Ford Sticks With The Investment Plan?

[ThaiGoon]

http://www.sfgate.com/cgi-bin/article.cgi?...p;type=business

Despite its political instability, Thailand -- with a well-regarded workforce, fairly low costs, good infrastructure and a location in the heart of fast-growing Southeast Asia -- remains attractive to multinational businesses.

Boyce ( the U.S. ambassador to Thailand), who stopped in San Francisco on Tuesday to address a meeting called by the California-Asia Business Council and San Francisco firm Lombard Investments, said Ford Motor Co. has decided to build a $1 billion manufacturing plant in Thailand.

[ThaiGoon]

Apparently "bad" news like this rarely got any interest on this board.

[nick2k]

frankly, I think ford is run by some incompetent people. just another stupid decision made by some stupid people. with all the anti-american sentiment here, I am pretty sure they will not last long. nobody will buy their cars here in thailand. period. a wasted billion dollars.

[bingobongo]

Apparently "bad" news like this rarely got any interest on this board.

sorry to bring you back to reality (again) Thaigoon, but who will buy these cars?

Thai auto sales down 15 pct yr-on-yr in March, dropping for 3rd mth in a row

http://www.forbes.com/markets/feeds/afx/20...afx3618882.html

besides, thailand (with or without Ford) will not be competitive with China auto production

http://www.forbes.com/business/feeds/afx/2...afx3618583.html

Edited April 17, 2007 by bingobongo

[shochu]

again, they would be for export to the huge markets with tons of people all around.

for some news - thailand does export things - quite a bit actually - do some research before you discuss things in a finite way. there is no ecxuse wiht the availability of the internet now.

[bingobongo]

again, they would be for export to the huge markets with tons of people all around.

for some news - thailand does export things - quite a bit actually - do some research before you discuss things in a finite way. there is no ecxuse wiht the availability of the internet now.

thank you sochu, but my research says that thailand is going nowhere, the thing about dreaming....is that you have to wake up some time

Thailand hits bottom of regional economies

Thailand currently occupies the lowest rung on Southeast Asia's economic growth ladder after a poor 2006 performance, according to a United Nations report which forecasts even lower expansion this year.

The report, released on Wednesday, said that the kingdom achieved only 5.0 per cent GDP growth in 2006, compared to its 4.5 per cent growth in 2005.

While the Thai economy rose marginally, the forecast for the coming year is that Thai GDP growth is expected to be lower in 2007 than 2006, at 4.7 per cent, pressure for the baht's appreciation will likely continue, and investment looks gloomy, with only Indonesia performing more poorly in the region.

The United Nations Economic Commission for Asia and the Pacific (UNEscap) in its annual economic and social survey, "Surging Ahead in Uncertain Times", unveiled in a press conference at the Foreign Correspondents' Club of Thailand, noted that for the eighth year the region grew faster in regard to economy than any other region worldwide, registering 7.9 per cent growth in 2006, up from 7.6 per cent in 2005, but that Thailand isn't in the same picture.

A wait-and-see attitude among foreign investors and "ongoing political tensions" mean that Thailand's macroeconomic outlook will be "subject to greater downside risks than other southeast Asian economies."

However, Thailand leads much of the Asian region in gender equality, while South Asia lags behind, according to UNEscap Emerging Social Issues chief Thelma Kay, who said that in government and business Thai women occupy more powerful positions and that access to meaningful employment and educational opportunities is better in Thailand than most other countries in the region.

According to UNEscap deputy executive secretary Shigeru Mochida, "Thailand is such an important country in the region, and in the world, that everybody is watching and hoping that everything will be settled very soon (as the post-coup d'etat government intends) and that we can expect a predictable regime and stable economic policies."

The United Nations Economic Commission for Asia and the Pacific (UNEscap) annual economic and social survey, "Surging Ahead in Uncertain Times", noted that for the eighth consecutive year the region grew faster in regard to economy than any other region worldwide, registering 7.9 per cent growth in 2006, up from 7.6 per cent in 2005, but that Thailand isn't in the same picture.

While not directly addressing the capital controls measures imposed by the Bank of Thailand in December last year, Escap predicted that exchange rate management will be the region's biggest challenge through the year, and anticipates the need to recast major regional currencies to appreciate due to capital inflows and imbalances in the US economy. Central banks throughout the region can choose any two of three policy options, according to the report, targeting exchange rates, having an independent monetary policy, or keeping capital accounts open – but not all three at the same time.

Escap sees greats exchange rate flexibility as one sustainable solution that would take away the "one-way bet" that encourages speculative capital inflows.

