AAF says Thailand continuing as leading auto production

[Lite Beer]

AAF says Thailand continuing as leading auto production
By Digital Content

BANGKOK, Jan 2 -- The ASEAN Automotive Federation (AAF) says Thailand continues to lead in the automotive production industry among members of the Association of Southeast Asian Nations (ASEAN) due to the Eco Car Phase II programme.

AAF President Piengjai Keawsuwan said the kingdom continues leading in auto production among the ASEAN countries as they still must develop auto related industries in coming years.

Ms Piengjai said Thailand’s auto production would increase to one million units after nine auto manufacturers received promotional privileges while another producer with an annual production of 100,000 units would receive privileges soon.

Thailand could also export automobile at as much as 50 per cent of the total production with the Euro 4 standard, she said.

The country is now marching towards the Euro 5 standard under the Eco Car Phase II programme which would enable the manufacturers to export to Japan and Europe.

Auto production in ASEAN in 2014 was about 25 per cent lower than its target of 4 million units due chiefly to Thailand’s production which was slightly over 1.9 million units, lower than the target set at 2 million units.

Ms Piengjai said auto production in 2015 is projected at over 4 million units on high expectations that Thailand’s economy would grow 4-5 per cent while the global economy, especially that of the US, would also improve.

It is expected that auto sales in Thailand and the country’s exports would enjoy growth this year, she added. (MCOT online news)

-- TNA 2015-01-02

[NeverSure]

In the US Detroit unions ruined the auto industry in Detroit and turned it into a shambles. Now US manufacturers are in Kentucky which is a "right to work" state meaning no unions. They still pay the people well and give very good benefits.

The US knows how to manufacture. An auto plant is largely robotic. The number of people is greatly reduced and the cost of those remaining people is reduced.

Manufacturing overseas is expensive. Yes the labor is cheaper but try to get the Thais to show up for work on time and actually work. There is also the large cost of shipping materials to Thailand through Thai customs, and then shipping the finished product back.

US made cars are quality as are Japanese. I don't see US consumers rushing out to by a Mitsubishi at all, much less one made in Thailand.

[Thai at Heart]

Ms Piengjai said Thailands auto production would increase to one million units

Thailands production which was slightly over 1.9 million

What's the point in these articles if the writer is so confused.

[yellowboat]

Why can't the Thais have their own brand of automobile ? Malaysia, Taiwan and China have their own brands. That stops Thailand ?

[Mudcrab]

In the US Detroit unions ruined the auto industry in Detroit and turned it into a shambles. Now US manufacturers are in Kentucky which is a "right to work" state meaning no unions. They still pay the people well and give very good benefits.

The US knows how to manufacture. An auto plant is largely robotic. The number of people is greatly reduced and the cost of those remaining people is reduced.

Manufacturing overseas is expensive. Yes the labor is cheaper but try to get the Thais to show up for work on time and actually work. There is also the large cost of shipping materials to Thailand through Thai customs, and then shipping the finished product back.

US made cars are quality as are Japanese. I don't see US consumers rushing out to by a Mitsubishi at all, much less one made in Thailand.

I have three cars in my driveway in Oz. One made in Korea - better than a Japanese built car. A Mazda BT50 -Thai built and a Colorado also Thai built.

The US built cars may be good for the US market...but the world is a big place. It was only a few years ago the Toyota HiLux four wheel drives were built in South Africa.

I hope the US can build to the quality of the Asians and export then just as cost effectively.

[rickirs]

"... high expectations that Thailand’s economy would grow 4-5 per cent [2015] ..."

Just a couple of days ago the Ministry of Commerce stated that the oil price drop has led to a 29.5% decrease in Thailand’s exports of cars and auto parts to its major markets such as Australia, Indonesia and the Middle East. The economy in the US continues to grow at a significant rate not seen since 2007 while other major economies are still faltering. Thailand is not going to get a boost from most global economies.

The Bank of Thailand several days ago cut the economic growth forecast for 2015 to 4%. Just before BOT's prediction, TMB Bank's research institute revised its GDP growth forecast for year 2015 down to 3.5%, after determining that the economy was recovering more slowly than earlier expected.

So while Thailand may lead in the automotive production in 2015, that will not alone produce a 4-5% growth rate. It’s going to need significant increase in domestic consumption and government investment. That will be a challenge with ballooning household debt and faltering government stimulus plans. I wouldn’t be surprised if the Junta announces a First Car Buyer Rebate to boost domestic auto sales just as in November 2014 it introduced a two-year First Home Buyer mortgage interest discount to boost home sales.

[NeverSure]

In the US Detroit unions ruined the auto industry in Detroit and turned it into a shambles. Now US manufacturers are in Kentucky which is a "right to work" state meaning no unions. They still pay the people well and give very good benefits.

