Toyota reconsider investing up to 20 billion baht ($609 million) in Thailand, and could even cut pr

[Chao Lao Beach]

(Reuters) - Toyota Motor Corp (7203.T) may reconsider investing up to 20 billion baht ($609 million) in Thailand, and could even cut production, if political unrest drags on, the head of the Japanese automaker's local unit said on Monday.

Toyota is the largest car manufacturer in Thailand, producing 800,000 vehicles a year. Plans to increase its annual capacity by 200,000 vehicles a year over the next three to four years are now uncertain, Kyoichi Tanada, president of Toyota's Thai unit, told a news conference.

"Our new investment in Thailand may not happen if the current political crisis goes on longer," Tanada said.

More here at the link to Reuters http://www.reuters.com/article/2014/01/21/us-thailand-auto-toyota-idUSBREA0K00120140121?feedType=RSS&feedName=businessNews

[I knew this would happen]

Somehow it´s about time that others deliver the message to Thailand that they have to clean up their mess. Now that the neighbouringing countries aren´t communists or isolated dictorships anymore Thailands advantages begin to melt away and other spots become more and more interesting for future business.

[bkkjames]

I would suggest less people visiting showrooms has very little to do with protests at Victory Monument, Asoke, Lad Phrao etc.

I would suggest that sales are down again for many other factors including in no particular order.

1) Banks are not lending so easily

2) Hangover from new car scheme

3) Competition - especially for trucks (ford, mazda, isuzu, chevy vs long time leading Vigo) Not sure what new toyotas have come out in the face of sedans - compacts from others but seems others are upping the ante with loads of new models.

(Edit to add - checkout the biz section of the other paper for a story on how upbeat they are on the Thai market despite protests, sales....)

[VocalNeal]

Keeping another 200,000 plus units a year off the roads especially in Bangkok would not be a bad thing. But I'm with the above. Nothing to do with protests and just an excuse as maybe sales of trucks to Australia is slowing.

[steelepulse]

Toyota does have quite a few models that are getting long in the tooth. Seems Camry, Hilux and Fortuner haven't undergone a new model in quite some time as car life cycles go, if you don't count minor changes and new names and badges added..

[hansnl]

Already for some time Toyota is loosing it's leading role on the Thai market, and not only there.

Also, the last years Toyota is shrinking it's production in this country, and slowly moving production to cheaper countries.

The political unrest is just a nice "reason" to announce the change of base, or maybe just a ploy to get more subisidies from the Thai government.

Or maybe, just maybe, foreign companies are getting annoyed by "black money"?

[BSJ]

Toyota like every other car company are trying to maximise profits. It only stands to reason they want lower labour costs.

If it costs less per hour (typically 32-45 hours) to make a car and they sell it at the same price, that's good for them!