Electric Pickup Truck to Debut at 2012 Detroit Auto Show

Via Motors will introduce a new electric-powered full-size pickup truck, 4x4 SUV and cargo van at the 2012 North American International Auto Show in Detroit on Jan. 10. Making the introuduction will be Bob Lutz, former vice president of GM and called by some as the father of the Chevy Volt.

The powertrain in the new Via eREV (which stands for extended-range electric vehicle) will work similarly to the Volt's system. Lithium-ion batteries power the wheels for a full electric range of around 40 miles. When the batteries are low, a small onboard gas engine will start up and provide extended-range capability for the batteries, up to 400 miles using the onboard generator, averaging up to 100 mpg.

Japan Supply Chains Still Hampered by Thai Flooding

A poll shows 81 percent of production bases still producing less now than before floods
Many Japanese companies are still feeling the pinch of heavy flooding in Thailand because of supply chain disruptions, according to an emergency survey conducted by the Ministry of Economy, Trade and Industry (METI).

Nidec to cut reliance on Thai factories

Japanese motor maker Nidec Corp will reduce its reliance on Thai factories for hard-disk-drive motors by diversifying production bases to China and the Philippines, the Nikkei business daily reported.

Honda ditches flooded cars

The recent widespread flooding hit Honda especially hard, as both its plants in Ayutthaya were inundated.

Speculation has been rife that the flood-damaged cars may be repaired and sold locally or abroad as brand new.

The fear has been that the Japan-based manufacturer would send these cars back to the line for replacement of damaged parts, after which they would be delivered to customers.

The Nation: Thailand shows good potential as top auto producer

Since the Federation of Thai Industries expects the production of vehicles to hit 2.5 million units by 2016, Frederico Gil Sander, a World Bank economist based in Bangkok, said yesterday that it was very likely that Thailand would become one of the top 10 auto producers in the world.

Read the full article here.

Pontiac story

Have a read

What Every Marketer Can Learn From Saab's Crash And Burn

This week marked the dead end for Saab motor car company. And they should cause a deathly chill to run down the spine of any marketer who believes they can get by, just by getting by. Undifferentiated in a market filled with hundreds of cars to choose from, Saab sought to find its place in the world.

Bangkok Post: Abhisit applauds local automobile industry

Prime Minister Abhisit Vejjajiva yesterday praised the growth of the local auto industry at the Thailand International Motor Expo but remained non-committal about government policy towards the sector.

Suparat: Thailand to be a top-10 maker

Suparat Sirisuwannangkul, chairman of the Federation of Thai Industries' automobile club, said automobile production is poised to grow from 990,000 units in 2009 to 1.6 million this year, making the country the 13th-largest auto manufacturer.

Thanks!

I like to thank everybody for coming to the AFG Meeting last Friday at the Holiday Inn and for the nice feedback to the Online-Networking talk!

Uli

GM restarts talks with Proton Holdings to form JV

General Motors has reportedly begun talks with Malaysia’s largest carmaker, Proton Holdings, to set up a joint venture in the Southeast Asian country.

Bloomberg quotes two confidential sources familiar with the matter who say that current discussions revive negotiations that were abandoned in 2007. The talks are preliminary and may not lead to an agreement, the sources added.

An agreement would give GM the chance to expand car manufacturing in Southeast Asia beyond Thailand, deeply affected by the worst floods in the last 70 years. For Proton, the deal would provide access to GM technology that could make its products more competitive. Proton had unsuccessful alliance talks in the past with Volkswagen and Peugeot.

Toyota Lowers Annual Profit Forecast 54% After Thai Floods

Toyota Motor Corp., poised to lose its crown as the world's largest carmaker this year, cut its profit forecast 54 percent after Thailand's worst floods in almost 70 years disrupted output of Camry and Prius vehicles.

AFG Meeting: Automotive Networking - Online

Dear Members and Friends:

This presentation talk was developed specifically for the AFG and it's members.

It's an original presentation which will be premiered on Friday and will focus on how to grow your customer and partner base in the Automotive Industry - worldwide.

Please check out the agenda of this interesting talk and join this meeting. Please send a confirmation to Maurice Bromley.

Swiss Re Sees Claims Costs Of $600 Mln From Thailand Flood

Swiss Reinsurance Co. (SSREY.PK: News , SWCEF.PK) on Tuesday estimated its claims costs from Thailand's severe flooding at $600 million. The estimates, net of retrocession and before tax, remains subject to significant uncertainty, as it is difficult to assess losses accurately due to the still higher water levels following intense rainfall, the Swiss reinsurer added. The company currently estimates the total insured market loss to be in the range of $8 billion to $11 billion.

THE STAR: Proton to produce Mitsubishi sedans soon

SUBANG JAYA: Proton expects to seal a joint venture agreement with Mitsubishi Motors Corp to produce Mitsubishi sedan models at its Tanjung Malim plant by year-end.

Its group managing director, Datuk Seri Syed Zainal Abidin, said under the agreement, Mitsubishi would make 60,000 units a year which were equivalent to 90 per cent of the plant's production capacity.

"The plant currently operates at between 56 and 58 per cent capacity," he told a media briefing after the announcement of the company's second quarter 2011's results here Tuesday.

BANGKOK POST: 11,000 jobless as 39 auto-parts firms shut down

Thirty-nine auto-parts manufacturers in deluged industrial estates have announced they have closed down, leaving 10,957 workers jobless, Labour Minister Padermchai Sasomsap says.


Most of the laid-off workers were migrants who had skills in the auto-making and electronic parts industries, he said yesterday.

However, they would get compensation and other benefits, while the ministry has more than 100,000 jobs available for them, said Mr Padermchai.

Christmas!  Just around the corner.....  So from the staff and families at Kwik Kar, we want to wish you and yours a Very Merry Christmas....

