Wednesday, December 16, 2009

J.D. Power Asia Pacific Reports: Satisfaction with Engine/Transmission Performance and Audio/Entertainment/Navigation Systems

Honda and Toyota Models Earn Two APEAL Segment Awards Each; Isuzu Receives One Award


Engine and transmission performance for passenger cars and audio/entertainment/navigation system performance for pickup trucks are becoming more important to new-vehicle owners in Thailand, while the importance of fuel economy has declined across the industry, according to the J.D. Power Asia Pacific 2009 Thailand Automotive Performance, Execution and Layout (APEAL) StudySM released today.

Now in its seventh year, the APEAL Study is an owner-reported measure of what gratifies owners in Thailand about their new vehicle’s performance and design during the first two to six months of ownership. The study examines nearly 100 attributes covering 10 vehicle categories: exterior; interior; storage and space; audio/entertainment/navigation; seats; HVAC; driving dynamics; engine/transmission; visibility and driving safety; and fuel economy. APEAL study performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction.

The overall APEAL score in 2009 averages 871, down by five points from 2008. Satisfaction in 2009 has decreased from 2008 in seven categories, with only three categories—fuel economy, seats, and HVAC—improving in 2009.

“It is worth noting that satisfaction has decreased in seven categories in Thailand in 2009 and increased in only three,” said Loic Pean, country manager at J.D. Power Asia Pacific, Bangkok. “In an increasingly competitive market where vehicle quality is showing great improvement, it is critical for automakers to distinguish themselves from their competitors by creating product differentiation through performance and design.”
Model Results by Segment

The Honda Jazz ranks highest in the entry midsize car segment for a second consecutive year with an overall APEAL score of 869. The Nissan Tiida (856) and Toyota Yaris (851) follow in the segment rankings.

In the midsize car segment, the Honda Civic (880) ranks highest. Following the Honda Civic in the segment rankings are the Mazda3 (878) and Toyota Corolla Altis (875).

Among sport utility vehicles, the Isuzu MU-7 (897) ranks highest, and is followed by the Mitsubishi Pajero Sport (884).

In the pickup extended cab segment, the Toyota Hilux Vigo Prerunner Smart Cab (891) ranks highest, followed by the Isuzu D-Max Spacecab/Rodeo (882).

In the pickup double cab segment, the Toyota Hilux Vigo Prerunner (897) ranks highest and is followed in the rankings by the Toyota Hilux Vigo (884).
Additional Industry Findings

The study finds that owners of pickup trucks and utility vehicles in Thailand are more satisfied, on average, than owners of passenger cars.

However, while overall satisfaction among passenger car owners is not as high as that of pickup and utility vehicle owners, overall passenger-car owner satisfaction has increased by three points in 2009 compared with 2008, to an average of 862. Meanwhile, overall satisfaction among pickup owners and utility vehicle owners has declined from 2008 by six points and three points, respectively.

“In 2009, we have observed an increase in consumer interest in passenger-car models, mostly due to significant improvements in fuel economy in these models,” said Pean. “However, satisfaction levels for pickup truck models are still higher than those of passenger car models, on average, indicating that pickups are still very popular among owners in Thailand.”

The study also finds that, among owners with particularly high levels of satisfaction (averaging 900 or higher), 81 percent say they “definitely would” recommend their vehicle model. In contrast, among owners with lower levels of satisfaction, fewer than 59 percent say they “definitely would” recommend their model.

“In order to retain repeat buyers and foster word of mouth advocacy for their brand, manufacturers need to focus on producing vehicles with features and styling that go beyond satisfying owners to truly gratifying them,” said Pean. “This is likely a key reason why the importance of audio and navigation system performance has increased among new-vehicle owners in Thailand.”

The 2009 Thailand APEAL Study is based on evaluations from 3,518 owners who purchased their new vehicle between October 2008 and July 2009. The study includes 58 different passenger car, pickup truck and utility vehicle models covering 11 makes. The study was fielded between April and September 2009.

