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Thailand vehicle production and sales still the highest in ASEAN, but fast rising Indonesia could pose a challenge

The nickname ‘Detroit of the East’ isn’t that apt after all, since Thailand isn’t just the regional hub for American brands GM and Ford, but host to most of the big Japanese automakers as well. Toyota, Honda, Nissan, Mitsubishi and Mazda all produce and export vehicles from our northern neighbour.

How big actually is the auto industry in Thailand? Last year, auto exports contributed about 13% to the kingdom’s total exports of 6.18 trillion baht, which means it’s the second biggest sector after electronics and computer parts, according to data from the Commerce Ministry. The auto industry accounts for 12% of Thailand’s GDP, said the World Bank.

The ongoing political situation that occasionally flares up, as it did in the first half of 2010, doesn’t seem to affect the sector either. Car output was unaffected; although 20% less than 2009, auto makers still poured in about 32.5 billion baht ($1.1 billion) to Thailand in 2010. Some are expecting a rebound. “The flow of FDI this year is expected to be as high as 400 billion baht ($13 billion), with automotive and parts being a key sector, led by number one investor Japan,” said BOI Secretary-General Atchaka Sibunruang.

The country’s Eco Car program is a success. Mitsubishi is spending 16 billion baht ($535 million) to build its new Global Small Concept that’s due to roll out in 2012 (from a third factory in Laem Chabang, Chonburi), Honda’s Brio is launching this month, while Nissan’s Thai made March is selling very well. Outside of the Eco Car, Ford is building a new plant for its new Focus and GM has a diesel engine plant that will bear fruit soon.

Low wages, strong infrastructure and a good habitat are Thailand’s strong points. According to the International Labour Organisation’s 2009 report, average wages for manufacturing workers in Thailand is $245.50 per month, compared to China’s $412.50 and Malaysia’s $666. It’s not just about exports, as Thailand is also the biggest market in ASEAN – 800,357 vehicles were sold there in 2010, compared with Indonesia’s 764,088 and Malaysia’s 605,156.

“You have a good supplier network. You really have a lot of experienced suppliers across the board so there’s a potential to really localise a lot. The fabric is there. You can’t just drop an assembly plant into nowhere and think that cars would just magically pop up. There has got to be the right environment that brings high-quality cars,” commented Martin Apfel, GM’s ASEAN boss.

If there’s a regional threat to Thailand’s auto crown, it’s Indonesia. Average wage wise, it’s just $129 per month according to ILO, which is almost half that of Thailand’s. And unlike Malaysia’s relatively saturated market, there’s plenty of room to grow in that highly populous nation – TIV is estimated to be 800,000 this year. Growing affluence also means that Indonesia could soon overtake Malaysia as the region’s biggest consumer of passenger cars – 541,475 units were sold there in 2010, only just behind Malaysia’s 543,594.

Some analysts say Indonesia could overtake Thailand as a regional manufacturing hub by 2014 because of strong economic growth, growing national wealth and a more stable currency. We’ve already seen companies like Nissan commit money to double production in Indonesia, and Audi setting up local assembly for the A4 and A6. More recently, Daihatsu announced a 20 billion yen investment to build a new plant in Indonesia for a compact low cost car.

Will Indonesia’s auto industry gather enough steam to challenge Thailand’s status as the Detroit of Asia? Since Malaysia is out of the competition, we’ll just enjoy the match from our centre seat!

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Honda to launch BRIO compact later this month in Thailand

Honda is slated to officially unveil the production BRIO in Thailand later this month, according to reports. Initial news filtering through had the car set for its world premiere – on March 17 – in India, but it seems that Thailand is where it’s all going to happen first, in this case the Royal Paragon Hall at Siam Paragon in Bangkok on that date.

The A-segment hatch, developed for Asian markets, emerged as a prototype last November at the Thailand International Motor Expo; we were there at its world debut.

The entry-level car is designated as an urban commuter, with easy-to-handle characteristics through a small form (smaller than the Jazz and the City), but with lots of cabin space achieved by highly efficient packaging.

Both Thailand and India will get unique versions to reflect different customer needs in those markets, and the car is set to compete with the likes of the Suzuki Alto, Hyundai i10 and Kia Picanto, among others.

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Proton R3 Satria Neo officially launched – RM79,797


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Proton today officially introduced the Proton R3 Satria Neo. Built by the company’s Motorsports Division under the Race, Rally, Research (R3) brand name, the car is distinctively recognizable by its striking Fire Red exterior with a black painted roof. The car was mentioned in an earlier report, but it looks like it’s now ready to roll.

