Industry hoping to contain fallout
Written by Admin on Thursday, September 11th, 2008
AUTOMOBILES
Industry hoping to contain fallout
SANTAN SANTIVIMOLNAT
The automotive industry believes it can weather the ongoing turmoil unless it is prolonged or turns violent, according to the automotive industry club of the Federation of Thai Industries (FTI). However, members are deeply concerned about the prospect of more labour stoppages by state enterprise workers, especially those involved in logistics, as there could be an impact on manufacturing of vehicles and auto parts.
Strikes would cripple auto parts imports for assembling vehicles and also paralyse the export of parts and vehicles.
Strikes last week by Bangkok Port workers sympathetic to the anti-government People’s Alliance for Democracy mainly affected exports. Sporadic rail strikes, mostly in the South, have affected mainly commodity shipments.
Club members said that a regional meeting of automotive industry executives, normally held in Bangkok, was moved to another Asean country after the state of emergency was imposed last week.
As a result, they said hotels and service businesses lost substantial revenues.
The impact of the protests on tourism could also result in fewer sales of automotive products, especially motorcycles.
The FTI’s auto and parts industry club said its members were hurt by the port strike that pushed up the costs of operators after their goods had to be rerouted to Laem Chabang port in Chon Buri from Klong Toey in Bangkok.
In addition, delays affected the conditions in letters of credit that exporters had secured from foreign buyers.
Pitak Pruittisarikorn, director of Honda Automobile (Thailand) Co, said Honda understood the political culture and development in Thailand since the Japanese car company has been doing business here for a long time.
”Honda remains confident in Thailand and has no plans so far to review its investment here,” said Mr Pitak.
Toyota Motor Thailand said earlier that it was still going ahead with its diesel engine expansion and Hybrid Camry production project in Thailand despite the political uncertainty.