And with the end of the year approaching, it is always a good idea to make sure that your "sleigh" is ready for travel. Stop by one of Kwik Kar's two Springfield,  Missouri locations for free estimates on repairs and general maintenance upkeep.  And for those on the road we also recommend our friends at the Kwik Kar location in St. Robert / Ft. Leonard Wood, Missouri (just off I44).

THE NATION: Honda cleared for vehicle imports

The Cabinet on Tuesday approved an 8-month waive on import tariffs on machinery and completely-built units (CBU) as well as components, Industry Ministry Wannarat Charnnukul said.

The temporary measure will stand from October 25 this year until June 30, 2012 and cover only imports to substitute lost production in the Kingdom, Wannarat added. Details on this would be determined by the Industrial Economics Department.

Though several assemblers are affected, only Honda Automobile (Thailand) Co Ltd is eligible for zero tariffs for the imports of vehicles, as floods completely shut down its plant operations in Rojana Industrial Park in Ayutthaya. The plant, with 240,000 annualised capacity, has been suspended since early October.

PATTAYA MAIL: AFG looks at tomorrow, and the next year

DOC IAIN reporting for PATTAYA MAIL:

The Automotive Focus Group (AFG) held a very successful and popular mini-seminar entitled, “What’s up (and down) in the world today (and implications for Thailand)” given by the always erudite Chris Bruton from Dataconsult.

Flood damage exceeds 1 Trillion Baht

The Federation of Thai Industries expects the economic damage to be as high as Bt1.124 trillion, against government units' estimates of between Bt200-Bt300 billion.

At Bt1.124 trillion, that accounts for 10.50 per cent of the country’s gross domestic product (GDP).

Tanit Sorat, vice chairman of FTI, said that as the automotive industry was hard hit, output could be cut by 300,000 units. Due to severe damage to the automotive and electronics industries, Thailand’s export figure in October grew only 0.3 per cent, the lowest in two years. The FTI is of the view that the fourth-quarter export would contract 10 per cent due to the floods.

As Floods Recede, Toyota's Recovery Slowly Continues

Well worth reading from the guys at MOTLEY FOOL….

Blame flooding. In Thailand.

In a great example of the regional interconnections that drive global commerce nowadays, widespread floods in Thailand have disrupted production of key parts for several major automakers, throwing factories around the world off their paces. Honda and Toyota have taken particularly hard hits, but other major automakers have suffered significant losses as well -- and not all of them are based in Asia.

Thai auto production in Q4 likely to slump 44-55%: Kasikorn

BANGKOK, Nov 23 – Thailand’s auto production in the fourth quarter of this year is projected to shrink by 44-55 per cent year-on-year due to the recent flood crisis, Kasikorn Research Center (KRC) said on Wednesday.

The think tank forecasts that the country’s total auto production in the last quarter of 2011 will dip to 200,000-250,000 units, a 44-55 per cent decline.

Due to the significant drop, this year’s overall production was projected to fall 7-10 per cent to 1,485,000-1,535,000 units, dropping from 1,645,304 units last year.

AFG Meeting with Chris Bruton, November 18, 2011

Here's a link to download Chris Bruton's presentation from the last AFG Meeting.

Thai Auto Production May Exceed Target After October Record

Car production in Thailand may exceed this year’s target after reaching a record in October, the nation’s Automotive Industry Club said.

Output may reach 1.7 million units, from an earlier projection of 1.6 million, Surapong Paisitpatnapong, a club spokesman, told reporters in Bangkok today. Production reached 152,689 units in October, the most since Thailand started producing cars in 1961.

VW to invest $70 billion over next 5 years

Volkswagen AG says it plans to invest Euro 51.6 billion ($70 billion) over the next five years as it focuses on modernizing and extending its brands' product range.

The company said Friday that it will put Euro 41.3 billion of the money into property, plant and equipment for its automotive division -- 57 percent of that in Germany, where it has its Wolfsburg headquarters.

Thai October Vehicle Output Hits High; Exports Still Expanding

More good news about the Thai Auto Industry:

BANGKOK -(Dow Jones)- Thailand's vehicle production surged to a new high in October, while exports continued to expand from a year earlier with increased shipments to every market, the Federation of Thai Industries said Wednesday.

October vehicle output in Thailand, a regional manufacturing hub for many of the world's biggest automakers, rose 32.7% on year to 152,689 units, the highest ever since the first vehicle was produced in Thailand in 1961, the statement said.

Bangkok Post: Mercedes-Benz building its first engine plant here

Mercedes-Benz has approved the building of an engine plant in Thailand, the first manufacturing facility the German luxury carmaker has had in the kingdom in its 106-year presence.

Although many luxury car models are built in Thailand, Mercedes-Benz has hired Thonburi Automotive Assembly Co for their assembly.

‘‘We started setting up the engine production line two weeks ago,’’ says Prof Paufler. Click here to read more.

China Post: Toyota launches Prius hybrid in Thailand

Toyota Motor Co has chosen Thailand as the third location worldwide for manufacturing its Prius hybrid cars which will go on sale on the local market next month, company executives said Thursday. “Thailand will become the third country in the world that will serve as the manufacturing base of Prius this November,” Toyota Motor Thailand president Kyoichi Tanada said.

“THAILAND LIFT YOUR GAME” WAS AFG CONSENSUS

We're in the News! Read the report by Harry Green in Pattaya Daily News on last Friday's AFG event.

VW may drop Thai eco-car plans for Proton alliance

Volkswagen may abandon plans to build an eco car plant in Thailand in favour of developing a more comprehensive alliance with Proton in Malaysia, according to Vallop Tiasiri, president of the Thailand Automotive Institute (TAI). Read more here.

AFG looks at counting pennies

Courtesy of Doc Iain Corness and by kind permission of the Pattaya Mail, please find below the report on the AFG Meeting from Friday 13 November:

The Automotive Focus Group (AFG) invited representatives from General Motors and Ford to address the members on the subject of “Thailand outlook for the auto industry in 2010 and beyond.”
Frank Holzer, a genial GM style Aussie was the first speaker, but unfortunately Reiko Webster from Ford got lost and arrived a little late, so her address will be deferred to another meeting of the AFG group. (It really is time that FoMoCo had Satnav as standard equipment!)

