Thailand new hub for auto industry

[webfact]

Thailand new hub for auto industry
ROWAN CALLICK - THE AUSTRALIAN

An Australian auto industry subcontractors puzzle over their future without cars being assembled in Australia, Thailand is moving to lure them — including with duty-free terms for imports — to establish operations there, where their clients are starting to create one of the world’s key auto industry hubs.

Tim Gauci, the principal of GCA International and an adviser to the Thai government’s Board of Investment, said yesterday Australian auto component companies “are looking at sustainable business models by focusing on how to create a stronger future internation­ally”.

Thai domestic and regional demand is in a period of significant growth, he said, as big-brand car manufacturers invest in increased production capacity.

Japanese brands Mazda and Honda are both building new factories in Thailand, and Honda is building a plant in Prachinburi province. The factory, due for completion next year, will add 120,000 vehicles to the existing production of 280,000 units from its factory in Ayutthaya — which is also being extended.

Mazda announced a few weeks ago that it is producing its fastest-selling vehicle, Mazda 3, in Thailand. In a launch ceremony Mazda president Masamichi Kogai said the Thai factory “is one of Mazda’s most important production facilities in terms of the growth of our business”.

Full story: http://www.theaustralian.com.au/business/latest/thailand-new-hub-for-auto-industry/story-e6frg90f-1226869384649

-- The Australian 2014-03-31

[Yunla]

Its the hub of hubcaps.

[kurtgruen]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

[NongKhaiKid]

How does this balance the warning from some Japanese companies they'll be gone within a year if the politics don't settle down ?

[chooka]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

Cheaper labour, but cars are still more expensive in Thailand than say Australia.

[mijan24]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

Cheaper labour, but cars are still more expensive in Thailand than say Australia.

Yes manufactured here and they have to fit "heaters" but still more expensive than the same model in OZ - WHY???

[JoePai]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

Certainly not slave labour that's for sure - must be the highest paid workers in Thailand. As a business owner it is difficult to match the salaries offered to the car workers.

[huanga]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

Cheaper labour, but cars are still more expensive in Thailand than say Australia.

Yes manufactured here and they have to fit "heaters" but still more expensive than the same model in OZ - WHY???

Try tax!

Cost of production is cheaper, true. But the automobile tax in Thailand is significantly higher than countries like OZ, US, Japan and the likes.

[ace]

How does this balance the warning from some Japanese companies they'll be gone within a year if the politics don't settle down ?

Welll it's not that easy to just pack up a new car production facility and go. But i think Great Wall (Chinese) halted plans to build mega factory here 300k units, Toyota also put new factory on hold already. Going forward they are going to look at Vietnam , Indonesia, etc. especially post 2015 asean.

[tomyummer]

It's a no brainer. Thailand has established itself as an auto assembly powerhouse for a while now. Others have tried to go elsewhere such as Malaysia and Philippines only to return for lack of consistency and overall costs. This may be the only thing working in Thailand.

Only the Thais themselves can mess up these business relationships through their own stupidity. No more floods and keep the politics in control. Yeah, right.

[Kalbo]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

You really have absolutely no idea about the automobile manufacturing industry in Thailand, do you ? The safety standards within these factories are on a par with those in the West and the wages, especially for those with a marketable skill are exceptionally good. Even the run of the mill production line operator has a fair salary, very good bonus and benefits that exceed anything they could get by working at the majority of local companies.

[chainarong]

One needs to be careful , promoting a Australian car made in Thailand, I can see that as a great sales pitch, like promoting a Caddy made in Thailand , nothing wrong where they are made , some brands you don't disrespect, better to keep to the Ford Ranger models , nobody gives a rats Arse. Caterpillar have moved out of Tasmania and relocated to Thailand, the standards are world class, nothing wrong with made in Thailand, that is until another cheap wages country comes along with reasonable infrastructure.

Edited March 31, 2014 by chainarong

[danmarnj]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

or the unions became so greedy and corrupt that American manufacturing became unprofitable.

[expat888]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

You really have absolutely no idea about the automobile manufacturing industry in Thailand, do you ? The safety standards within these factories are on a par with those in the West and the wages, especially for those with a marketable skill are exceptionally good. Even the run of the mill production line operator has a fair salary, very good bonus and benefits that exceed anything they could get by working at the majority of local companies.

Holy crap what propaganda!! "...marketable skill are exceptionally good." Maybe we are talking about 2 different countries because that ain't Thailand.

Just the fact that a car was assembled in Thailand should trouble a potential buyer. I only hope none of the parts were made here.

Everything I have bought that was made in Thailand broke within 3 months.

Edited March 31, 2014 by expat888

[noitom]

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Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

And easy to make payoffs and offer bribes. In fact better than easy, it's expected and part of Thai business culture.

[wilcopops]

Thailand is already the 9th largest motor industry in the world, exceeding such countries as Spain, France and UK.

They don't just assemble vehicles, they have a large industry that manufactures the parts here in Thailand.

