webfact Posted March 25, 2013 Share Posted March 25, 2013 Strong baht to wreak havoc on Thai auto industryBy English NewsBANGKOK, March 25 – The rapid appreciation of the baht combined with a labour shortage may inflict a serious blow on Thailand's automotive industry as some companies mull relocating their production bases to Indonesia, according to a Thai industrialist.Surapong Paisitpattanapong, spokesman of the automotive industry group of the Federation of Thai Industries (FTI), said the strengthened Thai currency has slashed the profit of auto manufacturers.Thailand’s auto exports represent 40-50 per cent of all production with a targetted increase to 1.1 million units this year.Auto manufacturers are keen on investing more in Indonesia given the island country’s policy to support eco car production, he said.Regarding the government’s tax rebate for first-car buyers, Mr Surapong said some clients who paid booking fees to be entitled for the tax incentives have asked for a delay in receiving their reserved cars.The delay in delivering the products to customers will contribute to overstock but it would not affect most companies’ manufacturing plans as it is less than 10 per cent, he said.Some first-car buyers who made their bookings late last year have requested to postpone receiving the vehicles due to financial constraints.Mr Surapong said this year’s total auto production is projected at 2.7-2.8 million units but it may be reduced to 2.55 million units if more than 10 per cent of first-car buyers fail to abide by their booking pledges. (MCOT online news)-- TNA 2013-03-25 Link to comment Share on other sites More sharing options...
Popular Post sscsamui Posted March 25, 2013 Popular Post Share Posted March 25, 2013 This is also going to have havoc on the tourist industry and the foreigners who have families here... It almost seem like government officials and ministers have some alternative motive in seeing the Baht getting stronger... Very Crazy... Could this be a new version of corruption? 3 Link to comment Share on other sites More sharing options...
ZhouZhou Posted March 25, 2013 Share Posted March 25, 2013 All thai industries that focus on export must somehow suffer from this. the Euro crises makes that the Thai Baht appears even stronger. still good news for those who import or go on holidays abroad. worries in the auto industry? In some countries that makes things moving. maybe time to book are trip now and stock up on imported goods as long that Baht is that strong like atm. Link to comment Share on other sites More sharing options...
ZhouZhou Posted March 25, 2013 Share Posted March 25, 2013 This is also going to have havoc on the tourist industry and the foreigners who have families here... It almost seem like government officials and ministers have some alternative motive in seeing the Baht getting stronger... Very Crazy... Could this be a new version of corruption?Would you assume corruption if the currency in your country becomes weaker and weaker and exporters happier and happier. Link to comment Share on other sites More sharing options...
NongKhaiKid Posted March 25, 2013 Share Posted March 25, 2013 This is also going to have havoc on the tourist industry and the foreigners who have families here... It almost seem like government officials and ministers have some alternative motive in seeing the Baht getting stronger... Very Crazy... Could this be a new version of corruption? I'm no economist so welcome advice on this subject. All I know is that my pensions arriving from overseas have dropped by between B14,000 - 16,000 in the last 10 years. Iis there a chance that some of the powers that be are so proud of the baht's strength that they ignore their own exporters. I would also suggest that those at the top of the shop don't have to worry about money and that which they declare is, well, only the tip of a cash iceberg 1 Link to comment Share on other sites More sharing options...
Popular Post Mosha Posted March 25, 2013 Popular Post Share Posted March 25, 2013 All thai industries that focus on export must somehow suffer from this. the Euro crises makes that the Thai Baht appears even stronger. still good news for those who import or go on holidays abroad. worries in the auto industry? In some countries that makes things moving. maybe time to book are trip now and stock up on imported goods as long that Baht is that strong like atm. Holidays abroad? I wonder how many working class Thais do that. They are lucky to get any holiday. 4 Link to comment Share on other sites More sharing options...
Thai at Heart Posted March 25, 2013 Share Posted March 25, 2013 And what percentage of a Japanese manufactured car, in terms of value is still imported???? Steel being a rather big component. Link to comment Share on other sites More sharing options...
ZhouZhou Posted March 25, 2013 Share Posted March 25, 2013 All thai industries that focus on export must somehow suffer from this. the Euro crises makes that the Thai Baht appears even stronger. still good news for those who import or go on holidays abroad. worries in the auto industry? In some countries that makes things moving. maybe time to book are trip now and stock up on imported goods as long that Baht is that strong like atm. Holidays abroad? I wonder how many working class Thais do that. They are lucky to get any holiday.the urban middle class can. you don't have to be super hi-so or from a rich daddy family to be able to afford that. if you have studied and good job you are fine. agreed, for the working class in Thailand it is different. but how is it for the working class in other countries, lets say in countries where they get paid in euros or pounds. i heard some of them complained that they cannot afford holidays. Link to comment Share on other sites More sharing options...
