Monday, September 9, 2013

Dana to Build Gear Plant in Thailand

Via American Machinist:

600,000 gear sets/year from new operation to start in 2014
Tier One automotive parts producer Dana Holding Corporation plans to build a new gearmaking plant in Thailand, to open next year and produce up to 600,000 gear sets annually. Ohio-based Dana noted the new plant in Rayong, Thailand, would supply gear sets for its Spicer axle products distributed throughout Southeast Asia.

The value of the capital investment was not indicated.

Dana supplies axles and driveshafts to automakers in the region, including Ford, Mazda, Nissan, Suzuki, and Tata. The company has three plants already in Thailand, employing 650 people, it stated. Approximately 125 new jobs will be established with the new manufacturing plant, the company projected.

The Spicer product line includes axles and driveshafts for commercial vehicles, light trucks, off-highway vehicles, and industrial engines. Specific products include universal joints, driveshaft assemblies, steering shafts, end fittings, wing and center bearings, and end yokes, among various others.

As for gearing, Dana develops its 3-axis gearing technologies in the U.S., and manufactures the products from heat treated steel using face hobbing, shot peening, lapping, and coating.

"Dana is committed to delivering differentiated innovations for growth markets such as Thailand," according to Mark Wallace, president of Dana Light Vehicle Driveline Technologies.  "By expanding our gear development and manufacturing capabilities in the region, Dana will deliver programs more efficiently, and be equipped to handle projected market growth."

Sunday, September 8, 2013

Ford ASEAN Chief Eyes Further Growth in Asia-Pacific

Via Wall Street Journal

Thailand saw an unprecedented surge in automobile sales last year, driven in large part by a one-off government tax-rebate for first-time car buyers.

Ford Motor Co. Matt Bradley, president of Ford ASEAN, says, “Thailand is a very big piece of the global Ford business.”
But Ford Motor Co. is confident that it will be able to build from that and sell more cars and trucks this year, while the rest of the industry here is poised for a modest slowdown.

Overall, the industry sold 1.4 million vehicles in 2012, and output for the local and export markets also hit a record high of 2.45 million units, helping to restore Thailand’s reputation as a leading global automotive production hub after the disruptions caused by massive flooding across the country in 2011. Now, Ford is aiming to build a larger share of the market not just in Thailand, but across the rest of Asia where the growth outlook still looks rosy compared with the U.S. or Europe.

Boom times for the 'Detroit of Southeast Asia'

Via Bangkok Post:

At a high-tech factory in the world's fastest growing auto production hub, industrial robots and white-suited workers put the finishing touches to hundreds of cars rolling off the assembly line each day.

This picture taken on June 18, 2013 shows employees working on a car assembly line at a Honda plant in Ayuthaya, north of Bangkok.

It could be a scene from Toyota City or Detroit, but this is Thailand, a country better known around the world for its beaches and rice paddies.

With major car makers hit by a global economic downturn, the Southeast Asian nation has emerged as a rare bright spot in recent years.

Thailand's auto production surged 70 percent in 2012 from the previous year, to 2.48 million vehicles, according to the Paris-based International Organization of Motor Vehicle Manufacturers.

In contrast, China and India saw only single digit gains.

Thanks to major investment by Japanese producers as well as US giant Ford, Thailand is Southeast Asia's most prolific car maker, streets ahead of nearest-rival Indonesia.

Last year it exported about one million vehicles.

Domestic sales also continued to surge in the first six months of 2013, although they have since slowed as the number of first time buyers lured into the market by tax breaks tails off.

It is a general growth trend mirrored across much of the region as people switch to cars from motorcycles.

Despite worries about Thailand's wider economic fortunes, car makers remain bullish about the kingdom's long-term prospects and have pumped hundreds of millions of dollars into high-tech new plants to prove it.

"There might be black clouds and there might be problems, but overall the car industry is driven by people... people with two wheels who want to get four wheels," says Uli Kaiser, president of industry analysts the Automotive Focus Group Thailand.

"I don't see that desire to stop, and I see Southeast Asia as the strongest growth territory in the world."

As the battle for market share intensifies, big car makers -- many from Japan -- are ploughing cash into new plants determined to sell more vehicles to Thailand's burgeoning consumer classes and take advantage of its location in the heart of Southeast Asia's export markets.

At a Honda factory on the outskirts of Bangkok, it takes three days to fully assemble a new car. Over 1,100 drive off the production line every day.

The Japanese maker is aiming to churn out 420,000 vehicles a year in Thailand by 2015, when a new $644 million car plant is expected to open outside Bangkok.

It is a far cry from 2011 when floods swamped much of the country and shuttered the industry for weeks, raising fears automaking behemoths could shift their operations.

"We were severely affected... if we were a small company we would have gone bankrupt," Pitak Pruittisarikorn, executive vice president of Honda Automobile Thailand, told AFP.

