—Japan, Europe, and the U.S.—are unlikely to rebound in the near future (the production at the Thailand facility will remain the same). In fiscal 2010, KHI plans to begin producing motorcycles larger than 650cc and increase output of mid-size bikes in Thailand. The Akashi factory in Japan will continue to manufacture some high-end large-displacement models (presumably sportbikes and some other large street models that require more difficult assembly techniques due to their complexity), although production numbers overall will be sharply cut in the future. Sources for the report also state that the company aims to additionally slash production costs by using Thai-manufactured parts for some of its high-end models.

Kawasaki will become the first major manufacturer to make this move, although Honda is reportedly considering a similar shift of large-size motorcycle production to its own Thailand factory. Given the current economic environment—nearly all the manufacturers fell into the red with regard to operational profits in fiscal 2008, and the same or worse can be expected for 2009—plus the slow pace of any rebound, this trend will likely continue to gather momentum with other manufacturers, according to sources in the report.

2009 ER-6 is already made in Thailand(you can read it at the bottom) , and ER-6 was the largest bike which was made in thailand till now.

What do you think? Do you hate it if Z1000 or ZZR1400 are made in Thailand? I have an image kawasaki Thailand was making small bikes like KSR110 or eliminator125.
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Frost
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PostPosted: 14:31 - 19 Sep 2009    Post subject: Reply with quote

Having spent a fair bit of time in thailand i think they can do a great job of building bikes. The thai's are clever people with a high level of technology. Wages in thailand are low, but so is the cost of goods. I think it makes sense to shift production there, i just hope they help sort the thai's out with some health care as its definatly needed.
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kawashima
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PostPosted: 00:36 - 20 Sep 2009    Post subject: Reply with quote

DaFrostyOne wrote:
Having spent a fair bit of time in thailand i think they can do a great job of building bikes. The thai's are clever people with a high level of technology. Wages in thailand are low, but so is the cost of goods. I think it makes sense to shift production there, i just hope they help sort the thai's out with some health care as its definatly needed.

I agree with you. When I was an university student, I went to see toyota factory in Thailand which was making pickup trucks with seminar members. It was very large and clean.
I think they need to get used to making bigger bikes for a while. Or they might be doing training for bigger bikes with 2009 ER-6. The article says high-end models will remain in Akashi factory, I wonder what model they will make in Thailand next.
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Polarbear
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PostPosted: 13:27 - 21 Sep 2009    Post subject: Reply with quote

No, I have seen the difference in quality on the Suzukis built in Japan (my busa) and the ones built in Spain (my wifes bandit) and the difference in finish quality is obvious.

It will be the same on the bikes built in Thailand, it's call cost cutting FFS.
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Phil.
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PostPosted: 14:23 - 02 Oct 2009    Post subject: Reply with quote

When ever i would make the BKK -> Pattaya commute i would always notice the Triumph factory.

Apparently they knock out 130k bikes a year.
https://en.wikipedia.org/wiki/Triumph_Motorcycles_Ltd

Not sure what range of bikes they make there, but may be a good indication of build quality.

My experiences of Thai's is that it's not uncommon of them to work like it's 4pm on a Friday afternoon. Just get the job done and go home.

The folks new house had taps plumbed the wrong way round, live wires buried under soil because the lights didn't turn up, water heater held swinging off a joist by a thin steel cable. etc, etc. Still, never had a bike break down there.
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SW Motech Shop UK
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PostPosted: 11:23 - 17 Nov 2009    Post subject: Reply with quote

Triumph and Honda have done the same. https://www.motorcycle-road-and-race.co.uk/blog/page/2/ The Tiger is completely built over there now.
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Kickstart
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PostPosted: 11:52 - 17 Nov 2009    Post subject: Reply with quote

SummY wrote:
Apparently they knock out 130k bikes a year.
https://en.wikipedia.org/wiki/Triumph_Motorcycles_Ltd


Difficult to make sense of the article. Could be read that they are expanding the Thai factory so it has a capacity of 130k bikes a year, or that they are expanding the Thai factory so their total capacity is 130k bikes a year.

Either seems a bit hopeful given the same page lists their 2006 sales at 37400.

All the best

Keith
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Skudd
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PostPosted: 21:29 - 17 Nov 2009    Post subject: Reply with quote

Kickstart wrote:
SummY wrote:
Apparently they knock out 130k bikes a year.
https://en.wikipedia.org/wiki/Triumph_Motorcycles_Ltd


Difficult to make sense of the article. Could be read that they are expanding the Thai factory so it has a capacity of 130k bikes a year, or that they are expanding the Thai factory so their total capacity is 130k bikes a year.

Either seems a bit hopeful given the same page lists their 2006 sales at 37400.

All the best

Keith


I had to read that a few times.

Factory size increased so it can make 130k machines

Or 130k machines as a total, including those made at the factory.
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