/ Industry, News, Toyota / Toyota discontent with Thailand crisis, but has limited options

Toyota discontent with Thailand crisis, but has limited options

Linked In Share
Toyota discontent with Thailand crisis, but has limited options

Toyota’s warning it could rethink further investment plans in Thailand looks aimed at signaling its deep frustration over a drawn-out political crisis.

Still, Japanese carmakers are unlikely to scale back Thai operations any time soon as until recently the likes of Toyota, Nissan and Honda have said mostly that anti-government protests in Bangkok, now in their third month, were having little impact on their local bases.

“Japanese companies have continued to invest in Thailand even in the face of big floods and past political turmoil,” said a person familiar with the situation. “Regardless of what might happen with investments there, the message was an alarm bell.”

But Toyota has broken ranks, with the head of the company’s Thai subsidiary saying it may reconsider a planned investment of up to $609 million, and could even cut production, if the unrest drags on.

Auto manufacturing is Thailand’s third-largest industry, accounting for more than 10 percent of gross domestic product, with an annual output of around 2.5 million vehicles that has seen it dubbed the “Detroit of the East”.

Japanese carmakers have been investing in Thailand for decades and have come to rely on the country as an export hub. They also control around 80 percent of the Thai car market, the biggest in Southeast Asia. In the short-term Japanese car makers are unlikely to shift production elsewhere given the country’s crucial position in their global manufacturing strategy.

But the current political woes could spur carmakers to diversify their manufacturing base over the longer term and Indonesia, with roughly four times the population, is expected to surpass Thailand as the region’s biggest auto market in the next few years, and would be the most likely alternative, since Japanese automakers already make cars there and labor costs are relatively low.

Via Reuters

by Aurel Niculescu (my Google+) - Friday, January 24th, 2014 - filed under Industry, News, Toyota. Image credit: .
Linked In Share
Related Articles
crisis political situation production Thailand


Discuss: Toyota discontent with Thailand crisis, but has limited options

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Test Drive: Mercedes-Benz GLA 220 CDI
Test Drive: Mercedes-Benz GLA 220 CDIThe Mercedes compact family has a new member – the adventurous GLA crossover. That means the lower-end of the luxury ...
The Nurburgring has a new owner – Viktor Kharitonin
The Nurburgring has a new owner – Viktor KharitoninRussian billionaire Viktor Kharitonin has just purchased the famous German track, the Nurburgring. “The Green Hell” is where ...
Mazda2 Sedan going to Thailand Motor Show
Mazda2 Sedan going to Thailand Motor ShowMazda will be officially pulling the wraps off a new body style of the Mazda2, the Sedan, at the 2014 Thailand International ...
Mercedes-Benz CLA Shooting Brake spied once more
Mercedes-Benz CLA Shooting Brake spied once moreNew spy photos with the new Mercedes-Benz CLA Shooting Brake have surfaced and they are showing the model in question almost ...
Mercedes-Benz GLE Coupe caught on camera
Mercedes-Benz GLE Coupe caught on cameraOur spy photographers have caught on camera recently the brand new Mercedes-Benz GLE Coupe while it was being tested out. The ...
Meet Karl – Opel’s new entry-level city car
Meet Karl – Opel’s new entry-level city carThe German based automaker Opel is planning to introduce a new five-door entry-level city car, called Karl, sometimes next ...
Recall roundup: Fiat Chrysler Automobiles’ vans and SUVs for two separate problems
Recall roundup: Fiat Chrysler Automobiles’ vans and SUVs for two separate problemsFiat Chrysler Automobiles has announced two separate recalls which are covering several vans and SUVs in the United States ...
Hyundai milestone: 10 million Elantras sold
Hyundai milestone: 10 million Elantras soldThe South Korean based automaker Hyundai has officially announced the selling of over 10 million units of the popular Elantra ...
Mercedes-AMG GT is almost sold out for 2015 and 2016 model years
Mercedes-AMG GT is almost sold out for 2015 and 2016 model yearsThe Mercedes-AMG GT has been almost sold out across the globe for the 2015 and 2016 model years. Even if it has been introduced ...
Recall roundup: Ford Edge and Lincoln MKX
Recall roundup: Ford Edge and Lincoln MKXFord has issued a recall for several Edge and Lincoln MKX vehicles because of a problem with corrosion. The North American based ...
BMW M4 Special Edition GTRS4 by Vorsteiner going to SEMA
BMW M4 Special Edition GTRS4 by Vorsteiner going to SEMAThe aftermarket specialists from Vorsteiner have officially announced the official introduction of the BMW M4 Special Edition ...
Another Ferrari LaFerrari is up for sale
Another Ferrari LaFerrari is up for saleAnother unit of the impressive Italian hybrid supercar Ferrari LaFerrari is up for grabs, this time in the United Arab ...
Takata debacle puts GM’s mishaps under the shade
Takata debacle puts GM’s mishaps under the shadeThe year started off incredibly hard for General Motors, after a February recall that led to lawsuits, a total rethink of the ...
2015 Ford Everest to be unveiled in November
2015 Ford Everest to be unveiled in NovemberThe North American based automaker Ford is planning to officially pull the wraps off the 2015 Everest in mid-November. The 2015 ...
Three new Scion Concept cars going to SEMA
Three new Scion Concept cars going to SEMAScion has announced its plans to introduce no less than three new concept cars at the upcoming 2014 SEMA Motor Show. First up ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Mercedes_GLA_DSC9359
Spy-Shots of Cars
Spy-Shots of Cars
Spy-Shots of Cars
BMW M4 Special Edition GTRS4 by Vorsteiner going to SEMA 1
ferrari laferrari for sale dubai 1
custom scion fr-s 2014 sema motor show 1
AeroMobil 3.0 flying car 1
audi a4 20th anniversary 1
Five customized Ford Transits going to SEMA 1
Toyota FCV Rally Car 1
2016 honda civic type-r 2

More automotive from inautonews
The Mercedes compact family has a new member – the adventurous GLA crossover. That means the lower-end of the luxury automaker’s lineup consists of the A, B, CLA and GLA models. No wonder the German carmaker has achieved spectacular sales results lately. Back in 2005, Mercedes lost its ...
read more
Inautonews Editors Section
Test Drive: Mercedes-Benz GLA 220 CDI
Test Drive: Mercedes-Benz GLA 220 CDIThe Mercedes compact family has a new member – the adventurous GLA crossover. That means the lower-end of the luxury automaker’s lineup consists ...
Test Drive: Dacia Sandero Stepway 1.5 90 HP
Test Drive: Dacia Sandero Stepway 1.5 90 HPIf you live in Europe, you don’t need an introduction to Dacia anymore – this is the affordable Renault subsidiary that rocked the auto industry ...
Test Drive: Mercedes-Benz A180 CDI AT
Test Drive: Mercedes-Benz A180 CDI AT The new generation of the A-Class has been around since 2012 and its overall design is quite drastic, considering its predecessor. Now, two years ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Fiat Chrysler Automobiles’ vans and SUVs for two separate problemsFiat Chrysler Automobiles has announced two separate recalls which are covering several vans and ... Recall roundup: Ford Edge and Lincoln MKXFord has issued a recall for several Edge and Lincoln MKX vehicles because of a problem with ...
Safety Section