Quote:
Originally Posted by TIGGER
MV doesn't produce much of anything in house either(remember piston factory "A" vs "B"). They assemble outsourced parts as well. You wrote a long post explaining why I'm right. MV,HD,GM,etc run their companies just like you explained and I've said all along.
If your wife starts a new line of clothes using a fabric that her normal supplier doesn't handle,she'll be forced to use a different supplier that won't give her a volume discount based on her business with the first supplier. I don't understand what you are trying to say. First you stated that Harleys and Buells DON'T share the same parts but now you're saying that HD will common source parts for MV? Look up where all the components for the new Buell are made and explain to me how this created American jobs and then explain why if they couldn't source parts for an "American" motorcycle in this country,how they are gonna source parts for an Italian motorcycle here? For Christ's sake they had to outsource the motor for the V-Rod!
Anyway,HD should phase out MV and start using their manufacturing facilities to make European HDs and Buells to avoid shipping and tariff costs and expand their dealer network overseas. I'm sorry but MV is a losing proposition IMHO.
I'm sorry Marko if you want to put me back on "punishment" I understand....
|
I know the frames are made in-house.
You don't have to have the same part on every bike to common source from a supplier.
In my wife's example, the manufacturer doesn't care how many different items are produced as long as there are 30,000 units total. I'm sure that if there were 30,000 individual items, they would pitch a fit, but there are 1,000 different items in my wife's current line providing 30 of each is fine for the manufacturer.
Any parts that can be common, fasteners, washers, wiring, etc., will be. Individual components common only to MV, Buell, and HD will still be sourced by the same supplier (frames, engine castings, plastics, etc.).
Some of those suppliers may be US suppliers. Some off those suppliers may be Japanese, Taiwanese, Chinese etc.
MV lacks the production capacity to be able to produce sufficient units to fulfill European demand.
American jobs may be created in expanded supplier units and raw materials sourcing. Additionally, additional support positions in accounting, IT, finance, sales and marketing, and R&D will be created.
One of the major benefits for MV in making their units less expensive is the ability to secure financing at potentially better interest rates. HD is a cash cow. HD corporate can loan money to MV for production at rates below what MV could secure independently. By absorbing MV's debt, HD has made the company more efficient. MV had $109M in debt. At 7%, that's $7.6M in intereset service on that debt. Divide that by 10,000 production units, and that's $763/bike. Another way to state it is that by removing the debt, MV has saved a little over 5% on a Brutale or over 3% of a 312. So let's say that MV could lower the price of a Brutale by 20%, a completely doable number, (financing savings plus supplier sourcing savings), that would put the base Brutale in the $11,595 range. That puts it within $1,200 of a Speed Triple.
For an extra $1,200, I'd bet more people would chose the Brutale over the speed triple. Now HD/MV may chose to only reduce the MSRP by 10% and pocket the rest. This would still make MV's more attractive from a pricing standpoint than they are currently, and it would provide more profit to the company allowing more R&D, new designs, etc.
Sorry. Another book.