Paterno Posted March 25, 2013 Share Posted March 25, 2013 I thought most large Corporations hedge against foreign currency risk. Link to comment Share on other sites More sharing options...
MAN2SIN2BKK Posted March 25, 2013 Share Posted March 25, 2013 I thought most large Corporations hedge against foreign currency risk. Yes, but not against this % movement 2 Link to comment Share on other sites More sharing options...
MaxLee Posted March 25, 2013 Share Posted March 25, 2013 (edited) EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper.So the EX-port business is gonna be EX-terminatedEX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand Edited March 26, 2013 by metisdead : Bold font removed. 2 Link to comment Share on other sites More sharing options...
55Jay Posted March 25, 2013 Share Posted March 25, 2013 RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree. Gotta love (trying) to buy a car here. Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash". "Sorry, can not, you wait 8 to 9 months". Told wife every new car stacked out back was spoken for. I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right. Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?". "1m Baht". <deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response. "But can not, somebody sign already, waiting for bank loan". Hmm, bank loan for an 8 year old car, this sounds like a real winner". "OK then, if he doesn't get the loan, I'll take it. Here's my number, call me". She does not take my number, smiles, "Can not. Somebody else waiting". Link to comment Share on other sites More sharing options...
HalibutJones Posted March 25, 2013 Share Posted March 25, 2013 RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree. Gotta love (trying) to buy a car here. Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash". "Sorry, can not, you wait 8 to 9 months". Told wife every new car stacked out back was spoken for. I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right. Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?". "1m Baht". <deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response. "But can not, somebody sign already, waiting for bank loan". Hmm, bank loan for an 8 year old car, this sounds like a real winner". "OK then, if he doesn't get the loan, I'll take it. Here's my number, call me". She does not take my number, smiles, "Can not. Somebody else waiting". You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK. 1 Link to comment Share on other sites More sharing options...
chuang Posted March 25, 2013 Share Posted March 25, 2013 EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper. So the EX-port business is gonna be EX-terminated EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand What has this guy anything to do the the strong baht ....you have a phobia for him....read some economics... Link to comment Share on other sites More sharing options...
ZhouZhou Posted March 25, 2013 Share Posted March 25, 2013 EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper. So the EX-port business is gonna be EX-terminated EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand interesting. assumed that would be true. what kind of commodities they do import? and do you think they are not involved in any export business? Link to comment Share on other sites More sharing options...
55Jay Posted March 25, 2013 Share Posted March 25, 2013 RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree. Gotta love (trying) to buy a car here. Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash". "Sorry, can not, you wait 8 to 9 months". Told wife every new car stacked out back was spoken for. I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right. Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?". "1m Baht". <deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response. "But can not, somebody sign already, waiting for bank loan". Hmm, bank loan for an 8 year old car, this sounds like a real winner". "OK then, if he doesn't get the loan, I'll take it. Here's my number, call me". She does not take my number, smiles, "Can not. Somebody else waiting". You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK. I'm not. High also due to the long wait for a new one, so that 8 year old SUV can and does sell for nearly the cost of new, because you can drive it off the lot (maybe). I'm not confused by it, just amused. 1 Link to comment Share on other sites More sharing options...
Thai at Heart Posted March 25, 2013 Share Posted March 25, 2013 The Japan Automobile Manufacturers Association describes the quality of Thaimade automotive parts as the highest of any Asean nation. The sector continues to offer ample investment opportunity, as the domestic market and local manufacturers have a parts and components import requirement totaling 250 billion baht each year http://www.thaiautoparts.or.th/download/Article%205.pdf So this should have all got a bit cheaper with the baht getting stronger, no? Link to comment Share on other sites More sharing options...
taff33 Posted March 25, 2013 Share Posted March 25, 2013 EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper. So the EX-port business is gonna be EX-terminated EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand Add more water to it. Link to comment Share on other sites More sharing options...
joepattaya1961 Posted March 25, 2013 Share Posted March 25, 2013 EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper. So the EX-port business is gonna be EX-terminated EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand What has this guy anything to do the the strong baht ....you have a phobia for him....read some economics... Haha right, some people blame the EX-fugitive for everything that goes wrong in this country. Seems to have a huge back!! 2 Link to comment Share on other sites More sharing options...