Frank Holzer began his very ‘frank’ address by stating that the current problems are actually future problems, so we (and GM) are not out of the woods yet. He cited the global economic crisis, international business issues and Thailand’s political issues as all factors which resulted in GM seeing a 59 percent drop in sales year on year.

Factors affecting the bottom line included wages which have doubled over 10 years, and he felt that government intervention was needed in the area of wage control, otherwise Thailand would lose its pricing competitiveness.

He saw the need for all businesses, not just GM, to have sound fiscal policies which would allow for rapid restructuring when necessary and said that Outsourcing did not allow for quick action and is a fixed cost to the manufacturer. A cost that perhaps the parent company cannot sustain in times of economic woes. He also said that corporations have to understand that maintenance of ‘market share’ does not necessarily mean maintenance of ‘profitability’. The pennies have to be counted.

Frank also stated that in the auto industry, keeping large stocks to supply dealers was no longer a viable plan, and ‘build to order’ was much more financially appropriate.

Domestic recovery is expected by 2011, with the one tonne pick-up market still dominant in domestic sales, but the export market will be driven by small, fuel-efficient cars.

In his summation he mentioned the need for political stability in this country and the need to develop and educate the workforce, otherwise China, India, Malaysia, and Indonesia will take over Thailand’s (tenuous) hold on being the ‘Detroit of Asia’.

By Dr Iain Corness

THE STAR ONLINE: 2010 car sales performance in major Asean markets

With less than two months left till the end of the year, major South-East Asian markets, such as Malaysia, Thailand, Indonesia and the Philippines are gearing up for a stellar 2010 as far as their respective automotive industries are concerned.

School Automotive Technology

For those of you who are tired of getting it fixed your car through personalize, and modify your own car continuously or glue on television shows such as "American Chopper" or "Pimp My Ride", it is to expand opportunities - Technology Car could be a lucrative career and not just a way to let the speed of the day on the couch.

Automotive technology schools offer students the opportunity together, their blend of technical and creative passions. His interest in design, form, color and presentation can be fulfilled to solve along with his desire problems, play, experiment and work with the development of technology and science.

.de Agreement for the National Automotive Technicians Education Foundation, professional automotive technicians can earn $ 60,000 or more per year with proper training - and with good reason. .de agreement with the Bureau of Labor Statistics, experts in the field are asked employs more than 800,000 auto technician since 2004. As the number of families who continues to rise several cars is expected that employment opportunities for automotive technicians, to grow well.

An auto technician career is not the same as 10 years ago, and as a result of automotive technology schools had to update their curriculum. The Global Positioning System, Internet and alternative fuel systems increasingly common among the many technological advances that, automotive engineering students in schools in cars can not complete workout without their knowledge in the areas of thesis. Actually, according to the College Board, more schools offer automotive technology courses including stress management and customer service.

Not that automotive technology shoulder be a stressful job - on the contrary, is someone who is passionate about her career a successful automotive technicians. But let's face it, cars are a big part of how we live and keep them on the road is not easy. .According To the Center for Automotive Research, in 2000, approximately 217 million therewere vehicles on the road in the US, traveling 2.5 trillion miles, and the consumption of 160 billion gallons of gasoline. So sure, the work can sometimes be a bit stressful - why in the career of automotive technology is based on formation during crunch time.

Once you have received their education at school automotive technology, certification is the only thing standing between you and your career. Voluntary certification by ASE is the default credentials in the automotive industry. Your certification will be in a specialized field of their choice, there are eight rounds to come. These include electrical systems, engine repair, brake systems, suspension and steering, heating and air conditioning. Master automotive technicians are certified in eight areas

METALEX

Quick reminder to register for METALEX 2011 at BITEC, Bangkok - an interesting show for those who are involved in Automotive metalworking….. 

You can register free online with 'special privileges' until 21 November 2011.

Click here to register at METALEX

Thailand to produce 1.7 million vehicles by year end

BANGKOK, Nov 11 - Thailand is maintaining its position as the "Detroit of Asia", beating all production records to produce about 1.7 million cars by year end and is now ranked as the 14th largest world auto producer, according to the Federation of Thai Industries (FTI)'s Automotive Industry Club….

AFG Meeting: Chris Brutons Presentation

Last Friday evening, AFG Members and friends from the AUSTRADE Automotive Trade Mission enjoyed a truly excellent presentation with lots of information and insight about Thailands economic and political present and future.

View or download the presentation on Slideshare.

Thai flood: Toyota, Mazda, MMC production restarting soon

Via Paul Tans Blog:

Auto production that was crippled by massive flooding in Thailand is beginning to get back on its feet. Some companies whose factories were spared by the water rush, but whose suppliers were affected, are restarting production soon, the Bangkok Post reports. They include Japanese giant Toyota, Mazda and Mitsubishi.

“We will try to start production as soon as possible, possibly on the 21st of this month, and then slowly increase our production capacity,” said Toyota president Akio Toyoda, who also plans to increase investment in the Land of Smiles. “Toyota expects to increase our investment here over time to develop the automotive industry,” he added.

Like General Motors’ Rayong plant, Toyota’s three Thai plants in Samut Prakan and Chachoengsao weren’t under water, but many suppliers and vendors were affected. Toyota, the biggest carmaker in Thailand, has delayed restarting operations three times already, but green light from suppliers this time around make Toyoda’s target date more achievable.

Over at Mitsubishi, they will restart production of Tritons and Pajero Sport SUVs on Monday at two factories that have full capacity of 1,000 units per day. MMC plans to recover production of 23,000 units lost from the combined impact of both the Japanese tsunami and Thai flood. Work was suspended at MMC’s two plants in Chon Buri on October 13.

