P.C.S. considers expansion from pickup truck parts

Via Bangkok Post:

P.C.S. Machine Group Holding Plc (PCSGH), a SET-listed auto parts manufacturer, is mulling an expansion to cover other types of vehicles and curb risk from being too reliant on pickup trucks.

"Though pickup trucks are still growing in both the domestic and export market, we expect to expand to supply parts to passenger cars and eco-cars, which should be churned out in the foreseeable future once the the production in the second phase of the eco-car scheme is in place," said chief executive Prasong Adulratananukul.

Some 96% of P.C.S.'s revenue comes from parts orders from pickup truck makers such as Isuzu, Chevrolet, Mazda and Ford.

The company makes components for engines, transmissions, final drives and steering for pickup trucks. P.C.S. is a tier-1 and tier-2 supplier.

P.C.S. also secures auto parts orders from truck manufacturer Volvo and big-bike makers Triumph and Ducati.

Mr Prasong said the auto parts industry was expected to drop in line with the falling automotive industry, which has been hit by lower consumer spending, political chaos in the first half of the year and an absence of new incentives to stimulate purchases.

P.C.S. achieved first-half revenue of 2.13 billion baht, down by 26% year-on year, for a net profit of 438 million, down by 56%.

Mitsubishi may invest US$1 billion in auto business

Via Jakarta Post:

Major Japanese trading house, the Mitsubishi Corporation, plans to invest up to US$1 billion in Indonesia to strengthen its automotive business, a minister has said.

The figure would be added to the $7 billion investment that Mitsubishi has poured into Indonesia between 2006 and 2014, including for the Donggi-Senoro liquefied natural gas (LNG) project in Banggai, Central Sulawesi, according to Industry Minister MS Hidayat.

“Mitsubishi will launch its automotive project within the next two months,” he said Tuesday, declining to elaborate further.

The plan was revealed during a meeting between senior Mitsubishi executives, led by advisor Mikio Sasaki, and President Susilo Bambang Yudhoyono, together with president elect Joko “Jokowi” Widodo.

VW Capacity Plan Thailand 2019

VW Thailand Capacity Plan 2019

This is how the capacity plan for VW could look like according to insiders and media reports. The plan is to start CKD production for up to 60,000 vehicles as soon as next year and set up a full blown manufacturing plant for 300,000 units latest 2019.

VW to invest 1 bln euros in Thai plant

Via Reuters: Volkswagen plans to invest 1 billion euros ($1.30 billion) to build a new manufacturing plant to produce fuel efficient cars in Thailand, a German magazine said on Saturday.

The Thai government is expected to grant Volkswagen approval for the plant on Tuesday, Wirtschaftswoche magazine reported, without citing sources.

The plant, which will build 1.4 litre petrol engine cars and which could turn out up to 300,000 vehicles per year at full capacity, is due to go on line by 2019, the magazine said, adding that part of the production would be destined for other markets in the region.

Thailand set to approve Volkswagen factory

Via Straits Times:

FRANKFURT (Reuters) - Thailand is set to approve the construction of a Volkswagen factory near the port of Bangkok, German daily Frankfurter Allgemeine Zeitung reported, citing the Thai investment authority BOI.

A decision from the authority could come as early as next week, the paper said on Monday.

The investment, under Thailand's "Eco2" programme, would secure tax and customs advantages for Volkswagen if it builds fuel efficient cars, provided the factory produces more than 100,000 vehicles and comes on stream by 2019.

Thailand will extend its dominance as the “Detroit of the East”

Via Malaymail Online:

The protection afforded to national carmakers Proton and Perodua will cause Malaysia to lose out to neighbours when an Asean caucus comes into effect next year, the Economist Intelligence Unit (EIU) has projected.

In a report summarising the possible effects of the Asean Economic Community (AEC) set to be formalised on December 31, 2015, the business advisory services arm of The Economist said Malaysia’s barriers to entry have blunted the competitiveness of both local carmakers and made the country less attractive than giants Thailand and Indonesia.

“The AEC signifies the arrival of a more level playing field, less protectionism and greater competition,” the EIU wrote in its report.

“Malaysia, the third-largest producer, is likely to suffer under AEC. Foreign firms in the country need to enter joint ventures with local partners, which has produced uncompetitive national champions, Proton and Perodua. More competition will challenge their dominance.”

The AEC aims to create a unified market and production base that theoretically would promote the free movement of goods and labour.

The detriment from the AEC’s liberalisation to Malaysia is two-fold, with the country losing out further on potential manufacturing and assembly jobs as car makers look elsewhere to set up shop and continuation of government support to prop up local automakers as competitors arrive.

While manufacturers have invested in full-fledged production facilities in Thailand, their Malaysian operations are generally limited to part-assembly operations geared to meet requirements for preferential tariffs and strictly for the local market.

On the consumer side, Malaysians pay some of the world’s highest prices for cars owing to a combination of duties and taxes initially introduced to provide Proton a price advantage, and policies to discourage foreign competition.

With the arrival of the AEC, the EIU said Thailand will extend its dominance as the “Detroit of the East”, as more manufacturers adopt the so-called “Thailand+1” strategy.

BMW Thailand appoints two GMs

Via THE NATION:

BMW Group Thailand has announced the appointment of Preecha Ninatkiattikul as general manager of Mini Thailand.

Jatupon Puttaviboon, former Mini general manager, became general manager for Dealer Development at BMW Group Thailand on August 1.

With more than seven years at Mini, Preecha returns to lead Mini Thailand from Mini Asia in Singapore, where as head of Mini he spent five years overseeing the expansion of businesses in importer markets in Asia and Oceania - Singapore, Indonesia, Philippines, New Caledonia, Tahiti, Brunei, Vietnam and Sri Lanka.

During Preecha's tenure in Singapore, Mini sales in the region jumped from just 300 in 2009 to more than 1,000 in 2013.

"BMW Group Thailand is proud to welcome Khun Preecha home to Mini Thailand after five years in Singapore," BMW Group Thailand president Matthias Pfalz said. "At the same time, we are extremely pleased to have Khun Jatupon take over Dealer Development from August 1, 2014. Both gentlemen will further develop our strategic business growth in the years to come."