Tuesday, December 15, 2009

Collaboration between Genencor and Goodyear results in breakthrough technology for tires made with renewable biomass

Collaboration between Genencor and Goodyear results in breakthrough technology for tires made with renewable biomass


The world’s first Goodyear concept tires made with BioIsoprenea technology arrive in Copenhagen in time for United Nations Climate Change Conference

The world’s first Goodyear concept demonstration tires made with BioIsopreneä technology made their debut in Copenhagen, Denmark, this week. BioIsopreneä is a breakthrough alternative to replace a petrochemically produced ingredient in the manufacture of synthetic rubber with renewable biomass. One Goodyear tire will be on display at a lounge in the common departure area at the Copenhagen International Airport throughout December 21, while the other tire will make appearances at several special events during the United Nations Climate Change Conference in Copenhagen (COP 15) through December. The tires made with BioIsopreneä are the result of a collaboration between Genencor, a division of Danisco, and Goodyear, one of the world’s largest tire companies and a leader in innovation.

“We are literally rolling out an important milestone in our collaboration with Goodyear on a breakthrough biochemical,” says Tom Knutzen, CEO of Danisco. “BioIsopreneä is an excellent example of Danisco’s leadership in industrial biotechnology through our Genencor division.”

“Goodyear’s first concept tire manufactured with BioIsopreneä shows the enormous progress we have made in using a bio-based alternative to the petroleum-derived raw material isoprene in our production process,” says Jesse Roeck, Director, Global Materials Science at Goodyear. “The development of BioIsopreneä could help us reduce industry impact on the environment by applying renewable raw materials in the supply chain and making Goodyear less dependent on oil-derived products.”

BioIsoprene product is derived from renewable raw materials, and represents a significant development within the biochemical and rubber industries. Aside from synthetic rubber for tire production, traditional isoprene is used for the production of a wide range of products, such as surgical gloves, golf balls and adhesives. Thus, the potential for BioIsoprene product is substantial.

Schedule of events for the world’s first Goodyear concept tires made from BioIsopreneä technology in Copenhagen, Denmark:

Through December 21 there will be a tire in the common departure area at The Copenhagen International AirportDecember 12-13 there will be a tire at the Bright Green exhibition in the Danisco boothDecember 17 a tire will be on display at the “Solutions of Industrial Biotechnology” Conference & Showcase, Confederation of Danish Industry (DI)A tire will also be on display in the Danisco headquarters’ reception area through December, please contact Danisco for an appointment (jennifer.hutchins@danisco.com)

Genencor and Goodyear first announced their research collaboration on the technology and integrated production system for BioIsoprene™ product in September 2008. The two organizations collaborate on designing an integrated production system for BioIsoprene™ product, and are on schedule to meet both technological and commercial milestones within the agreement. Commercial availability of the product is planned for 2013.
About Goodyear

Goodyear employs approximately 70,000 people and manufactures its products in more than 60 facilities in 25 countries around the world.

Goodyear’s innovations have set automotive standards for more than 100 years. Goodyear has been the pioneer of the innovative safety technology known as RunOnFlat, which allows a driver to continue on a journey with a punctured tire. Goodyear is the world’s leading manufacturer of RunOnFlat tires, with applications on various BMWs, the award winning Mini, Mercedes-Benz high performance cars, Opel and other brands. Additional Goodyear RunOnFlat fitments are on the horizon, as the company’s designers are working with multiple automobile manufacturers on more than 150 RunOnFlat projects.

Battery warm-up for easy engine start and cozy driving

With the festive season approaching, many of us are kept busy planning our travel and getting things ready for the holiday time. Well-prepared travel is important, especially for those who travel by car, because in cool weather of this holiday season, days that are supposed to bring you fun can turn troublesome if your car don’t get stated as easily as you would expect it to.


Mr. Prakasit Phornprapha, Director of Siam GS Battery Co., Ltd. and Siam GS Sales Co., Ltd., the manufacturer and distributor of GS Battery for automobiles, shares simple tips to ensure smooth and safe start of your car for road trips in cool weather condition: “Warming up storage battery before starting the car helps get the engine ready and check the car’s systems. In cold weather, engine tends to perform less effectively as lubricant oils become relatively more viscous and may not provide needed lubrication to moving parts of the engine instantly, which make the engine prone to more wear and tear.”
Warm up the battery for safe start

§ Before starting the engine, always check the gear shifter to make sure that it is in correct position for a safe start. In a stick-shift car, it should be in neutral position. If your car has automatic transmission, the gear should be in either N or P position. After ensuring this, keep the car stationary when you start the engine by engaging the parking brake.

§ Turn off all electrical equipment to which the power is supplied from the car’s storage battery, such as air-conditioning and audio system, to ensure sufficient battery power for engine start.

