Ducati to open Thailand factory
Italian motorcycle maker Ducati has confirmed it will build a new factory in Thailand that will produce bikes for South East Asia
Ducati will open its first manufacturing plant outside Italy, in Thailand, joining the likes of Honda and Triumph.
It is unlikely that Ducati will sell Thai-made products outside of south-east Asia, as the move allows the Italian motorcycle maker to side step big tariffs that increase the cost of imported products.
By setting up a manufacturing plant in Thailand, Ducati can sell products much cheaper by avoiding taxes (some tariffs add as much as 40 per cent to the cost of the vehicle) and also by using cheaper labour.
This move has prompted Italian unions to rattle a few sabres, claiming that jobs will go offshore. At this stage Ducati plans to only sell Thai-made motorcycles in the south-east Asian region, but like many car makers that build in Thailand and sell in the region (Honda, Ford, Mazda, Nissan et al), Australia is now a major market.
Could we see the same thing occur with Ducati?
Honda will be selling its Thai-built CBR250R in Australia and Thai-made cars have been on sale here in various forms for almost a decade.
It is unclear which models Ducati plans on building at its Thai plant, and whether parts will be shipped in from Italy or fabricated elsewhere. However with the name 'final assembly' plant, it is clear that Ducati aims to deliver the impression that only assembly will occur at its new Asian facility.
Would you buy a Thai-made Ducati 1198, Monster, or Diavel? Let us know in the comments below.
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