Kawasaki Bankruptcy

[wrathfultalon]

Frankly, I never understood how any vehicle company (motorcycle or automobile) can afford to do racing. And when I am saying this, I am specifically thinking about formula 1. For both Motogp and Formula 1, all the machines are so expensive, nevermind the salary paid to the drivers/riders. I don't think Kawasaki is going out of business soon. Motorcycles are just a part of the company. But also keep in mind that in terms of sales, the motorcycle division ain't that bad off. If I am not mistaken, the Ninja 250 is the best selling motorcycle in the United States (because of the low cost of it and the fact that there really isn't a 250 competitor).

After I posted this, I found this article. Manufacturer's dropping motorsports Honda dropped formula 1, Subaru has dropped world rally, etc. The 17 teams for motogp are a problem because the rules for Motogp require 18 teams. Hey Dave, there's an opening. You want to tweak your cbr125 and we can field a team?

I am in the same way, i could never figure how dumping millions into a product that never saw production could be beneficial, besides super bike and touring cup cars all higher levels of racing are an excersize of money spending with small returns IMO. That why i dont watch NASCAR, why?not one single part actually ever on their product line i mean what is the point of the fastest dinosaur engine? Now you get some EFI or Diesel engines out there with some innovations like bio fuels I will be glued to the tv set!

[0Mix1up]

the ksr110 is selling plenty in thailand

the d-tracker the only full sized thai produced dirt bike???

Kawasaki Heavy Industries Japan is plenty big

many times there has been economic reasons to not make bikes, particularly dirt bikes but the japanese continue.

why? imo. the loss of face for the company if they were the first to drop out.

In the past, many executives would have to commit harikari.

[Richard-BKK]

First, if we talk about Kawasaki Heavy we talk about the full Kawasaki Company, of which the Kawasaki Motorcycle Company makes the lowest income profit per investment.

Many people, belief that Kawasaki Thailand motor Co. Ltd. is making the bigger motorcycles in Thailand, and to some part they right. Some parts are made by this company, but most of the essential parts of the Kawasaki bigger motorcycles are made by Khithan Co. Ltd.

[BigBikeBKK]

First, if we talk about Kawasaki Heavy we talk about the full Kawasaki Company, of which the Kawasaki Motorcycle Company makes the lowest income profit per investment.

Many people, belief that Kawasaki Thailand motor Co. Ltd. is making the bigger motorcycles in Thailand, and to some part they right. Some parts are made by this company, but most of the essential parts of the Kawasaki bigger motorcycles are made by Khithan Co. Ltd.

Khithan?! I assume that's a typo? Could you share with us the link that shows that "Kawasaki Motorcycle Company makes the lowest income profit per investment" of Kawasaki Heavy? Just curious...

[imaneggspurt]

He imaneggspurt,

The correct ownership is Jaguar and Land Rover are owned by Tata (India), Royal Enfield is a independent company (so far I know). And you cannot compare one of the largest motorcycle manufacturers in the world (Bajaj Auto) to Royal Enfield, a motorcycle manufacturer which depends largely on the "nostalgia" feelings of some riders.

They as, BigBikeBKK said are not a fortune 500 company, as they pretty specified in only making motorcycles and small vehicles, but as fortune 1240 (or close) the do pretty good. O, I forget, of course BigBikeBKK was also wrong about Bajaj being a private company.

Wow, i missed that takeover, so have range rover and jaguar gone the way of the morris oxford and royal enfield and will be served up to the die hards for centurys to come !....I was joking, of course i dont expect royal enfield to buy kawasaki ! ,,royal enfied has always been a joke, and i know i grew up with them,( rubbish ),. we english thought royal enfield was where the queen keeps her chickens ! , ( ask a brit )

[imaneggspurt]

the ksr110 is selling plenty in thailand

the d-tracker the only full sized thai produced dirt bike???

Kawasaki Heavy Industries Japan is plenty big

many times there has been economic reasons to not make bikes, particularly dirt bikes but the japanese continue.

why? imo. the loss of face for the company if they were the first to drop out.

