Toyota may shift manufacturing hub for Fortuner from Thailand to Philippines

[webfact]

Toyota may shift manufacturing hub for Fortuner to PH
By Othel V. Campos

MANILA: -- Toyota Motor Corp. is studying the possible transfer of the regional manufacturing hub for Fortuner model from Thailand to the Philippines, an official of the Philippine Chamber of Commerce and Industry disclosed Wednesday.

PCCI president Alfredo Yao said Japanese car companies, including Toyota, plan to make the Philippines an alternative hub for automotive manufacturing.

Yao said during the recent Philippines-Thailand Business Council and Thailand-Philippines Business Council meeting that Toyota expressed interest in setting up or expanding operations in the Philippines to manage and spread risks.

“More than the incentives, which are fixed by the way, automotive manufacturers are looking for stability of production in the future,” PCCI president Alfredo Yao told reporters in an interview.

Yao said car manufacturers expressed concern over the lingering political instability and the vulnerability of Thailand to floods.

Full story: http://manilastandardtoday.com/2014/10/22/toyota-may-shift-manufacturing-hub-for-fortuner-to-ph/

-- Manila Standard Today 2014-10-28

[RustBucket]

Toyota seem to be in the middle of moving totally out of Thailand.

Maybe this is why they released the news about Ford still being interested in LOS for its SEA production to sweeten the bitter news.

More like there will be plenty of ready built auto manufacturing plants for them to move into. But then again wouldn't they be questioning why the Japs are dumping Thailand?

Truth is, the Japs now don't have to build here to avoid the disgustingly high excise tariffs on motor vehicles once the AEC kicks in. They can move to more efficient SEA countries with cheaper salaries and better workforces. Then export to Thailand.

Thailand is going to be the big loser come the AEC.

Edited October 28, 2014 by RustBucket

[noitom]

The Japanese have had enough of Thailand, it's floods, corruption, lack of law and order, laziness, and unregulated businesses. Have you ever seen Japanese outside the Emporium area, Thonglor 55 or the factories outside central Bangkok in chauffeured cars and their country clubs? japanese never go around walking in Thailand except around Soi 55 and 24 clubs. They don't consider Thailand safe and very high risk. The Japanese are running from Thailand. They have had enough.

[RustBucket]

The Japanese have had enough of Thailand, it's floods, corruption, lack of law and order, laziness, and unregulated businesses. Have you ever seen Japanese outside the Emporium area, Thonglor 55 or the factories outside central Bangkok in chauffeured cars and their country clubs? japanese never go around walking in Thailand except around Soi 55 and 24 clubs. They don't consider Thailand safe and very high risk. The Japanese are running from Thailand. They have had enough.

I suppose the news of the two Japs murdered by the black widow and her henchman didn't exactly help relations.

[kurnell]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

[kkerry]

Thailand need to remind the Philippine Chamber of Commerce and Industry that Thailand is the hub of all hubs...

[Bkungbank]

Cost of labour only small portion of the car industry , they thinking Phillipines better let them try and I am sure 3-5 years they will back.

CAr industry not only labour but SME of small car componen which import into Phillipines make the costing much higher then in Thailand, the quality of work manship cannot compare in others countries.

He will know Thailand much safer compare with other Asean countries.

[NeverSure]

Remember a new article on here a few months ago where top representatives of both Japanese and American auto manufacturers visited Burma? Japan promised to build a deep water port near Yangon and both Japan and the US bought large tracts of industrial land nearby.

Yingluck, then the PM was expecting the port to be built more directly across from Bangkok so it could be used for Thai shipping of cars and other things.

The US and Japan are getting tired of Thailand kissing up to China while the US and Japan struggle to keep China from bullying fisheries, flight routes and ownership of islands. End of.

The manufacturers are tired of high import duties for parts, and tired of floods, regulations, and high taxes on new cars.

Neither Japan nor the US tend to get into bed with politically unstable countries, to put it politely.

Thailand will eventually be the hub of hubba.

