Toyota may shift manufacturing hub for Fortuner from Thailand to Philippines

[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.

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

With most if not all of my business friends being set up by the police at one time or another I think the Thai cops could learn from the Filipino cops at least those in Manila. Outside of Manila it's my understanding that the police are more honest and in some areas even do the job they are supposed to do.

[paddyjenkins]

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

Thailand has indeed been kissing up to China recently, almost like they want to be another China colony, like Africa. Lots of talk of rail infrastructure etc has made Japan concerned they are being frozen out of Thailand. Japan is posturing to an extent, but they are also serious. Some games playing is going on behind doors, even the reopening of old murder cases smells to me. If Thailand decides to burn it's bridges with Japan and the U.S then they will begin to see the rug pulled out from under their feet. They will then need China and China will know that. Needing and having the choice are two different things. if China keeps growing and acts fair and decent and responsibly, all well and good, but very big ifs. If not then Thailand will be in big trouble. Joined up thinking isn't exactly the forte of thai politicians, or anyone in this country for that matter. I doubt they really know what they are doing, but if what they do turns out to be stupid and short sighted, as usual, then the country will pay the price for generations to come.

[marcusd]

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.

I stated this would happen because I saw on Chanel News Asia at the beginning of the year Toyota Chairman was in Singapore stating They had VERY GOOD offers and incentives fro Philippines and Indonesia. Apart from that they were offered FREE electricity with Indonesia.

Thaialnd has been arrogant.

Recently the Japanese met Prayuth and stated that business was difficult when they had burdensome paperwork and immigration reporting conditions (don't we all?) for key staff movements. This has NEVER been addressed when there are no such conditions elsewhere.

THAILAND IS ON THE NOSE to business despite the MASSIVE expenditure predictions.

[stevehaigh]

crazy weather can hardly be a good reason to move, look at what the Philippines has 2 or 3 times year, 300km/hr wind hurricanes

[marcusd]

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 is absolute RUBBISH.

Thailand is pricing itself out of markets.

You obviously know nothing about costs of importing and exporting and you obviously know nothing about the cost of keeping stupid paperwork up to date for immigration.

The cost of labour is no longer CHEAP or competitive in Thailand and LABOUR is what drives business to seek other countries for manufacturing.

May I suggest you READ OTHER NEWS , other than your own boss's dictates?

[pedro01]

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.

So you think the Japanese feel the Philippines is safer?

I know many Japanese execs here. I bump into them all over the place. They love Thailand & most are not chauffered around any more. Those days are long gone.

I've packed many a drunken Japanese guy into a taxi in their suits andno problem.

One time a colleague lost his wallet, passport and laptop in a taxi 'causr he was drunk & he got them all back the next day.

So your assessment of Japanese sentiment us way off base.

Tell you what though, the Japanese I know are all nervous about assignments in Philippines. Dangerous place.

[marcusd]

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!!

There is a lot of business in Philippines. The SECOND largest call centre place on the planet and many businesses are moving operations there because of labour costs.

Do you think they care about EMPLOYEE safety? The are other concerns and it is not the well being of staff.

Why are businesses looking elsewhere if Thailand was so great? It is not and it is not a Thai bashing thread.

If Toyota goes it could cause a bigger wave than a ripple. Look what happened to Australia when ONE company said it was closing. Now there will be NO CARS made in Australia at all.

[JOC]

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 is absolute RUBBISH.

Thailand is pricing itself out of markets.

You obviously know nothing about costs of importing and exporting and you obviously know nothing about the cost of keeping stupid paperwork up to date for immigration.

The cost of labour is no longer CHEAP or competitive in Thailand and LABOUR is what drives business to seek other countries for manufacturing.

May I suggest you READ OTHER NEWS , other than your own boss's dictates?

Talking about RUBBISH!!

The reason Toyota is considering a move, is a lack of skilled workers. Not that the Thai workers lack skills, they are actually very good at producing cars, but there are not enough of them!!

The guys attending vocational schools "carline" are a hot commodity, normally booked by one of the big Japanese manufactures long before they leave school.

For the quality of labour here in the carindustry it is still very cheap to produce here!!

[marcusd]

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

Thailand has indeed been kissing up to China recently, almost like they want to be another China colony, like Africa. Lots of talk of rail infrastructure etc has made Japan concerned they are being frozen out of Thailand. Japan is posturing to an extent, but they are also serious. Some games playing is going on behind doors, even the reopening of old murder cases smells to me. If Thailand decides to burn it's bridges with Japan and the U.S then they will begin to see the rug pulled out from under their feet. They will then need China and China will know that. Needing and having the choice are two different things. if China keeps growing and acts fair and decent and responsibly, all well and good, but very big ifs. If not then Thailand will be in big trouble. Joined up thinking isn't exactly the forte of thai politicians, or anyone in this country for that matter. I doubt they really know what they are doing, but if what they do turns out to be stupid and short sighted, as usual, then the country will pay the price for generations to come.

Paddy i would like to add. TOO MANY people in Asia are posturing up with China. EVERYONE seems to forget CHINA manufactures for the WEST which includes the USA. China goes belly up when the WEST does not buy.

So what mnakes Thailand think CHINA will save them? CHINA needs Thailand for transport of its own goods and services. Thailand is just an ass wipe to China.

If WEST and USA do not buy then China does not need manufacturing.

What MANUFACTURING has China said they will do in Thailand? NONE that I can find. China is CHEAPER than Thailand for manufacturing. Thailand needs to take some serious notes

[maidee]

thailand will get them back with a stiff 307% import tax

[Somtamnication]

Yep, the ship is sinking and the rats.........

