Gm To Close Rayong Plant

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GM to close Rayong plant

By: SANTAN SANTIVIMOLNAT

Published: 14/03/2009 at 12:00 AM

Struggling GM Thailand will temporarily shut its plant in Rayong again from March 23-27 to address excessive inventory due to a demand slump. The plant will resume operations on March 30. The company earlier closed its Rayong plant for two months from December last year due to the deepening economic crisis and the need to manage cash-burn.

In its statement yesterday, the firm said the current economic situation impacted all industries and the effect was global in nature. It needed to restructure its operations as the demand for big-ticket items such as automobiles had fallen dramatically.

GM is committed to the Thai market, is self-sustainable and believes the merits of its projects to Thailand are clear and compelling. Laying off workers is always the last option, and the decision to force any employee to resign is objective and based on strict criteria. At no time has favouritism or personal judgment played a part in the decision-making process.

If employees are forced to resign or resign voluntarily, this is inevitable due to the decline in demand for auto products which has significantly lowered GM Thailand's production output.

''Contrary to some inaccurate reports, currently we do not have any further plans to lay off workers,'' it said.

It also denied reports that GM Thailand and Chevrolet Sales Thailand (CST), its affiliate and marketing arm in Thailand, were on the brink of bankruptcy.

Source: Bangkok Post http://www.bangkokpost.com/news/local/1333...se-rayong-plant

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GM To Halt Production At Thai Plant Mar 23-27 On Demand Slump

Dow Jones

March 13, 2009: 09:27 AM ET

BANGKOK -(Dow Jones)- General Motors Corp. (GM) will halt production at its Thai plant from March 23-27 because of a sharp drop in consumer demand, the automaker said Friday.

The company has already closed the plant twice temporarily since last December because of the global financial crisis, but said it remains committed to the Thai market.

"We are self-sustainable and we believe that the merits of our projects to Thailand are clear and compelling," GM said in a statement, adding that the Thai unit wasn't on the brink of bankruptcy.

The Thai unit of GM has already asked for Thai government support in facilitating funding sources for its future investment in a THB15 billion diesel-engine and one-ton pickup project. It would be GM's first diesel-engine plant in Southeast Asia.

The Thai government is still considering GM's request, but it indicated earlier it wouldn't offer GM any support. The car maker says it will pursue other sources for the funding, including tapping local banks, if its bid for assistance is denied.

GM's existing Thai plant in Rayong, southeast Thailand, is expected to produce a total of 50,620 vehicles this year, a fall of 52% from 104,461 in 2008.

The company has also been forced to reduce its headcount by around 700 employees, out of the total of 3,000. It said Friday that it currently has no plans to layoff more workers.

-By Leigh Murray, Dow Jones Newswires

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