Yingluck invites Germany's VW to build eco-cars in Thailand

[webfact]

ECO CAR
Yingluck invites VW to build eco-cars in Kingdom
Piyanart Sriwalo
The Nation


PM Yingluck Shinawatra met with Volkswagen AG chief executive officer Christian Klingler at Government House yesterday and discussed problems and obstacles associated with manufacturing eco-cars in Thailand.

BANGKOK: -- Prime Minister Yingluck Shinawatra would like to see German carmaker Volkswagen invest in the manufacture of eco-cars in Thailand, which has attractive investment-promotion policies and a strong automobile industry.

Yingluck met with Volkswagen AG chief executive officer Christian Klingler and discussed problems and obstacles associated with manufacturing eco-cars in Thailand.

Klingler was told that the government has policies to promote regional trade via investment in transport infrastructure, which will facilitate the transport needs of the private sector region-wide. Thailand is in a strong position to be a major regional manufacturing base for vehicles of various brands from several countries.

She welcomed Volkswagen to explore the opportunities for eco-cars in Thailand. The Ministry of Industry and the Board of Investment are ready to provide assistance to the company should it be interested in investing in a plant here, she said.

Klingler said Volkswagen was interested in expanding its investments in Southeast Asia, including Thailand, which offers attractive business potential.

Volkswagen is confident in the investment climate offered by Thailandand the rapidly growing Thai automotive industry amid the vast business potentials in this region, he added.


-- The Nation 2013-08-24

[NongKhaiKid]

Naturally the CEO said the right things about Thailand but they didn't get to be one of the world's major companies by rushing into things so if there's any suggestion they might consider building an eco-car here a lot of careful research will be conducted.

As things stand I would suggest they will not necessarily like what they see with a rocky economy, a government who couldn't run a piss up in a brewery and a very unstable political situation. At least they are unlikely to be asked for bribes...LOL

[jalansanitwong]

If VW did make cars here, within six months the Thais will be copying alot of it in soi factories out west BKK. Just like they build fake benz engines and panels.

Factories out that way also make Colt and Smith Wesson hand guns. Thai's like copying farang brand name products.,

Come on in VW !

Enter the land of astonishing smiles at your own peril Fritz.

[fakename]

At least she didnt use the word "HUB"

[toenail]

Where will they get the workers???? After talking to a couple Westerners that are involved with the automotive industry in Thailand, they are having trouble holding on to employees. (yes, the wages and benefits are more than the average hotel worker gets). Unlike the history of the West when people left the farms and moved into the cities for jobs, most families do not move with the father who may be holding on to a job in one of the industrial parks. So, the job ends up being temporary--not looked upon as a lifetime. Maybe the jobs would be taken over by the Cambodians and Lao when it becomes legal in a couple years with the ASEAN agreement kicking in.

[muratremix]

Who will drive fully stripped WV polo with terrible 1.2L 70Hp three cyclinder engine in Thailand?

[webfact]

One troll posts (and reply to it) removed
Please don't post if you have nothing to contribute

/Admin

[bigbamboo]

This is what the PM should be doing.

Well done KY.

[harrry]

Now just who was giving whom the lunchbox present.

[trainman34014]

If they build them here they will surely be for export as i can't imagine this country building the recharging infrastructure all around this country to support their use.

[Rimmer]

Smart Alec post discussing moderation removed

[Bagwan]

This is what the PM should be doing.

Well done KY.

Why am I thinking that if KY wants to do something useful she should turn into a jelly?

[onionluke]

" EDITORIAL
Why is Yingluck trying to reinvent the wheel?
The Nation

The prime minister insists "

Meanwhile on another thread .....

[IMHO]

VW bosses have been out to this region several times already. During their last major visit about 3 years ago, they decided to set up shop in Malaysia, and are already pumping out cars there. I suspect the reasons they haven't wanted to do it before in Thailand are just the same now.... don't hold your breath.

[Baerboxer]

Naturally the CEO said the right things about Thailand but they didn't get to be one of the world's major companies by rushing into things so if there's any suggestion they might consider building an eco-car here a lot of careful research will be conducted.

As things stand I would suggest they will not necessarily like what they see with a rocky economy, a government who couldn't run a piss up in a brewery and a very unstable political situation. At least they are unlikely to be asked for bribes...LOL

Don't be so sure on your last sentence. Siemens have been caught and if you do some research you'll find some interesting others. Large German multi-nationals are no different to other Western similar organizations - they do what's necessary.

[Thai at Heart]

With their duty structures it would still make the cars very expensive. Imported parts.

[HAL9000]

Who will drive fully stripped WV polo with terrible 1.2L 70Hp three cyclinder engine in Thailand?

VW Up! is reported to be pretty peppy.

[Nooky2]

Germans are pretty sharp business people. I'm guessing they can smell something sour here.

But, on the other hand, the German guys that get duped into buying houses and cars here aren't so savvy.

[hawksway]

The Ministry has probably noticed Volkswagen's new "UP" model which will already meet Thailand's ECO spec.

