Jasperfield
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Are there any expected tarrifs affecting Stark pricing...and thereby deliveries?
Tarrifs...How will they affect Stark Varg EX pricing?
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AL_V
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HadesOmega
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From what I understand the stupid tariffs are against Canada, Mexico, and China. I haven't heard anything about tariffs on european countries. It depends where all the manufacturing is. I believe they build them in Spain right?
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That's what I thought too.
/Political rant/
I agree that tariffs are indeed stupid. Not every foreign company is subsidized by foreign governments or has the luxury to move production to the US. These tariffs are against the US consumers. They will be added to the price of the goods on top of the current state sales taxes. They will be funneling more of our money to the Federal Government. I would only support tariffs if the income tax is abolished.
/End rant/
markanddona
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So we have to pay their tariff's? That's BS, at the minimum it should be reciprocal, or none at all.
HadesOmega
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Well one way or another the consumers will pay for it. If it costs more to produce a product the logical thing to do is raise the price of it.
The US is going at war with pretty much all their trade partners (Canada, Mexico, EU...). Nobody wins a trade war, it's going to be costly for everyone.
By disavowing its current trade agreements, the US is also devaluing its own words on an international scale, big time. Who will want to sign another agreement that can be negated the next day?
Latin America has turned away from the US replacing it with China as their main trade partner in the past decade, now it's time for Canada and Europe to turn away from the US. This 4D chess business is way too clever for me.
What can a company like Stark do about it? Not much, just try to rely less on the US market.
By disavowing its current trade agreements, the US is also devaluing its own words on an international scale, big time. Who will want to sign another agreement that can be negated the next day?
Latin America has turned away from the US replacing it with China as their main trade partner in the past decade, now it's time for Canada and Europe to turn away from the US. This 4D chess business is way too clever for me.
What can a company like Stark do about it? Not much, just try to rely less on the US market.
happyinmotion
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I'm in NZ and our economy depends upon trade. The US starting a trade war is going to hurt us. Professionally, I work with companies that are going to be affected by this, so I have options. Maybe get yourself a cup of tea coz this is going to be a long comment...
Who wins in a trade war? China and India. They are reliable partners and they want our exports. It's been going that way for a while. Ten years ago our exports to the China were about the same as our exports to the US. Now, we're exporting three times as much to China as to the US. As for India, our PM is there right now negotiating a free trade deal. So this war is going to hurt us, but not too bad, because we can go elsewhere.
Tariffs mean that the rest of the world turns away from America. We get on with trading with each other.
How does this affect motorbikes and Stark? China and Indian make most of the world's bikes. The big bikes sold in the West are a tiny fraction of the market. America is literally 1% of the world motorcyle market. China and India make the affordable bikes that sell in huge numbers, like the 400 twins that have pushed Triumph over to record sales this year. The 400 Harleys made by Hero that don't make it to the US market. All the little KTMs made by Bajaj. CF Moto (China) and Royal Enfield (India) are big and growing in the NZ market.
And China is where you go for electric vehicles. Seriously, their domination of the technology and production is insane. They've In the last four years they've gone from nowhere to a third of the world export market for battery cars. I can go and buy a BYD for a third less than a Tesla.
Stark wants/needs volume. They're making 10,000 bikes a year and they can do that in Spain. They want to make a million bikes a year and that means India or China. So their partnership with Eicher (Royal Enfield) makes perfect sense.
Stark needs technology - specifically higher energy density cylindrical cells, which means Li-NMC. The cells in the MX were Molicell from Taiwan. They have changed suppliers and haven't said where the new cells come from. My guess is one of the Chinese manufacturers, or maybe Samsung. No-one else is even close to competitive.
Tariffs are going to have a bunch of effects. For any bikes imported into the US, the bikes get more expensive so people will buy fewer bikes. That hurts all the overseas manfuacturers. That might benefit a few smaller US bike producers like Dust, Land, Sondors, Fuell, Zero, Lightening, Ryvid - oh wait half of those are already bankrupt or moving production to China. The US can't suddenly start manufacturing electric dirt bikes at scale.
