Auto exporters wish baht could be fortified

[Angry Dragon]

1 hour ago, Ctkong said:

Som tam tomatoes used are different from imported varieties. They are only unique to Thailand. 

sigh, you're missing the point.  if you don't like my example, then think of some other good that is made locally that relies on imported goods as a supply.  the poster's point was that such locally made goods will be more expensive, when just the opposite is more likely.

[Chongalulu]

8 hours ago, graemeaylward said:

Now is the time that ALL car manufacturers should be turning their sights towards electric cars, as the time is fast running out for fossil fuel cars!


Sent from my iPad using Thaivisa Connect

Not as fast as you might think. The thorny problem is battery cost which makes an electric vehicle on average $12600 more expensive to produce than ICE ,accounting for 40% of the total cost. Upward pressure on prices for the raw materials to manufacture batteries mean prices are not on a downward trend. Especially in developing countries like Thailand expect your diesel pickup to be around for some considerable time yet.

[Cake Monster]

Auto Manufacturers words for " If things dont change soon,we will have to review where iur Capital Expenditure is placed "

Redundancies and Lay offs to follow soon.

[DrTuner]

11 hours ago, Matzzon said:

When the car producers starts to complain it´s time to listen. Many countries have made the mistake to not, with the result that they move out of the country and produce somewhere else. It´s a big blow for a country. Have been waiting to hear this "beep" from them.

The scariest thing are the Japanese manufacturers, they have honed their processed to near perfection, including setting up the factories. They have plans at ready whenever they want to move and know exactly how to do it.

 

Worse than the Nordic tourists, no loyalty at all ????

[rodknock]

least we forget the 2 submarines, new tanks, new helicopters and planes!!

how many billion is that, plus brown bags!! every one needs to make something. let the good times roll

[marcusarelus]

9 minutes ago, rodknock said:

least we forget the 2 submarines, new tanks, new helicopters and planes!!

how many billion is that, plus brown bags!! every one needs to make something. let the good times roll

Do you know how much the submarines cost and what are the terms.  I assume you know the base is already built.

[NightSky]

11 hours ago, PatOngo said:

???? It is!

You must be one of very few lucky elite people, why not tell us the amount and put us mortals all to shame 

 

????

[NightSky]

9 hours ago, Angry Dragon said:

Huh?  with a stronger baht imported goods cost less, thus shouldn't prices eventually decrease for all local goods and products that are made using any kind of imported goods?

 

i like som tam.  som tam contains little tomatoes.  thailand imports little tomatoes.  the baht is now stronger, so little tomatoes are less expensive to import.  maybe my som tam maker will pass some of the savings onto me?

I stand corrected it was late when I wrote it. 

 

Although I see lots of imported food going up in price

[smedly]

On 8/7/2019 at 6:55 AM, mikebell said:

Sod the car industry, my pension is dwindling out of sight.

against the Thai baht since 2016 % drop

 

USD - 14% 

EURO - 15%

GBP - 18%

[smedly]

17 hours ago, Angry Dragon said:

sigh, you're missing the point.  if you don't like my example, then think of some other good that is made locally that relies on imported goods as a supply.  the poster's point was that such locally made goods will be more expensive, when just the opposite is more likely.

I am not sure that Thai's import a lot of consumer goods and food apart from electronics, most if not all of what they eat is home grown or produced

[soalbundy]

18 hours ago, drbeach said:

That's true but that hasn't stopped car manufacturers moving into Myanmar. Granted, for now we're talking CKD vehicle manufacturing, not CBU as in Thailand with most inputs being imported, but the fact that manufacturers like Nissan think it's worthwhile making an investment in that country to build just 1500 cars a year says something. It means they are willing to train workers and take the risk, including having to cope with a country where power cuts are still an everyday occurrence.

 

Therefore, it may be easier than you think to shift countries. Auto manufacturers seemingly moved out of Australia very easily, and into Myanmar (and Cambodia in the case of Hyundai) despite the obstacles so that means they see something there. Samsung is building capacity in Vietnam and gradually moving out of China. Ditto for the hordes of clothing and textile manufacturers. Slowly but surely, "made in China" on your shoes is being replaced with "made in Vietnam" and "made in Bangladesh" for t-shirts.

I agree that it can be done but the move is very gradual, it has to be. As you mentioned the first step is CKD to get some semblance of quality control and an end line in the production process, the really hard part is CBU and that will take years to build the infrastructure needed, tool making, training quality control people, planners, managers, foremen, building up suppliers and controlling their quality. Educational standards of the workforce can also be a problem. Spray painting the body work is also a highly skilled job, not to mention the making of glass products (windscreens) the glass factories have to run 24 hours a day 7 days a week. Some parts from the mother plant will have to be sent over for years to come incurring high import tax. 

[Pib]

Since exchange rates drift up and down I think looking at exchange rates over a couple of decades is a better indicator of how a currency pairs vary.  See below 20 year charts for USD, GBP, and EUR against the THB.  I hand drew in a long term trend line....notice all three western currencies have a long term downward trend against the THB...and the GBP and EUR trends are steep.

 

As you will see the USD-THB as decreased 9%, GBP-THB decreased 34%, and the EUR-THB decreased 29%.  For the ever hopeful that these trends will reverse themselves other than for short periods (maybe a few years) and we'll soon be back to the good old days need to change the fairy tale books they are reading.

 

USD-THB....last 20 years from 8 Aug 2009 to 7 Aug 2019...a 9% decrease.

 

 

GBP-THB....last 20 years from 8 Aug 2009 to 7 Aug 2019...a 34% decrease.

 

EUR-THB....last 20 years from 8 Aug 2009 to 7 Aug 2019...a 29% decrease.