In the past, many executives would have to commit harikari.

the d tracker is the supposed super motard version of the klx250,,not the bargain it was now the exchange rate is 50, ( uk pound )

[Richard-BKK]

Indeed Khithan is a typo and needs to be Khitkan. I would like to say take a look at http://www.khitkan.co.th, but then the domain expired last month (December 2008).

[Bard]

Yeah right surely Kawasaki Heavy Industries will let go of there best marketing tool Kawasaki Motorcycles which makes them renowned, that is truly speculations with no root in reality. Lot of sub companies is low income for big owners but the marketing value exceed the low income, so for all Kawa bike fans fear not there is no way Kawasaki Heavy Industries will let them go.

That is like saying since India has so much loss in the current market they will go back to the British Empire.

Cheers Bard

[BigBikeBKK]

Indeed Khithan is a typo and needs to be Khitkan. I would like to say take a look at http://www.khitkan.co.th, but then the domain expired last month (December 2008).

Ahem... In addition to your typo do you remember this recent statement:

Sorry people,

Currently I believe that somebody in Kawasaki has revised its ideas about the motorcycle market in Thailand, Kawasaki will not introduce any larger models at this point, next revue is up in 6 months.

Where do you come up with this nonsense???

[Richard-BKK]

Hello Peaceblondie it was in August 2001, that Kawasaki and Suzuki shocked the world when the companies announced an alliance that would allow them to share technology and they would jointly develop new motorcycle models and would unify their parts procurement and production operations to cut costs.

Late May 2005, the two companies said that alliance would be changed; from that day they stopped sharing ATV platforms. While the alliance is still - somehow - in effect, they currently work with each other and share resources on a more research and development level.

Developing a modern motorcycle is an expensive business, and even heavy weights like Kawasaki use more partners in development then you would expect.

[Richard-BKK]

Hi BigBikeBKK,

I guess I was wrong… By the way is the 225,000 Baht including license registration? Last time I checked with the Department for Road… they said 55,000 to 60,000 Baht for 600cc.

And is it the 2009 model?

[LivinLOS]

Its deffo the 09 model in the pics.. And you would have to assume that its OTR costs..

[BigBikeBKK]

I guess I was wrong… By the way is the 225,000 Baht including license registration? Last time I checked with the Department for Road… they said 55,000 to 60,000 Baht for 600cc.

And is it the 2009 model?

Yes Dick, of course it's the 2009. I thought with all of your "reliable connections" you'd know that already

Here's the breakdown:

Unit Price: 210,280.37

7% Tax: 14,719.63

TOTAL: 225,000.00

Registration: 925.00

Required Insurance:645.21

Price on the road: 226,570.21

Picking mine up on Wednesday!

Happy Trails!

[thaicbr]

and the 7% tax is V.A.T. So any other taxes are included in the base vehicle price. it does sound as if Kawasaki have landed a deal somewhere. all good for us. whether you buy an er6 or like me get a nearly new ninja 250 (one careful owner )

likely it will have a small impact on future Yamaha prices etc.

Allan

[Travelmate]

Can I claim the VAT back at the airport? :D

[thaicbr]

Yer but ya gotta have the bike in ya luggage.

[BigBikeBKK]

Yer but ya gotta have the bike in ya luggage.

That might just work with a KSR!

[dave_boo]

I guess I was wrong… By the way is the 225,000 Baht including license registration? Last time I checked with the Department for Road… they said 55,000 to 60,000 Baht for 600cc.

And is it the 2009 model?

Yes Dick, of course it's the 2009. I thought with all of your "reliable connections" you'd know that already

Here's the breakdown:

Unit Price: 210,280.37

7% Tax: 14,719.63

TOTAL: 225,000.00

Registration: 925.00

Required Insurance:645.21

Price on the road: 226,570.21

Picking mine up on Wednesday!

Happy Trails!

I'm going with Richard here; where's the big bike tax?!?!? Either the bike's unit price is actually ~150K THB (i.e. a bit more expensive than a Ninja 250!) or y'all are going to be in for a shock when delivery is taken care of or the big bike tax is a myth. Shoot, even with the Thai tax it's the same price as the State's MSRP!