Shortages of capital funds are hindering the recovery of private investment in Thailand, Mr. Kumar explained, as well as other countries in East Asia. Credit shortage was evident in the kingdom as the share of individual consumption loans rose from 12 per cent during 2000-2005 as compasred to 24 per cent by mid-2006.

Six major possible downside risks are identified: an oil price shock; an abrupt cooling of US housing markets; a disorderly unwinding of global imbalances; a reversal of Japans' emergency economic recovery; economic "overheating" in China; and an avian flu pandemic.

UNEscap says that Thailand is, like many neighbours, increasingly vulnerable to a new currency crisis, comparing the situation to that of the 1997 economic crisis -- but without saying that such a crisis will occur.

Thailand's vulnerability , like other regional crisis-hit countries, "is due to appreciation of the currency driven by short-term capital inflows, and inflation in the economy from higher oil prices.

UNEscap economist Raj Kumar noted that the Thai market responded to oil price pressures with a 1.5 per cent fall in oil consumption, despite 5 per cent economic growth.

The survey also said that gender inequality causes the region to lose US$42-47 billion annually due to restrictions on women's access to employment and another US$16-30 billion a year because of limits to women's educational access.

Much of the economic uncertainty is an unfavourable external environment, largely due to the slowing of the US economy and "a modest decline in global electronics demand," the report notes, giving the Asia-Pacific region high marks with continued dynamism "despite risks of further oil price shocks and a sharp depreciation of the US dollar."

The survey warns that interventions by monetary authorities to keep currencies down are leading to inflated asset values, especially in housing and equity markets.

Some 16 per cent of GDP and more than one-third of overall world economic growth is taking place in Asia, according to the UN Economic and Social Commission for Asia and the Pacific (UNEscap).

"The three big Asian economic – China, India and Japan – will maintain the growth momentum and may provide good opportunities to other countries," UNEscap executive secretary Kim Hak-Su said before the launch.

http://www.bangkokpost.com/topstories/tops...s.php?id=118176

[bingobongo]

again, they would be for export to the huge markets with tons of people all around.

for some news - thailand does export things - quite a bit actually - do some research before you discuss things in a finite way. there is no ecxuse wiht the availability of the internet now.

here is another schochu....how exactly will Thailand remain competitive? please tell

EXCHANGE-RATE WOES

Strong baht blunts Thai edge

Key index at worst level in almost eight years

The Kingdom's competitiveness has decreased to its lowest level in seven years and eight months in baht terms.

http://www.nationmultimedia.com/2007/04/18...ss_30032058.php

[bkkandrew]

Surprised that no-one has pointed out that Ford is also the auto company with the distinction of having the largest losses for the last 3-years. The idea that it has any funds to "invest" after having to pawn all its factories last year for loans is actually laughable.

Actually, no, upon thinking about it, I suppose Ford goes hand-in-hand with Thai economics!!

[shochu]

I want to preface this by saying that i will only respond to this one topic and leave the others as is because this topic seems to be running concurrantly on a few.

First, i think it is okay to post news since it is "news", but it alway needs to be taken as just that - news. What i mean by this is that headlines have an intended purpose - to fuel speculation - such as you and many other posters here screeming about the decline of LOS.

Now, my backgroung is no longer related to finance because i have moved on to another area - but i do spend a lot of time - probably over a 1000 hours a year researching for my own investments and interests (hobby). I too read the headlines and other things - but I always know that they are not the be all end all of the story. Sometimes co.'s will issue a headline for one reason or another. I never fully believe everything I read - and instead just use it with my knowledge of everything else to come to a conclusion.

It seems a lot of you want LOs to fail for one reason or another. I can guess - but I'll refrain.

I tend ot look at the long term picture and not the short term hiccups. As i said before, elsewhere, the world is slowing down. Don't believe the numbers you read in the HEADLINES as they have an agenda. This will of course affect LOS. But, when you look at all the fundamentals around - such as the fact that there are huge econonies all around with a young population (key here) all still wanting to buy things for the first time (as opposed to replacement items), and the country has a vibrant workforce - educated too, countrary to what many of you think, and the fact that Bangers is in the midst of a huge infrastructure upgrade - which generally means a large jump in investment and subsequent value, and everything else that follows. Follow any city that has gone through these changes and you will see a picture emrge of the potential. And where else do you see so much investment as in the siam area for shopping. Co's would not make these investments on a whim - they think longer term.

Yes, Los is just a manufacturing center and in the long run will have to move on - but all economies have to go through this period of adjustment. China - up until now has done the same. Many of the co's there are foreign (and american) owned and they have many of the materials brought in to be manufactured - then to have them shiioped off. Who benefits here. The chinese and the co's - the amercian people only benefit in being able to buy cheaper products - not where it counts. So, why can;t LOS follow this trajectory for now and move on when they are ready? i tseems ot have worked for china - so how does this not work for LOS? And Los is also a major export nation in many other things produced here - yes - here!

