Nissan To Build New Auto Plant In Thailand

[webfact]

Nissan to build new auto plant in Thailand

TOKYO, Nov 2, 2012 (AFP) - Nissan said Friday it would spend about $358 million to build its second auto assembly plant in Thailand, as it ramps up production away from its costly home base of Japan.

The new plant in Samut Prakan province will be constructed close to Nissan's existing factory near Bangkok, which employs about 6,000 people.

Nissan's plant emerged largely unscathed from record flooding last year that dented Japanese firms operating in the country, although it temporarily stopped production due to a parts shortage.

Japan's second-biggest automaker said it would initially build 75,000 vehicles at the new plant, scheduled to open in August 2014, before expanding annual output to 150,000 units, it said.

Nissan made 190,00 vehicles in Thailand last year.

"(It) will not only enable us to raise our competitiveness in the domestic market, but will ensure Thailand's position as a key strategic global export hub for Nissan," Hiroto Saikawa, Nissan's executive vice president, said in a statement.

The firm has set a goal to more than doubling its share of the Thai vehicle market to 15 percent by fiscal 2016.

In common with many Japanese companies, Nissan is seeking growth in foreign markets to rebalance the ageing and shrinking consumer base at home.

Nissan's announcement comes as Japanese automakers have cut production in China owing to a sales slump stoked by tensions between Beijing and Tokyo over a group of islands in the East China Sea.

The months-long flooding disaster late last year took a heavy toll on Thailand's industrial heartland north of Bangkok, with many factories forced to close temporarily.

-- (c) Copyright AFP 2012-11-02

[smutcakes]

I hope Nissan have seeked advice from the resident experts on the automotive trade on Thai visa before announcing this.

[kenmackie]

I hope Nissan have seeked advice from the resident experts on the automotive trade on Thai visa before announcing this.

The experts are quiet tonight ,way too quiet

[catmac]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

[Bill999]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

There's the first one!... desperately trying to put a negative slant on a positive report.

[catmac]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

There's the first one!... desperately trying to put a negative slant on a positive report.

Sorry to dim your rose-tinted specs, just trying to put things in perspective (and not really desperate at all!). There really is a huge difference between manufacturing and merely assembling. The former would show a real long-term commitment to Thailand in training a skilled workforce, the latter could be merely a short-term expedient to get round import duties, etc. to be easily shifted elsewhere once the AEC comes into operation.

[sandrabbit]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

I just wish that Ford would sell more of it's production in Thailand, I wanted to buy the top of the range Ford Ranger but got told that it's at least a 6 months waiting list but they couldn't put a time on it anyway. Apparently only 20% of production is sold here. Hello Toyota.

[asiawatcher]

My understanding is all pickups for all brands exported are manufactured in Thailand. Nissan has been behind due to 'style' as majority buy with their eyes. Some redesign could open a whole lot of doors as they already have some great products that are competitive. The manufactured parts, wiring looms, dashboards, rotors & brake plates, panels, bumpers etc - are mostly manufactured by Thai Summit Group, who supply a heap of brands, not just a few. Thailand truly deserves the name "Detroit of the East" and this investment will ensure a lot of business for years to come to Thailand.

[Phatcharanan]

I just wish that Ford would sell more of it's production in Thailand, I wanted to buy the top of the range Ford Ranger but got told that it's at least a 6 months waiting list but they couldn't put a time on it anyway.

I think that the Ranger Wildtrak would be worth the wait.

[Kalbo]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

Nissan are going to manufacture here.Also, along with their new factory, there are a couple of their suppliers that have come out to Thailand with them and are in the process of building some very big factories here too.

[DavoTheGun]

I do not no what Nissan are doing regarding manufacturing motor vehicles here, but being a ex employee, (Marketing) and knowing there quality controls are second to none, I would suspect they would operate a full blown plant.

The quality of product out of Thailand is one of the best in the world, full marks to the Thai Workers!

[stefb1964]

A little of the grid maybe but I couldn't stop thinking that depending on the location of their new plant, they might have to consider changing their activity in Thailand. Instead of building cars, it looks to me that building motorboats might be a more lucrative business..

[h90]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

Well many car parts are manufactured in Thailand and bought here. So if they only assemble it does not automatically mean that all parts are imported. Some might be locally produced.

