Toyota Thailand reviewing eco-car delayed plans

The Japanese carmaker Toyota Motor is reviewing its investment plan in Thailand, which may prompt the automaker to delay its eco-car project amid the alarming global market slump.

However, Toyota Motor Thailand (TMT) would continue another project, hybrid car production, which is due to begin in the middle of next year, said TMT vice-chairman Ninnart Chirathirapinyo.

”We are reviewing capacity expansion plans and have to set the priority for these projects’ implementation,” Mr Ninnart said yesterday.

”Some projects may be suspended depending on the situation, including eco-car production.

”The hybrid would not be delayed as the model is a response to the current market demand from consumers who prefer fuel-efficient vehicles.”

TMT, Thailand’s biggest carmaker, had planned to invest 4.6 billion baht in the eco-car project to make 100,000 units a year of the small, fuel-efficient cars, half of which would be exported.

The company earlier announced that it would reduce production volume by 20-25% or 40,000 units between December and April next year and cut total 2009 volume from 500,000 to 400,000 units due to weaker demand from abroad.

Mr Ninnart said the global vehicle market was expected to drop from 72 million units this year to 69 million in 2009. The US market alone would see a drop of 16% to 13.5 million units next year.

Thailand’s total car and pickup truck exports are forecast at 770,000 units this year, 300,000 of which would be Toyota products, Mr Ninnart said.

About 55% of the 1.4 million units targeted to be produced this year would be exported and the rest sold domestically, he said, noting that the global market slowdown would seriously hurt the industry.

Next year, the sector’s overall exports could possibly decline by 30% from this year depending largely on how soon the US economy picks up, Mr Ninnart acknowledged. About 11% of the units exported from Thailand are sold in the US.

To cope with slowing production, TMT recently decided to terminate contracts with 335 subcontract workers at its Gateway factory. The company, however, has vowed to maintain its 8,000 permanent staff.

source: bangkokpost