The US knows how to manufacture. An auto plant is largely robotic. The number of people is greatly reduced and the cost of those remaining people is reduced.

Manufacturing overseas is expensive. Yes the labor is cheaper but try to get the Thais to show up for work on time and actually work. There is also the large cost of shipping materials to Thailand through Thai customs, and then shipping the finished product back.

US made cars are quality as are Japanese. I don't see US consumers rushing out to by a Mitsubishi at all, much less one made in Thailand.

I have three cars in my driveway in Oz. One made in Korea - better than a Japanese built car. A Mazda BT50 -Thai built and a Colorado also Thai built.

The US built cars may be good for the US market...but the world is a big place. It was only a few years ago the Toyota HiLux four wheel drives were built in South Africa.

I hope the US can build to the quality of the Asians and export then just as cost effectively.

The US builds mainly for its own huge market. It has factories in other countries such as Thailand and Canada and... for a sale in those markets. The US imports a lot of cars. I have no idea whether you've owned a Japanese car built in Japan or even the USA.

It is other countries which manufacture in the US, helping make my point about cost of production.

"In addition to Honda and the big three U.S. auto companies - General Motors, Ford and Chrysler - Toyota, Nissan, Hyundai-Kia, BMW, Mercedes-Benz, Mazda, Mitsubishi, and Subaru all have U.S. manufacturing facilities. In May 2011, Volkswagen opened a new U.S. plant, bringing the manufacturer count to 13." US State Department.

If I were you, to save the whales, the forests, and stop global warming, I'd buy a 100% Australian car.

[yellowboat]

In the US Detroit unions ruined the auto industry in Detroit and turned it into a shambles. Now US manufacturers are in Kentucky which is a "right to work" state meaning no unions. They still pay the people well and give very good benefits.

The US knows how to manufacture. An auto plant is largely robotic. The number of people is greatly reduced and the cost of those remaining people is reduced.

Manufacturing overseas is expensive. Yes the labor is cheaper but try to get the Thais to show up for work on time and actually work. There is also the large cost of shipping materials to Thailand through Thai customs, and then shipping the finished product back.

US made cars are quality as are Japanese. I don't see US consumers rushing out to by a Mitsubishi at all, much less one made in Thailand.

Yes, unions helped kill the auto industry along with building cars nobody could afford to operate several years ago.

The US use to know how to manufacture. What holds back the US is the banking system. Banks in Hong Kong, Taiwan as well as Japan helped Chinese banks finance manufacturing.. US banks do not seem to want to get involved with manufacturing. They still seem to just focus on consumers. If you are a small timer walking around Hong Kong with an idea, you will likely find a sympathetic ear and perhaps too in silicon valley.

It seems now if you wantt do anything innovative, you need to go to silicon valley; http://wrightspeed.com/about/x1/

and http://www.teslamotors.com/

Most car companies probably have BOI status which means they do not pay duty on things that are imported and exported. I could be wrong, but most steel comes from China, Korea and Japan which is competitive. Shipping by sea costs little.

Thai workers get a bad wrap. Bought a few things from Thai factories, with no foreign investment, and their work force and service was great. Heard the horror stories in China (25 years working in China) and Thailand, but have managed to avoid them.

We are hoping to do an electric car project one day, but it will not be in Thailand for several reasons. The biggest one now being the Junta and no local support for electric vehicle manufacturers.

Edited January 2, 2015 by yellowboat

[SheungWan]

In the US Detroit unions ruined the auto industry in Detroit and turned it into a shambles. Now US manufacturers are in Kentucky which is a "right to work" state meaning no unions. They still pay the people well and give very good benefits.

The US knows how to manufacture. An auto plant is largely robotic. The number of people is greatly reduced and the cost of those remaining people is reduced.

Manufacturing overseas is expensive. Yes the labor is cheaper but try to get the Thais to show up for work on time and actually work. There is also the large cost of shipping materials to Thailand through Thai customs, and then shipping the finished product back.

US made cars are quality as are Japanese. I don't see US consumers rushing out to by a Mitsubishi at all, much less one made in Thailand.

There is no evidence that there are systematic work-practice related problems in the Thai automotive industry peculiar to Thailand other than your prejudicial comments. I doubt if you have made any study of the Thai car industry whatsoever.

[Iamemjay]

Following the announcements that Toyota, Ford and GM are soon to cease car production in their factories in Australia (queuing of course behind the already departed Nissan and Mitsubishi) it was revealed that 56% of cars sold in Australia are already produced in Thailand - from the lower cost, most basic right up to luxury models. Do most Aussies realise this? Clearly, no. Are there more than the usual complaints about quality? Not that I've seen any evidence of.

This points to two factors: 1. It's a clear result of the Oz-Thailand free trade agreement, and 2. (If Mercedes Benz are happy to have their vehicles assembled here) there is little evidence of the lack of work ethic that the Thai bashers above claim exists.