All of the arguments I have heard on this (above) only suggest something - but do no justice in validating any point.

The fact they they produce something trickles down to the economy much more than any other way of advancing an economy. Add to this all the assiciated benefits and you have a postive picture. Tourism does benefit the economy - but not in the way most here think. I won't go inot this because i don't have th etime or the inclination. Besides you need to figure some things out for yourself.

I go where my intuition takes me, and this is backed up with many years of expereince. I'm here to stay. As I have said before - I have been coming here for close to 20 years. I have seen it all. Los has improved tremendously - but there have been some downs along the way - but overall it is becoming a world class city that offers someone like myself everything that I look. I rank Bangers right behind Tokyo, Shanghai, and Seoul in terms of major cities in the region with huge potential. I know of only two other cities with the density and scale of shopping as the Siam area - Tokyo and seoul. You should have seen what bangers was like back in the 80's - then you will understand. Anyways, bangers will take off soon enough and I plan to be here to capitalize while many of you will be reading abou it in the NEWS!

Investors stay in it for the long run, speculators come and go like the ladies of the night!.

In closing - if you don't like it - why stay on here - either in LOs or this forum. If you think there is not future - then see ya!

[ThaiGoon]

[think_too_mut]

Uninformed post comes with a dumb closure:

In closing - if you don't like it - why stay on here - either in LOs or this forum. If you think there is not future - then see ya!

[Dakhar]

Shanghai! Haa Haa that was really a nice thought.

[PeaceBlondie]

I don't know. I'm not a goon, a tycoon, or a baboon, but I did read the report of Ambassador Boyce's speech, and it seems to be a very mixed bag. He says Ford will build the new plant, but Ford doesn't confirm. The ambassador also reports some negatives.

Bangkok is just a city in Thailand. The capital is not the country.

[chanchao]

That's not fair, you actually read the article.

[bingobongo]

good luck chanchao and thaigoon, you are going to need it as thailand sinks further into the abyss

don't let YOUR fantasy obscure reality

[chanchao]

Get a sign made, Bongo.

Edited April 19, 2007 by chanchao

[Old Man River]

http://www.sfgate.com/cgi-bin/article.cgi?...p;type=business

Despite its political instability, Thailand -- with a well-regarded workforce, fairly low costs, good infrastructure and a location in the heart of fast-growing Southeast Asia -- remains attractive to multinational businesses.

Boyce ( the U.S. ambassador to Thailand), who stopped in San Francisco on Tuesday to address a meeting called by the California-Asia Business Council and San Francisco firm Lombard Investments, said Ford Motor Co. has decided to build a $1 billion manufacturing plant in Thailand.

The Treaty of Amity allows US companies to maintain 100% control. There has been a lot of discussion on this lately as to whether Thailand will revoke this privilege, but so far they haven't and many believe that it will remain status quo for at least the next two years if not longer. Therefore, the revised FBA will not affect Ford's investment and by going forward, they are taking the position that Thailand will work out its internal problems allowing business as usual.

[PeaceBlondie]

good luck chanchao and thaigoon, you are going to need it as thailand sinks further into the abyss

don't let YOUR fantasy obscure reality

No, I don't think Thailand will sink entirely into a black hole. A backwater, perhaps, compared to Taiwan and Singapore. It just will never be a powerhouse. It will advance and retreat and re-advance and re-retreat from time to time, but it may become, as my boyfriend disgustingly refers to our neighboring countries, "a communist country!!"

It can be a song lyric, "There will always be a Thailand........."

[cclub75]

Surprised that no-one has pointed out that Ford is also the auto company with the distinction of having the largest losses for the last 3-years. The idea that it has any funds to "invest" after having to pawn all its factories last year for loans is actually laughable.

Actually, no, upon thinking about it, I suppose Ford goes hand-in-hand with Thai economics!!

Thank you to refresh our memories...

Indeed, they reported a $12.7 billion loss for 2006, "its biggest in its 103-year history".

I say : respect.

http://www.washingtonpost.com/wp-dyn/conte...7012500811.html

More seriously... at that point it makes sense to close ALL operations in US, fire all the employees... and invest heavily in developping countries.

So the factory in Thailand, eventually, could be a reality.

[RasiMike]

Surprised that no-one has pointed out that Ford is also the auto company with the distinction of having the largest losses for the last 3-years. The idea that it has any funds to "invest" after having to pawn all its factories last year for loans is actually laughable.

