Triumph Motorcycles has given more details of why it will no longer mass produce its bikes in Britain.
Chief commercial officer Paul Stroud said the £530 million turnover business expected to see a huge growth in sales across Asia and China in the next few years - making Thailand the obvious choice for all mass production.
He said Triumph also needed to adapt to growing competition for the kinds of bikes it makes, while many of its competitors were moving their production to low cost countries.
On Friday the business revealed that it will stop making any of its main models at its Leicestershire headquarters.
Between 40 and 50 Hinckley jobs could go at the Hinckley HQ - where there are around 1,000 workers - which will instead become a base for making more bespoke models and for Triumph’s research and development operations.
The business expects to create around 20 new jobs in R&D.
Mr Stroud told Business-Live that the vast majority of the company’s bikes are already made in three Thai factories, with production of the Speed Triple and Tiger 1200 moving over from the 海角视频 under the plans.
Of the 65,000 bikes the business expects to build this year, some 6-7,000 will be built in Hinckley, with between 52-53,000 already made in Thailand.
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A further 5,500 are put together from kits in Brazil.
Hinckley will still make around 4,500 bikes a year under the changes.
Mr Stroud said the business wants to double its Asian sales within the next three years.
He said: “Any company continuously faces many, many opportunities and challenges and Triumph is no exception.
“We are experiencing a lot of change within the industry and the marketplace, and what we are saying is fundamentally how we want to react to that change.
“The sort of things affecting us are increased competition, with many competitors coming into segments of the marketplace where we have enjoyed exclusivity.
“For example, our Bonneville range has been a classic segment, and now BMW and Ducatti, as well as Yamaha and Kawazaki have developed their own models in that area. It is continually evolving.
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“Also the speed of the new model development cycle has increased dramatically.
“Five or six years ago, the industry would replace models every four or five years typically - now that is two to three years. In the last five years our research and development has gone up 80 per cent and head count in that area is up 40 per cent.
“The other thing we are seeing is the requirement of our customers for increased technology on motorcycles - both electronics and riding enhancement technology - which puts further demands on us.
“The other big piece in the jigsaw is our competitors moving to low cost manufacturing.”
Mr Stroud added that 海角视频 Speed Triple and Tiger 1200 bikes currently face 30 per cent tariffs in the ASEAN Free Trade Area - which includes China, Thailand and Vietnam - making it expensive to ship them out there from the 海角视频.
Right now the business sells around 9,000 bikes in Britain, 33-34,000 in the rest of Europe, 17,000 in the Americas and around 6,000 in Asia.
He said while China and Asia would contribute substantially to growth, they were still expecting sales to rise within their established markets
He also said Brexit was “categorically” not to blame for the changes, adding, “this decision is absolutely about how we create a strategic platform to compete in the global market.”
He said: “The net impact of that is that we are entering a consultation with our team here and sadly asking between 40-50 people to leave the business.”
Mr Stroud said manufacturing in Hinckley would be reconfigured to make “high-value” bikes such as the TFC - Triumph Factory Custom - range of Bobbers and Rockets.
It would also be set up to build prototypes quickly, in order to meet changing market demand.
In a letter to staff, chief executive Nick Bloor, said they were consulting about 海角视频 job losses in areas such as the assembly line, machine shop, weld shop and in IT, as well as in a new paint shop which only opened a couple of years ago.
It said: “Whilst we appreciate that this will be difficult for those affected, please be assured that we will do everything we can to support you.”
The planned Asian growth will be on top of a deal with Bajaj Group – one of the biggest companies in India – which will see a new range of smaller engined bikes for the Asian market with a starting price equivalent to around £2,000.
The new range will be badged Triumph but built by Bajaj and will see a new engine and bike platform built in the mid-capacity, 200cc-750cc range.
Triumph, which dates back to 1902, reported pre-tax profits of £9.5 million in the year to last June, while the amount spent developing new models rose from £36 million to £43.4 million.
Hinckley and Bosworth MP Dr Luke Evans said: “Triumph Motorcycles are an iconic company known the world over.
“They continue to have a treasured place at the heart of this community.
“Management have taken steps to reassure me that growth plans for Asian markets have led to an opportunity for significant investment here in Hinckley, with the creation of a new centre of excellence for research and development, and a global strengthening of the Triumph brand.
“Sadly whilst it is likely to mean there will be some job losses on the production line these will be partly offset by a number of new highly-skilled research, design and development positions.
“Of course any job losses are disappointing, and I will do all that I can to help support those affected.
“I am seeking an urgent meeting with the Minister for Business and Industry to discuss how his department can support Triumph in their growth plans, and attract inward investment for those highly skilled staff seeking work moving forward.
“I will, of course, continue in a dialogue with management and staff in the coming weeks and months.”