Touring the Kymco Factory

It is said that those who don't remember the past are destined to repeat it. If that is true, it would behoove many of the current major manufacturers to crack open the history books and start reading. There is a growing feeling we are on the crux of an ATV revolution, one that will have drastic and long-lasting effects on the industry. I'm not talking about the rumored crop of revamped 450cc sport models due out for 2006; it's something that could have greater implications than that.

It all started long ago--but not very far away because motorcycling has its roots in Middle America--when the American powersports scene consisted mostly of some plucky motorcycle manufacturers and a handful of tinkers creating a newfangled machine called a snowmobile. Some of them went on to become famous marques, while others faded into obscurity over the years. The relatively slow pace of the industry was stood on its ear during the 1950s and '60s as the British unleashed new and innovative motorcycle designs on the American public. Slow to respond to the challenge, American manufacturers' sales were outpaced by the newcomers with their fresh designs and more-modern manufacturing techniques.

It would not be long before the Brits were served their comeuppance, in the form of a slew of hungry, lean and inspired Japanese companies. Using their newer factories, cheaper labor and burning desire to succeed, they have come to collectively dominate the marketplace today.

With that said, it doesn't take much of an imagination to draw the parallels between some of the Chinese, Taiwanese and Korean companies today and the Japanese companies and their respective positions in the '60s and '70s. Armed with cheaper labor, a warehouse of CNC manufacturing capabilities and the same hungry drive to succeed, a host of companies are poised to make a run at the established foundation of today's market. The company jockeying to be the first out of the gate in this arms race is Kwang Yang Motor Company (Kymco), which is eager to differentiate itself from what many feel are "clone manufacturers" and spearhead the charge against the current leaders.

How serious is this company? First of all, let's not think of it as little or an upstart; Kymco has been in business supplying its home-land of Taiwan with scooters since 1963. Aggressively pursuing new markets, it was even in the bidding fray to acquire bankrupt Italian sportbike manufacturer Aprilia, albeit unsuccessfully. Kymco is serious enough to invite the press corps to Taiwan to tour its fac-tory and test its products. And we jumped at the chance when we got word of its offer.

After a good night's rest trying to dispel the lingering jet lag from crossing the international date line, we boarded a bus headed to the Kymco facilities. Upon arriving, one thing was certain: We had probably underestimated the resources behind this scooter company and the importance it places on making headway into the U.S. market. As evidence of this, we were immediately channeled into a meeting room, where we met and heard brief presentations from the company brass before going on a complete tour of the factory.

Touring the Kymco factory, we wandered amongst the labyrinth of machinery, watching as molten metal was poured into sand-casting molds. The variety of techniques used to produce parts is fascinating to a tech-geek such as myself. To watch the machinery do in a matter of minutes what would take scores of man hours to do by hand is truly impressive and lends credence to the assertion that a company such as this can crank out close to 400,000 vehicles per year.

In a rare moment of candor, we were also allowed to view the Kymco R&D facility, though we had to holster our cameras. Behind the normally closed doors, the engineering staff was busy punishing new products and testing development mules on dynos for power output, in acoustical rooms for sound regulations and on simulated roads for fatigue cycles, and, in our favorite test, dropping them from a giant lift apparatus to test their durability. What we did notice in the R&D lab was the prevalence of fuel-injected engines and a twin-cylinder engine the company was testing for a future ATV model in the 500-700cc range.

Exiting the secretive laboratory, we were immediately back in the midst of the commotion of the factory in full swing. We could see the automated assembly line stocked with hordes of workers and parts, upholding the lofty production schedule. Just as the new units roll off the assembly line, they are brought to a test area where each is assured to be up to par. As we walked outside into the bright sunlight, we entered a massive courtyard, rapidly filling with aisles of brand-new scooters and small-displacement motor-cycles; this was the day's production, just for the home market of Taiwan! As if on cue, the first ATV of the day rolled off the end of the line and into the courtyard, and it was one of the first MXU 250s, the company's new model. As Kymco president Mr. Wang strode over to the MXU, he was beaming with pride at the new creation and expressed his anticipation of our chance to test ride this and many other Kymco products. Or maybe he was eagerly awaiting the next day because it would bring him one day closer to the destiny he foresees.

Tomorrow is another day, and another day that Kymco and others take solid aim at the establishment. How long will it be before they score a direct hit? Only time will reveal the answer to this question, but one thing is for certain: For the current major players, it would be wise not to underestimate the threat to their bottom line posed by this new crop of contenders. That is, if we can learn anything from history ...

For more information, check out www.kymco.com.