Actually, no, upon thinking about it, I suppose Ford goes hand-in-hand with Thai economics!!

I second that.... after spending most of my day repairing the differential of a FORD ranger.

Please invest in both Thailand and FORD.... so middle class expats, like me, can spend our free time under vehicles instead of investing in domestic enterprise.

[nick2k]

Surprised that no-one has pointed out that Ford is also the auto company with the distinction of having the largest losses for the last 3-years. The idea that it has any funds to "invest" after having to pawn all its factories last year for loans is actually laughable.

Actually, no, upon thinking about it, I suppose Ford goes hand-in-hand with Thai economics!!

Thank you to refresh our memories...

Indeed, they reported a $12.7 billion loss for 2006, "its biggest in its 103-year history".

I say : respect.

http://www.washingtonpost.com/wp-dyn/conte...7012500811.html

More seriously... at that point it makes sense to close ALL operations in US, fire all the employees... and invest heavily in developping countries.

So the factory in Thailand, eventually, could be a reality.

the problem with ford is not the blue collar workers who put the car together. ..it's their designers.

ford's car designers can't design a car that can compete in the world arena. get rid of the current designers, and bring someone else in who CAN design a popular car. and their financial problems should be history.

everybody knows this is what the problem is. that is why I say ford is run by some incompetent people who are making stupid decisions.

as for firing everybody in the us factories and sending their operations overseas... that won't solve their problems with the designers. it will just slow the rate towards bankruptcy.

ford needs to stay in america.

that billion should be spent in america on americans. and some of it should be used to FIRE the incompetent designers, and FIND replacements who can design cars that can compete with everybody else.

if there was a honda type looking car with honda style handling with honda prices being sold with the FORD name on it, it would become popular overnight. no question.

so, the big question is - why can't those incompetent guys at ford figure that out?

were they born in a hick town? are they of the sort who don't use computers? are they old farts who won't get out of the way for the new generation to run things?

figures...

[chanchao]

The differential of a Ford Ranger was designed/manufactured by Mazda, just like the rest of it.

[Naam]

You should have seen what bangers was like back in the 80's - then you will understand.

you understand even better when you have seen Bangkok (as i did) the first time in 1973 and in consecutive years.

[nick2k]

The differential of a Ford Ranger was designed/manufactured by Mazda, just like the rest of it.

well, there you have it. the problem.

if ford is relying on foreign competitors to design and manufacture their cars, what did ford expect???!!!

..a ford car that would be able to compete with any of mazda's cars, or for that matter, ANY car from japan?

talk about stupidity.

all ford needs to do - is find out what the most popular inexpensive car is - and COPY it.

a no-brainer.

that is what everybody in asia is doing to america.

get on the bandwagon, ford. make all americans proud.

[chanchao]

..a ford car that would be able to compete with any of mazda's cars, or for that matter, ANY car from japan?

Yes. Ford-badged vehicles seem to outsell the equivalent Mazda-badged vehicles in Thailand with the exception of the Focus/Mazda 3 but both of those have to eat serious dust from Honda and soon Toyota when they update the Corolla/Altis.

all ford needs to do - is find out what the most popular inexpensive car is - and COPY it.

Well, that's exactly what they've been doing in recent years. Also the Focus is an excellent car but it doesn't seem to be selling in Thailand..

[think_too_mut]

The differential of a Ford Ranger was designed/manufactured by Mazda, just like the rest of it.

well, there you have it. the problem.

if ford is relying on foreign competitors to design and manufacture their cars, what did ford expect???!!!

..a ford car that would be able to compete with any of mazda's cars, or for that matter, ANY car from japan?

talk about stupidity.

Ford = Mazda.

Ford owns Mazda, at least a controlling stake in it.

[griser]

Ford has a bad rep in America...

F ound

O n

R oad

D ead

greg

[bkkandrew]

Ford has a bad rep in America...

F ound

O n

R oad

D ead

greg

When I was in the motor trade the acronym for Ford was Fix Or Repair Daily

[bingobongo]

here is some more reality Thaigoon

Four Asian nations hit by 1997-98 financial crisis face vulnerability

Thailand now faces greater risks due to a decline in the ratio of foreign reserves to short-term debt and an increase in short-term capital inflows.

http://www.iht.com/articles/2007/04/19/news/currency.php

[ThaiGoon]

PeaceBlondie, are you a man or a woman or a mix of both? I'm just curious (as I'm beginning to understand why you are still sticking around in Thailand even with your obvious disgusts of the place (and people ...excluding your Thai b/f of course)) I can see how hate crimes towards a certain group of people in America could deter you from going back there.

Anyway, thanks for reading the article. That's why I titled this thread as a question.