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Thursday, September 10, 2020

More on the Argentina assembly plant


This article gives some more details of the rationale for the Argentina assembly plant we discussed. A local group invested about $7m to make it happen. By assembling the bikes locally they bypass 35% import tariffs. They will also use some locally manufactured parts to lower costs. The parts will be tested and ok'd in India to ensure quality. However, production costs are higher in Argentina so they claim the price reduction will be of the order of 6-20%. They also plan on incorporating the 350's in the future. They expect to eventually produce 3000 bikes per year.

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