Car production could fall 35 percent in Thailand

**Spin** · 29-12-2008, 03:36 AM

BANGKOK, Thailand (AP) — Vehicle production in Thailand could fall as much as 35 percent next year if the global economy continues to worsen, a leading auto institute said Saturday.

Thailand is a major production and export hub for pickup trucks made by General Motors Corp., Toyota Motor Corp., Isuzu Motors Ltd. and Mitsubishi Motors Corp. — all suffering in the midst of a global downturn.

Wallop Tiasiri, director of the Thailand Automotive Institute, estimated the decline in Thailand would more likely be about 15 percent. But he said a gloomier economic outlook in the United States and Europe could result in a production drop of 35 percent and the loss of 45,000 jobs.

"If the economic situation in major markets, especially in the United States and Europe, deteriorates much further, our production could go down by 35 percent or to 900,000 units," he said. "However, I think this worst case scenario will not be realized."

Vehicle production in Thailand hit 1.4 million units this year, up from 1.29 million units a year ago, Wallop said. The sector employs 300,000 people, about a third of them who are subcontracted.

Most analysts have predicted the automotive sector in Thailand would eventually be hit as vehicle manufacturers worldwide are cutting production amid the global financial downturn.

Last month, General Motors said it would stop production at its Thai plant for up to two months. General Motors and Chrysler LLC earlier this month were granted $17.4 billion in federal loans so they can stay afloat.

"Currently the Thai auto industry is still relatively strong. Every company still has their cash inflow," Wallop said. "However, we have to admit the slump of the global markets will hit local companies."
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watterinja · 29-12-2008, 07:03 AM

It is probable that the US & Japanese auto industries will begin concentrating their recovery efforts at home base, before considering their offshore ventures. Bail-out funds will be held close to the parent companies & offshore stocks will be drawn off to make profit, with slowing offshore demand.

It may present problems for Thailand into the future.

**Spin** · 29-12-2008, 01:31 PM

Originally Posted by watterinja

It is probable that the US & Japanese auto industries will begin concentrating their recovery efforts at home base

I agree, after watching the congress debates on the bail out funds its was clear that they didnt want the money spent on overseas operations. Mind you, congress tossed out thier claim completely and P-p-Paulson gave them the cash anyway.

**EmperorTud** · 29-12-2008, 01:48 PM

They sell just under half of the vehicles produced in Thailand every year to the local market. With repossessions on the rise rapidly and finance companies being much more frugal with their lending, the number of locally sold vehicles will also drop sharply this year.

Honda have just suspended 700 workers too, Toyota will be next no doubt.

**Spin** · 29-12-2008, 02:37 PM

Originally Posted by EmperorTud

Toyota will be next no doubt.

Allow me to refresh your memory

"Toyota is the top brand in Thailand, but its sales dropped 21 percent in October compared with a year ago"

"Toyota, which produces 200,000 vehicles a year at its plant in Thailand, is also planning a cutback, a company spokeswoman said, without giving details. It is also seeking early retirement for 340 of its 1,850 temporary workers"

full article 20/11/2008

Originally Posted by EmperorTud

They sell just under half of the vehicles produced in Thailand every year to the local market

"Most of the world's major automakers have plants in Thailand, which produced 1.29 million vehicles last year, of which 690,000 units were exported"

**Chong Boy** · 29-12-2008, 03:06 PM

Jesus, never actually knew the total cars made in LOS was as high as that.
Just assumed it was a few hundred thousand

**scott** · 30-12-2008, 09:14 AM

Originally Posted by Chong Boy

Jesus, never actually knew the total cars made in LOS was as high as that.
Just assumed it was a few hundred thousand

Automotive industry is 14% of Thai GDP - It is the single biggest sector - scary for the future here - more protests, Governments etc.etc.

watterinja · 30-12-2008, 10:19 AM

Interesting that Toyota is opening an operation in Savannakhet, Lao PDR - directly across the Mee Nam Khong from N.E. Thailand.

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