[markt7081]

Just to set the record straight, I am currently working in the new Ford plant (as opposed to Automotive Alliance Thailand, which is Ford Mazda JV).

I dont work for Ford, so I have no axe to grind.

Currently Ford source quite a lot of parts from local suppliers, already.

They do import engines & transmissions, however directly behind the new factory, they have aquired more land, which is reserved for a future engine factory. The guys here tell me that they want as much local parts supply, as practicable. (that unofficial).

In fact, just this week, they have started exporting some parts!

Now, given the factory has only been in operation around 6 months, I reckon thats a good effort.

I would be more worried about loosing jobs overseas (they just closed Southampton & Genk), I reckon the Aussie factory is on rocky ground as well.

[DP25]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

Ignorant comment. Most of the parts that are used in automotive assembly in Thailand are manufactured in Thailand. The floods here last year even shut down Toyota factories in the US because the parts are manufactured here. The automotive parts industry is HUGE in Thailand, and the majority of the OEM's in the auto industry are Thai owned companies as well.

[MEL1]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

There's the first one!... desperately trying to put a negative slant on a positive report.

What?

That was just inquisitive! Where does it attempt to put a negative slant on 'anything'?

What's your problem with TV posters?

And lastly, who are you anyway?

Give me strength....

-mel.

[MEL1]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

I just wish that Ford would sell more of it's production in Thailand, I wanted to buy the top of the range Ford Ranger but got told that it's at least a 6 months waiting list but they couldn't put a time on it anyway. Apparently only 20% of production is sold here. Hello Toyota.

It is a shame, but Ford has never been a big name here, and there isn't much Ford marketing in Thailand.

The Mondeo is a superb motor, sharing many parts with Jaguar saloons.

However, it is imported, and the price tag makes it financially non-viable in comparison to Japanes saloons.

-mel.

[Nisa]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

There's the first one!... desperately trying to put a negative slant on a positive report.

Sorry to dim your rose-tinted specs, just trying to put things in perspective (and not really desperate at all!). There really is a huge difference between manufacturing and merely assembling. The former would show a real long-term commitment to Thailand in training a skilled workforce, the latter could be merely a short-term expedient to get round import duties, etc. to be easily shifted elsewhere once the AEC comes into operation.

LMAO -- a $350 Million (more than a 1/3 of a Billion) investment with plans to basically double its production of vehicles in Thailand and employee another 6,000 workers... clearly we should question their actual commitment.

Edited November 2, 2012 by Nisa

[DavoTheGun]

It must be that many of you guys are either, on it, or are bored, Please can we have some sane comments about what is quite an important topic, if you have nothing to contribute, the don't!

[OZEMADE]

Just to set the record straight, I am currently working in the new Ford plant (as opposed to Automotive Alliance Thailand, which is Ford Mazda JV).

I dont work for Ford, so I have no axe to grind.

Currently Ford source quite a lot of parts from local suppliers, already.

They do import engines & transmissions, however directly behind the new factory, they have aquired more land, which is reserved for a future engine factory. The guys here tell me that they want as much local parts supply, as practicable. (that unofficial).

In fact, just this week, they have started exporting some parts!

Now, given the factory has only been in operation around 6 months, I reckon thats a good effort.

I would be more worried about loosing jobs overseas (they just closed Southampton & Genk), I reckon the Aussie factory is on rocky ground as well.

Ford have been closing their plants in OZ already. Yingluck has already been to Australia and since her visit Ford are apparently going to make the majority of their vehicles in Thailand. Ford Ranger etc.

Isuzu plans to raise its truck production as high as 500,000 units per year to catch up to surging domestic and overseas demand.

The company yesterday held the grand opening its Bt6.5-billion assembly plant at the Gateway City Industrial Estate in Chachoengsao, which will roll out more than 200,000 D-Max pickup and medium/heavy-duty trucks.

Click on link for more info.

http://www.nationmultimedia.com/business/With-new-plant-Isuzu-aims-to-meet-D-Max-demand-30193274.html

Edited November 2, 2012 by OZEMADE

[Thai at Heart]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

I just wish that Ford would sell more of it's production in Thailand, I wanted to buy the top of the range Ford Ranger but got told that it's at least a 6 months waiting list but they couldn't put a time on it anyway. Apparently only 20% of production is sold here. Hello Toyota.

It is a shame, but Ford has never been a big name here, and there isn't much Ford marketing in Thailand.

