Toyota to suspend production in Thai factory

Toyota to suspend production in Thai factory

Toyota will suspend production at one of its four vehicle plants in Thailand as part of restructuring efforts to boost efficiency and profitability. Vehicle production will stop by the end of this month at Thai Auto Works, located in Samrong on the outskirts of Bangkok. The plant opened in 1988 and is responsible for churning out the Vigo (Hilux to us) and Fortuner to the tune of around 60,000 units per year.

The 960 workers at TAW and production of the two models will be transferred to two other Thai plants that build them. This development has nothing to do with the current political situation in Thailand, as the decision was made in November last year.

Toyota made 435,000 vehicles in Thailand last year, which is a quarter lower than 2008 figures. It’s not the only manufacturer faced with the problem of excess capacity due to lower demand from the global economic crisis.

However, Toyota may have to readjust a bit more than others after its aggressive expansion plan to build more plants and cars when times were good.

Source

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Jacob Alexander

Jacob Mathew Alexander has been a motoring nut for as far as he can remember and has recently turned his passion into writing. After spending some time in the same industry in the UK, Jacob's work is from a slightly different perspective.

 

Comments

  • juara on May 16, 2010 at 2:26 am

    Well probably time to change the production type to another model
    cos the demand for The Hilux type cars are slowing down and
    consumers switching their preferance to MPV’s.
    Any chance of the new Wish being produced instead?

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    • no way the new wish will be produced in thai factory
      they just stop the production of first gen wish because the low demand from market
      most ppl prefer to buy 2nd hand unit from jap

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  • Sean Lim on May 16, 2010 at 2:37 am

    More models in Malaysia please…

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    • The Loner on May 16, 2010 at 9:48 pm

      Unless there’re other competitors that have grab over certain percentage of market share on various types of vehicles in Malaysia, then UMW will take aggresive action to bring more models.

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  • oh no…..are they falling down due to the recall problem occured recently??
    hope they can recover as soon as possible.

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  • haha… they suppose to build their plant in Malaysia instead of thailand since our country hav ISA that can control mayhem of the country…LOL

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  • DO YOU BELIVE IN HIGH LEVEL THERYO OF CONSPRACY ,,THAT WESTERN THE WESTERN MADE THIS SO THAT IT WILL DROP TOYOTA’S REPUTATION SINCE THEIR CAR IS NOT SELL WELL YOU KNOW IT.

    AND THOSE TOYOTA CARS ARE MANUFACTURED OR ROLLED OUT FROM THEIR WESTERN PLANT.

    NOT ANY OF THE CASE OCCURE HERE…….
    POINT TO PONDER

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    • I believe to not believe any comments that is written in Caps. TQ.

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    • What’s with the caps?

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    • Eyesore on May 16, 2010 at 10:08 pm

      hmmm Toyota said models in malaysia is not affected… for every recall… but how do you know it is true? the might be some cases where it happens but the user didnt realise it…

      BTW the problems are not fantasy or rumours… it exists and ppl had died from accident it caused…

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    • scgtimk1 on May 17, 2010 at 10:45 am

      Typical Toyota Defender

      Point To Ponder

      A local SInger Died in Toyota Estima…. Car lost control and burst into flames…. hmmm sounded to me like typical Toyota Safety. SAP prolem maybe?

      In recent newspaper article saw one case seat belt in Toyota Vios failed and occupant was flunk outside.

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  • azrai on May 16, 2010 at 10:07 am

    Business wise decision. In the end dollar and cents matter. Even proton will consolidate its plant. The Shah Alam HICOM plant will be merge at Tg. Malim. And the Shah Alam plant will be lease to Sime Darby. Ehm…Sime Darby is in the red now..Maybe not..

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  • Michael on May 16, 2010 at 4:37 pm

    Malaysian Toyota model like vigo & fortuner, both over pricing, compare to others, the spec. is KOSONG!

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    • Agree. Toyota is so over priced but not as much over as a Honda. lol

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  • nabill on May 16, 2010 at 7:44 pm

    in simple terms,too much supply,too little demand…another word is OVERSUPPLY…

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  • Peter on May 16, 2010 at 8:11 pm

    Toyota Thailand will not shift its focus to our country….Our country has lacked of almost everything…..Even technologies,etc……

    They will focus mainly on Thailand because there are other 3 factories…..Its a good thing to shut down one of the factory as it allows more attention and also more focus…..It will result in better efficiency also.

    In other words, this might not be a bad move.

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    • and since 1 is closed, the price of toy cars will be cheaper due to the lower running cost for a Vigo and Fortuner…… my experience… I DONT THINK SO…..

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  • chap_de_x on May 16, 2010 at 9:14 pm

    This is what can happen if too dependent to foreign investment and not develop home grown product…they can close shop anytime they want.

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  • think on May 16, 2010 at 9:26 pm

    may be what does toyota saying is true..but in another terms,the toyota models assembled in thailand is having low quality as compared to the one assembled in malaysia..i beleive that toyota wants to put more effort in their quality management……………..

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  • casey_c on May 16, 2010 at 9:34 pm

    Toyota only interested to make more monies. You die or no die in their car is not their main concern.

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  • mitlanevo on May 16, 2010 at 9:56 pm

    GOOOOD!!! bring down Toy-Otak, hahahaha!!!

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  • unknown on May 16, 2010 at 11:00 pm

    Hey, anyone know anyone who does paintless dent repairs (PDR) at a reasonable rate of about RM100 or less? Location around puchong, sunway, subang or damansara. Got a small but obvious dent on my door…. tq for any suggestions..

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  • toyolta on May 16, 2010 at 11:55 pm

    paul, no update on F1 Monaco? Both Lotus drivers failed to finish :-(.

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  • bmpower on May 17, 2010 at 9:07 am

    toyota should close their factory.

    oh yes! now they abandoned their thai factory, buck up and open new in china!
    that is what a good business model are. cheaper labour cost. cheaper material cost. (and well ehem… selling with high price = great profit)

    sooner they will close toyota malaysia factory too.. buckle up then tranfer all to india.

    what’s left in malaysia then?

    now you see?

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    • scgtimk1 on May 17, 2010 at 10:47 am

      Proton will always be in MAlaysia…..

      At least assembly production and vendor production still running if these ‘people’ pull out.

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  • victor lee on May 17, 2010 at 10:46 am

    you guys wrong… no matter is toyota or honda, all import brands is over price due to our favourite local brands. Next time use your brain before said over price.

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  • Squawk on May 17, 2010 at 12:56 pm

    Are they just closing the plants near Bangkok and moving to those further away? Red shirt crisis not getting any better. 35 dead at last count.

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  • pomen_GTR (Member) on May 17, 2010 at 1:21 pm

    does this mean no more dugong from white elephant country????

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  • toyota… please put an intercooler to the vigo…. operation cost cheaper now…. will be a BOLD move to BOOST sales…. put a limited run of the 3.0 vigo in malaysia… by the way. why are the orang putih getting more HORSES in the 2.5 then us?…..low tech? cheaper and make more profit from m’sia? diesel problem? why ah?….. not challanging but just curiosity….

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  • jong84 (Member) on May 18, 2010 at 11:53 am

    What ever, Who care?!

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