§ Turn the key to ON position to check that all systems function and that the dashboard doesn’t show any warning signal, then start the engine, let it warm up and recharge the battery.

§ During engine warm-up, avoid pressing the gas pedal or moving the car. Simple leave the engine runs all by itself for a few minutes to warm-up its parts and components.

§ Avoid warming up the engine in enclosed or poorly-ventilated space because carbon monoxide can accumulate and cause harm to your health.

§ During the first couple of kilometers, drive at low speed to let the lubricants flow and start to maximize their work efficiency.

Warming up engine and battery of your car before driving increases engine temperature to its optimum working condition. This helps protect engine parts and components against untimely wear and tear, thus extend the life of the engine. In addition to the warm-up, don’t forget to examine that all other key systems function properly and are well cared of, such as head and back lights, signal lights, wheels, tires and air pressure, as well as storage battery. Make this a pre-drive routine for your confidence and safety on all road.

Monday, December 7, 2009

TATA XENON GIANT SUPER CNG

The TATA Xenon Giant Super CNG pickup combines the values and attributes of the Xenon Super CNG and the Xenon Giant pickups previously launched by Tata Motors (Thailand). This single cab pickup comes with a factory-installed 100% CNG system as well as a spacious, flat load area suitable for commercial transport. The Xenon Giant Super CNG is produced on the TATA assembly line at the Samut Prakarn facility of Thonburi Automotive Assembly Plant (TAAP), a business partner of Tata Motors (Thailand) Co. Ltd.


TATA planned the CNG version for the Xenon product line-up since the very beginning of the Xenon project. This is a long-term commitment to offer a product which is environmentally friendly while providing consumers with the benefits of a cost effective vehicle.

The TATA Xenon Giant Super CNG delivers exceptional performance for a pickup truck, together with low maintenance costs and the highest standards of durability, reliability and fuel economy.
GIANT FLAT LOAD BODY

With its original high suspension, the new Xenon Giant pickup provides an especially large flat load bed. It is 1,720 mm wide, 2,503 mm long and 380 mm high. The load body walls can be dropped from three sides for maximum convenience in unloading and reloading.
SUPER CNG ENGINE

The Tata Xenon Giant Super CNG has a 2.1L, DOHC multipoint injection, dedicated CNG engine that delivers maximum horsepower of 115 HP at 5,500 rpm and a maximum torque of 175 Nm at 3,750 rpm.

The engine has a compression ratio of 12:1. This is suitable for CNG combustion and assures optimum performance with excellent fuel economy, durability and ease of maintenance.

The components used in the CNG system are from leading international manufacturers of CNG component, and meet world class standards of quality and safety. The high pressure piping system, for example, is from the Swagelok (USA), the pressure regulator is from Teleflex (Canada) and Gas injector from Bosch (Germany).

Ignition is controlled by intelligent microprocessor software, and gas injection is adjusted for ideal performance in all operational conditions. For even greater safety, gas supply is automatically cut off in the event of a collision, preventing any possible leakage.

The vehicle design incorporates three CNG cylinders and a spare tyre below the load body. The 230 L CNG cylinders allow storage of 38 Kg of CNG, giving the pickup a range of more than 350 kilometres on just one fill.

Located at the side, the large gas filler enables fast and safe refuelling. The built-in pressure gauge in the instrument cluster provides accurate readings and there is an accurate fuel gauge with a low-fuel warning light.

‘New Suzuki Swift…Flip Design to the Uniqueness’ Coming up with new unique cubical design Officially launched at Motor Expo 2009

Suzuki Automobile Manufacturing (Thailand) Co., Ltd. has officially launched ‘New Suzuki Swift’ with unique cubical design to Thai market at the 26th Thailand International Motor Expo 2009.


Introducing new product with unique cubical design, coming with dynamic driving performance for swift motion serving all swift driving styles.

Fully provided with modernized equipments for comfort and utility, together with safety standard, and good quality from Suzuki as everyone has always accredited.

Inviting all guest to visit Suzuki’s quality cars at Suzuki booth at Motor Expo. Have a test drive and get ‘special privilege’ when booking New Suzuki Swift.