waza Posted March 25, 2013 Share Posted March 25, 2013 (edited) The Thai auto industry is mainly an assembly operation with most major components imported, the high baht would make those imports cheaper however, the exported vehicle would be more expensive. Since its mainly an assembly industry it is heavily reliant on semi skilled labourers, and as such is impacted more by the rise in the minimum wage and the labour shortage. This will see a migration of this industry to a more conducive environment once the honeymoon period of the first car buyers scheme is over. In addition is isn't helpful to have Yingluck exacerbating the strong baht by trolling around the world encouraging more foreign investment. Edited March 25, 2013 by waza Link to comment Share on other sites More sharing options...
Popular Post billd766 Posted March 25, 2013 Popular Post Share Posted March 25, 2013 EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper. So the EX-port business is gonna be EX-terminated EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand What has this guy anything to do the the strong baht ....you have a phobia for him....read some economics... Haha right, some people blame the EX-fugitive for everything that goes wrong in this country. Seems to have a huge back!! Sorry to have to correct you but Thaksin is not an EX-fugitive. He still has a 2 year jail sentence to serve plus bail jumping and at least another 6 cases waiting for him to return to the country to be heard. The good news is that the ONLY person stopping Thaksin from returning to Thailand is the fugitive from justice, Thaksin himself. 6 Link to comment Share on other sites More sharing options...
jocko Posted March 25, 2013 Share Posted March 25, 2013 RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree. Gotta love (trying) to buy a car here. Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash". "Sorry, can not, you wait 8 to 9 months". Told wife every new car stacked out back was spoken for. I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right. Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?". "1m Baht". <deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response. "But can not, somebody sign already, waiting for bank loan". Hmm, bank loan for an 8 year old car, this sounds like a real winner". "OK then, if he doesn't get the loan, I'll take it. Here's my number, call me". She does not take my number, smiles, "Can not. Somebody else waiting". You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK. I wonder if there is anyway I can sneak my beamer in from the UK? Link to comment Share on other sites More sharing options...
fareastguy Posted March 25, 2013 Share Posted March 25, 2013 Wonder if Izuzo still plan to open a new plant here in the near future ?? Link to comment Share on other sites More sharing options...
NeverSure Posted March 25, 2013 Share Posted March 25, 2013 Let's see. If I was a hi-so Thai with truckloads of baht, would I want them high or low? And in my normal don't-give-a-damn about anyone else or anything but the present, what action could I be expected to take? Link to comment Share on other sites More sharing options...
overherebc Posted March 25, 2013 Share Posted March 25, 2013 RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree. Gotta love (trying) to buy a car here. Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash". "Sorry, can not, you wait 8 to 9 months". Told wife every new car stacked out back was spoken for. I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right. Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?". "1m Baht". <deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response. "But can not, somebody sign already, waiting for bank loan". Hmm, bank loan for an 8 year old car, this sounds like a real winner". "OK then, if he doesn't get the loan, I'll take it. Here's my number, call me". She does not take my number, smiles, "Can not. Somebody else waiting". You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK. I wonder if there is anyway I can sneak my beamer in from the UK? Johnny Cash sang about that. On topic, how many people, Thais, do you think are buying dollars at the moment ? Long term hold then buy back Baht later when it all settles down. Link to comment Share on other sites More sharing options...
FarangTalk Posted March 25, 2013 Share Posted March 25, 2013 The spending power is shifting away from the West and increasing in the East, especially in emerging economies like Thailand. Those hoping for a reversal are going to end up disappointed. 1 Link to comment Share on other sites More sharing options...
Kalbo Posted March 25, 2013 Share Posted March 25, 2013 The Thai auto industry is mainly an assembly operation with most major components imported, the high baht would make those imports cheaper however, the exported vehicle would be more expensive. Since its mainly an assembly industry it is heavily reliant on semi skilled labourers, and as such is impacted more by the rise in the minimum wage and the labour shortage. This will see a migration of this industry to a more conducive environment once the honeymoon period of the first car buyers scheme is over. In addition is isn't helpful to have Yingluck exacerbating the strong baht by trolling around the world encouraging more foreign investment. You are very wrong. While some auto manufacturers do have a CKD line, the majority of the Japanese automakers manufacture the parts, or have them manufactured locally using either Japanese sub-contractors for the more critical parts (intricate molding and casting molds and dies etc) or local suppliers for less critical parts (pressed steel parts etc) Link to comment Share on other sites More sharing options...
