Sachs FMT Looks for Asian Partner

NEURENBERG, Germany (August 7) - Sachs Fahrzeug und Motorentechnik (FMT) GmbH wants to transfer a large portion of its manufacturing activities overseas to a country with cheaper labor costs, such as China, Thailand, Vietnam or India. The motorcycles, E-Bikes and Saxonettes (bicycles with auxiliary motors) which are produced by the German company, would then be imported on a Completely Knock Down (CKD) or Semi Knock Down (SKD) basis and final assembly would take place in the Sachs factory. For the shift to countries with cheaper labor cost, Sachs FMT is looking for an Asian partner who can help the German maker with regard to lower production costs as well as increased purchasing volumes for components. With these measures Sachs intends to lower the prices for its E-Bikes and Saxonettes and increase its sales. The search for an Asian partner and the production shift to countries with lower labor cost are part of a future course for Sachs which is mapped out by Oliver Schnorr, a 35-year old turnaround manager. After the management buyout (MBO) at the beginning of the year revitalization of the German company is now in his hands. Sachs FMT, plagued by financial difficulties, has got even with former parent company Winning Wheels, which certainly did not help to improve matters for the importer and manufacturer of motorcycles, E-Bikes and Saxonettes. Schnorr's clear-cut route to financial health also calls for expanding the import activities with an Asian scooter and motorcycle brand and turning Sachs Fahrzeug und Motorentechnik into a niche player on the global motorcycle market with highly specialized and limited edition motorcycles. A complete report on Sachs FMT's future course will be published in Bike Europe's August issue. (JO)