Edited October 28, 2014 by NeverSure

[RichardThailand]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

Having lived in the Philippines for over 8 years and now having lived here I can say that all I ever heard about Thailand being 20 years ahead of the PI in terms of infrastructure is quite true. Philippines is an expensive country with very high distribution costs. Electricity there was twice the price it is here, quality countrol is non existant and the corruption is as bad or worse than here. The country is not safe and health care might as well not exist. I had Japanese friends there. The wives were never allowed out unless going out with the company drivers. Philppines has a lot of catching up to do and that needs to start with the corrupt politicians.

[bkkjames]

Posturing. Nothing more.

[gerry123]

not to up to date but i think Philippines has equal albeit different natural disasters as Thailand so it must be something else which promotes thought for greener pastures could be an amalgamation of previous posters assumptions or just plain old chase the dollar

[fab4]

As an aside; maybe the shift of manufacture to the Philippines may at last eradicate the steering glitch on Fortuners (well, all pickups in Thailand really) that apparently makes it impossible to execute a thee point turn that bears any semblance to the necessary number of turns that gave the name to the manoeuvre in the first place ....................

[apetley]

"may shift....."

I'd guess the Japanese want something much the same way they threatened to pull out after the disastrous floods three years ago. Got a fantastic Govt subsidy that sold them a million new cars from that piece of blackmail.

[Sviss Geez]

Toyota seem to be in the middle of moving totally out of Thailand.

Maybe this is why they released the news about Ford still being interested in LOS for its SEA production to sweeten the bitter news.

More like there will be plenty of ready built auto manufacturing plants for them to move into. But then again wouldn't they be questioning why the Japs are dumping Thailand?

Truth is, the Japs now don't have to build here to avoid the disgustingly high excise tariffs on motor vehicles once the AEC kicks in. They can move to more efficient SEA countries with cheaper salaries and better workforces. Then export to Thailand.

Thailand is going to be the big loser come the AEC.

"Toyota seem to be in the middle of moving totally out of Thailand."

No, they don't. Your speculation would make sense if Toyota hadn't said that they are looking for a second manufacturing plant to lessen the risk of political and flooding issues affecting their production.

"...why the Japs are dumping Thailand?"

Not one Japanese car manufacturer is "dumping" Thailand.

"Truth is..."

The truth is you're talking nonsense.

[Andrew65]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

I always got impression that the Phillipines is quite a lot more unsafe than Thailand

[Sviss Geez]

The Japanese have had enough of Thailand, it's floods, corruption, lack of law and order, laziness, and unregulated businesses. Have you ever seen Japanese outside the Emporium area, Thonglor 55 or the factories outside central Bangkok in chauffeured cars and their country clubs? japanese never go around walking in Thailand except around Soi 55 and 24 clubs. They don't consider Thailand safe and very high risk. The Japanese are running from Thailand. They have had enough.

"They don't consider Thailand safe and very high risk. The Japanese are running from Thailand. They have had enough."

Sheer, unadulterated, Thai bashing nonsense.

[gemini81]

Toyota seem to be in the middle of moving totally out of Thailand.

Maybe this is why they released the news about Ford still being interested in LOS for its SEA production to sweeten the bitter news.

More like there will be plenty of ready built auto manufacturing plants for them to move into. But then again wouldn't they be questioning why the Japs are dumping Thailand?

Truth is, the Japs now don't have to build here to avoid the disgustingly high excise tariffs on motor vehicles once the AEC kicks in. They can move to more efficient SEA countries with cheaper salaries and better workforces. Then export to Thailand.

Thailand is going to be the big loser come the AEC.

"Toyota seem to be in the middle of moving totally out of Thailand."

No, they don't. Your speculation would make sense if Toyota hadn't said that they are looking for a second manufacturing plant to lessen the risk of political and flooding issues affecting their production.

"...why the Japs are dumping Thailand?"

Not one Japanese car manufacturer is "dumping" Thailand.