Thai at Heart Posted March 25, 2013 Share Posted March 25, 2013 (edited) The Thai auto industry is mainly an assembly operation with most major components imported, the high baht would make those imports cheaper however, the exported vehicle would be more expensive. Since its mainly an assembly industry it is heavily reliant on semi skilled labourers, and as such is impacted more by the rise in the minimum wage and the labour shortage. This will see a migration of this industry to a more conducive environment once the honeymoon period of the first car buyers scheme is over. In addition is isn't helpful to have Yingluck exacerbating the strong baht by trolling around the world encouraging more foreign investment. You are very wrong. While some auto manufacturers do have a CKD line, the majority of the Japanese automakers manufacture the parts, or have them manufactured locally using either Japanese sub-contractors for the more critical parts (intricate molding and casting molds and dies etc) or local suppliers for less critical parts (pressed steel parts etc) But there is still quite a large imported input, but as for exact percentages in terms of value, anyone know? Thailand’s imports of steel, especially hot-rolled steel, have increased greatly on the back of higher consumption.Thailand’s apparent steel use in 2012 increased by 13% compared to 2011. Demand for flat steel, used in manufacturing industries, expanded by14%, while consumption of long steel products, which are used in construction, increased by around 12%. Total steel imports increased by 25%, with highest 35% surge in hot-rolledsheet/ plate, which is one kind of flat steel (Picture 1). Increasing imports have crowded out domestic production, particularly flat steel production which declined by 10% from 2011. The highest proportionof Thailand’s steel imports come from Japan, which claimed 30% of total steel imports, followed by China, which has 20% share. Most of the steel imported from Japan is high-quality and high-strength steel, used in industries suchas automotives that Thai producers are unable to manufacture these kinds of steel due to lack of technology http://www.scbeic.com/stocks/extra/4442_20130205102337.pdf Edited March 25, 2013 by Thai at Heart Link to comment Share on other sites More sharing options...
Popular Post Stevenredd Posted March 25, 2013 Popular Post Share Posted March 25, 2013 This is also going to have havoc on the tourist industry and the foreigners who have families here... It almost seem like government officials and ministers have some alternative motive in seeing the Baht getting stronger... Very Crazy... Could this be a new version of corruption?Would you assume corruption if the currency in your country becomes weaker and weaker and exporters happier and happier. Yes, frankly, I would. The whole thing is manipulated anyway, it's just gotten out of control of the global-nationals who manipulate vassal economies into serving the overall profit motive. It's just "good business." And if Thailand gets too expensive, they'll move elsewhere. Please don't cast any of this in nationalist perspectives....these large international corporations don't care about country borders, they only watch the bottom line. Always. 3 Link to comment Share on other sites More sharing options...
Popular Post Stevenredd Posted March 25, 2013 Popular Post Share Posted March 25, 2013 All thai industries that focus on export must somehow suffer from this. the Euro crises makes that the Thai Baht appears even stronger. still good news for those who import or go on holidays abroad. worries in the auto industry? In some countries that makes things moving. maybe time to book are trip now and stock up on imported goods as long that Baht is that strong like atm. Holidays abroad? I wonder how many working class Thais do that. They are lucky to get any holiday.the urban middle class can. you don't have to be super hi-so or from a rich daddy family to be able to afford that. if you have studied and good job you are fine.agreed, for the working class in Thailand it is different. but how is it for the working class in other countries, lets say in countries where they get paid in euros or pounds. i heard some of them complained that they cannot afford holidays. For the working class in the United States, a holiday consists of camping in the forest, visiting relatives in a different town, or maybe (maybe) going to Disneyland, but that costs so much money it takes two to three years to pay off. Much of that extra spending has been curtailed since the 2008 credit and home loan crisis because the availability of consumer debt has slowed. The working poor in the U.S. live in small houses and drive modest cars because those are made affordable to them. But they are still at the bottom rung of the financial ladder. It's just relatively "richer" because the country is in generally excessively wealthy. But the money on the bottom is beginning to dry up. The rich are squeezing that last bit out of the bottom. Walmart, the largest employer in the U.S., has a high percentage of its employees on Federal Aid and food stamps. So, even the big companies don't pay taxes, nor do they pay their employees enough to fully live. It's rotten all over. Sadly. 4 Link to comment Share on other sites More sharing options...
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