[wow64]

"Philippines an alternative hub"

[mojorison]

"Philippines an alternative hub"

Seems like Thailand may have put a cap on the number of hubs.. gettit? ...cars...hub-cap... bwahahaha

[tbthailand]

well, toyota can't do much about the political instability, but as for floods, they could build factories that are not in a flood plain...

[Torrens54]

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.

Good riddance to the Japs. They no longer "have a yen for Thailand" after pillaging the country ever since they invaded during WW2.

If you think "the JAPS have had enough of Thailand" how about the Thais who have had to put up with Jap Rudeness for so long?

[BernieOnTour]

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.

Well, but what they will experience in Philippines, will make things a lot worse for them...

Corruption, lack of law and order, laziness, unregulated businesses, bad infrastructure, red tape and crime is much worse there. Even Makati is very unsafe compared to BKK. Their families will feel like being expelled from paradise.

[paddyjenkins]

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.

Good riddance to the Japs. They no longer "have a yen for Thailand" after pillaging the country ever since they invaded during WW2.

If you think "the JAPS have had enough of Thailand" how about the Thais who have had to put up with Jap Rudeness for so long?

I have never known a rude Japanese person in my life

[BernieOnTour]

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

With most if not all of my business friends being set up by the police at one time or another I think the Thai cops could learn from the Filipino cops at least those in Manila. Outside of Manila it's my understanding that the police are more honest and in some areas even do the job they are supposed to do.

ROFL

the BiB are nice, smart, honest guys compared to the corrupt PNP!

Just 2 cases:

The official one: remember the Manila hostage massacre of a bus with Hongkongnese, when they hesitated to storm the bus, because the kidnapper was a guy from the police?

An unofficial case from Filipino friends: a girl was raped and the NBI did not become active before being paid 65,000 pesos...

Edited October 28, 2014 by BernieOnTour

[OnTheRun]

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.

You can add that PI is more prone to natural disasters than Thailand so most of the reasons I've read on this thread don't add up.

As an aside I work with both Thais and Philippinos and find them the best workers in the Asian labour pool.

[bkkjohnny69]

Firstly, is it acceptable to call Japanese "Japs" in this day and age, I think not....

I run a company both here and in Manila and do business with the manufacturer in question. There is far more down time due to natural disasters and weather in PI than there is here.

This is nothing more than the "Toyota Way", anyone that deals with them will know how they "manage costs" regularly, this is no different. This is purely posturing on their part.

Edited October 28, 2014 by bkkjohnny69

[Lupatria]

Maybe finally some knowledge of the Newton principle arrives in LOS:

The Toyota Motors Thailand company has released a statement denying tax evasion claims made by custom authorities.

Toyota may shift manufacturing hub for Fortuner from Thailand to Philippines

[oldsailor35]

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.

You can add that PI is more prone to natural disasters than Thailand so most of the reasons I've read on this thread don't add up.

As an aside I work with both Thais and Philippinos and find them the best workers in the Asian labour pool.

What do you know ? Myanmar is in Asia, and they are real workers.

[bitcoinbob]

after the flood all the Japanese companies got their insurance money smart ones left knew policy premiums were going to kick in and be much higher , others stay restarted production smaller scale waited to see what the Thailand government was going to do tax holidays, flood control etc. seeing nothing is getting done and now premiums are higher time to leave.

[Baerboxer]

Firstly, is it acceptable to call Japanese "Japs" in this day and age, I think not....

I run a company both here and in Manila and do business with the manufacturer in question. There is far more down time due to natural disasters and weather in PI than there is here.

This is nothing more than the "Toyota Way", anyone that deals with them will know how they "manage costs" regularly, this is no different. This is purely posturing on their part.

Most of your post I agree with.

The first sentence - certainly it's more acceptable than to be told by the PC fraternity what one can and cannot say.

[fullcave]

But the BIG rumor is they were going to discontinue the fortuner after april next year. No?

[Thai at Heart]

well, toyota can't do much about the political instability, but as for floods, they could build factories that are not in a flood plain...

Ah.

But when the Amata family were collecting all that land together to build the estates for a song, no one bothered to think that they would buy it within spitting distance of the river.

I mean that would be really shonky right. Buying rice paddies for a song and turning it into industrial estates knowing there was a chance it would flood. In fact it might be considered almost fraudulent or criminally negligent.

[rickirs]

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"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.

Wasn't that "government subsidy" actually a manufacturer rebate? Not same -same.

[humqdpf]

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.

But do they really think that Philippines is less risky? On the point of personal security, there is no comparison between Bangkok and Manila. Lack of law and order means that such companies would have to cozy up to some local strongman or family with leverage in the areas where they would like to manufacture.

Philippines gets flooded frequently and is hit with major storms on average 20 times per year during typhoon season.

[mike324]

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.

umm no, the Japanese are chauffeured around because they have a driver and they make use of it, not because its not safe to walk around. I have plenty of japanese friends who do not have a driver because they are not managerial level, they walk, take bts or taxi all over bangkok. Your views of japanese folks are completely off.

The areas you mentioned are just where a lot of them live and there are Japanese plazas around hence they are concentrated around that area mostly.

They do consider Thailand as high risk due to politics and the flood, but its even worse in Philippines. I doubt they would move there as there are less parts suppliers and Philippines is more prone to flooding and typhoons than Thailand. Not to mention the politics is even more corrupt, its like Thailand in the early 90s.

Edited October 28, 2014 by mike324

[Briggsy]

All Japanese large auto and auto parts manufacturers have plants in Central or Eastern Thailand, Cebu and Surabaya and maybe Malaysia. Production is shifted around as is necessary.