Thailand's automotive industry remains weak in May

[webfact]

Thailand's Automotive Industry Remains Weak in May
By Dow Jones Business News
Nopparat Chaichalearmmongkol

BANGKOK--Thailand's auto industry showed continued weakness in May, mainly due to a local economic slowdown, according to the Federation of Thai Industries.

The FTI's Automotive Industry Club reported Tuesday that vehicle production fell 8.76% from the same month a year earlier, but rose 8.93% from the previous month, to 135,045 units in May. The latest declines in production were attributed to the country's slow economic recovery and a change in the assembly line by one of the auto makers, the FTI said.

For the first five months of 2015, total production contracted 1.1% from a year ago to 783,553 units.

In terms of sales, domestic vehicle distribution dropped 18.3% in May from a year ago, but went up 5.32% from April to 56,939 units. The auto club said weak domestic sales were attributed to low farm-product prices and slow implementation of government investment projects and state budget disbursement.

Full story: http://www.nasdaq.com/article/thailands-automotive-industry-remains-weak-in-may-20150623-00007

-- Nasdaq 2015-06-23

[Oink]

Thank god for that. Maybe we may no longer be pushed into a ditch by some Ford managers wife on her way to an urgent luncheon appointment in their Everest.

Who let the F*#k1ng Americans in here in the first place?

[bangon04]

sounds like we need an incentive scheme to boost auto sales at all cost... how about giving people who can't really afford the finance payments a promise of cash back if they do not default within the first year?

Come to think of it, we are trying that with Greece.....

[Thian]

Thank god for that. Maybe we may no longer be pushed into a ditch by some Ford managers wife on her way to an urgent luncheon appointment in their Everest.

Who let the F*#k1ng Americans in here in the first place?

Yup but who buys them? They must be very cheap or all Thai would go for a Vios. Also i 'm waiting to see the Fords along the road with smoking engines but so far they do fine.

[2fishin2]

I purchased a Chevy....Im safe

[Srikcir]

The auto club said weak domestic sales were attributed to low farm-product prices and slow implementation of government investment projects and state budget disbursement.

The auto club just doesn't understand the economy like the Junta does:

"The Deputy PM predicted that the domestic economy would start to recuperate in September. The 2014-2015 Gross Domestic Product (GDP) would reach 3-4 percent, due mainly to government spending and rebounding tourism." 2015-06-18

Who does Prayut blame? The people everywhere - "recovery is being the slowdown impeded by in people’s spending and uncertainties in the world economy." 2015-06-06

There are solutions but the Junta doesn't have the fiscal discipline to implement them:

"Thailand has already fallen into a debt trap, with combined private and government debt to GDP reaching 130 per cent. This high debt level will have to be brought down via restructuring, because raising incomes to pay down the debt looks almost impossible now given the global outlook. The government can tax the rich more to help out the poor. The banks must make less profit. The Bank of Thailand must not be tempted into a monetary trap, which would risk plunging the country into a zero interest rate environment. By that time it would be too late to save the baht." The Nation 2015-06-05