The car runs the tried and tested 1600cc Campro CPS engine, with the R3 boys upgrading its performance, with the addition of Stage 2 performance upgrades increasing power from the standard 125 bhp and 150 Nm of torque to 145 bhp at 7,000 rpm and 168 Nm of torque at 5,000 rpm. The block is coupled to a close ratio five-speed manual transmission.

The R3 Satria Neo’s promise of an exhilarating drive is further conveyed by its all-round CPS bodykit – an R3 designed rear roof spoiler, a front lip for improved down force, titanium coloured side strips and a more muscular stance as the result of a 10 mm drop in ride height.

The R3 engineers also made significant enhancements to ride and handling, with the use of specially-designed R3 performance springs for reduced body roll, recalibrated alignment, toe and camber settings for more grip and steering precision, and R3 edition 16-inch gunmetal lightweight alloys wrapped in softer compound Bridgestone Potenza RE001R 205/45 series profile tyres for better traction.

Inside, the R3 Satria Neo features a sporty, yet classy and alluring matte red and black two-tone interior, and R3 limited edition front bucket seats wrapped in nappa leather with ‘Trivel’ finish, carbon effect PVC and red stitching replaces the standard seats. There’s also matte red dashboard trims, gear console and handbrake handle, as well as two-tone door trim, R3 floor carpets, aluminium foot pedals/gear knob and an engine stop/start button.


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Elsewhere, high performance brake pads, dual front airbags and ABS with EBD also get thrown in for good measure. The car also comes fitted with Ecotint solar and security film and a two-DIN audio head unit with 3D GPS navigation.

The R3 Satria Neo is priced at RM79,797 on-the-road inclusive of road tax and insurance, and can be viewed at Proton Edar’s Crystal showroom at the Proton Centre of Excellence, Shah Alam and any of the three Platinum showrooms located at Mutiara Damansara, Juru and Plentong.

Bookings can be made immediately at any of Proton Edar’s 23 sales branches throughout Peninsular Malaysia with a fee of RM2,000 and purchasers can expect the car delivered to them within four weeks of obtaining loan approval.

More hi-res studio shots after the jump.
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The last say: Ferrari gives its 2011 F1 car final name change – from F150 to F150th Italia, now it’s the 150° Italia

Ah, nothing like a little, ahem, friendly tiff to bring out the best in people. The Ford dispute with Ferrari over the latter’s naming of its 2011 F1 car – in which the boys that make the F-150 said Maranello was taking things a bit too far in naming its racer the F150 – was supposed to have been resolved when Ferrari changed the name of its vehicle.

So, you’d think it was all over when the F150 became the F150th Italia, which the blue oval thought was okay and which brought the whole matter to rest. The prancing horse lads, however, have come up with what is the final say (and presumably, some virtual digits – and I don’t mean numbers – aimed at a particular direction as well).

The Ferrari 2011 F1 car will now be known as the Ferrari 150° Italia, with the F dropped and the “th” replaced with a symbol that’s the Italian equivalent of the suffix. Ferrari stated the change with a very nicely worded posting on its website.

“In order to avoid the slightest risk of anyone confusing a Formula 1 car with a pick-up truck, for their part, the men from Maranello have decided that the car will lose the F that precedes the number 150 and which stands for Ferrari, as it has done on numerous occasions when it’s come to giving a car a code name, be it for the race track or the road,” the posting stated.

“It appears that this could have caused so much confusion in the minds of the consumer across the Pond that, at the same time as losing the F, the name will be completely Italianised, replacing the English “th” with the equivalent Italian symbol,” it continued.

“Therefore the name will now read as the Ferrari 150° Italia, which should make it clear even to the thickest of people that the name of the car is a tribute to the anniversary of the unification of our country. Let’s hope the matter is now definitely closed and that we can concentrate on other matters, namely ensuring that our car that already seems to be pretty good out of the box, becomes a real winner,” it concluded.

Well, yes, so there it is. Certainly, the whole thing is definitely a pickup compared to what transpired at the beginning. Sorry, couldn’t resist that.

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No Mitsubishi Lancer Evolution XI? Quite likely, it seems

Well, it looks like the Lancer Evolution is heading into the history books, at least in its current petrol-based form. Seems Mitsubishi is dropping very broad hints that the Evo X will be the last of its ilk as it prepares for that bold leap towards the electric front.

Mitsubishi says it is considering a different direction for its all-wheel-drive, high-performance sedan, even if a go-fast vehicle is expected to remain very much part of its general programme. Of course, the fire-breathing Mitsu of the future could very well be an electric or a hybrid vehicle.

The company is preparing to launch no less than eight EV or plug-in hybrids worldwide by 2015, and that direction is set to become the main core focus, which leaves very little space for the good old fossil burner, hot and halo as it may be.