[Bard]

Don't worry Dave the bike is made in Thailand, and Kawa has a deal to make it locally made hence the tax, so it is NOT an import hence the "fantastic" price if it was imported the price would be in the 350k+ range so yes it is cheap in Thailand and yes it is expensive in the country of origin.

Cheers Bard

[BigBikeBKK]

I'm going with Richard here; where's the big bike tax?!?!? Either the bike's unit price is actually ~150K THB (i.e. a bit more expensive than a Ninja 250!) or y'all are going to be in for a shock when delivery is taken care of or the big bike tax is a myth. Shoot, even with the Thai tax it's the same price as the State's MSRP!

Make's ya wonder just what their margins are, doesn't it? Perhaps, and I'm just guessing here, Kawasaki has moved production of these ER-6n's out of the bonded area or has managed to receive an exemption on the import tax since, after all, the bikes are made in Thailand albeit in special industrial zone. Does that make any sense? The "Big Bike Tax" as you call it is an import duty, and if these bikes are classified as domestically manufactured then Kawasaki may have been able to avoid the import duty. Wow- think of the advantage that would give them over Yamaha which has no domestic production of big bikes?! I'll see if I can get an answer about the tax question when I pick up my ER-6n on Wednesday, ok?

[dave_boo]

I'm going with Richard here; where's the big bike tax?!?!? Either the bike's unit price is actually ~150K THB (i.e. a bit more expensive than a Ninja 250!) or y'all are going to be in for a shock when delivery is taken care of or the big bike tax is a myth. Shoot, even with the Thai tax it's the same price as the State's MSRP!

Make's ya wonder just what their margins are, doesn't it? Perhaps, and I'm just guessing here, Kawasaki has moved production of these ER-6n's out of the bonded area or has managed to receive an exemption on the import tax since, after all, the bikes are made in Thailand albeit in special industrial zone. Does that make any sense? The "Big Bike Tax" as you call it is an import duty, and if these bikes are classified as domestically manufactured then Kawasaki may have been able to avoid the import duty. Wow- think of the advantage that would give them over Yamaha which has no domestic production of big bikes?! I'll see if I can get an answer about the tax question when I pick up my ER-6n on Wednesday, ok?

Thanks for clearing it up when you do. The margins HAVE to be really, really high on the Ninja; unless as you suggest it's produced in a BOI zone. Don't know if the ER-6N is also produced in a BOI zone, but if not that would indicate that it was produced on a 'local' assmebly line. I.E. right next to those scooters you occasionally see. Also considering the pricing on the little Ninja being so close to the States prices, I guess we can only assume that there's a non-BOI plant producing at least those two bikes.

Don't worry Dave the bike is made in Thailand, and Kawa has a deal to make it locally made hence the tax, so it is NOT an import hence the "fantastic" price if it was imported the price would be in the 350k+ range so yes it is cheap in Thailand and yes it is expensive in the country of origin.

I understood the bike was made in Thailand, but I was trying to point out that it's fantastically cheap. Consider any other bike that is offered in the 250+ cc range and compare it to US prices. Even manufactured here, like Triumph, are crazy expensive compared to State's pricing. But Kawasaki seems to be undercutting that. As mentioned above it would seem that Kawasaki is producing those bikes in a non-BOI plant; but they lose all the BOI benefits.

1. Exemption of import duty on machinery
   
2. Corporate income tax exemption for 8 years;
   
3. Exemption of import duty on raw or essential materials usedin the manufacturing of export products for 5 years
   
4. 75% reduction of import duty on raw and essential materials used in for domestic sales for 5 years
   
5. Permission for foreign investors to own land
   
6. Permission for foreign technicians, experts and their spouse or dependents to work and stay in Thailand
   
7. Permit to remit abroad foreign currency
   
8. Other special privileges as follows:
   Reduction of corporate income tax by 50% for 5 years after the exemption period
   Double deduction from taxable income of water, electricity and transport costs for 10 years from the date of the sales
   Deduction from the net profit of 25% of the costs of installation or construction of the project's infrastructure facilities
   

So are they producing the bikes in two different locations or have they been utilising the BOI and the exemptions are now expired and they're producing them 'locally'?