China's Biggest Automaker To Build Thailand Factory
BANGKOK, Dec. 13 (Kyodo) — Thai agriculture conglomerate Charoen Pokphand Group said Thursday it has agreed to set up a joint venture with China's largest automaker, SAIC Motor Corp., with the aim of opening an auto factory in Thailand in the next two years.
The joint venture, under the name of CP Motor Holding Co., will facilitate Thailand's ambitious efforts to become the "Detroit of Asia," said Noppadon Chiaravanont, a deputy chairman of CP Group's Automotive Industrial Products Business Group (China).
SAIC Motor will hold 51 percent of shares in the new joint venture and the CP Group will hold the rest.
Noppadon said the firm eyes production of MG-brand passenger cars for the Thai and worldwide markets.
"Thailand will be our production base for worldwide export. We are confident in the potential of Thailand as Detroit of Asia," he added.
Noppadon said the initial phase of investment will require at least 10 billion baht (about $333 million). He said the joint venture is expected to begin releasing MG-brand products in 2014.
Last week in Shanghai, SAIC Motor said the joint venture with CP Group will initially strive for a production and sales capacity of 50,000 units per year.
In the second step, annual capacity will be raised to 200,000 units "by leveraging internal taxation policies" inside the Association of Southeast Asian Nations, of which Thailand is a member, to boost sales to the ASEAN market, in particular.
"The parties will leverage the-MG brand resources and the R&D capabilities of SAIC Motor and the local industrial resources of Thailand to seize the developmental opportunities on the ASEAN market," it said in a statement.
The SAIC Motor, formerly known as Shanghai Automotive Industry Corp., is China's biggest carmaker with annual production and sale of 4 million units.
The MG series of cars was originally manufactured in Britain by MG Car Co. SAIC took over that business in 2007 and set up a factory in China to produce left-steering wheel cars for the domestic market.
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Another case of nothing to say. I mean, where to start? MG? China? Offshoring? Tax credits? Dodgy ownership ratios? The insanely low price of entry ($333 million)? $333 million in the US might pay for the environmental impact studies. Tax breaks? I imagine Thailand is desperate after the flooding that decimated their commodity chip fab and mechanical hard disk industry.
8 comments:
Not an MG unless it has Lucas electrics. And calibrated oil leaks.
I should note and thus start a flame war that the '56 MG pictured is my idea of the quintessential roadster. If it helps the porthole T'bird a few years later is the centerfold American Roadster.
Dawg, a place in town makes an EV reproduction of this MG. Not much range but a lot of fun, they sell well. No flame war, but I'm tempted...I liked the Morgan 4x4 better.
The Morgan has always annoyed me because of the "hand-built" business. Besides, wood frames? GMAFB
Krugman
"It’s important to make this point, because I keep seeing articles about the “fiscal cliff” that do, in fact, describe it — often in the headline — as a debt crisis. But it isn’t. The U.S. government is having no trouble borrowing to cover its deficit. In fact, its borrowing costs are near historic lows."
Is this his pitch to become Bernanke's heir?
I intensely dislike Krugman for several reasons. I don't mind his politics but object to his blind spot that denies his politics influences his analysis. I also get pissed at his constant hiding behind the Keynsian bar trick. If you do what he suggests and it doesn't work that just means you didn't do enough of it.
In this case he is correct. There is no cliff. Come Jan 1st we are transitioning from overspending by $3b per day to overspending by $2.9b per day. Some austerity. How could such reckless behavior not toss the economy not the ditch?
Tell me what you think...
Four years from now I do not see how there can be any significant improvement in the economy.
You are either highly skilled or unskilled in this economy. Pretty much every good imaginable is in oversupply. Competition around the world is poised to compete to produce just about any good. Most of our economy is dependent on providing low end services or reselling goods. There is no revolution of efficiency coming, and the boom of the last 30 years has ridden the drop in interest rates creating artificial demand and that supported asset prices.
Taxation is about near the point of diminishing return. An aging demographic that has accumulated assets over the last 30 years is going to be looking to shelter those assets from taxation going into retirement.
Unfunded entitlements and pensions will continue to grow due to underfunding and poor investment returns.
Inflation in things we need like food and energy is poised to increase due to regulation and competition for resources.
The national debt will probably be $5 trillion larger than it is today.
Which leaves us with the ticking debt time bomb.
I can think of NO way out except failure. But how long will it take? Can this disaster play out for another generation?
Is there any long term down side to moving all of your assets into precious metals?
Krugman obviously hasn't read about Taleb's turkey.
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w,
There are numerous areas where technology can greatly enhance efficiency in the near future -- nanotech & 3D printers come to mind.
HOWEVER, those are likely to result in still fewer jobs, not more.
We've got billions more people on this planet than jobs, and -- unless a lot of countries want to revert to an Amish/Mennonite model -- there will be "troubles".
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