Meanwhile, Mazda is ready to resume passenger car production with immediate delivery of Mazda2 and Mazda3 models. Both models are built at the AutoAlliance Thailand plant, a joint venture with Ford located in Rayong. The AAT facility wasn’t directly affected by the flood, allowing Mazda to source parts from China and Japan for the 2 and 3. However, production of the BT-50 pick-up truck will remain suspended since most parts are localised and Thailand is the main production hub for trucks.

Toyota to resume Thailand production Nov 21 after suspension due to flood

BANGKOK, Nov 10 - Japanese automaker Toyota Motor says it will resume production in Thailand Nov 21, one month after severe flooding forced it to suspend operations, Japan’s NHK reported Thursday.

Toyota’s three plants in Thailand’s Samut Prakan and Chachoengsao provinces, unaffected directly by the flooding, halted production Oct 10 due to supply chain disruptions after flooding hit industrial estates in Thailand’s central provinces.

139 Japanese listed firms sustain damage from Thai floods

TOKYO (Kyodo) -- A total of 215 plants in Thailand affiliated with 139 Japanese listed firms have been damaged by flooding there, a survey by a private research agency showed Wednesday.

Of the 139 companies, 81 were in the electronics business and 71 in the automotive business as many of them operate in more than one business sector, Tokyo Shoko Research said, indicating the engines of Japan's manufacturing industry have been heavily affected.

Honda’s dealers in Thailand may face bankruptcy

Thailand’s worst floods in half a century creates serious problems to the automotive industry.
A large number of Honda dealers across Thailand are becoming increasingly concerned for the future of their businesses, as most of them face disruptions.

Within Thailand, two Honda plants in the Rojana Industrial Park have been fully submerged since Oct. 6, Jessada Thongpak, an analyst with IHS Global Automotive, said in a report today. “It may take until late 2012 to rebuild both plants,” Thongpak said.

Police adapts to new situation

Toyota, Honda May Not Recover Output Until 2012 With Thai Flood

“They’ve certainly been really unlucky this year.”

Plans by Toyota Motor Corp. and Honda Motor Co. to run factories overtime to recoup production lost to parts shortages caused by Japan’s earthquake may be delayed until early 2012 because of flooding in Thailand.

Toyota, Asia’s biggest carmaker, is scaling back output in Japan for a third week and suspended overtime in North America for a second week as disruptions from the floods spread. Honda is temporarily eliminating overtime and running North American plants at half capacity until next week as Japan’s third-largest automaker assesses its inventory.

Bangkok Post: Honda opens R&D facility

The new Bangkok-based Honda's automotive research and development facilities for Asia and Oceania officially opened yesterday will help accelerate the eco-car development in Thailand, said Mr Fumihiko Ike, president of Asian Honda Motor Co.

Automotive World.com: Thailand combined sales up 40.3% in September

New vehicle sales in Thailand rose year-on-year for the 13^th consecutive month in September. Sales were up 40.3% last month, reaching 68,261 vehicles, Toyota Motor Thailand said.

BORNEO POST: Mukhriz offers two options to auto companies affected by Thai floods

Even Borneo feels the effects of the Thai flooding…

Mukhriz offers two options to auto companies affected by Thai floods

He said they could either use the existing capacity in Malaysia to support their factories in Thailand in order to complete their parts and components for overseas exports, or look at Malaysia as a base to manufacture more of these components.

“We understand that these companies must ensure that their operations are not affected by the floods but at the same time, we must be careful as we don’t want to be seen as taking advantage of our neighbour’s situation,” he said yesterday.
Mukhriz said the ministry had received enquiries from companies from all sectors including automotive that were affected by the Thai floods.

Thailand floods forcing Honda production cuts in Lincoln Read more: Anniston Star - Thailand floods forcing Honda production cuts in Lincoln

Honda’s plant in Lincoln will reduce production — but not employment — starting Wednesday due to parts shortages caused by recent flooding in Thailand.

Upper management at Honda Manufacturing of Alabama in Lincoln announced to employees today that production would be reduced by as much as 50 percent from Wednesday through Nov. 10, said Honda spokesman Mark Morrison in a phone interview. Also, production will cease completely on Nov. 11, he said.

Read more: Anniston Star - Thailand floods forcing Honda production cuts in Lincoln

THE NATION: Flood impacts remain ruinous

Honda Automobile (Thailand), while announcing that its motorcycle and power-part-manufacturing subsidiary would suspend operations only until Nov 4 Friday, said: "The company does not have a clear outlook for when vehicle production will resume, as its facilities remain flooded since October 8." The autoassembly plant in Rojana Industrial Park, Ayutthaya, was inundated on that date, but its parts suppliers were flooded four days before.
(…)
More than 400 Japanese auto manufacturers and electronics firms in six industrial parks north of Bangkok have been affected by the flood disaster.

Aon Report on Thai Floods Highlights ‘Extreme Human Suffering,’ Economic Loss’

Check this one out - a different kind of article on the Thai flooding.


Aon Benfield has published a highly detailed report on the ongoing floods in Thailand, from their meteorological beginnings – extremely heavy monsoon rains – to the widespread damage they have inflicted on one of East Asia’s most vibrant economies – $6.5 billion, and counting.

The report notes that “Thailand has declared a third of its provinces to be disaster zones as the country battles rising flood waters. The flooding situation is likely to continue for a few more weeks and has been bearing down on Bangkok over the past few days. The Thai capital sits on the bottom of a flood plain which has an average elevation of less than 2m (a little over 6 feet) above sea level.”

Read more here.

Vaidya Says Toyota, Honda Most Affected by Thai Floods

Vivek Vaidya, automotive and transportation director at researcher Frost & Sullivan, talks about the outlook for Japanese automakers. Honda Motor Co. fell the most in more than a week after the Nikkei newspaper reported the company may take six months to resume production in Thailand after its factory became flooded. Vaidya speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia."