Initially Thailand produced "labor intensive" models as it could supply cheap semi-skilled labor.....that is changing and in the future they need to develop the more "hi-tech" production side of the industry, which requires higher skills and wages but less staff.

Labor costs are not everything of course...PRODUCTIVITY is other factor - high productivity can support higher wages but is likely to demand less workers.

PRODUCT is of course important and many industries have scolloped because they don't have a marketable/sellable/desirable product.

The Australia market is not very big and already being supplied by Thailand.....so to increase exports here will require models to replace Holden, Ford and Toyota who were manufacturing rather large vehicles not sellable anywhere else.

I'd say that Toyota are in the best position here as they know that market very well and have the resources to target it with suitable models.

I think there are a lot of posters on TV who have no idea of the size of Thailand's industrial base......all they need to do is take a trip around Chonburi and Rayong provinces and they will see how massive it is.....in short they need to get out more

Edited March 31, 2014 by wilcopops

[danmarnj]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

or the unions became so greedy and corrupt that American manufacturing became unprofitable.

I purchased a cadillac SRX because I wanted to buy an American made car (I know a lot of foreign cars are also made in the US, but their profits go back to the country of origin). When I read the details, the car was assembled in Mexico with 70 percent of the parts manufactured in Mexico. I would love the Obama admn. to audit the books and see exactly where all the bail out money went

[Trembly]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

You really have absolutely no idea about the automobile manufacturing industry in Thailand, do you ? The safety standards within these factories are on a par with those in the West and the wages, especially for those with a marketable skill are exceptionally good. Even the run of the mill production line operator has a fair salary, very good bonus and benefits that exceed anything they could get by working at the majority of local companies.

Holy crap what propaganda!! "...marketable skill are exceptionally good." Maybe we are talking about 2 different countries because that ain't Thailand.

Just the fact that a car was assembled in Thailand should trouble a potential buyer. I only hope none of the parts were made here.

Everything I have bought that was made in Thailand broke within 3 months.

They weren't BMW or Mercedes Benz by any chance?

[Pib]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

Cheaper labour, but cars are still more expensive in Thailand than say Australia.

Yeap, more expensive than the U.S. also. Why? The taxes applied by the Thai govt and I'm not talking the final 7% VAT; I'm talking the the excise/luxury/vehicle/import taxes applied. Yes, vehicles made in Thailand don't have import taxes applied but parts imported to make the vehicles are applied and then luxury/excise/vehicle taxes are applied. So many things in Thailand would be cheaper if it was not the taxes applied even before the items hit the store shelves, but these kinds of taxes are a major, major source of the govt's tax revenue in comparison to personal and other taxes.

[Why ask]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

or the unions became so greedy and corrupt that American manufacturing became unprofitable.

I purchased a cadillac SRX because I wanted to buy an American made car (I know a lot of foreign cars are also made in the US, but their profits go back to the country of origin). When I read the details, the car was assembled in Mexico with 70 percent of the parts manufactured in Mexico. I would love the Obama admn. to audit the books and see exactly where all the bail out money went

I think you'll find your log book was a redundant copy, and in fact your Cadillac was made in Shanghai!

[wilcopops]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

You really have absolutely no idea about the automobile manufacturing industry in Thailand, do you ? The safety standards within these factories are on a par with those in the West and the wages, especially for those with a marketable skill are exceptionally good. Even the run of the mill production line operator has a fair salary, very good bonus and benefits that exceed anything they could get by working at the majority of local companies.

Holy crap what propaganda!! "...marketable skill are exceptionally good." Maybe we are talking about 2 different countries because that ain't Thailand.

Just the fact that a car was assembled in Thailand should trouble a potential buyer. I only hope none of the parts were made here.

Everything I have bought that was made in Thailand broke within 3 months.

Expat - You don't seem to know much (if anything) about the Thai motor industry - in fact one wonders if your ideas are based on anything more than your own preconceptions. Take a look at my post above http://www.thaivisa.com/forum/topic/715182-thailand-new-hub-for-auto-industry/#entry7630676 ...and get out more!

Edited March 31, 2014 by wilcopops

[Curt1591]

How does this balance the warning from some Japanese companies they'll be gone within a year if the politics don't settle down ?

Welll it's not that easy to just pack up a new car production facility and go. But i think Great Wall (Chinese) halted plans to build mega factory here 300k units, Toyota also put new factory on hold already. Going forward they are going to look at Vietnam , Indonesia, etc. especially post 2015 asean.

A couple years back, some of the facilities were trashed in the floods. A lot of stock also bit the dust. They might have thought about packing it up about then. But, ...

The "New Car Buyers" incentive was, quite possibly, a big help in keeping the manufacturers here.

Edited March 31, 2014 by Curt1591

[retell]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

Cheaper labour, but cars are still more expensive in Thailand than say Australia.

Yes manufactured here and they have to fit "heaters" but still more expensive than the same model in OZ - WHY???

