Thailand seen holding onto crown of "Detroit of Asia"

Martin Apfel, president of General Motors' Thailand/Southeast Asia operations

Thailand makes news in the US:

Half a world away from the cold streets of Michigan, General Motors (GM.N) is getting ready to roll its first diesel engine out of a recently opened factory in eastern Thailand.

Nearby, Ford Motor (F.N) is building a manufacturing plant and Suzuki Motor (7269.T) aims to start producing environmentally friendly cars at a new factory in 2012.

Welcome to the "Detroit of Asia", a vast area 120 km (75 miles) east of Bangkok, where durian orchards have given way to car plants over the past decade and vehicles are made for export to more than 200 countries.

While facing increasing competition as an auto manufacturing hub from countries including India, China and Indonesia, Thailand looks likely to retain its dominant position and win more investment thanks to its low wage costs and strong infrastructure

Indian parts firms eye FTA potential

Indian parts firms eye FTA potential'

Indian auto-parts makers and renewable-energy firms are looking to Thailand as an investment hub for Southeast Asia because of the privileges offered under the Asean-India free-trade agreement, says India's largest industrial group.
Bhaskar Sarkar, executive director and secretary of EEPC India, said Thailand was the most attractive Asean destination and investors want to capitalise on the upcoming Asean Economic Community single market in 2015.

Lenso increases marketing budget

Lenso's lightweight alloys
Lenso Wheel, the distributor of Lenso and Raiden wheels, plans to spend more than Bt50 million on marketing events and advertising this year to help boost its sales.

http://www.nationmultimedia.com/main/2011/02/17/lifestyle/Lensos-lightweight-alloys-30148859.html

Sent from my iPad

Automotive growth drives new investments

Amata to co-invest in Chinese meter-makers' Thai expansion
Amata Corp has agreed with China-based Holley Group that the companies will co-invest about Bt2 billion in expanding the meter-maker's business in Thailand.

http://www.nationmultimedia.com/2011/03/01/business/Amata-to-co-invest-in-Chinese-meter-makers-Thai-ex-30149794.html

Sent from my iPad

New Section; Automotive Newsletters

Check out the new section "Automotive Newsletters".

First entry is L&P's Newsletter #131, February 2011: New investment promotion for sustainable development makes high tech machinery more competitive in Thailand.

Vintage wheels on display

Bangkok Post:
Seacon Square and Vintage Bike Thailand are displaying a collection of more than 100 vintage bikes at the 2 Wheels Story fair, which takes place in Seacon Square from Thursday to Sunday, March 6, 10:30am-9pm.

Indian parts firms eye FTA potential

Bangkok Post:

Indian auto-parts makers and renewable-energy firms are looking to Thailand as an investment hub for Southeast Asia because of the privileges offered under the Asean-India free-trade agreement, says India's largest industrial group.

Bhaskar Sarkar, executive director and secretary of EEPC India, said Thailand was the most attractive Asean destination and investors want to capitalise on the upcoming Asean Economic Community single market in 2015.

Bangkok Post: Just-in-time in doubt after deluge

Manufacturers are diversifying parts supplies to minimise the risk of flood-related disruptions. Some are even questioning whether the widely accepted practice of lean manufacturing makes sense.

Automotive and electronics companies were especially hit hard by last year's floods, the most severe in 69 years, as they were buying from component makers concentrated in the heavily inundated provinces of Ayutthaya and Pathum Thani.

AFG Meeting Report 25 February 2011

Thanks to Graeme Sheard, KPMG for his interesting presentation on the development of the tax situation in Thailand and ASEAN at the Holiday Inn.

Presented by Graeme Sheard, KPMG Tax Partner

Here is Doc Iain Corness article for Pattaya Mail:

The Automotive Focus Group (AFG) invited Graeme Sheard from KPMG to address the group at the latest meeting last week, held in the Holiday Inn.

The buzz words for KPMG are “cutting through complexity”, and corporate taxation is certainly complex, though Graeme Sheard did manage to show where the tunnel was, and the faint flicker of light at the end of it.

