Mitsubishi seeks easing of eco-car rules

Mitsubishi Motors (Thailand) has proposed that the government relax some requirements of the eco-car project to better suit the sluggish global consumers spending.

According to Takeo Sakurai, Mitsubishi Motors’ corporate general manager, the relaxation of some rules for the small, fuel-efficient vehicles will push forward investment even in face of the global economic slump.

“As we all know, certain manufacturers have announced a review of their eco-car projects as they think committing a lot of money now may not be a good idea. This does not mean that such an investment is impossible — it could be done if the government provides more incentives to the investors,” he said.

Mr Sakurai said minimum annual output and local content figures were the two areas where carmakers with Board of Investment incentives had earlier requested the Industry Ministry make changes. However, the ministry had turned down the proposal.

“Even though we have a very strong intention to produce eco-cars in Thailand, these requirements together with the downturn of economy have forced us to review the investment and put off the timing of the production,” he said.

The global slump has taken its toll on local vehicle production including Mitsubishi, which recently cut its output to 1,100 units a month from 1,800 normally. He expects February’s number to be much worse.

“Close to 90 percent of our production is for the export market, where orders have plunged. Until now, we are still uncertain about the demand in the second quarter, especially in Europe and Africa,” he said.

To adjust to the lower output, Mitsubishi will have to reduce the number of work shifts to only one from two, which could result in terminating the employment of 1,100 sub-contract workers.

“We now employ 3,700 full-time workers. What if the industry sinks even further? I don’t know… We have no plan yet. We just hope things will get better,” he said.