You get Robby is not hiring the people to run the factory? Hisun is his contracted manufacturing partner. They are very established and run the factory and hire the people, and manage what lines are running. They build parts for other major brands and complete vehicles for some smaller brands besides their own brand. This is why their factories are so big. Their employees are not going to be sitting around, and if they did that’s not Speeds problem. Speed will have a handful of Speed UTV employees on site to over see their own production in process.
Also Hisun does not seem to be having any issues producing and delivering UTV’s. In fact since Speed UTV has signed up dealerships, Hisun has been able to capitalize on this and has signed many of those same dealers to sell Hisun. In San Diego both Fun Bike Center & Veys have become Hisun dealers. Coyne is a Hisun dealer too.
Veys told me the Strike 250, which is comparable to the RZR 170 or 200, is selling really well. Even the Sector which is a work UTV is selling well. They said they are selling the Sectors to people in Alpine, Ramona, Descanso where people actually use utility UTV’s.
I was being a bit sarcastic on the workforce comment .
.. Yes he has a CM, but all CM's bill by time and materials, if he requires 4 lines and 3 shifts, he is paying for all of it. Its part of the game, not bad, not good, just normal.
I am sure Hisun is more than capable of building standard UTV's, but I think everyone that buys a SPEED is expecting a product that is superior to the current products in both components and quality.
I believe Robbie said on his last presentation (in NC) there were over 300 process improvements being made for both safety and reliability. All of that is loaded on the CM via change orders - some are free, others are costly - it depends on whether the improvement is the result of the CM not following the production procedures, or the procedures needing to be revised. Usually its a mix of both.
Bringing up a line is hard because most of the time the fixtures and Jigs are going through constant revision. Looking at a line that has been running a year or more is not a good indication of what comes off the line in the first 3-6 months.I expect Robbie and team are doing manual QC on everything going out until the line stabilizes ...
It took us almost half a year running parallel with our plant in Elk Grove CA to bring up our Foxconn plant in china and they were already making my competitor's products, and we had 1,000 people from Cupertino rotating in and out on 6 week shifts supervising. That was electronics at former "fruit" company and a bit more demanding and complex, but going through that was an experience... I am sure Robbie and team are having similar "fun"