With KPMG being a very large conglomerate, they have been able to carry out annual surveys and then extrapolate the results into trends.  For the automotive industry, the prediction is that it will be quite different by the next decade with mobility solutions to counter traffic problems – perhaps you will not need to ‘own’ a car, but just pick up and drop off in the cities.  There will be specific vehicles for specific environments – the advent of ‘city cars’ is here already, but will increase.  ‘Green’ vehicles will increase – electric, hybrid and fuel cell.  All these will bring about major changes in the supply chain, and also bring in new industry participants, particularly in the battery/electric motors area.

Graeme, with his crystal ball, also predicted that as the customs revenue falls with Free Trade Agreements (FTA’s), there will be other taxes applied to counteract the government shortfall.  The most obvious one is VAT, and predictions of an increase from 7 to 10 percent were made.

He made mention of some other FTA’s which are currently being hammered out, including India, the European Union, ASEAN and Peru.  Graeme Sheard did ask if any of the AFG members were trading with Peru, but at this stage the answer was in the negative!

The veritable minefield in the regulations of working within an FTA were shown, with advice being given to ensure there is an indemnification clause in any agreements, as penalties can be very high.

He also suggested that for some members of the AFG, the penalties of importing under an FTA can be such that it may even be better just to import at the domestic rate of tax.

Altogether, this was one of the better addresses that the AFG has provided for its members.

James Beeson, the President of the AFG mentioned that there has been a change in direction, as regarding speakers.  The AFG committee has determined that if they have the subject matter or topic, then it is easier to identify and find appropriate speakers to talk, rather than find the speaker and then find a topic.  It is also expected that this method should also expand the network of the AFG, as it will be necessary to find some speakers outside of their current network.

Those who are interested in contacting the AFG can do so through jabeeson@truemail.co.th.

Old & New AFG Committee

Photograph: Peter Richards

Thanks to Mike Diamente (DANA) and Ray d'Silva (BOSCH Chassis Systems) for their leadership over the last years! The new committee will try hard to fill the footsteps….

AFG 2011 Committee Positions:

President: James Beeson

Vice President: Peera Thaweechart

Secretary and Treasurer: Maurice Bromley (the Bully)

Web and Blog:  Uli Kaiser

The entire AFG committee consists of:

Maurice Bromley (Go-Dove), Armin Walter (EFTEC), Frank Holzer (GM), James Beeson (Ultimate G), Peera Thaweechart (Albatross) , Randy Simmons (Inductotherm), Shaun Burke (Cromwell Tools) & Uli Kaiser (EMAG Group).

The ex officio members are: George T. Strampp (AMS Automotive Manufacturing Solutions) and Leigh Wilmott (Austrade) 

Also check out the PDN article about the meeting here.

AFG Meeting – 17th of February 2012

With an excellent 'turnout' of about 60 members and friends of the AFG the Annual General Meeting was held. A detailed report was already sent to the members.

Supachai Manusphaibool publisher of the monthly “Thai Labor Chronicle” and Wasantachai Watanavongvisudhi partner of International Legal Counsellors of Thailand presented an interesting seminar on the definition of this new minimum wage according to the Thai Labour law.

We will post a summary of the 'rules' on the blog within the next few days.

After the meeting the group joined the AUSTCHAM Sundowners networking meeting.

AFG Meeting at Amari Orchid Ocean Tower

Supachai Manusphaibool

Wasantachai Watanavongvisudhi

MALAYSIA: Daihatsu building country's first auto transmission plant

Daihatsu Motor Co., the Japanese automaker known mostly for its smaller models and off-road vehicles said Wednesday it will invest about 5 billion yen in southwestern Malaysia to build automatic transmissions.

The Japanese automaker aims to start operating the plant in the Sendayan Industrial Park in Seremban, Negeri Sembilan in November 2013 with an annual production capacity of 150,000 units.

Prime Minister Abhisit Vejjajiva at Governors Session : “Thailand and the Global Automotive Industry” at World Economic Forum Annual Meeting 2011

Remarks for Prime Minister Abhisit Vejjajiva at Governors Session : “Thailand and the Global Automotive Industry” at World Economic Forum Annual Meeting 2011, Friday 28 January 2011, 11.00-12.00 hrs. Congress Centre, Davos-Klosters, Switzerland

BOI - Newsletter

The positive momentum in the economy that ushered in 2010 was sustained throughout the year as Thailand moved from economic contraction in 2009 to a full year growth of near 8 percent. In fact, several data points hit all time highs last year making it one of the best years for economic growth in the nation’s history and recalling the times of rapid growth just a couple of decades back.

