Interesting Article On Thai Car Industry

[NotNew2You]

Interesting article from the NYT on GM's plans for expansion in Thailand and some general info on auto industry in Thailand. Interesting to note that Thailand's auto production and exports are the 3rd largest in Asia after Japan and Korea. This is one industry that somehow Thailand's economic masters got right (after tourism).

http://www.nytimes.com/2008/08/13/business...ml?ref=business

Placed here as think it's more relevant to Thai economy...rather than a car specific topic for the auto forum.

Edited August 13, 2008 by NotNew2You

[PeaceBlondie]

I perused the GM report of this year's earnings. North American sales were exceeded by foreign sales. GM stock is now at a fraction of its value 44 years ago. But they do better overseas. I was surprised to hear that in Thailand, Chevrolet only arrived on the market several years ago. GM sells Buicks in China as limousines. Opel, Daewoo, Holden, Vauxhall, Isuzu, Suzuki cars - all partners or divisions of GM. But in their homeland, GM does almost nothing right.

[Boater]

i have always wondered why Vauxhall ( Opel ) are not selling anymore in Thailand? , i think the Astra Convertible would be a hit here

[thaihome]

... This is one industry that somehow Thailand's economic masters got right (after tourism).

..

What about electronics manufacturing which is by far the leading industry in Thailand? Total manufacturing is probably 100 times bigger then tourism.

TH

[think_too_mut]

... This is one industry that somehow Thailand's economic masters got right (after tourism).

..

What about electronics manufacturing which is by far the leading industry in Thailand? Total manufacturing is probably 100 times bigger then tourism.

TH

Not 100, closer to maybe (still admirable) 3-4 times.

My colleague is a lead consultant for GM in APJ, he has seen nothing of a slowdown in Thailand. Travels there 10 times a year.

And Chevrolet, I had as a rentacar in May. Once, entering Seacon Square shopping mall, a guy in uniform started directing me where to park.

It was the most desirable spot in that mammouth mall.

I thought he was after money...but there was a sign "Chevrolet owners only" and 20 spaces permanently hired by GM to please their Chevrolet customers. Nice.

[think_too_mut]

... This is one industry that somehow Thailand's economic masters got right (after tourism).

..

What about electronics manufacturing which is by far the leading industry in Thailand? Total manufacturing is probably 100 times bigger then tourism.

TH

Not 100, closer to maybe (still admirable) 3-4 times.

Checked Wikipedia after my edit rights had expired...

Main industries

Automobiles and Automotive parts (11%),

Financial Services (9%),

Electric appliances and components (8%),

Tourism (6%),

cement, auto manufacturing, heavy and light industries, appliances, computers and parts, furniture, plastics, textiles and garments, agricultural processing, beverages, tobacco

[steveromagnino]

i have always wondered why Vauxhall ( Opel ) are not selling anymore in Thailand? , i think the Astra Convertible would be a hit here

Convertibles are a disaster in hot countries; also prone to breakins etc. Vauxhall I am not sure people know the brand, virtually no infrastructure/servicing so it is a no go; GM generally has a bit of a reputation (other than Isuzu pick up subsidiary) of lack of reliability, lower resale and bad quality - partly because American companies can't build decent cars but also because they came then exited from the market before and with low market share also comes low numbers of garages/servicing etc. Adn having witnessed a Vauxhall Viva in my youthful years, I can only hope that the brand knows how to build cars now, they certainly didn't appear to know anything 20 years ago.

That said, GM are here for assembly for export plus local, and in that respect things going well for them. Captiva is a beautiful automobile, I would buy one for sure.

Honda have also expanded considerably in the last few months as well; even putting in an R&D facility here as well.

The only problem GM have locally is they are a bit of a one hit wonder with pick ups; and no real range in the cars; they just let Honda and Toyota compete against themselves I guess.

[thaihome]

... This is one industry that somehow Thailand's economic masters got right (after tourism).

..

What about electronics manufacturing which is by far the leading industry in Thailand? Total manufacturing is probably 100 times bigger then tourism.

TH

Not 100, closer to maybe (still admirable) 3-4 times.

Checked Wikipedia after my edit rights had expired...