It's difficult to see how VW could actually recoup the investment in building such a line as ECO Cars are built with a very low profit margin. More likely Volkswagen is looking for an ASEAN base to build several of it's brands including Audi, VW, Seat and Skoda, but such an expansion would spell alarm for Honda, Nissen and Toyota.

VW does not just compete - it dominates - others follow!

[dunque]

VW bosses have been out to this region several times already. During their last major visit about 3 years ago, they decided to set up shop in Malaysia, and are already pumping out cars there. I suspect the reasons they haven't wanted to do it before in Thailand are just the same now.... don't hold your breath.

kit cars surely - not 100% production

[lungmi]

Only information:

A test of eco-cars in Germany shows the top five: 1 VW 3 Toyota, 1 Mitsubishi (low class cars).

[hellodolly]

Germans are pretty sharp business people. I'm guessing they can smell something sour here.

But, on the other hand, the German guys that get duped into buying houses and cars here aren't so savvy.

And your source is

Edited August 24, 2013 by hellodolly

[belg]

do i feel another promise comming

big tax rebates on your first electric car ? truck or tractor ?

[Noistar]

This is what the PM should be doing.

Well done KY.

Would have been interesting to hear her actual contribution to the meeting. I assume there were no spur of the moment questions during her speech

[Sing_Sling]

VW bosses have been out to this region several times already. During their last major visit about 3 years ago, they decided to set up shop in Malaysia, and are already pumping out cars there. I suspect the reasons they haven't wanted to do it before in Thailand are just the same now.... don't hold your breath.

VW is ramping up production here in Malaysia as Honda is now building its hybrids here as well . . . The workforce here is more educated, the economy more stable, tax incentives are available and the political situation is easily better than in the LoS

The Ministry has probably noticed Volkswagen's new "UP" model which will already meet Thailand's ECO spec.

It's difficult to see how VW could actually recoup the investment in building such a line as ECO Cars are built with a very low profit margin. More likely Volkswagen is looking for an ASEAN base to build several of it's brands including Audi, VW, Seat and Skoda, but such an expansion would spell alarm for Honda, Nissen and Toyota.

VW does not just compete - it dominates - others follow!

As above

This is what the PM should be doing.

Well done KY.

Would have been interesting to hear her actual contribution to the meeting. I assume there were no spur of the moment questions during her speech

Why would that have changed the topic under discussion?

[Noistar]

VW bosses have been out to this region several times already. During their last major visit about 3 years ago, they decided to set up shop in Malaysia, and are already pumping out cars there. I suspect the reasons they haven't wanted to do it before in Thailand are just the same now.... don't hold your breath.

VW is ramping up production here in Malaysia as Honda is now building its hybrids here as well . . . The workforce here is more educated, the economy more stable, tax incentives are available and the political situation is easily better than in the LoS

The Ministry has probably noticed Volkswagen's new "UP" model which will already meet Thailand's ECO spec.

It's difficult to see how VW could actually recoup the investment in building such a line as ECO Cars are built with a very low profit margin. More likely Volkswagen is looking for an ASEAN base to build several of it's brands including Audi, VW, Seat and Skoda, but such an expansion would spell alarm for Honda, Nissen and Toyota.

VW does not just compete - it dominates - others follow!

As above

This is what the PM should be doing.

Well done KY.

Would have been interesting to hear her actual contribution to the meeting. I assume there were no spur of the moment questions during her speech

Why would that have changed the topic under discussion?

It might have proved whether she actually knew what she was talking about and why.

The subject wouldn't have changed, her standing would have been proven.

[petedk]

It's funny that this topic should suddenly turn up. Only last week was I talking to a group of Thai people about Carlsberg and big hotel chains.

They were telling me that "Thai businessmen are very clever and ruthless". They invite foreign companies in as partners and learn as much as they can from them and when they have learnt enough they force some kind of break up. After that they start their own business in the same lines.

I hope that VW stay well clear of Thailand.

[Sing_Sling]

[qu

Well done KY.

Would have been interesting to hear her actual contribution to the meeting. I assume there were no spur of the moment questions during her speech

Why would that have changed the topic under discussion?

It might have proved whether she actually knew what she was talking about and why.

The subject wouldn't have changed, her standing would have been proven.

Her standing? Is that what is important in this context? Really?

An announcement of a potential collaboration/investment is hardly the place for ad hoc questions aimed at showing her not knowing everything about cars.

Sometimes you just have to put your obvious antipathies on the backburner . . . they simply are not appropriate

[Jitar]

It's funny that this topic should suddenly turn up. Only last week was I talking to a group of Thai people about Carlsberg and big hotel chains.

They were telling me that "Thai businessmen are very clever and ruthless". They invite foreign companies in as partners and learn as much as they can from them and when they have learnt enough they force some kind of break up. After that they start their own business in the same lines.

I hope that VW stay well clear of Thailand.

That MO has been used in some industries but so far Toyota, Honda and Isuzu seem to have managed OK. A globally competitive car manufacturing business is a little more complicated than Beer & Pizza. Besides VW have plenty of experience in China where there is probably more potential to milk partners.

[KathuPete]

I'm all for it if it means reasonably priced quality cars in Thailand for the first time ever.