10 Rules for Successful Outsourcing Relationships

“History shows that great economic and social forces flow like a tide over communities only half conscious of what is befalling them. Wise statesmen foresee what time is thus bringing, and try to shape institutions and mould men's thoughts and purposes in accordance with the change that is silently coming one. The unwise are those who bring nothing to the process, and who greatly imperil the future of mankind by leaving great questions to be fought out between ignorant change on one hand and ignorant opposition to change on the other.” - John Stuart Mill

Courtesy to Russell Pang / CEVALOGISTICS...

Load it all down at http://www.ulikaiser.de/afg/10Rules.doc

BANGKOK POST: Malaysia's auto revival 'no threat'

The local automobile industry is unconcerned by the Malaysian government's bid to unseat Thailand as Southeast Asia's manufacturing hub for the sector, says the Thailand Automotive Institute.

Malaysia's auto industry is still a long way behind Thailand's, said Vallop Tiasiri, the director of the TAI.

Kuala Lumpur yesterday announced a decision to resume issuing carmaking licences with an aim to spur investment and employment. It will also seek a strategic partner to revive its national car company, Proton Holdings Bhd.

Toyota readies plants for worst-case floods

CHACHOENGSAO : Although Toyota Motor Thailand says the worst-case scenario is unlikely, the country's largest automobile manufacturer is still preparing flood prevention plans for its three plants, two of which face flooding risks.

BANGKOK POST: Toyota: Water control first order

"A car has 20,000 to 30,000 parts, and production will not be complete if even one part is missing," he said.

The government should focus on the flood situation before talking about rehabilitation plans for businesses, says Toyota Motor Thailand (TMT).

"We want the government to solve the flooding first so we can assess the damage. This is affecting not only Thailand, but also [company operations in] Japan and the rest of the world too. Rehabilitation plans can come later," said President Kyoichi Tanada after a crisis meeting with industry permanent secretary Witoon Simachokdee.

The Industrial Estate Association earlier proposed that the government rehabilitate flood-hit industrial estates within 45 days, although Mr Tanada said that time line would differ for individual factories.

INAUTONEWS: Thailand Floods: The Automotive Industry Has Lost $13bn So Far

After the Japanese automakers, Ford announced that has suspended output in Thailand on parts-supply shortages, despite fears it may lose production of 30,000 vehicles.
“We are working closely with our affected suppliers to return to production as quickly as possible,” Lewis Booth, chief financial officer at the Dearborn, Michigan-based carmaker, said.
Toyota Motor Corp on Thursday said it would keep its Thai production suspended for a fourth week and reduce output in North America and South Africa.
Further, production from October 31 through November 5 will be adjusted based on an ongoing assessment of the parts supply situation at each individual production line the company said.
In addition, Toyota must now cut extra hours and weekend shifts at some plants from Indiana, West Virginia, Kentucky and Canada. These measures are meant to conserve parts as the company faced serious disruptions due to a shortage of parts imported from suppliers in Thailand.

Thailand floods stall automakers

CHECK OUT THE VIDEO INTERVIEW WITH MR TOYOTA ON THIS PAGE: RUNNING TOYOTA IN DIFFERENT TIMES

NEW YORK (CNNMoney) -- Still recovering from the Japanese earthquake, tsunami, and nuclear meltdown disaster, Asian automakers are now getting hit by another ecological nightmare: floods.


Toyota, whose production capacity in Thailand is over 550,000 vehicles per year, said in a statement Thursday that a production halt at three plants in Thailand, in place since October 10, will remain at least until November 5.

As a result of this supply disruption, Toyota will suspend production at several North American plants on Saturday and will suspend overtime at all North American assembly plants next week. Production at facilities in South Africa, Indonesia, the Philippines and Vietnam will also be slowed.

Honda said this week that floodwaters had entered one of its plants outside Bangkok that has an annual production capacity of 120,000 and has been closed since October 4.

"Due to the inability to access its facility, [Honda-Thailand] does not currently have a clear outlook for when production will resume," the company said.

REUTERS: Thai floods batter global electronics, auto supply chains

Floods affect auto production from Thailand to N.America


* Deep supply chain links cut costs, but breaks prove expensive

BANGKOK/TOKYO, Oct 28 (Reuters) - Manufacturers of car parts are worst hit in Thailand and face a bleak key holiday selling season due to massive floods, which have shut down production.

Japanese car makers that had just started to recover from the March earthquake and tsunami that disrupted their supply chains are now facing shortages of key parts made in Thailand, a key manufacturing base in Southeast Asia.

Companies including Toyota Motor Co and Honda Motor Co have already curtailed production at plants as far away as North America because their Thai suppliers are under water.


CARS AND SANDBAGS

Toyota Motor officials in Thailand said the company had shifted ready-made parts used to produce pick-up trucks and modified pick-up trucks to its Gateway City facility in Thailand's Chachoengsao province.

The facility there is 44 meters above sea level, said Vudhigorn Suriyachantananont, senior vice president of Toyota Motor Thailand.

Wall of sandbags are protecting the plant and "tools and machinery are sealed and stored in high places," he said.

Daihatsu Motor Co said on Friday it would reduce work to produce Toyota-badged cars at two Japanese factories next week due to a shortage of parts from Thailand.

Daihatsu, the minivehicle unit of Toyota, said it expects no impact from the Thai floods on its own minicar production in Japan and in Indonesia and Malaysia at least for November.

The Japanese government announced on Friday it would allow Japanese companies operating in Thailand to bring some Thai workers to Japan to make up for lost production.

Japan's trade ministry said the Thai workers would only be allowed in for six months and would not be allowed to bring their families.

Malaysia opens up auto sector to woo investors

KUALA LUMPUR, Malaysia—Malaysia unveiled plans Wednesday to open up its auto sector, including allowing 100 percent foreign ownership and offering a 10-year tax break for carmakers to produce hybrid and electric vehicles as it seeks to catch up with Thailand as a regional auto hub.

NOW THAT'S AN INTERESTING ARTICLE. CHECK IT OUT.

