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.