Tariffs mean less choice and higher prices for US riders.
For the rest of the world, US tariffs just mean that we sell to each other. That doesn't directly affect the prices we pay for bikes.
For Stark, their route to profit-per-bike depends upon higher-value markets in Canada & EU & Asia. Stark's route to selling 1000x more bikes depends upon medium-wealth markets like China, India, Mexico, Brazil, etc. The US market was nice, it's ceratinly high profile, but eh, who needs that much drama?
So if I was Anton, I'd:
a) Pull a cool wheelie
b) Partner with an Indian motorcycle manufacturer to plan higher volume lower cost production for the next model
c) Be talking with all the Chinese battery manufacturers about their next cells
d) Focus sales effort on the rest of the world
It seems like he's doing all of those things.
Who wins in a trade war? China and India. They are reliable partners and they want our exports. It's been going that way for a while. Ten years ago our exports to the China were about the same as our exports to the US. Now, we're exporting three times as much to China as to the US. As for India, our PM is there right now negotiating a free trade deal. So this war is going to hurt us, but not too bad, because we can go elsewhere.
Tariffs mean that the rest of the world turns away from America. We get on with trading with each other.
How does this affect motorbikes and Stark? China and Indian make most of the world's bikes. The big bikes sold in the West are a tiny fraction of the market. America is literally 1% of the world motorcyle market. China and India make the affordable bikes that sell in huge numbers, like the 400 twins that have pushed Triumph over to record sales this year. The 400 Harleys made by Hero that don't make it to the US market. All the little KTMs made by Bajaj. CF Moto (China) and Royal Enfield (India) are big and growing in the NZ market.
And China is where you go for electric vehicles. Seriously, their domination of the technology and production is insane. They've In the last four years they've gone from nowhere to a third of the world export market for battery cars. I can go and buy a BYD for a third less than a Tesla.
Stark wants/needs volume. They're making 10,000 bikes a year and they can do that in Spain. They want to make a million bikes a year and that means India or China. So their partnership with Eicher (Royal Enfield) makes perfect sense.
Stark needs technology - specifically higher energy density cylindrical cells, which means Li-NMC. The cells in the MX were Molicell from Taiwan. They have changed suppliers and haven't said where the new cells come from. My guess is one of the Chinese manufacturers, or maybe Samsung. No-one else is even close to competitive.
Tariffs are going to have a bunch of effects. For any bikes imported into the US, the bikes get more expensive so people will buy fewer bikes. That hurts all the overseas manfuacturers. That might benefit a few smaller US bike producers like Dust, Land, Sondors, Fuell, Zero, Lightening, Ryvid - oh wait half of those are already bankrupt or moving production to China. The US can't suddenly start manufacturing electric dirt bikes at scale.
Tariffs mean less choice and higher prices for US riders.
For the rest of the world, US tariffs just mean that we sell to each other. That doesn't directly affect the prices we pay for bikes.
For Stark, their route to profit-per-bike depends upon higher-value markets in Canada & EU & Asia. Stark's route to selling 1000x more bikes depends upon medium-wealth markets like China, India, Mexico, Brazil, etc. The US market was nice, it's ceratinly high profile, but eh, who needs that much drama?
So if I was Anton, I'd:
a) Pull a cool wheelie
b) Partner with an Indian motorcycle manufacturer to plan higher volume lower cost production for the next model
c) Be talking with all the Chinese battery manufacturers about their next cells
d) Focus sales effort on the rest of the world
It seems like he's doing all of those things.
DaveAusNor
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I hope so. But he's mentioned numerous times that the US is their biggest market. Less sales in that market will impact their business. But I guess we just have to wait and see if these tariffs aren't all just some big bluff
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