These tariffs range from 10% to 25% on complete bikes and bicycle components from China.
Detroit Bikes is working on creating a Foreign Trade Zone within their facility that has the potential to reduce the impacts of the tariffs on bicycle components and bicycle assembly at their facility.
The distribution channels (auto, train, ship, air) in Detroit have already been well established by the auto industry many years ago.
Also, being fairly central for much of the US population, the shipping times to many areas is very quick when compared to shipments from China.
Another advantage of US assembly is the ability to quickly manage the quality control and changes of the bike specifications as needed.
Traveling to Detroit is much more convenient for companies when compared to long trips to China.
Detroit currently has very economical industrial real estate that will allow Detroit Bikes to scale their facilities well as demand grows.
They also have the ability to scale assembly runs for companies from small production runs to large scale.
Detroit Bikes currently has assembly capacity at 300,000 bikes per year with significant potential for expansion.
In the future there is the potential for Detroit Bikes to start up aluminum frame production with semi-automated robotic construction.
Michael Nover ([email protected]) is handling OEM sales for those who are interested.
The Detroit Bike Scene
The city of Detroit has been making a comeback with housing improvements and new businesses starting up like Detroit Bikes.
Detroit also has a growing bike culture that is featured in this segment from NBC News:
More eBikes Assembled in the US
ProdecoTech has assembled their eBikes in the US for many years in the Ft. Lauderdale, Florida area.