Issue #231 On Tax and Relative Worth | His, Chinese, Baker, Crocker, Buy

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Issue #231 On Tax and Relative Worth

Written by John Campbell
Friday, 01 June 2007
Opinions vary on the topic of Chinese industry and its effect here in North America on both the long and short term health of our economy. But few public figures have been as open in the expression of their sentiments as Bert Baker, the name behind aftermarket manufacturer, Baker Drivetrain. In the company’s 2006 24-page product catalogue Baker leads off with an editorial, “Quality Reading Time for Americans,” that takes resentment of the Chinese market to a whole new level. Much of his unapologetic vitriol-laden rant is all but unprintable here but his central point is to be found in the opening paragraph. “They are called imports, knock-offs, copycats, and offshore transmissions. They are all the same; copies of a Baker Drivetrain design made in China or Korea. We refer to them as ‘BIC lighter’ or disposable transmissions because there is no customer support after the sale. They [the buyers of Chinese products] can’t get technical questions answered or service parts so they call us, tell us their sad story, and buy one of our products.” All of which sounds like valid commentary because after- point-of-sale service for Chinese-built motorcycles and their associated components tends toward wild swings. After all, how committed is the sidewalk vendor to the product? And most potential customers are aware that, to use Baker’s “Bic” analogy, the products themselves are easily replaced by a short dive into your wallet. If there’s little or no commitment on the part of the distributor or vendor of Chinese equipment, there’s correspondingly little expectation of excellence on the part of the consumer. Baker, however, isn’t content to just let it go at that. “I am asking you to do your part in keeping our American art form, V-Twin motorcycling, pure and true,” he implores. “When you purchase a knock-off transmission you are sending your money overseas and growing their culture and weakening ours.” Ours? Theirs? Where’s all this going? Is it possible Baker is simply pushing nationalistic buttons because his own business has taken a hit? Apparently not. Watch him go on to say he doesn’t care who you buy from, just don’t buy Chinese. “Hell, I don’t care, buy a JIMs transmission or some gears from Andrews, but don’t buy their foreign crap. I promise you the [racially-charged expression deleted] don’t care about our motorcycle culture or the advancement of our art form; they just want your money.” From here on in, Big Bert really gets on a roll, with some of the most inflammatory remarks you’re ever likely to find in marketing material not related to extremist group recruitment programs. “When I die,” he muses, “I will be placed face down in my casket so all the [more deleted slags] who have tainted our sport of American V-Twin motorcycling can kiss my ass.” The influx of unsupported Chinese goods of varying quality probably is galling to someone like Baker who has spent years developing components that now enjoy a reputation for top-level performance. And no doubt, he’s appalled to discover how lightly held his patents can be and how quickly his products reverse-engineered by the Chinese. But that public tantrum-slash-editorial lands just this side of out-and-out slander. THERE ISN’T A MOTORCYCLE DEALER IN CANADA WHO HASN’T somewhere along the line bemoaned the lack of available qualified technicians. Too few experienced hands out there, they say, and not enough capable young guys willing to learn the demanding yet often not lucrative trade. Though federal and provincial programs have recently appealed to the youth segment of the workforce to enter trades training, much of the encouragement has been strictly lip service and PR campaigns. However, the Canada Revenue Tax Package for 2006 contains something new, intended, it would seem, as an enticement to trades people. Your government, in its infinite wisdom, is suggesting that if you were employed as a tradesperson (including an apprentice mechanic) in 2006, you may be able to deduct a part of the cost of eligible tools you purchased after May 1, 2006, to earn employment income as a tradesperson. No, that doesn’t include electronic devices, they say. I have no idea whether or not they include items such as ohmmeters or battery chargers in that category; this you’ll have to learn for yourself. To do so, consult Employment Expenses forms T777, TL2, T2200 and GST370, which you can download here: www.cra.gc.ca TWO YEARS AGO (NOV. 2005 TO BE EXACT), IN HIS COLUMN ‘ENGLISH Speaking, Canadian Biker Vintage Motorcycles Editor Robert Smith offered this insight: “There’s a saying in the antique world that you never pay too much, but sometimes you buy too early.” The general direction of his discourse was toward the topic of the true bargain and whether or not the mere passage of time enhances the value of every damn thing. Smith thought not, though he admits to having slipped more than one garage-bound purchase past “She Who Must Be Obeyed” on that premise. But his pronouncements on the subject were brought to mind when news concerning Crocker Motorcycles and that line’s relative value came out of California late in February. When the Legend of the Motorcycle: International Concours d’Elegance debuted in Half Moon Bay, California last May, values of its two featured marques, Brough Superior and Crocker, were strong but steady. For Crocker, however, that changed overnight. “The interest was overwhelming,”says event co-founder Jared Zaugg. “Immediately following the Concours, several people contacted me asking if any Crocker owners wanted to sell their bike. So I called some of the owners and they said the same thing, that they had been getting phone calls of offers to buy.” At the time of the premiere of Legend of the Motorcycle in 2006, a good Crocker road model was worth about the same as a good Brough SS-100, around $120,000. Six months later Bonhams sold at auction a 1937 Crocker Hemi-head from the Jack Silverman collection for a record-breaking $276,500. A month later, a 1939 Crocker Small Tank exchanged hands privately for $300,000. Perhaps it’s as Raiders of the Lost Arc arch-villain Belloq says to Indiana Jones just before pitching our hero. “Who knows? In a thousand years, even you may be worth something.” Comments (0) Subscribe to this comment's feed Write comment You must be logged in to a comment. Please register if you do not have an account yet.