Main industries

Automobiles and Automotive parts (11%),

Financial Services (9%),

Electric appliances and components (8%),

Tourism (6%),

cement, auto manufacturing, heavy and light industries, appliances, computers and parts, furniture, plastics, textiles and garments, agricultural processing, beverages, tobacco

Yeah, you are right, a bit of exaggeration on my part. But at least you get my point…

TH

[think_too_mut]

... This is one industry that somehow Thailand's economic masters got right (after tourism).

..

What about electronics manufacturing which is by far the leading industry in Thailand? Total manufacturing is probably 100 times bigger then tourism.

TH

Not 100, closer to maybe (still admirable) 3-4 times.

Checked Wikipedia after my edit rights had expired...

Main industries

Automobiles and Automotive parts (11%),

Financial Services (9%),

Electric appliances and components (8%),

Tourism (6%),

cement, auto manufacturing, heavy and light industries, appliances, computers and parts, furniture, plastics, textiles and garments, agricultural processing, beverages, tobacco

Yeah, you are right, a bit of exaggeration on my part. But at least you get my point…

TH

Certainly.

The 2005 Boxing Day tsunami did not make it up to the level of Thai GDP. Hardly made any tangible dent in it.

[whitethai]

so could we make a living selling/exporting parts?

[dotcom]

Tourism is hugely important because it's money coming in from abroad.

How many rice cookers do you really need?

[think_too_mut]

How many rice cookers do you really need?

To export or even to replace ones that broke or a new family needs it? Probably limited but a very large number.

How many hard disks one needs?

How many cars one buyer needs?

Tourism is important but neither Tsunami nor SARS (when Thai and regional tourism took a dive) made it into the GDP.

[Plus]

For a decade Thai economy was driven mainly by exports. Tourism is important, but not THAT important.

Domestic consumption accounts only for about a half of auto industry production, same is probably true for electric appliances.

[think_too_mut]

For a decade Thai economy was driven mainly by exports. Tourism is important, but not THAT important.

Domestic consumption accounts only for about a half of auto industry production, same is probably true for electric appliances.

Taiwan is the country fully dependant on exports. Thais are much better diversified.

At least, they are the biggest rice exporters. That guarantees, if discretional spending (like tourism) vanishes or stalls, nobody in Thai will go hungry.

[whitethai]

Are major car brand parts cheap in Thailand?

[think_too_mut]

Are major car brand parts cheap in Thailand?

I had to repair (replace) part of the rear bumper on a rented Toyota. The guy opened a plastic bag with Toyota sign and logo and it was 150B. I was expecting 2000B.

[Gary A]

The back window on my Nissan Frontier shattered. It was replaced by e Nissan dealer for a total of 1,300 baht including labor and a free wash. It was an OEM window with the heating wires in it.

[thaihome]

Tourism is hugely important because it's money coming in from abroad.

...

Please explain why this is important in today's world and how that is different then money coming in to pay for exported goods?

TH

[quiksilva]

i have always wondered why Vauxhall ( Opel ) are not selling anymore in Thailand? , i think the Astra Convertible would be a hit here

Vauxhall I am not sure people know the brand,

Opel = Vauxhall = Holden

However they dont scrap all these names and simply call them GM across all markets escapes me.

I went to the lunch with CEO of GM last week they really are keen on Thailand, and have as the article says built a new factory making engines, and have just made this as their regional center for research into alternative fuels.

[steveromagnino]

Opel = Vauxhall = Holden

However they dont scrap all these names and simply call them GM across all markets escapes me.

I went to the lunch with CEO of GM last week they really are keen on Thailand, and have as the article says built a new factory making engines, and have just made this as their regional center for research into alternative fuels.

I realise they are all the same brand. I just don't think they understand how to market things :-)

THey may be keen on Thailand, they may be keen on alternative fuels, but given their expertise I don't really rate their chances against the Japanese too highly. That said, the Captiva is an awesome bit of kit.

We had our run ins with these guys trying to destroy the NGV network we built in NZ back in the 90s; they had cars but refused to sell them to us; and lobbied the govt and the petrol companies to get rid of the CNG gas network. So my feeling towards the Yank car companies is perhaps a little less positive than some.

Watching who killed the electric car was kind of deja vu.

[thaihome]

Ford to make new Fiestas in Rayong

Ford Motor Co has confirmed plans to build its new Fiesta subcompact cars at its Rayong plant in Thailand next year, following the start of production of the models at its plant in Germany last week.

TH