"But from the company that was affected most, we came back to be the company that has the highest growth. Now Thailand is the biggest Honda production base in the region (Asia) and will be in three or five years from now."

Last month rival Toyota started production at a sprawling $340 million assembly plant, its fifth in a country where it sold more than half a million vehicles last year.

The company says it will eventually make 770,000 vehicles -- from passenger cars to vans -- on Thai soil each year.

The group, which employs 13,500 people in Thailand and whose pickup trucks are ever-present on its motorways, is determined to stay in pole position.

"We have to keep our market share... we can keep between 35 and 40 percent," said Kyoichi Tanada, president of Toyota Motor Thailand, outlining his belief that Thai consumers will continue to buy around 1.2 million vehicle each year.

Nissan meanwhile has pledged to open a second factory costing $360 million next year, which will eventually produce 150,000 vehicles annually.

Thailand's car boom has been in part steered by the nation's government which gave the sector a shot-in-the-arm after the floods with its "first car" policy, garnering around 1.25 million orders for new cars qualifying for a tax rebate of up to $2,500.

The "Golden Year" of 2012, was followed by a record first half, but sales have since waned as fears over household debt mount and banks tighten credit lines, prompting many orders under the scheme to be cancelled.

Even so analysts see a bright future for the Thai car market, predicting 10 percent annual growth in the coming years.

It is a projection that will delight car manufacturers, but promises more frustration for Bangkok's traffic-weary motorists.

Saturday, September 7, 2013

AFG examines the local auto industry

The dynamic Automotive Focus Group changed the format of its monthly meetings to incorporate a dinner at the Mantra, as well as some foremost and authoritarian speakers.

With a Mantra full house of 32 members in attendance, the evening was sponsored by CominAsia and EMAG, while the logistics, food and organization were handled very efficiently by the Mantra staff.

The format for the meeting came from suggestions from the members themselves, who expressed an interest in extended Q&A sessions with top and informed speakers, and that is exactly what they got.

Click here Doc Iain's full article of our August Meeting in Pattaya Mail.

Tuesday, August 27, 2013

Automotive sector to drive Malaysia's competitiveness


THE automotive sector's transformation map has and will continue to make Malaysia competitive, even with challenging free trade pacts like the Trans-Pacific Partnership (TPP), which Malaysia hopes to be a member.

Signs of steady improvement in the sector have been showing in the past decade since the Asean Free Trade Area (Afta), Japan-Malaysia Economic Partnership Agreement and the Malaysia-Australia Free Trade Agreement (FTA), enabling Malaysia to be on the same page as the leading automotive countries in the world.

"(Global) competitiveness is what we have been preparing for. Right from Afta, the government has been liberalising the industry," said Malaysia Automotive Institute chief executive officer Madani Sahari.

With Afta, for instance, there is nothing to stop automotive manufacturers from using Indonesia to sell their vehicles to the Malaysian market.

Both the trade pacts with Japan and Australia, which come into effect in 2016, will see zero import duties for vehicles from these markets.

The National Automotive Policy (NAP), which is undergoing its second revision after the first in 2006, has paved the path towards liberalising the industry further by extending licences to energy-efficient vehicles (EEV) for all vehicles.


How do these developments impact Proton and Perodua?

"They need to transform now. Perodua has been aggressive in reducing prices because it reduces operation costs," he said.

Sunday, August 25, 2013

Toyota starts production at Gateway 2 plant

To meet the rising demand in domestic and overseas markets, Toyota Motor Corporation (TMC) in Japan, and TMT decided to invest about 11,000 million Thai Baht in another new assembly plant in Thailand which is “Gateway 2” at Chachoengsao province to assemble passenger cars with the annual production capacity at the beginning of about 80,000 units with 1,500 employments. As a result, this will increase Toyota total normal production capacity of up to 770,000 units per year. The production at the Gateway 2 plant will start on 26 August 2013.

Friday, August 23, 2013

Thailand invites VW to build eco-cars in Kingdom


Prime Minister Yingluck Shinawatra would like to see German carmaker Volkswagen invest in the manufacture of eco-cars in Thailand, which has attractive investment-promotion policies and a strong automobile industry.

Yingluck met with Volkswagen AG chief executive officer Christian Klingler and discussed problems and obstacles associated with manufacturing eco-cars in Thailand.

Klingler was told that the government has policies to promote regional trade via investment in transport infrastructure, which will facilitate the transport needs of the private sector region-wide. Thailand is in a strong position to be a major regional manufacturing base for vehicles of various brands from several countries.

She welcomed Volkswagen to explore the opportunities for eco-cars in Thailand. The Ministry of Industry and the Board of Investment are ready to provide assistance to the company should it be interested in investing in a plant here, she said.

Klingler said Volkswagen was interested in expanding its investments in Southeast Asia, including Thailand, which offers attractive business potential.

Volkswagen is confident in the investment climate offered by Thailand the rapidly growing Thai automotive industry amid the vast business potentials in this region, he added.