TheGadgetGuru
Member
Now that the tariffs on Chinese goods have kicked in, what should we expect from eBike prices? Which brands will be affected and what happens next?
Tariffs and eBike Prices
- Thread starter TheGadgetGuru
- Start date
- Status
Trail Cruiser
Well-Known Member
Tora (and other manufactturers) will start moving majority of his company operations in the US. Which means more jobs for Americans.
rich c
Well-Known Member
That means major increases in pricing, right? Labor has to be a high percentage of cost. Steel, aluminum, and tooling are all going up.
Trail Cruiser
Well-Known Member
Higher quality at the same time. If we have to protect American economy, there are some things that we have to give up to achieve the goal.
rich c
Well-Known Member
How do you know the quality will increase? Trained people are trained people, no matter what country they work in. The components will be coming from the same place they are now. Or are you suggesting the components will now be made in America? If all the components are made in America, the cost would likely triple or more.
Barry S
Well-Known Member
The engine parts will be made overseas, but they'll be assembled here to avoid the tariff on an "engine." It's not an engine until it's assembled. Saw the same thing happen here with a sandal company. Components such as straps, soles, bling, was made overseas but assembled here in Hawaii by local workers. Asia employs the workers to make the pieces and the Hawaii company hires local workers to assemble the pieces.
I completely agree.
Just because an American person makes it, it won't automatically outperform Chinese people.
In fact, high tech products like iPhone, PC, ECU for cars, are all made in China.
It's all about quality control. But China has an advantage because of low cost labour.
I own Juiced Crosscurrent, why I bought it? As many members here already know, because of price. If they are going to increase the price, it is going to hit hard on Juiced sales.
Is that how it works?
What if you import raw material (such as aluminum?) from China for really cheap and build a frame in America.
Is it tax free to import raw material?
or import ebikes piece-by-piece? and assemble it in the US?
hurricane56
Active Member
Where will all these theoretical new American made ebikes be built? Unless there are idle bike factories that exist, it would be years before anyone could expect a domestically manufactured bike.
Barry S
Well-Known Member
@Timpo IF there's no tariffs on the raw material or the components made from the raw material then yes. How did Japanese automakers get around the tariffs placed on their automobiles imported into the US? They started building them here. The real question is will the new tariff on ebike engines raise the price to a point that sales drop and ebike companies look at bringing the assembly back to the US? Probably not. The engine is only one piece of the bike. Just my opinion.
Last edited:
Barry S
Well-Known Member
There are old textile towns like Mt. Airy, NC that would gnaw off their right arm to get a bike company to move in. They've got the buildings and the workforce or used to. Dell came and left Kernersville, NC leaving their HUUUUGE complex behind but Herbalife is moving in. One of Caterpillar's subsidiaries Progress Rail Services was supposed to be closing its engine manufacturing plant in LaGrange, IL. There's definitely the space and workforce out there if someone wants to build bikes in the US.
Maybe it's time to look for different country for low cost labor.
China has come a long way, the wage is no longer 75 cents /hr, I heard it's more like $4/hr at today's standard.
Time to look into Thailand, Philippines, Vietnam and other countries. In fact, some of the Kawasaki and Harley-Davidson motorcycles are made in Thailand.
Honda is building some of their cars in Thailand as well.
China has come a long way, the wage is no longer 75 cents /hr, I heard it's more like $4/hr at today's standard.
Time to look into Thailand, Philippines, Vietnam and other countries. In fact, some of the Kawasaki and Harley-Davidson motorcycles are made in Thailand.
Honda is building some of their cars in Thailand as well.
Nonsense. Production will simply move to Taiwan, Vietnam etc. No jobs are coming to the US.
There won't be any new US jobs. All that will happen is parts will be assembled in some other low-cost nation where the aren't tariffs. Nobody is going to pay $15/hr plus fringes for low value-added product when can get same labor for $1/hr and no bennies overseas. Apple is a prime example - gargantuan profit margins that could easily support US labor costs, but they don't.
rich c
Well-Known Member
Attracting any manufacturers into an existing plant in America is ripe for fraud and loss of even more state money. Companies insist on massive tax breaks and grants. Then promise some kind of employment numbers in the future. In my area, Mitsubishi moved out of a massive 2.4 million square foot factory in Normal, IL. A little company called Rivian bought it. The company received a $1 million grant and a five-year tax abatement from Normal contingent on meeting employment targets and investing $40.5 million over five years. Rivian also received $49.5 million in tax credits from the state government; these credits are also contingent upon meeting employment targets and investing at least $175 million into the site by 2024.
In 2011, the company had plans to release a car with cost in the mid-US$20,000 range and gas mileage of up to 60 miles per gallon. Rivian planned to release its first production car in 2013, with other models following in 2014. These cars were never released. The company subsequently shifted its focus to autonomous electric vehicles. It plans to start production in the first quarter of 2019.
Rivian built a prototype lightweight modular vehicle with $1.5 million in funding from Space Florida and a $2 million grant from the Florida Office of Energy. Rivian delivered the prototype to NASA in 2012 but soon leased it back to conduct further research. They then moved out of Florida and went to Michigan.
As of August 2017, they had 150 employees. No idea how many in Illinois. Thanks to wikipedia for some of the numbers.
In 2011, the company had plans to release a car with cost in the mid-US$20,000 range and gas mileage of up to 60 miles per gallon. Rivian planned to release its first production car in 2013, with other models following in 2014. These cars were never released. The company subsequently shifted its focus to autonomous electric vehicles. It plans to start production in the first quarter of 2019.
Rivian built a prototype lightweight modular vehicle with $1.5 million in funding from Space Florida and a $2 million grant from the Florida Office of Energy. Rivian delivered the prototype to NASA in 2012 but soon leased it back to conduct further research. They then moved out of Florida and went to Michigan.
As of August 2017, they had 150 employees. No idea how many in Illinois. Thanks to wikipedia for some of the numbers.
TheGadgetGuru
Member
I would have no problem paying a bit more for a Made in the USA eBike.
rich c
Well-Known Member
Me either. But if wages go from $4 to $15, we're not talking a "bit" more. It will likely be an assembled in USA eBike. I've been very fortunate and am not bashful about spending pension money on my eBikes, but a lot of folks ask about $1500 or less, one just asked about $500-$600 range. That range will never happen here.
Barry S
Well-Known Member
Dell is the only company I know that reimbursed the local NC government for the incentives it received after it decided to close its plant. There may have been some other back door monies that they kept, but most of us were surprised that they gave back what they did. I'm sure the bean counters at Dell figured it was cheaper to pay back NC than to keep the assembly plant open.
TheGadgetGuru
Member
One difference could be is that instead of a box with a completed product being shipped to the end user, if they are assembled here, the bikes will most likely have a higher level of quality control.
- Status
Similar threads