Dr. Iain Corness: AFG meets the Magnate

The Automotive Focus Group Thailand (AFG) held their February meeting at the Centara Grand Mirage Beach Resort, and featured an address by Kevin Gallaghan from Magnate Automotive, builders of what has been dubbed Thailand’s ‘supercar’ by some sections of the media.

The February meeting was also the AGM, and president Mike Diamente (DANA) addressed the members, beginning by reporting how pleased he was to see the membership double during 2009, now being 60 members.

He reported on the survey taken during 2009, with the main needs for the members (at that time) being labor relations, downsizing the correct way and keeping a hold on the cost of logistics.

He also noted that although the AFG is associated with AustCham, there were three months in the year in which there were no Seaboard Sundowners and the AFG was able to arrange and organize its own venues very successfully, including the function rooms at the Bangkok Hospital Pattaya.

One of the new services the AFG had given its members was the AFG directory (organized by Uli Kaiser) which has given the members an e-forum in which the members can update all the others as to the information regarding their business ventures.

Financially the AFG was in very good shape and Mike stated the opinion that for 2010 he is looking forward to the AFG growing in quality and quantity, with a goal to have topics during the year that invoke conversation and learning.

The topic for that evening was the Magnate P708, a concept vehicle which has been made in Chonburi.  Kevin Gallaghan, the founder of Magnate Automotive spoke on the trials and tribulations involved in building such a car, and not just Thailand problems.

The concept has been four years in creation, and the build run will be capped at 100 units over four to five years.  With a carbon-fiber monocoque manufactured by Cobra International in Chonburi, the mid-engined car currently has a Chevrolet Corvette LS7 V8 mated to a 6 speed transaxle, though the future plans include a V10 Lamborghini power plant.

Kevin Gallaghan shied away from the ‘supercar’ tag, saying that he was more interested in producing a comfortable high performance car, rather than something to challenge names like Koenigsegg or Pagani Zonda, both over USD 1 million.  The Magnate P708 he estimated would be sold on the world market at USD 350,000 with the LS 7 engine and USD 500,000 with the Lamborghini engine.

Unfortunately, to receive certification for this car, he is looking at assembly in South Africa, but the major parts would be sourced from Thailand.

Contact with the AFG can be made through the secretary Maurice Bromley, email Maurice.Bromley@go-dove.com. 

BMW: Less is more

BMW's inline-six petrol engine could be a thing of the past in Thailand - should the current excise tax regime remain in place.

Currently, engines displacing less than 2,000cc are subject to 30% excise tax (25% and 22% for E20 and E85 capabilities, respectively), while those sized between 2,500-3,000cc face 40% (35% and 32% accordingly).

This 10% difference in excise tax can bring down the prices of BMW's luxury cars by as much as half-a-million baht, according current pricing trends.

Check out the Bangkok Post article here

Toyota opposes tax revamp

Toyota, Thailand's biggest automaker, reiterated yesterday it strongly opposed revamping the excise tax structure on the one-ton pickup truck and its variants.

"Toyota along with Isuzu and Mitsubishi disagrees with the tax restructuring that will add production costs to pickups and its variants, as these autos are performing well at the moment in both domestic and overseas markets," said Toyota Motor Thailand president Kyoichi Tanada.

On the way to 1.8 Mio vehicles in 2011

Thailand's automobile production jumped 40.81 per cent year-on-year in January to reach 146,234 units, spurred on by exports and a healthy domestic economy, industry sources said Thursday.

Fan video from the Bangkok Automotive Expo 2009

Find out what makes this car more special than a Ferrari or a Evo.

Kevin Gallahan:
"It wasn't the start of a company but the start of an idea."
"Here we are today with a high technology, carbon composite chassis building a world class supercar in Thailand"
"The cost of the prototype build has been as high as it would have been anywhere in the world."

Did you know:
The P 708 a collector's car – only 100 will be built.
It's a true racing car.
The price tag is around 15 Million Baht.


