US Carmaker Ford To Build New Plant In Thailand

[bacchanal]

I'm not sure why so many are negative...or, I think I can guess why.

Any investment that brings good jobs is a good thing.

More "bad news" for the negative posters:

GM to hike Thai output

July 01, 2010

General Motors Co plans to build a new mid-size Chevrolet truck in Thailand for export to Europe and parts of Southeast Asia as the brand makes its first push into the two regional pickup markets.

GM expects to sell at least 100,000 units of the new truck in the first year, with global production of the vehicle concentrated in Thailand and Brazil, Martin Apfel, executive director for GM's Southeast Asian operations, said in a phone interview.

"The logical consequence is to build where the customer wants it, as that keeps your costs down," Bangkok-based Apfel said. Thailand and Brazil are "the two centers of gravity for midsize trucks", he said.

GM, Honda Motor Co. and Nissan Motor Co are raising production in Thailand this year as the global economic recovery spurs domestic and overseas demand. Auto output in the nation doubled in the first five months of the year, and the Finance Ministry raised its 2010 economic growth forecast for the second time in three months yesterday as soaring exports offset the impact of recent political unrest.

Truck production is part of the Detroit-based car maker's plans to invest $467 million in Thailand. Manufacturing will start once GM's deal to assemble a truck with Isuzu Motors Ltd there ends, Apfel said, declining to provide more details about the timing.

GM's plans to build a new diesel-engine plant in eastern Rayong province are still on track, and the facility, which will produce engines for the new truck, is in its "last stages" of completion, he said.

GM, which makes the one-ton pickup truck Chevrolet Colorado and the subcompact Chevrolet Aveo at its 165-acre plant in Rayong, will boost output at the factory to more than 80,000 vehicles this year from 39,800 in 2009, Apfel said.

China Daily

http://english.people.com.cn/90001/90778/90858/90863/7047912.html

AND

Nissan happy in Thailand despite political woes

June 30, 2010

Thailand - Nissan Motor Co, Japan's third-largest car maker, remains confident in Thailand despite recent political unrest and said it was on track to double its output there to 200,000 units this year.

"Not one project suspended or delayed. Everything is on track," Chief Executive Carlos Ghosn told a news conference in Thailand on Wednesday, adding his managers in the country had not encountered any problems stemming from the political turmoil.

Ghosn reiterated comments made on Tuesday in Indonesia to the effect that the company was not planning to relocate from Thailand, its Southeast Asian hub.

Thai car sales in May rose 53.4 percent from a year before, after 43.9 percent in April.

The country is the biggest car market in Southeast Asia and a regional vehicle production and export base.

"Thailand has the benefit of a large, skilled automotive workforce, a highly developed parts and components industry, good transport and logistics infrastructure and favourable policies to promote a strong automotive industry," said Toru Hasegawa, regional vice-president for Asia and Oceania excluding China.

The launch of the low-cost compact "March" model should help production in Thailand reach Nissan's target of 200,000 units in the fiscal year starting in April, and should boost its market share in Thailand, perhaps to 10 percent by 2012, Ghosn said.

Thailand is one of its four main manufacturing and export hubs along with China, India and Mexico. The Thai unit will export 150,000 units of passenger cars and pickups worldwide this fiscal year. Of that, 70,000 units are the March, destined for the Asia and Oceania region excluding China, the company said in a statement.

Nissan's Thai plant builds five models - the March, Teana, Tiida (Latio/hatchback), the Navara pickup and the Frontier pickup.

Reuters

http://www.asiaone.com/News/Latest+News/Business/Story/A1Story20100630-224637.html

[chaoyang]

Good question...it would be nice to know how much does a car / truck cost to make. A complete and honest breakdown along with Govt taxes etc...then we would know if people are being exploited and we can make up our own minds up who to buy from ....including running shoes, footballs carpets and 'T' shirts etc etc...but I am sure NIKE NEXT ADDIDAS FORD TOYOTA will never let us know...

In general, I would think the auto workers at international companies have far better wages and benefits than they would working at some Sino-Thai sweatshop. If you're going to get into all that, better find out about the local pineapple factory and water purification plant that supplies your needs. Now that would be shocking, I'll wager.

[ballpoint]

Would be nice if they would pay a good wage to Thai workers and keep it a NON union shop.

The wife has a nephew that works for Toyota as a mechanic at B300 per day.

SICK.......6 Pounds 25 Pence a day. .....and how much does a Ford/Toyota truck sell for......???

Working as a mechanic would suggest he is employed by a Toyota dealer, which are Thai owned, and have nothing to do with production.

The Nissan quote was interesting

"Not one project suspended or delayed. Everything is on track," Chief Executive Carlos Ghosn told a news conference in Thailand on Wednesday, adding his managers in the country had not encountered any problems stemming from the political turmoil.

I guess all the doom and gloom pro red posters, telling us the whole country is in turmoil and no one wants to do business with it any more, are wrong. The government has been quietly getting on with running the country in the background. Thaksin must be seething that all his thuggery and expense has so far come to nothing. Although, what's the bet that the next terredist protest takes place outside a major internationally owned factory? Hitting foreign investors would be an effective way of killing the economy, rather than just killing fellow red shirts as they did in April / May.

[hughben]

So are these plants (both GM and Ford) replacing any plants they closed last year in the US (and used the credit crunch as an excuse to shift operations)?

[raro]

"It will have an initial output capacity of 150,000 vehicles a year, mostly for export, boosting Thailand's efforts to be a regional hub for car production."

In using the word "hub" they are referring to the manufacture of hub caps on the cars aren't they? Hard to believe it would be anything else

In 2009, Thailand produced 968,305 vehicles, more so than any other country by far in SE Asia.

Don't confuse us with facts when we have already made up our minds!

I also hear that Thailand is the biggest producer of 1-ton pick-up trucks in the world, but I don't have the figures.

Thailand is one of the world's largest car manufacturer. All Japanese brands and lots of other brands (GM, Ford, BMW...) are made in Thailand for the local market and export.

[teletiger]

Toyota may be joining the party.

"Toyota May Shift Some Car Production to Thailand From Japan"

http://www.bloomberg.com/news/2010-07-01/toyota-may-shift-some-car-production-to-thailand-from-japan.html

Regards.

[chaoyang]

So are these plants (both GM and Ford) replacing any plants they closed last year in the US (and used the credit crunch as an excuse to shift operations)?

As you are no doubt aware, the US, Europe and Japan are such extremely mature auto markets that growth of 5 percent would be seen as great. In these emerging markets, growth of 100 percent is possible. In short, they are where the future demand will be.

Of course they also have much lower labor costs. The US needs to lead in innovation -- ie electric cars -- to create a whole new market in developed countries, which is exactly what the big automakers are doing in their R&D. Could be good for all in the end.