IDB to Set Up A-Team Alliance for Taiwan's PTW Industry

TAIPEI, Taiwan (Jan19) -The Industrial Development Bureau (IDB) under Taiwan's Ministry of Economic Affairs (MOEA) recently announced plans to apply the experience in the formation of the A-Team industrial alliance for the local high-end bicycle industry onto the powered two-wheeler (PTW) line IDB's goal is to introduce the successful Toyota Production System (TPS) to local major PTW manufacturers to further upgrade their global competitiveness, and help local all terrain vehicle (ATV) makers to double their total annual production volume to over 50% of the global ATV shipment in 2008 Industry sources said that the A-TEAM alliance of the bicycle industry is mainly designed to further boost the overall development of Taiwan's bicycle industry and attract more orders for high-end bicycle models. With Taiwan's bicycle exports dropping in recent years because of strong competition from mainland China, the top-two local complete-bike makers, Giant Manufacturing Co., Ltd. and Merida Industry Co., Ltd., joined forces with 11 key-parts suppliers and formed the A-TEAM alliance in 2003 to consolidate Taiwan's position as a major production base for high-end bicycles. All the A-TEAM member companies adopted the TPS, which features reputable Toyota management mode and calls for 100% defect-free ratio in manufacturing, on-time delivery, and minimum product inventory After strenuous efforts in the past three years, IDB said, the A-TEAM alliance has enjoyed encouraging performances. For instance, exports of complete bikes by Giant and Merida rose 30% in 2004 and 44% in the first three quarters of 2005; and the average selling price (ASP) of Taiwan-exported bicycles has outstripped US$300 in 2005. In addition, the export value of A-TEAM parts suppliers grew by 27% in the first three quarters last year