For the technically minded, here are some specs:

Height adjustment - front and rear
Magnate SMART Instrument Panel
Magnate Touch Screen Intelligence System w/ Engine Diagnostics and Security features
Bi-Xenon lighting
Apple iPhone Supplied Audio
Air conditioning and heating
Wheels: Forgeline 3 Pc. 20" X 12" rear, 20 x 9" front

Engine: Magnate 7.0 liter Aluminum V8. @ 530 horsepower,
(Optional Magnate 7.0 liter Twin Turbo 750 BHP / 730 lbs-ft of torque)
- Custom 7.0 L aluminum block
- Callies forged steel 4340 crankshaft
- JE Forged aluminum pistons
- Manley 6.125" fully machined 4340 forged steel I-Beam connecting rods
- CNC Porting and polishing of LS3 L92 cylinder heads
- 2.165" hollow stem intake valve
- 1.59" Inconel one piece heavy duty exhaust valves
- High performance valve springs & lightweight retainers
- Three angle valve job, checking of spring tensions & heights
- Computer balanced rotating assembly
- Blueprinted Engine
- Properly sized fuel injectors and high capacity fuel system
- Two Garrett true ball bearing turbochargers - liquid cooled and engine oil lubricated
- Magnate turbo compressor housings & exhaust housings with integral waste gates
- Magnate super high efficiency liquid to air chargecooler
- Magnate high efficiency liquid to air heat exchanger, coolant tank and pump assembly
- Magnate turbocharger scavenge pump & turbo oil drain reservoir
- Stainless steel / ceramic heat shields & stainless clamps
- Port matched LS3 intake manifold
- 90 MM Ported and polished throttle body
- REMUS 304 stainless steel exhaust system
- Magnate 3 year/ 36,000 mile warranty
- Dry Sump Oiling system

Body: A full Pre Preg Carbon Fiber/Aluminum honeycomb body.

Floor: 3 Piece floor with venturi tunnel sections front and rear (including 2 rear
splitters) Pre Preg Carbon Fiber/Aluminum honeycomb structure.

Rear Wing: Optional

Safety: Forward and side carbon/honeycomb crush structures, 4 point seat belts. 1-3/8" diameter 4130 aircraft quality steel rollover hoop.

Tires: Michelin PS2 335/30/20 Rear 255/35/20 Front

Most of the cars suspension components are interchangeable. This includes: billet machined aluminum rear uprights, wheel bearings, wheel hubs, top wishbones, rod ends and spherical bearings, rockers journals, anti-rollbar blades and brake calipers.

The pushrod front and rear suspension has a rocker arrangement, which gives a velocity ratio of 1.2:1. The front rocker has a slight rising rate characteristic for stability under heavy braking and entry into corners. The rear rocker is linear to optimize traction coming out of corners.

The anti-rollbar control front and rear is via a 4130 aircraft quality steel TIG welded bar with an adjustable blade giving six positions of stiffness. Additional rates can be achieved with optional alternate rollbar diameters.

The suspension is fully adjustable with regard to camber, toe, Ackerman and caster and can therefore be refined to suit road or track conditions or driver preference. Steering is via a rack and pinion assembly. The Penske shock absorbers are 3 way adjustable for high and low speed bump and rebound.
There is a dual braking system with individual master cylinders for the front and rear with a driver adjustable brake balance bar, ventilated rotors and aluminum calipers. ?? wheels are recommended as original equipment and attached via a center locking wheel nut device with independent drive pegs on the wheel hubs with an "over center" nut lock safety device.

The body has front mounted water radiator ducted over the top of the car and side mountedoil coolers ducted in through the side of the car that exit through the engine compartment and out of the rear. The engine air inlet duct is centrally located and situated behind the driving compartment. The front of the car has a venturi tunnel in between the front wheels, and venturi tunnels/diffusers in the rear floor for overall downforce. A rear wing is available as an optional extra.

Yes: It has an iPhone slot and a monitor that will show your playlists!

Thai auto production rises to 4-month high in January

Thailand’s automobile production in January significantly increased to 140,404 units, marking the highest level in the past four months since the megaflood submerged a number of provinces in October, according to the Federation of Thai Industries (FTI).

Thai Automotive January output kickstarts into drive

The Thai automotive industry kicked off the year impressively with production surging in January over the previous month.

The industry was battered by floods last October and November but started recovering in December.

Total automobile production in January dropped by 3.98% year-on-year but increased by 41.2% from December to 140,404 units, the highest level since the industry was hit by the flood crisis.

Thai Customers Department Web Site

Check out the Thai Customs Department web site for info on "Rules of Origin" based on which Thailand extends preferential tariff rates to specified countries.