Woudnt mind having a heater in the car ,many times when drive in the morning its not hot and the windows keep getting foggy inside and outside

[wilcopops]

Comparisons with the US car market are pretty pointless as the US market has little export worldwide and produces "animal lies" specifically for its home market. In fact they don't even do that very well as they now import or have foreign owned manufacturers (Toyota, Mitsu etc) taking large parts of their domestic market.

Interestingly Thailand is second only to the US in pickup production and exceeds them in production of "small" size vehicles. Aain Thailand is making an exportable product whilst US is not.

Edited March 31, 2014 by wilcopops

[casindonet]

Been awhile the HUB word is used in the news.....kinda miss all the hub stories.

Sent from my GT-I9200 using Thaivisa Connect Thailand mobile app

[Pui]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

You really have absolutely no idea about the automobile manufacturing industry in Thailand, do you ? The safety standards within these factories are on a par with those in the West and the wages, especially for those with a marketable skill are exceptionally good. Even the run of the mill production line operator has a fair salary, very good bonus and benefits that exceed anything they could get by working at the majority of local companies.

The statement is generally true though. We used to build cars in the UK but we can't any more becuase of the property prices. 70% of the UK land owned by less than 1%. As long as they're getting their rent they don't care if all industry just stops in the UK. and manufacturing moves to Asia. The UK needs land reform or at least land taxes.

In the bigger picture this statement is true. Its why our politicians want to push for EU membership so the 1% can profit from free market. While the country goes bust.

Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

[smileydude]

The use of the word "hub" for Thailand is driving me crazy.

I think the writers need to get a thesaurus.

Here let me help:

More words related to hub

center

noun. middle point

axis

bull's-eye

centrality

centriole

centrum

core

cynosure

equidistance

essence

focal point

focus

gist

heart

hotbed

hub

inside

interior

intermediacy

kernel

mainstream

marrow

middle of the road

midpoint

midst

nave

navel

nucleus

omphalos

pith

pivot

place

polestar

quick

radial point

root

seat

Yeah I like the world "omphalos". Lets have Thailand be the belly button of the auto industry for a change.

[h90]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

No GM was almost bankrupt.....If you aren't moving, you are just too expensive in compare to your competitor.

[Why ask]

Now you can see why Detroit is a Ghost Town. Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

You really have absolutely no idea about the automobile manufacturing industry in Thailand, do you ? The safety standards within these factories are on a par with those in the West and the wages, especially for those with a marketable skill are exceptionally good. Even the run of the mill production line operator has a fair salary, very good bonus and benefits that exceed anything they could get by working at the majority of local companies.

The statement is generally true though. We used to build cars in the UK but we can't any more becuase of the property prices. 70% of the UK land owned by less than 1%. As long as they're getting their rent they don't care if all industry just stops in the UK. and manufacturing moves to Asia. The UK needs land reform or at least land taxes.

In the bigger picture this statement is true. Its why our politicians want to push for EU membership so the 1% can profit from free market. While the country goes bust.

Greedy, Western Manufacturers are all coming to Thailand and other developing Countries, in order to take advantage of slave wages and poor worker safety standards, in order to make more profits.

"We used to build cars in the UK but we can't anymore"...

It's not April 1st until tomorrow!

http://www.carmagazine.co.uk/News/Search-Results/Industry-News/CAR-tech-Britains-1bn-auto-industry-revolution/

Jaguar/LandRover is doing very well thanks, as are many many others.

Didn't you ever watch Top Gear - where all British auto manufacturers drove to the Mall of Buckingham Palace.

You'd be very surprised at how actually successful British manufacturing still is. 3rd largest manufacturer in Europe!

[wilcopops]

The use of the word "hub" for Thailand is driving me crazy.

I think the writers need to get a thesaurus.

Here let me help:

More words related to hub

center

noun. middle point

axis

bull's-eye

centrality

centriole

centrum

core

cynosure

equidistance

essence

focal point

focus

gist

heart

hotbed

hub

inside

interior

intermediacy

kernel

mainstream

marrow

middle of the road

midpoint

midst

nave

navel

nucleus

omphalos

pith

pivot

place

polestar

quick

radial point

root

seat

Yeah I like the world "omphalos". Lets have Thailand be the belly button of the auto industry for a change.

Most of the words on that list are inappropriate - I don't know if you are a native English speaker, but the problem with English is that as we are a German based language with another 50% or coming from other Languages - Latin-based mostly - as a result we have ended up with a massive amount of apparent synonyms.

The problem here is that these synonyms aren't actually always interchangeable; they convey different shades of meaning, subtexts, collocations and uses.

So what you really need to do is rather than just cut and paste a list from a Thesaurus, is look for alternative words that would fit and still coney the same meaning.

actually quite a pointless task, would you car to select some others that you think would be apt?

"Omphalos" is great - do you think it will catch on?

Edited March 31, 2014 by wilcopops