The change in perspective is also aided partly by redefined market needs and demands, not to mention having to meet tougher fuel economy and emissions regulations across the planet. The Evo X will continue to soldier on through 2013, but a gas-gulping XI looks to be out of the question.

As the company puts it in a statement, “MMC has kept the Lancer Evolution sedan evolving as the brand’s highest performing model in the global market. However, as the market’s needs and demands change, MMC is considering not advancing the Lancer Evolution concept in the same way as before, but to find a different direction for the Lancer Evolution model to evolve. The new direction, the technologies involved, and corresponding products will be disclosed in due course.”

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Aston Martin’s Gulf liveried LMP1 race car, the AMR-One

Aston Martin Racing (AMR) has unveiled its all new LMP1 race car, the men who will drive it, and the team’s race programme for this year.

The Gulf Liveried AMR-One is a new open-top LMP1 race car featuring a 2.0-litre turbocharged six cylinder direct injection petrol engine. Paired to a 6-speed Xtrac racing gearbox, it makes approximately 540 hp. The small capacity of the engine is in line with the Le Mans governing body’s efficiency focused regulations

The chassis is a new bespoke carbon fibre monocoque designed and manufactured by AMR. It features open style construction and a load bearing engine with steel frame to help rigidity. Besides the open cockpit, notable exterior features include the new blade fin, which we also saw on the Audi R18.

Speaking of that TDI beast, AMR expects a closer fight with the Audi this year. “We have chosen to run with a six-cylinder turbocharged engine because we believe this offers the best potential within the petrol engine regulations. With the ACO’s commitment to effectively balance the performance of petrol and diesel Le Mans entrants – our hopes are high that we’ll see the closest racing yet in the premiere LMP1 category, said Team Principal George Howard-Chappell.

A total of six AMR-Ones will be built, with the factory team running one car in the Intercontinental Le Mans Cup (ILMC) and two cars at selected events. It is expected that AMR will contend selected races in the ILMC with rounds in the United States (Petit Le Mans), Belgium (Spa), France (Le Mans), Italy (Imola), England (Silverstone) and China (TBC) and make its debut at Paul Ricard in April. The car’s first test will be happening this month.

The driver line up for 2011 will consist of Darren Turner (GB) Stefan Mücke (D) and another yet to be announced driver for the 007 car. Adrian Fernandez (MX), Andy Meyrick (GB) and Harold Primat (CH) will be teaming up to drive the 009 car.

Gallery after the jump.
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Castrol EDGE Experience Nurburgring Challenge concluded – lucky Grand Prize winner gets to experience The ‘Ring!

The big green box on the sidebar on the right is kind of hard to miss, so most of you would know that Castrol Malaysia has been running a campaign called the Castrol EDGE Experience Nurburgring over the past few months.

Castrol EDGE is basically having a global campaign where participants from each country will be sent to the Nurburgring track in Germany to undergo an exciting driving program over a few days which includes driving a BMW M3 around the Nurburgring.

Every country runs different campaigns to pick their representatives and Castrol Malaysia decided to pick it’s winners by challenging participants to a series of challenges over a few rounds. The challenge officially opened on the 13th of December 2010 to anyone who wanted to participate.

All one had to do was visit the Castrol EDGE microsite and answer trivia questions on the Nurburgring, which were split into 2 batches. This part was easy – we ran a series of articles on the fabled track and you can find the answers to the questions in our articles. If you got all of them correct, you could proceed to the next round.

Round Two called for participants who successfully made it through Round One to submit an answer to the question – “Why Your Car Needs Castrol EDGE”.

There were many creative and interesting responses and judges selected the 30 best slogans to proceed to Round Three.

In Round Three, all the 30 qualifying participants were given a free lubricant change to Castrol EDGE at a participating Castrol Auto Service outlet. There were quite a diverse number of cars involved from a Proton to a BMW 7-Series and there was even a bonafide E36 M3. After the oil change, participants were required to create a review based on the difference Castrol EDGE has made to their car.

Here are a few examples: Candice Lim, Kevin Lee, Dr Rashidi, Andrew Kuan.

Out of the 30 participants in Round Three, a total of 16 finalists were selected for Round Four, a physical challenge at the Sepang International Circuit to prepare the finalists for the challenge up ahead at The ‘Ring. Based on the performance of the 16 finalists at the Castrol Edge Nurburgring – Sepang Challenge, judges’ will select one Grand Prize Winner for the trip to The Nurburgring in Germany and other prize winners accordingly.

Participants were broken into three groups along with some members of the media and had to undergo three challenges. The challenges were done concurrently and the groups rotated between the challenge areas. Each challenge had an instructor/judge and participants scored points based on how well they performed the challenges as well as how good they were at listening to instructions.