Manila: Ford sales dropped 47% in January

Ford Group Philippines posted a 47-percent drop in vehicle sales to 367 units in January this year, from the 688 it sold in the same month last year, as the flood crisis in Thailand continued to take its toll on the supply and delivery of its vehicles.

THE GUARDIAN: Thailand flooding costs Lloyd's of London $2.2bn

Lloyd's of London has estimated that it is liable for $2.22bn (£1.4bn) of net claims from the flooding that devastated Thailand last year.

In a first calculation of its liability for the damage, released on Tuesday, the insurance market said the claims were unlikely to require members to make "material claims" on its central fund or reduce the overall level of capitalisation of the market.

AFG in the News...

Check out this article on the last AFG meeting.

The sensation from Chonburi: Meet the P708

Join the AFG Meeting on 19 February when Kevin Gallaghan from MAGNATE Automotive will introduce his car company and the P708.

A talk not to be missed!

The Young Teacher's Guide To Using Technology In The Class Room

You, as an inexperienced teacher, should begin with simple technology, slowly. You need to adopt the 'KISS' principle, i.e. 'Keep it simple, stupid.' Keep away from the 'complicated teaching aids' that the more advanced technology represents.

That said, it is important to realise that no form of technology is the 'be all and end all' for a teacher. A teacher needs to be flexible and gain experience in all forms of technology to add interest and real life data as well as efficiency to their teaching.

Some teachers make the mistake of believing that technology replaces the humble chalk/white board. No technology can replace them totally because they are quick and easy to use and can be very effective in the hands of an experienced teacher.

As you begin your career, use only one form of technology at a time, apart from the chalk or white boards. Plan carefully what you need to do. Practice beforehand. Make sure you have all the parts you need to make the technology work, e.g. a remote control. Check that it works and the batteries are fresh.

Here are a number of guidelines to be aware of before you begin to use any form of technology in your class room.

1. Always test your equipment/technology first to ensure that it works.

2. Practice its use before the lesson.

3. Remember: You must still do the teaching. Technology does not teach. It simply assists the process of teaching/learning.

4. Make sure all students gain equal access to whatever technology you use.

5. Ensure that all students who need to use the technology can use it effectively and as efficiently as possible.

6. If you use technology as a medium in your assessment, make sure the success in the task is not dependent on the students' expertise in using the technology.

7. Before you use any technology as part of your assessment task, make sure all students have practiced and perfected the technological skills they need to succeed in the task, given that they know the appropriate learning work.

8. Develop an expertise in using all available technology in your classroom. This will give you opportunities to use a greater variety of teaching strategies/pedagogues.

9. Always plan a back-up strategy if the technology fails, i.e. Have spare devices or an alternative teaching strategy.

10. Where you have competent students with technology skills, use them to assist you as demonstrators or as mentors for their fellow students.

11. When seeking to acquire new technology, be sure to investigate the real cost including the 'behind the scenes' costs such as servicing, as well as the benefits to your students. Ask yourself this question: "Does it offer a better teaching result than the other already available strategies and old technology?" before you spend the money.

VW in talks with Proton, looks to grow regional presence

German automotive giant Volkswagen is looking to gain a bigger foothold in ASEAN and is now in talks with local carmaker Proton for a possible manufacturing tie-up, a Bloomberg reported today quoting a source.
According to the report, Volkswagen’s renewed interest stems from the recent takeover of the national carmaker by Tan Sri Syed Mokhtar Albukhary’s DRB-HICOM last month.

Volkswagen already has an existing relationship with DRB-HICOM, having sealed an assembly deal for the Passat executive saloon here for re-export in 2010.

Chevrolet Sets New Sales Record in December 2011

Bangkok, Thailand – Chevrolet Sales Thailand outpaced the industry with a new sales record in Thailand in December 2011, achieving a year-to-date growth of 58 percent and selling more than 4,300 vehicles – the highest since Chevrolet began operations in Thailand. Meanwhile, the automaker continued to make headway across major markets in the Southeast Asian (SEA) region, with sales for the region from January to December 2011 totaling 42,297 units, representing a year-to-date (YTD) growth of 46 percent over the same period in 2010. 