DETROIT FREE PRESS: Thai flooding disrupts Japanese auto production

Toyota and other major automakers have begun scaling back production because of parts shortages from suppliers in flood-afflicted Thailand, just months after Japan’s own supply chains were decimated by a mammoth earthquake and tsunami.

The production woes stemming from Thailand’s worst flooding in five decades — which has wiped out hundreds of factories in recent weeks — come just as Toyota and others bounce back from the March 11 quake disaster that destroyed autos parts suppliers in Japan’s northeastern Tohoku region and upended car production around the world.

REED TRADEX: Metalex postponed to 21–24 December 2011

Letter from REED TRADEX in it's entirety:

Dear Exhibitors, delegates, participants and supporters of METALEX,

Reed Tradex has been monitoring the on-going flood situation in Thailand and updating ourselves daily regarding the vulnerability of Bangkok being affected in the coming weeks. We have consulted with many individuals and groups in order to assess what should be done in the best interest of all our local and foreign exhibitors, delegates, visitors and supporters.

Although efforts at draining floodwater and rectification measures by authorities have been in place to minimize the impact, the situation remains difficult to predict.  While the central business district as well as the exhibition venue remain unaffected for now, it is generally accepted that the water overflow could eventually disrupt movement around Bangkok and the outlying areas.  This would inevitably mean that the scheduled timing of the event in 16-19 November 2011 is no longer appropriate as we place any risk of inconvenience and safety of all our participants as the foremost priority. 

In order that all our exhibitors, visitors and service providers can have peace of mind and prepare with more certainty for the upcoming METALEX 2011, Reed Tradex would like to announce the postponement of METALEX 2011 to a new period which is Wednesday 21 to Saturday 24 December 2011. The exhibition venue remains at BITEC, Bangkok. We feel this decision will allow us and our contractors to continue to deliver a high quality event with standards that all of you have become accustomed to at every METALEX.

We do realize that these dates are very close to Christmas and especially for our Western exhibitors, we understand these may not be the best of dates and for that we do sincerely apologize. Unfortunately, given the scale of METALEX, the venue is not able to provide other alternatives when all 6 halls are available.

What we will do is to try and ensure, if you are intending to leave earlier to be home in time for Christmas, that we try to get you to see as many of your key customers as possible in the first 2 days of the show. Additionally, we will be happy to provide support in stand manning for those without local staff, distributors or partners to manage their stands.

 We hope to get your understanding as we promise to work very hard to make the best of such exceptional circumstances. Our offices, both in Thailand and our international sales offices and agents will be ready to offer any assistance you may require.

The Thai resilience is well known and we are confident that investors and manufacturers would recover soon from this disruptive period.  METALEX (21 to 24 Dec 2011) will also continue to function as a major platform for the industry community to interact face-to-face. And we are committed through this leading event to work even harder to be part of the solution to bring the manufacturing industry back to normal production soonest possible.

For more information, please contact our sales representative in charge of your account or email metalex@reedtradex.co.th

Chainarong Limpkittisin
Managing Director
Reed Tradex Co., Ltd.

Bangkok Post: B1bn firm to target US auto parts market

A Thai-owned auto parts distributor in the United States will join with Thai aftermarket auto-parts producers to set up a holding company worth 1 billion baht to purchase 30 auto repair centres in the US within two years.

The move is part of a strategy by the Cluster of Thai Automotive Parts to expand its members' markets to improve industry performance when local demand is weak because of the slump in vehicle sales and production.

"We have been trying to enter the US market for more than 10 years, but were unsuccessful because we didn't use the right channels," said Samart Deebhijarn, the president of the cluster.

REUTERS: ASEAN gearing up to be global green auto hub

HUA HIN, Thailand (Reuters) - Southeast Asia is gearing up to become a global hub for the production and sale of environmentally friendly cars, a Thai deputy cabinet minister said on Thursday.

NZ HERALD: Thai floods swamp flow of utes

Toyota New Zealand just took orders for 300 top-selling Hilux utes - but now is struggling to supply the one-tonne vehicles as factories which supply parts to its plants in Thailand are flooded.

A ship that was to have left Thailand last week was supposed to have 220 Hilux utes on it, but only had 26 of the top-selling farm vehicles on board.

Car output loss put at 150,000 units in Oct-Nov

Auto production this month and next is expected to fall by about 150,000 units if major carmakers cannot resume operations soon, said Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol.

Though many car-assembly plants are not flooded, their parts suppliers are, so they have had to suspend production. However, they are seeking ways to source the parts from overseas suppliers so as to resume operations, said Suparat Sirisuwannangura, president of the FTI's Automotive Industry Club.

Thai Floods: Automotive industry down for at least one more week

Honda, probably the most affected automaker, on Tuesday said it has halted all its operations in Malaysia due to parts shortage caused by the floods in Thailand.

Supplies from Honda Automobile (Thailand) Co. Ltd and other major suppliers which supply to Honda Malaysia have been interrupted because of the floods.

The automaker has brought in 200 soldiers to secure its motorcycle plant in Bangkok, Thailand’s. Honda’s automotive factory in the Ayutthaya province has already overflowed, so the soldiers were brought in using personal ties to build a levy around a motorcycle facility.

Toyota stopped production at the three plants from October 10 as some suppliers were severely damaged by the nation’s worst flooding in decades, causing delays in supplying parts.

Fabrinet Reports Impact Due to Severe Flooding in Thailand

AFG Member Fabrinet affected by flooding:


Fabrinet (NYSE: FN), a provider of precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced an update on the impacts of flooding in Thailand.

Fabrinet today announced that as of approximately 11:00PM Saturday night, Bangkok time, flood waters had infiltrated the offices and manufacturing floorspace at its Chokchai campus in Pathum Thani, Thailand. The manufacturing buildings at Chokchai, known as buildings 1 and 2, remain filled with water to a level of approximately 3.5 feet. Prior to the factory infiltration, the company took precautionary measures, where possible, to move or protect production and test equipment, inventory and tooling. The company has not yet been able to make a full assessment of the damage but believes it is unlikely that production would recommence at Chokchai for the remainder of the current quarter.

