Little risk in Thailand business despite coup: Japan auto boss

[webfact]

Little risk in Thailand business despite coup: Japan auto boss

TOKYO, May 27, 2014 (AFP) - There is little risk to investing in Thailand despite last week's military coup, the head of Japan's carmaking sector said Tuesday, as vehicle production returns to normal in the politically divided kingdom.

Japanese automakers with major operations in Thailand watched nervously as the army seized power and declared martial law, the latest chapter in years of political turmoil.

Japan is Thailand's single biggest overseas investor and the nation has become increasingly important for Japanese firms, which shifted operations from home to counter high wages and a strong yen and mitigate the effects of natural disasters on the supply chain.

"Thailand is where companies can invest with security," Honda chairman Fumihiko Ike told reporters during his first group interview as chief of the Japan Automobile Manufacturers Association.

"I personally don't think there are huge risks to the economy."

Honda, Japan's number three automaker, said Friday it has cut production at its Thai plant by 40 percent, but blamed a drop in demand rather than the political situation directly.

The automaker cancelled one overnight shift in the wake of the crisis.

"Although there are some risks surrounding Thailand, they haven't had a huge impact on our business activities," Ike said.

Last week Toyota, the world's biggest automaker, said it was watching events carefully but all three of its Thai plants were operating normally, despite a brief shutdown Thursday evening when the coup was announced.

Nobuyori Kodaira, Toyota's executive vice president, said Tuesday the automaker was keeping a close eye on Thailand, but the country was a "very important base for us".

"In the long term, I think emerging economies will see increased demand and economic growth. In the meantime, they will also face fluctuations, up and downs," he told reporters.

Nissan, Japan's second-biggest automaker, had not adjusted its operations.

Nearly 4,000 Japanese firms operate in Thailand with investments which the Bank of Thailand said were worth $6.89 billion in 2013 -- half of the total inward investment.

-- Dow Jones Newswires contributed to this report --


-- (c) Copyright AFP 2014-05-27

[Asiantravel]

Deleted post edited out

Who to believe? The actual manufacturers themselves, who’s money is on the line or the chief of a manufacturers association?

Toyota Threatens to Pull Some Investment From Thailand if Unrest Escalates

Toyota (TM) is reportedly considering pulling its close to $610 million planned investment in Thailand if the country fails to stymie escalating anti-government tensions that have weighed heavily on its economy. The largest automaker in Thailand even threatened to cut production if the unrest continues, according to a report by Reuters, citing Kyoichi Tanada, president of Toyota’s Thai unit.

http://www.foxbusiness.com/industries/2014/01/20/toyota-threatens-to-pull-some-investment-from-thailand-if-unrest-escalates/

Edited May 28, 2014 by Scott

[Asia2000]

Chairman: I hope you can say the same in 6-12 months time from now,

but I seriously doubt it.

[Jeffrey346]

Typical corporate propaganda. They will never disclose their true thoughts till they make a firm decision to stay or pull out.

[gprl58]

Who to believe? The actual manufacturers themselves, who’s money is on the line or the chief of a manufacturers association?

Toyota Threatens to Pull Some Investment From Thailand if Unrest Escalates

Toyota (TM) is reportedly considering pulling its close to $610 million planned investment in Thailand if the country fails to stymie escalating anti-government tensions that have weighed heavily on its economy. The largest automaker in Thailand even threatened to cut production if the unrest continues, according to a report by Reuters, citing Kyoichi Tanada, president of Toyota’s Thai unit.

http://www.foxbusiness.com/industries/2014/01/20/toyota-threatens-to-pull-some-investment-from-thailand-if-unrest-escalates/

I fail to see the point in quoting the Toyota threat, as this was reported back in January, I'm sure their stance has changed since the coup.

[Thai at Heart]

Its all good. We have a domestic monopoly. What could be better.

We even charge way more than the west, all for the benefit of the Thai people.

[attento]

Who to believe? The actual manufacturers themselves, who’s money is on the line or the chief of a manufacturers association?

Toyota Threatens to Pull Some Investment From Thailand if Unrest Escalates

Toyota (TM) is reportedly considering pulling its close to $610 million planned investment in Thailand if the country fails to stymie escalating anti-government tensions that have weighed heavily on its economy. The largest automaker in Thailand even threatened to cut production if the unrest continues, according to a report by Reuters, citing Kyoichi Tanada, president of Toyota’s Thai unit.

http://www.foxbusiness.com/industries/2014/01/20/toyota-threatens-to-pull-some-investment-from-thailand-if-unrest-escalates/

January, in the days of dear departed leader.

Edited May 28, 2014 by Scott

[myluckythai]

As long as the big company's are not running we are fine i guess

[chainarong]

Lets face the music on this one , the only time in the past fifteen years to my knowledge that sovereign risk has been in jeopardy is when the civilian governments of the Shinawatra's has been sailing the flamboyant ship Thaitantic,, no other time has there been any questionable governance to worry the business sector, Toyota knows only full well in the last Coup the results where far better for governance than in the past three years , but as a economic guest in another country, you can't say that..

[keemapoot]

I'm sure he's right for the near-to-medium term risk. As far as long term Thailand remaining "The Detroit of SE Asia," well, that premise can no longer be taken for granted. I'm sure all auto companies are looking harder at China and Indonesia longer term. Things are safe for now though.

[rebelplatoon]

No one WANTS a coup. But it has stopped violence. Soon its business as usual.

[smileydude]

Japanese businesses have always been more pragmatic then most.

Economic fundamentals don't change over night and the Japanese know that.

The only risk Thailand has in terms of competitiveness is if our work force is continually handed out free lunches such as rice subsidies, diesel subsides etc. and other counter-productive populist handouts that lulls people into complacency and doesn't produce a more competitive and efficient workforce.

The innovative-driven economies have left Thailand far behind because they've educated and disciplined their people to work more efficiently, productively, and creatively.

[razer]

Cool ... we have a new word/ phrase in the English language!!!!! Counter high wages .... How's that for politically correct vocabulary.

[Guest]

Chairman: I hope you can say the same in 6-12 months time from now,

but I seriously doubt it.

is your glass half empty

[hawker9000]

No one WANTS a coup. But it has stopped violence. Soon its business as usual.

No, I guess not - no one "wants" a coup. But some might say that Gen Prayuth has finally brought some adult supervision to the process of governing in Thailand, at long last.