"Truth is..."

The truth is you're talking nonsense.

Glad we have an official spokesperson who represents all major auto dealers, and their inside plans.

[Andrew65]

Cost of labour only small portion of the car industry , they thinking Phillipines better let them try and I am sure 3-5 years they will back.

CAr industry not only labour but SME of small car componen which import into Phillipines make the costing much higher then in Thailand, the quality of work manship cannot compare in others countries.

He will know Thailand much safer compare with other Asean countries.

I saw an interview some years ago on CNN with a VP of General Motors. He stated that the cost of manual labour in building their cars is about 7% of total cost, he was discussing the off-shoring of production.

Another thing to consider might be the persistent strength of the Baht in recent years? The very steep rise in the minimum in Thailand wage also (when it did my laundry people increased their prices by 60% - so I bought a washing machine) .

[PREM-R]

I notice, when I am in Vientiane Laos, that the new Fortuners that are imported there and are waiting to have the wax removed from them, have stickers that state 'Laem Chabang port - Made in Indonesia'. This presumably means that Thailand is not the only country producing Fortuners in ASEAN at this time.

[JohnThailandJohn]

Toyota has been making this threat for about a year to try to put pressure on the government.

http://www.reuters.com/article/2014/01/21/us-thailand-auto-toyota-idUSBREA0K00120140121

http://online.wsj.com/articles/toyota-sees-thailand-coup-as-turning-point-in-halting-sales-plunge-1406636889

Edited October 28, 2014 by JohnThailandJohn

[JohnThailandJohn]

I notice, when I am in Vientiane Laos, that the new Fortuners that are imported there and are waiting to have the wax removed from them, have stickers that state 'Laem Chabang port - Made in Indonesia'. This presumably means that Thailand is not the only country producing Fortuners in ASEAN at this time.

For sure assembled in Indonesia and I think Vietnam too. Thailand was just the first.

[JOC]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

Having lived in the Philippines for over 8 years and now having lived here I can say that all I ever heard about Thailand being 20 years ahead of the PI in terms of infrastructure is quite true. Philippines is an expensive country with very high distribution costs. Electricity there was twice the price it is here, quality countrol is non existant and the corruption is as bad or worse than here. The country is not safe and health care might as well not exist. I had Japanese friends there. The wives were never allowed out unless going out with the company drivers. Philppines has a lot of catching up to do and that needs to start with the corrupt politicians.

Come on mate!!

Don't spoil a good Thai-bashing thread with something as booooring as facts!!

[Oink]

eir

Cost of labour only small portion of the car industry , they thinking Phillipines better let them try and I am sure 3-5 years they will back.

CAr industry not only labour but SME of small car componen which import into Phillipines make the costing much higher then in Thailand, the quality of work manship cannot compare in others countries.

He will know Thailand much safer compare with other Asean countries.

I saw an interview some years ago on CNN with a VP of General Motors. He stated that the cost of manual labour in building their cars is about 7% of total cost, he was discussing the off-shoring of production.

Another thing to consider might be the persistent strength of the Baht in recent years? The very steep rise in the minimum in Thailand wage also (when it did my laundry people increased their prices by 60% - so I bought a washing machine) .

Talking of Laundry & Washing Machines. Siemens have closed down their washing machine factory north of Bangkok and moved production to India for many of the reasons stated above.

[kurnell]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

Having lived in the Philippines for over 8 years and now having lived here I can say that all I ever heard about Thailand being 20 years ahead of the PI in terms of infrastructure is quite true. Philippines is an expensive country with very high distribution costs. Electricity there was twice the price it is here, quality countrol is non existant and the corruption is as bad or worse than here. The country is not safe and health care might as well not exist. I had Japanese friends there. The wives were never allowed out unless going out with the company drivers. Philppines has a lot of catching up to do and that needs to start with the corrupt politicians.