Continental Automotive hikes capacity ahead of AEC

Continental Automotive (Thailand), local unit of the German maker of injectors and pumps for the auto industry, has allocated Bt600 million for investment this year.

The company is increasing capacity as part of a plan to strengthen production ahead of implementation of the Asean Economic Community (AEC) in 2015.

Managing director Thomas Chambers said that despite the severe flooding last year, the country remained an important regional manufacturing base for the company. Continental has a factory at Amata City Industrial Estate in Rayong province, as well as plants in Malaysia and the Philippines.

Signs of industry recovering

After sustaining heavy blows in 2011, the automobile industry finished the year at 794,000 units, which is about 100,000 units below the original target.

While the Japanese quake and tsunami in March temporarily halted Thai auto production due to parts disruption, it was Thailand's flood crisis that delivered the knockout punch as major auto producers had to cease production for months. Although Honda was the only manufacturer to suffer from severe flooding, other makers also had to halt production due to a shortage of parts as a large number of important suppliers located in Ayutthaya were submerged under water.

However, just three weeks into 2012, there are signs of prosperity once again as Toyota, the largest auto-maker in the country, announced its mid-term investment plan worth almost Bt10 billion that will help the company reach a production figure of 760,000 units per year. Toyota Motor Thailand (TMT) president Kyoichi Tanada said Toyota expects the auto market to sell as much as 1.1 million units in 2012.

Ford Considers Car Assembly in Indonesia

JAKARTA, Indonesia — Ford is considering establishing a new vehicle assembly facility in Indonesia, as it looks to increase its exposure to one of Asia's most promising auto markets.

Joe Hinrichs, president of Ford Asia Pacific and Africa, told reporters gathered for the Delhi Auto Expo that the company is planning to invest in an assembly plant in Indonesia in the near future.

Hinrichs said he is encouraged by the recent strong growth in Indonesian auto sales and the potential for further strong growth. "We expect Indonesia will soon overtake Thailand as the ASEAN's largest market — I cannot say when exactly," he said.

Companies asked to move activities to the Philippines after Thai floods

TWELVE COMPANIES operating in both the Philippines and Thailand have been invited to move business activities here following the impact of the latter’s worst flood in 50 years, a Trade official said yesterday.
Thailand, however, is seen to retain most of its investments even after the disaster through competitive incentive schemes and assistance to businesses affected by the disaster.

"We have short-listed 12 [firms] -- mostly from electronics and automotive parts -- with sister companies here to move their operations here in the Philippines," Trade Undersecretary Cristino L. Panlilio told BusinessWorld in a telephone interview.

"Right now, there is one company in electronics to whom we’re talking and they’re already looking for a location here for their operations," he continued.

Amata expects to ride auto industry

Amata Corporation Plc, Thailand's largest industrial estate operator, foresees healthier growth prospects this year, thanks to the boom in the automotive industry, says director and chief operating officer Viboon Kromadit.

"Last year was one of the golden years due to an increase in automotive production to an estimated 1.65 million units," he said, adding that 2011 output could exceed forecasts of 1.8 million units because the country's strong production base meant manufacturers would not move operations elsewhere.

Selling Lotus a viable option: Mahathir

Tun Dr Mahathir Mohamad, Malaysia’s former prime minister, comments on Proton Holdings Bhd after billionaire Syed Mokhtar Al-Bukhary’s DRB-Hicom Holdings Bhd agreed to buy a controlling stake from the government.

Mahathir, who helped found Proton and remains an advisor, also comments on whether DRB should sell Proton’s U.K. sports- car arm Group Lotus International Ltd. The former premier made these comments in an interview in Kuala Lumpur yesterday.

On selling Lotus:

“It is a viable option and I think the new owners of Proton might consider that. But, Lotus is not just a sports-car company. It is an engineering and technology company. It’s selling engineering skills to China and helping people going into the industry.”

Read more: Selling Lotus a viable option: Mahathir http://www.btimes.com.my/Current_News/BTIMES/articles/20120203092017/Article/index_html#ixzz1lHSvIlW9

Oriental Metal Industries Set To Become Top Wheel Maker in Malaysia

By investing in a brand-new RM103 million alloy wheel manufacturing plant in the city of Rawang, Selangor, Oriental Metal Industries (M) Sdn. Bhd. or OMI is planning to become the biggest Tier 1 integrated wheel producer in the country.