Even Sanjeev Palar of Engine Block was there to join the fun and cover the event. Watch out for the event coverage on an episode of Engine Block soon!

At the Driving Lines challenge, participants were educated on what Driving Lines were and why they are needed to score the best possible lap time around a track. Participants were then judged on how well they followed the Driving Lines on the Sepang Circuit.

In this exercise, speed was not important – it was more of whether the participants understood the concept of driving lines and were able to steer the car around the track following the lines.

There was also an Obstacle Avoidance challenge where participants were taught how to steer around an obstacle. It isn’t as simple as you think – even psychologically you have to understand that if you look right at an obstacle it’s more likely that you hit it.

It’s better to look around it to where you want to go to be able to steer around it properly.

There are also many cars in Malaysia that still do not have ABS brakes as standard so alot of people may not even feel what it is to have ABS kick in and how to use ABS the way it’s supposed to be used.

Don’t be alarmed by the vibration in your brake pedal – that’s just the ABS working. While with normal brakes you have to pump it if it locks, with ABS brakes the system makes sure your brakes do not lock and the vibration is a side effect of its activation.

Participants were taught how to put their fears aside and stomp on the brakes as hard as they can and steer out of the obstacle’s way at the same time. They were then judged on their ability to do this.

The Autokhana Course was definitely the most action packed of all the three challenges. Participants had to steer their car around a low speed route defined by safety cones in the fastest time possible while avoiding hitting any of the cones at the same time.

The 325i was definitely very at home at this challenge – it was like its natural habitat. For many of the participants, this event was the first time they had ever driven a BMW, and there was even one member of the media who had never driven an automatic car before this.

This challenge had the most screeching tyres as well as safety cones that gave their lives for the purpose of fun! All the participants definitely had alot of fun here. Needless to say, all four tyres of the Autokhana BMW had to be changed after the event.

The finalists made new friends thanks to their common love of acceleration, speed and grip. They were all there with one goal – to win a chance to tackle the corners of the Nordschleife.

Things were competitive between the participants but most everyone had fun and even offered tips to each other on how to score well in each challenge.

And of course they all oogled at the BMW M3 Coupe there on display. The performed the exercises using E90 BMW 3-Series Sedans kindly sponsored by BMW Malaysia for the event but the grand prize winner will driving the BMW M3 at the Nordschleife!

At the end of the day, the scores were tabulated and we finally have a winner – thanks to the Castrol EDGE Experience Nurburgring challenge, Khairul Izwan Razali will be traveling on an all expenses paid trip to the Nurburgring in Germany to undergo a comprehensive driving program which includes driving the BMW M3 around the ‘Ring’s famous bends.

Of course, every single one of the finalists were winners – both in the sense that they had made it this far in the competition, and also the fact that everyone went home with a prize of Castrol EDGE lubricants and different Apple products. A big congratulations to you Khairul, we know you’ll have an awesome time at The ‘Ring! :)

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VIDEO: Teaser shows first glimpse of F10 BMW M5

BMW teases the new BMW M5 in a video clip that showcases a disguised F10 BMW M5 sliding around in winter terrain (wonder if it has 4WD) while Dr Kay Segler, President of BMW M GmbH says a few words.

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Tennis Autograph Session @ Auto Bavaria Sungai Besi

If you’re a fan of tennis, you may want to drop by Auto Bavaria Sungei Besi this Saturday (5th March 2011) at 2PM as there will be an autograph session with tennis starlets Marion Bartolli, Michaella Krajicek and Jarmila Groth.

Auto Bavaria Sungai Besi
330, Jalan Sungai Besi, 57100 Kuala Lumpur

BMW are the title sponsors of the BMW Malaysian Open 2011 happening this week. The BMW Malaysian Open 2011 is a leg of the Women’s Tennis Association (WTA) Tour.

UPDATE: Here are some photos from the event after the jump.
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Toyota: Lesson learnt, and learnt well

Reputations are a funny thing. You can build one up through years of toiling, to a point that you think it’s bomb-proof, and wake up one day and find that it has all come unstuck faster than you can say, well, ‘reputation’.

Usually, it just takes a single instance to deliver the damage, but for something along the lines and size of an automotive company, that sort of thing needs far more weight, as well as recurrence. The point is, if it happens long and fast enough, the implications aren’t going to be pretty, and the first thing to go out the window is that erstwhile solid reputation.

The last 18 months has seen just that, in the case of Toyota. Once known as the automotive equivalent of the Borg (the “have you ever seen a Corolla break down?” tagline shouted that empirical belief best), the squeaky clean rep it has had isn’t as impossibly impenetrable as it was, for sure. Growing too big too fast, as it was succinctly put, has brought about some rather testy gremlins for the ride.

Read more after the jump.
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