I'm sure the Filipino cops could learn a thing or 2 about corruption from the Thais,and visa versa

[NeverSure]

I think it was Japan who first decided to try to manufacture in the major markets they sell in to avoid possible losses from currency fluctuations. They didn't want to be in the business of auto production and the business of currency speculation. Since then many other manufacturers have followed.

Off the top of my head, cars manufactured in the US include Volkswagen, BMW, Mercedes, Toyota pickups and Camrys, some Hondas, and even the Honda Goldwing motorcycle. General Motors manufactures cars right across the border in Canada. I'm sure the list is much longer.

[pisico]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

Personal safety is not the issue. It's Thailand's indolence about preventable natural events what the Japanese are not willing to put up indefinitely.

In the 9th. Century, when Angkor Wat had a population of 1 million, the Khmer designed and built a water management system that would prevent floods from ravaging Angkor and have an adequate catchment of water for the dry season. The system albeit not used, is extant around Angkor.

Fast forward to today.

Thailand is yet to have an acceptable flood control system in place. They have had centuries to device, built and perfect it but... they will rely on improvised knee-jerk band-aids (giant sand bags, save Bangkok, flood other areas, etc.) Karma or on summoning the wisdom of their ancestors in a coffin to help them.

But to do what is necessary to at least reduce the effects of floods on industry, commerce and life seems to be absent in the Thai psyche.

Thais have an elevated sense of self importance and that prevents them from using Dutch age old proven methods of water management. Ask the Dutch for help and Thailand will get the best know-how in the world and many years of successfully not only controlling floods, but also reclaiming land from the waters of the ocean. .

Will Thailand ever do that?

Never!!! Losing face is more important than losses that a flood can cause.

[chainarong]

Whether this happens or not is debatable , the re-tooling costs alone would make a Scotsman cry, Toyota haven't been awash with corporate success these last few years, however nothing like a large investor letting the Thai Administration know where it stands , my call for more disposable income for Thai workers wouldn't be worth a nats nuts and relocating to the Philippines, really , would it be an advantage , they have their fair share of problems, however perhaps they work for cheaper wages than Thailand, now for the Corporate world that's an advantage not to be missed, piss-in on the low class.

[givenall]

If anyone keeping track please deduct a hub from all Thai hubs

[kurnell]

I see the Japanese women walking around everywhere with the kids in tow or bundled into a Baby Bjorn carrier. The men, however are soft (tee hee) and only travel by car and get dropped off at their Japanese only bars.

I doubt the Philippines is any safer

Personal safety is not the issue. It's Thailand's indolence about preventable natural events what the Japanese are not willing to put up indefinitely.

In the 9th. Century, when Angkor Wat had a population of 1 million, the Khmer designed and built a water management system that would prevent floods from ravaging Angkor and have an adequate catchment of water for the dry season. The system albeit not used, is extant around Angkor.

Fast forward to today.

Thailand is yet to have an acceptable flood control system in place. They have had centuries to device, built and perfect it but... they will rely on improvised knee-jerk band-aids (giant sand bags, save Bangkok, flood other areas, etc.) Karma or on summoning the wisdom of their ancestors in a coffin to help them.

But to do what is necessary to at least reduce the effects of floods on industry, commerce and life seems to be absent in the Thai psyche.

Thais have an elevated sense of self importance and that prevents them from using Dutch age old proven methods of water management. Ask the Dutch for help and Thailand will get the best know-how in the world and many years of successfully not only controlling floods, but also reclaiming land from the waters of the ocean. .

Will Thailand ever do that?

Never!!! Losing face is more important than losses that a flood can cause.

Yes, I would love to know where this sense of self-importance comes from? Certainly not their academic background or international achievements

[Thai at Heart]

Cost of labour only small portion of the car industry , they thinking Phillipines better let them try and I am sure 3-5 years they will back.

CAr industry not only labour but SME of small car componen which import into Phillipines make the costing much higher then in Thailand, the quality of work manship cannot compare in others countries.

He will know Thailand much safer compare with other Asean countries.

This has to be a post from the government.