Doing the Thailand shuffle
Scomadi PM Tuning, the folks you bring you Lambretta-inspired modern scooters, announced in a Facebook post Wednesday that it would be shifting production from China.
Here’s their statement:
Scomadi Worldwide Ltd is delighted to announce the appointment of a new factory to manufacture the scooters on our behalf going forward. The new facility is based in Thailand where the management team have a wealth of experience in the motorcycle industry and we are very confident that the factory will produce high quality products for our rapidly expanding worldwide market.
This is a joint venture and partnership, between the co founders of Scomadi, Frank Sanderson and Paul Melici, and the eminent business professionals Pimol Srivikorn and his sister Taya Teepsuwan, who have jointly collaborated to ensure a long term future for the Scomadi products and new designs.
It is anticipated that the initial production of scooters will commence from April 2017.
Scomadi Worldwide Ltd will continue to update all the international distributors in the forthcoming weeks to confirm the availability of products for each relevant market. Mr. Melici and Mr. Sanderson believe this is a very positive step forward to ensure the continuity of supply for innovative high quality products.
Since their introduction, Scomadi scooters have been built by Hanway Motors in China.
Scootin’ Old Skool has reached out to Scomadi for further comment and details about why the switch was made. While Scomadi currently does not sell scooters in the U.S., the possibility of high tariffs on Chinese-made goods raised by the Trump administration would (or should) have an affected business exploring other sourcing options.
Why Thailand? That country has a robust automotive industrry, and a lot of motorcycles (Honda, Triumph to name two) are built there, too. The real growth in the 2-wheeler biz is in Southeast Asia and India, so being in or closer to those markets makes sense.
Believe it or not, the loss of manufacturing jobs to lower-cost countries is starting to happen in China, as wages go up and workers seek higher pay and better working conditions. Not so hard to understand, really.