THE STAR: Severe Thai flooding forces Toyota, Honda, Isuzu and Ford to stop ops

PETALING JAYA: Just months after production of Japanese cars recovered following the massive earthquake and tsunami, Japanese marques in Thailand have been hit by a flood crisis that threatens to stall production once again.

Vehicle plants operated by Toyota, Honda, Isuzu and Ford in Thailand have been closed due to the crisis.

Many car and electronics manufacturers located in Ayutthaya province were affected by severe flooding.

Also, Malaysian companies such as Eng Teknologi Holdings Bhd said two of its subsidiaries operating in Ayutthaya had temporarily shut down their operations because of the floods. It believed the extent of the damage would be covered by insurance.

VW Likely to Overtake Toyota as Top Carmaker in 2011, GM to Remain Second

Volkswagen AG (VOW) will probably become the world’s biggest carmaker this year, vaulting past Toyota Motor Corp. (7203) and General Motors Co. (GM) on gains in emerging markets.

VW sales in China may rise almost 20 percent in 2011 and more than double in India, according to estimates at researcher J.D. Power & Associates. That’s a contrast to Toyota, which is suspending Southeast Asian plants because of floods in Thailand, months after an earthquake crippled production in Japan.

Industrial estates to be rehabilitated within 45 days after water recedes: Commerce Minister

Thailand’s seven industrial estates that were flooded will be rehabilitated within 45 days after floodwaters recede with government financial aid, Deputy Prime Minister/Commerce Minister Kittirat Na Ranong said Monday.

After meeting with engaged agencies and industrial entrepreneurs of the flooded industrial tracts—which comprise a significant portion of Thailand’s industrial capacity—the Factory Land, Saha Rattana Nakhon, Bang Pa-in, Rojana and Hi-Tech in the nearby central province of Ayutthaya, as well as the Bangkadi and Nava Nakorn estates in Pathum Thani.

"What you pay is what you get" – but then .... sometimes not

Wrapped in the psychedelic surroundings of the Fillmore Room at the HARD ROCK HOTEL, a strong audience of 20+ AFG members and guests enjoyed a thorough and creative panel discussion on the in and outs of logistics.

Senior speakers from DHL, Katoen Natie, CEVA Logistics and VPack & Move explained the several levels of logistics services – the higher the level, the higher the integration with the customers business processes.

The feedback and discussion was very interesting, with logistics specialists from GM and Michelin actively involved.

A main point was the creation of "shared services" so we don't have 2 half empty truck carrying goods from the same A to the same B at the same time.

An excellent session sure to benefit everyone in the audience.


After the meeting, most of the participants enjoyed a beer and roast pig at the joint German and British Chamber function in the Hard Rock Cafe.

AFGMeeting November

AFG Meeting Information for November 2009:


Date: Friday, 13 November 2009
Time: 17.00 - 18.30
Location: dusitD2 baraquda pattaya

Speakers: Representing GM and AAT

Discussing:
* Thailand outlook for of the auto industry in 2010 and beyond?
* What segments of the Auto Industry may see growth and what may see reduction?
* New regulations if any on export that will impact suppliers?
* What is the take on OEM and supplier relationship in these difficult times?
* Do the manufacturers expect hard negotiations this year and what should suppliers and public be ready for?

To book this meeting, please contact:
Maurice Bromley
Secretary
Email: Maurice.Bromley@go-dove.com

Forging Meeting Summary

James Beeson provided this summary of the Forging Sector Meeting from 14 October 2009. It contains market analysis and forecast data - check it out:

http://www.ulikaiser.de/afg/ForgingMeeting.pdf

Impact Of Thailand Floods On Automotive Industry And Supply Chain - Frost & Sullivan Analyst Comment

Click here for the whole article.

Analyst Comment by Vivek Vaidya, Vice President, APAC, Automotive & Transportation, and Vijay Rao, Research Manager, APAC, Automotive & Transportation

Thailand has been inundated with severe floods in its recent history, and the automotive sector which has an annual production capacity of about 2 million units in 2010, is one of the hardest hit industries. The recent inundation of floods in Thailand has not only had a major effect on local automotive production and supply chain disturbances but is also likely to have a short  term effect on the regional and global supply of automotive parts and vehicle exports.

Impact of the Flooding in Thailand - Current Situation: Halt of Automotive Production in Thailand Assembly Plants

Thailand is currently experiencing the worst flooding in the last five decades. 26 of the 90 provinces in Thailand have been affected by floods and automotive assembly plants and parts maker factories located mainly in and around Ayutthaya and Pathumthani provinces are suffering from it.
Japanese OEMs such as Toyota, Honda, Mitsubishi, Isuzu, Nissan and American OEMs such as GM and Auto Alliance (Ford and Mazda) have assembly locations in Thailand with a combined annual production capacity of approximately 1.7 million - 1.8 million units.

REUTERS: Thai floods cripple over 300 Japanese firms -JETRO

At least 300 Japanese companies have been affected by flooding in Thailand and it could be months before all are fully up and running again, the local head of the Japan External Trade Organisation (JETRO) said on Monday.

Floods have forced a series of huge industrial estates to close, the latest being the Nava Nakorn Industrial Zone in Pathum Thani province north of Bangkok, which has more than 270 plants employing 270,000 workers.

That is seriously hampering the work of Japanese firms that have made Thailand their manufacturing and export base for Southeast Asia, Setsuo Iuchi, the president of JETRO Thailand, told Reuters.

Flood Map with English Navigation

Useful Map  Chick here

Add caption

Technology demand on the rise

As leading auto maker Isuzu and newcomer Chery announced the operations of their new assembly plants in Thailand to serve higher export demands and local consumption, auto and parts makers will certainly be in search for new technologies and innovations to handle upcoming production challenges and promote productivity.