The Mondeo is a superb motor, sharing many parts with Jaguar saloons.

However, it is imported, and the price tag makes it financially non-viable in comparison to Japanes saloons.

-mel.

There is a new high end SUV coming. Paiiiirng. 2.9mn

[webfact]

Nissan goes for annual output of 370,000 units

KINGSLEY WIJAYASINHA

THE NATION

BANGKOK: -- Japanese auto-maker Nissan plans to raise annual production in Thailand to 370,000 units by 2016, thanks to an Bt11-billion investment for a second assembly plant that will produce up to 150,000 vehicles per year.

Production at the new plant will commence in August 2014 with an initial annual capacity of 75,000 units before achieving maximum capacity by 2016.

"The new facility will keep Thailand as our largest manufacturing centre in the Asean region," said Hiroto Saikawa, executive vice president of Nissan Motor Co.

"This investment is an important component to achieve the goals of our corporate mid-term business plan, Nissan Power 88 - to increase market share and sustain business growth in this very important region."

According to the global "Nissan Power 88" plan announced by its chief executive officer Carlos Ghosn, the company wants to elevate the Nissan brand and raise global market share to 8 per cent, along with an 8-per-cent rise in operating profits - the two "8s" in the name of the plan - by 2016.

In Thailand, the regional Nissan "Power Up 2016" business plan includes a target of 15-per-cent market share by 2016, while expanding the number of showrooms and service centres to 250.

The regional plan also involves an eco-car project in Indonesia, strengthening domestic research and development and engine production by increasing staff at the Nissan Technical Centre Asia-Pacific, raising regional production from 400,000 units per year to 700,000 to cater to the Asean market growth, and setting up Nissan Motor Asia-Pacific in Thailand to serve as its regional headquarters.

Nissan's Asean production is expected to reach 400,000 units this year.

"Adding 150,000 units of production capacity will not only enable us to raise our competitiveness in the domestic market, but will ensure Thailand's position as a key strategic global export hub for Nissan," Saikawa said.

Currently, Nissan has one assembly facility in Thailand that produces passenger cars and pickup trucks. It is on Bang Na-Trat Road Kilometre 21 in Samut Prakan province. The plant employs 6,000 people and has an annual production capacity of 220,000 units.

Because of a lack of production capacity, Nissan has been hiring Mitsubishi to assemble 40,000 of its Navara pickups per year. However, Nissan's pickup production will be relocated from Laem Chabang to the new plant once it is operational.

Nissan has also raised its domestic sales target for this year by 10 per cent from 120,000 units to 132,000, thanks to the popularity of the government's first-car-buyer tax-refund scheme.

The new plant will also be on Bang Na-Trat Road and will serve the growing demands for Nissan vehicles in both the domestic and regional markets. Once the second facility is fully operational, the company will have a combined production capacity of 370,000 units per year.

The new plant will hire 2,000 people and make Thailand Nissan's major production and export centre for the Asean region.

"This investment is a key factor in achieving our target of 15-per-cent market share in Thailand by 2016, as outlined in our local mid-term business plan, Power Up 2016," said Takayuki Kimura, president of Nissan Motor (Thailand). "Strengthening our operations here confirms Nissan's commitment to and confidence in the Thai market. I am also excited that this new plant will add 2,000 new jobs to the Thai economy."

Nissan, which established its local business entity in 1952, was the first Japanese automobile company in Thailand.

-- The Nation 2012-11-03

[asiawatcher]

I just read a report on the inevitable re-collapse on GM in the US in the not too distant future. The hourly cost is double in the US than elsewhere per worker, it is poor quality in output and it's 200Bn bailout has done nothing simply because they are doing everything 'exactly' that sent them into bankruptcy before. It will be a hard lesson for US citizens of mismanagement both by Obama and his cronies as well as the belief GM was unassailable in the dizzy heights of vehicle manufacturing, leaving another huge debt to be paid by the US citizens.

Having Nissan (and others) realise Thailand is a great opportunity in auto manufacturing ensures a stable future as long as unions are held at bay and quality remains high. I also understand Suzuki is or already has - built in Thailand.

