MOTOR Trader (2018/2019)

2018/2019 Peter Chu From the Publisher I n 2018, the global economic development was seriously affected by large-scale trade conflicts. Starting from June, the EU and India have raised the US import tariffs on steel and aluminum to counterattack on US export commodities. Heavy motorcycle is one of them. Immediately, the trade war between China and US began in early July. Both sides imposed tariffs on each other, which affected the products for industrial machinery, motorcycle parts, and complete vehicles. For motorcycle industry manufacturers, metal materials and components in the production process are affected by the tariff policy which increase the cost. To balance the cost, the product price needs to be increased. When exporting, it may once again face retaliatory tariffs between countries, having impact on the sales in the market. Many related multinational companies have also changed their operational decisions and shifted production lines. American motorcycle manufacturer Harley-Davidson Motor Company announced in June that they shifted some production lines from China to Europe and Southeast Asia due to the concern on costs. The attack and defense of trade war affect the tariff cost of goods, and the market price is also influenced. Product sales and market share may increase or decrease. The competition among brands becomes more intense. In the long-term perspective, the global layout, the location of the invested factories, and the global supply chain are more likely to be re-structured. For Taiwan's motorcycle industry, assembly planta and component-related supply industries are booming, they benefit from the economic globalization, and may also be tested by the rapid changes in global trade. By the trend of globalization, trade liberalization and international division of labor improve the cost efficiency. The industrial development between countries is also closely linked with each other. Once the international trade disputes lead into a trade war, the economic shocks will expand. For the global motorcycle industry, when the manufacturing and supply chain have spread all over the world, the impact will be even more extensive. The premier motorcycle & parts buyer’s guide