Check out the advance info for AUTOMOTIVE MANUFACTURING 2012

BANGKOK POST: Ayutthaya HI-TECH Industrial estate on the cusp of inundation

Floodwater is close to the point of overflowing the earthen barrier protecting the Hi-Tech Industrial Estate in Bang Pa-in district of Ayutthaya.

Wall Street Journal: Floods Force Auto Makers in Thailand to Halt Production

Thailand's auto exporters are being hit by supply-chain disruptions following the worst flooding the country has seen in nearly half a century.

The Southeast Asian nation is a major production and export hub for global auto makers, including Toyota Motor Co., Ford Motor Co. and Honda Motor Co., and all three have now shut their plants in the country after weeks of worsening flooding overwhelmed a cluster of component plants in Ayutthaya, 67 kilometers, or 42 miles, north of Bangkok. Isuzu Motors Ltd. also halted production on Tuesday at its two Thai plants due to disruptions in parts supplies.

HONDA Factory inundated in Ayutthaya

Some helicopter footage from the HONDA Plant in Ayutthaya.

Bangkok Post: Ford among giants hurt by flood disruptions

US-based Ford Motor has become the latest casualty of severe flooding in Thailand, with its assembly plant in Rayong halting production for at least 48 hours because suppliers in Ayutthaya have been severely hit by floods.

The second-largest US automaker said yesterday that production was suspended at the AutoAlliance Thailand facility for the next 48 hours to make a full assessment of inventory and logistics continuity.

The company's production facilities in Rayong have not been affected by the floods.

"Vehicles produced at AAT have a very high local content," said Peter Fleet, the president of Ford Asean. "A significant number of our parts suppliers are located in Ayutthaya. That's why we have to stop production for 48 hours to check out the suppliers, although our factory has not been affected by the floods."

Thailand Flood Maps

Check out the 'official' flood maps:

http://flood.longdo.com/  and
http://flood.gistda.or.th/

Doesn't look good for Samut Prakan and Chonburi.

Cars submerged in floodwaters at a Honda factory outside Ayutthaya on October 11.

Amazing photo on MSNBC Photoblog

Isuzu: To Halt Production In Thailand Until Friday Due To Parts Shortages

Isuzu Motors Ltd said Tuesday that it will halt production at its two plants in Thailand due to a disruption in supplies of some parts after the flood in the country.
The Japanese truck maker will start halting operations at the two plants from the night shift on Tuesday and keep them idled until Friday, a spokesman at the company said.
Thailand is facing its worst flood in decades, with around 30 of its 77 provinces inundated and over 260 people killed so far.

Yingluck says city ill prepared for floods

Prime Minister Yingluck Shinawatra has admitted that Bangkok's flood prevention system has not been completed and her government is racing against time and the rising waters.

Racing sands of time Foreign and Thai students of Rangsit University shovel sand into bags to make a flood wall along Khlong Rangsit. The canal, which is fed by the Chao Phraya River, is threatening to inundate the university and Muang Ake housing estate in Pathum Thani’s Muang district. THITI WANNAMONTHA

In response to the situation, the Bangkok Metropolitan Administration (BMA) has set up nearly 200 shelters to cater for possible evacuations.

100,000 Ayutthaya factory jobs threatened

About 100,000 workers face losing their jobs because of the disastrous flooding in Ayutthaya province.

Damage to the industrial sector alone in Ayutthaya is valued at roughly 50 billion baht, said Phakorn Wangsirabat, who heads the Federation of Thai Industries in the province, yesterday.

More than 300 of 2,150 factories in Ayutthaya have been affected by floods. So far, Saharattananakorn Industrial Estate and Rojana Industrial Park have been inundated, while Hi-Tech Industrial Estate is at risk with the water level there now at 4 metres, said Mr Pakorn.

Floods cripple economy

Economic ripples from the nationwide flooding are reverberating, with rumours that some Japanese companies will relocate production facilities out of the country as some industrial estates are submerged and many more are threatened.

Distressed companies are pressing for government relief, which could come in the form of a delay to the Bt300 minimum wage as well as other financial assistance.

Industrial estates sent reeling

Almost 200 factories including the plants of leading Japanese car manufacturer Honda and major electronics makers in Ayutthaya have been forced to close and evacuate workers.

Bangkok Post: North and east Bangkok considered vulnerable

The government is calling on the public to donate about 700,000 sandbags to guard Bangkok against the coming floodwater from the North.

Rescue officials ride a boat along inundated Rojana Industrial Park in Ayutthaya’s Uthai district to take stranded workers to safety.

Massive floods threaten Thai capital

Thailand's worst floods in more than half a century are threatening to swamp the capital, Bangkok, as early as next week after reaching a "crisis level," Prime Minister Yingluck Shinawatra said. At least 253 people have been killed as a result of the seasonal monsoon rains that have hit the country since July 25, the Department of Disaster Prevention and Mitigation said on its website. About 30 of Thailand's 77 provinces remain underwater, the agency said. Read more here

ASIA ONE: Thai factories inundated after embankment collapses

Many factories in the Rojana Industrial Park of flood-hit Ayutthaya were heavily inundated yesterday evening after a section of a six-metre-high earth-filled embankment collapsed under high water pressure. Efforts to repair the two-metre-long collapsed section continued into the night. A Honda Automobile (Thailand) factory, which is located right in front of the damaged section, was the first to be hit by the rushing flood waters. The Honda factory was under 30 centimetres of water.

AFP: Thai PM scraps foreign trips amid flood crisis

BANGKOK — Thailand's worst floods in decades have prompted the country's premier to postpone official visits to Singapore and Malaysia, a spokeswoman said on Sunday, as Bangkok braces for rising waters.
Prime Minister Yingluck Shinawatra last week described the flooding, which has left more than 250 people dead and inundated huge swathes of the kingdom as a "serious crisis" and warned that the capital would not escape unscathed.