[KatoeyLover69]

Report from Bangkok Post dated Friday 23 December 2005 :-

Thai-Chinese car venture to challenge Japanese firms


By Phusadee Arunmas

Passenger cars manufactured under a new Thai-Chinese joint venture will debut in the local market in 2007 with the aim of challenging the hold by Japanese firms in the mid-sized sedan segment. The venture was formed in September between the Shanghai Automotive Industry Corp and Thai partners Yontrakit Group and E.C.I. Group, a subsidiary of the CP Group, one of Thailand's largest agro-industrial conglomerates.

Thanakorn Seriburi, chairman of the Thailand-China Business Council, said the venture had support from the Chinese government, which wants to develop a Chinese-branded vehicle for sale in the Asean market.

``CP will take responsibility for marketing the car in the Thai market. We're quite sure that the quality of the car, which will be manufactured here, could compete with Japanese cars,'' said Mr Thanakorn, who also is a vice-chairman of the CP Group.

Details on the new venture, including vehicle specifications, pricing and market brand, have yet to be announced.

Mr Thanakorn said SAIC had teamed up with General Motors and Volkswagen to become the largest car producer in China.

In the first stage, the Sino-Thai car venture would assemble minivans at the Thai plant and gradually assemble medium-sized cars to fit the tastes of Thai motorists, Mr Thanakorn said, during celebration of the 30th anniversary of Thailand-China diplomatic relations held yesterday.

Wang Ji, SAIC's director of business operations, said details of the investment and production line of the Thai plant were being discussed as cars produced in China had their steering wheels on the left.

He said SAIC had tested the Thai automobile market by exporting parts for assembling Wuling minivans a few years ago and it was now ready to make more advanced cars to compete with Japanese vehicles in the Thai market.

The car venture was among several deals signed in September in Chiang Mai during the second meeting of the Thailand-China Joint Committee on Trade, Investment and Economic Co-operation.

Executives from the two countries estimated at the forum yesterday that investments from China would start to pour into Thailand next year as its international reserves are now increasing.

According to Vikrom Kromadit, vice-chairman of the Thai-Chinese Business Council, China's international reserves would rise to one trillion US dollars within two years. Reserves stand at $800 billion at present.

``Such enormous reserves are forcing China to make investment abroad and Thailand has advantages due to no resistance from locals,'' he said.

According to Lu Fang, secretary-general of the China Council for Promotion of International Trade, Thailand could soon become the fifth largest destination for China offshore investment.

Spurred by a free trade agreement, bilateral trade between the two countries rose substantially to $12 billion last year and $17.6 billion in the first 10 months of this year.

Deputy Prime Minister Somkid Jatusripitak said he was confident that bilateral trade volume would meet the projection of $50 billion in 2010, set at the meeting in September.

As well, he said, he would like China to eventually make Thailand its third largest investment destination.