[OZEMADE]

I just read a report on the inevitable re-collapse on GM in the US in the not too distant future. The hourly cost is double in the US than elsewhere per worker, it is poor quality in output and it's 200Bn bailout has done nothing simply because they are doing everything 'exactly' that sent them into bankruptcy before. It will be a hard lesson for US citizens of mismanagement both by Obama and his cronies as well as the belief GM was unassailable in the dizzy heights of vehicle manufacturing, leaving another huge debt to be paid by the US citizens.

Having Nissan (and others) realise Thailand is a great opportunity in auto manufacturing ensures a stable future as long as unions are held at bay and quality remains high. I also understand Suzuki is or already has - built in Thailand.

You were not too far off the mark, as General Motors GM (HOLDEN) collapsed in Australia years ago, only to be propped up by the State and Federal government.

This news on the TV this morning.

Holden Australia May Close By 2016

Premier Jay Weatherill has confirmed General Motors is considering closing its plant in Adelaide.

Mr Weatherill says his government will do everything it can to prevent that from happening after holding talks with GM bosses in Detroit on his 11 day tour of the US.

He says without assistance from the state and federal goverments, the Elizabeth plant could shut down from 2016.

http://www.fiveaa.co...-by-2016_111523

-----------------------------------------------------------------------------------------------------------------------------------------------------

Holden has been gone for 10+ yrs. It’s only the Aussie Taxpayer that has kept it going. Take away the Funding & Holden has never made a true profit since day one. Mr Wetherall is just playing the political game to con the public into thinking he has any influence at all. Waste of time & more Taxpayer Dollars sending light weights to deal with some of the most powerful Business people in the world.

The Unions can take a lot of the blame also for making the decision easier for GM. No global company wants to throw money at an overpaid, Union run operation that still has some of the most generous employment terms in the world.

Especially when their Factories in Sth Korea & other countries can produce the same product for less than half the cost & without the threat of Union disruption.

No more Tax payer funding of jobs.

Comments by Rabbi and I agree fully.

OZEMADE

[Bill999]

Would be interesting to know if Nissan intend to actually manufacture anything, or to just assemble the imported parts here. I believe Ford were very clear in stating that their intended new plant in Thailand would only assemble and not actually manufacture anything.

There's the first one!... desperately trying to put a negative slant on a positive report.

What?

That was just inquisitive! Where does it attempt to put a negative slant on 'anything'?

What's your problem with TV posters?

And lastly, who are you anyway?

Give me strength....

-mel.

What? Try re-reading the first 12 words of Catmac's comment to a positive report, there's a negative tone to it.

I have no problem with TV posters but it's a forum where I'm entitled to leave comments, isn't it? If you or anyone else doesn't like what I contribute then that's just tough.

Who am I? What's that got to do with you? I'm certainly not someone trying to pass themself off as an 8 year old girl.

And lastly, I hope you find the strength you need.

[waza]

I wonder where these car plants will find their employees given that Thailand has a zero unemployment rate?

[jcw]

Nissan to manufacture the 120Y again.

[lizardtongue]

Hope it pans out some much needed employment!

[DP25]

I wonder where these car plants will find their employees given that Thailand has a zero unemployment rate?

Thais take these kind of jobs over less desirable ones. Those jobs are then filled Burmese, Lao, and Cambodian immigrants.

[waza]

I wonder where these car plants will find their employees given that Thailand has a zero unemployment rate?

Thais take these kind of jobs over less desirable ones. Those jobs are then filled Burmese, Lao, and Cambodian immigrants.

"Despite the floods in Thailand, no-one is looking to walk away from the country and as production quickly ramped up, and more companies still set up there, manufacturers are facing a human problem. A labour shortage is threatening to affect the auto industry's rapid growth according to the Thai Autoparts Manufacturers Association. It said that parts suppliers are unprepared to meet the drastic increase in automobile production this year. They cannot recruit enough manpower for full capacity.

The association expects 120,000 additional workers will be needed in the parts manufacturing industry over the next five years as automobile output increases to an estimated 2.5 to 3m units.

As the yen strengthens, Japanese investors particularly are looking for new locations overseas for their investments. Thailand and Indonesia are ideal locations, but Thailand badly needs to develop human resources.

It has a high literacy rate – around 95% for men and 90% for women – and unemployment is very low averaging 1.73% from 2001 to 2012; the highest it has been is 5.73% in 2001 and the lowest 0.4% in the middle of last year, according to national statistics". http://www.just-auto.com/analysis/what-have-we-learned-from-the-thai-floods_id128419.aspx