Suzuki Automobile Manufacturing (Thailand) Co., Ltd. has officially launched New Suzuki Swift to Thai market at the 26th Thailand International Motor Expo 2009. Suzuki has broadened new vision of passenger car driving in Thailand with New Suzuki Swift – passenger car which people from various countries, especially for European countries, has been talking about for long. This is because of New Suzuki Swift’s uniqueness and its outstanding look – like no others. The product is truly designed and created to serve demands and needs of its target. New Suzuki Swift comes with new ‘cubical design’ – a fresh approach to design with true worldwide appeal; together with dynamic driving performance, ready for any swift motions serving all swift driving styles. It is also fully provided with modernized equipments for comfort and utility, together with safety standard, and good quality from Suzuki as everyone has always accredited. All the drivers will be fulfilled with fun and excitement in their own style and in all of their moments of lives. This relates with Suzuki’s worldwide philosophy – Suzuki…Way of Life!

Mr. Takayuki Sugiyama, President of Suzuki Automobile Manufacturing (Thailand) Co., Ltd. said that Suzuki has been growing from past till now, with our proud history that reaches back over 100 years – which is Suzuki’s 100 Years of Innovations. Suzuki strongly focuses on the development of quality product with consumers’ trustworthiness, especially for the invention of compact cars. Suzuki is set to play a major part in the future of the automotive industry. Suzuki will never stop moving on to the future together with the world and Thai society.

“The most importing thing today, Suzuki is very proud with the official launch of our new product to Thai market that is ‘New Suzuki Swift…Flip design to the uniqueness’. This is our way to broaden the market with new vision of driving with new uniquely modern Cubical Design together with dynamic driving performance for swift motion serving all swift driving styles. Suzuki expects that new quality product from Suzuki – New Suzuki Swift, produced under our philosophy Suzuki’s Way of Life!, will ultimately satisfy needs and consumer’ lifestyle nowadays as they are highly seeking for true uniqueness. That is because each one of us has our own Way of Life! in our own style. Suzuki feels confident that we can create consumer’s satisfaction beyond their expectation and we will surely receive positive feedback from Thai consumers.” Said Mr. Sugiyama.

Mr. Wallop Treererkngam, Manager, Sales Department revealed that “New Suzuki Swift is European-inspired car built based on Suzuki standards with quality and trustworthiness. We combine our unique DNA of a company whose success as a compact-car developer. The new Swift embodies a new globally oriented approach to Suzuki car-making. From the very beginning, a dedicated team of Suzuki designers and engineers collaborated extensively with European automotive professionals and ordinary motoring enthusiasts in pursuit of Suzuki's best car, New Suzuki Swift, for new generation people seeking for their own uniqueness or their own Way of Life!”

“Suzuki Swift has also been accepted, admired and praised by people worldwide for long, especially in Europe. It is the car which everyone, who has ‘swift driving’ experience or even just look at it, feels admire with its design and performance. For several years, Suzuki Swift has proven with its amazing capacity as a Japanese car brand which swiftly drive challenging other European car brands in JWRC (Junior World Rally Championship). Suzuki has gained success beyond expectation with wining position in many tournaments; Suzuki Swift was also on the top ranking among European car brands.” Mr. Wallop added.

Mr. Wallop also said that Suzuki engineer team developed the structure and performance of New Suzuki Swift to be suitable with all terrains. The intensive experiments, both in laboratory and on real road conditions outside the laboratory, had been conducted several times, again and again, till the engineer team felt satisfied with the most favorable result; to ensure that anyone who drives New Suzuki Swift will feel something much different from what they used to feel, in each person’s Way of Life!

Suzuki invented new engine – M15A 1.5 Liters, maximum power at 74 kW at 6,000 rpm, especially for New Suzuki Swift. It is inline-four-cylinder, DOHC, 16-valve, maximum torque of 133 Nm/4,000 rpm, with Variable Valve Timing (VVT) technology – delivering good performance both power and torque, giving swift responsiveness to acceleration at any revs. Another amazing performance, it can sprint from 0 to 100 kmph in just 11.7 seconds proving that and it is really 'swift' in performance, always brings you excitement even for urban driving. An impressive minimum turning radius of 4.7 meters brings New Suzuki Swift precise and dynamic handling, in touch with the road, track, lane or back street. Even when you have to drive pass through a narrow lane or sharp corner of the building, you can enjoy with fun driving in your swift driving style. And together with the torsion-ream rear suspension of New Suzuki Swift, the driver will feel balance between dynamic performance and driving comfort.

Besides that, Suzuki also concerns about the maximum utilization of natural resources and fuel available on earth, including environmental concern. So, Suzuki has been dedicating all human resources to develop good engineering to innovate new engines, especially for compact and sub-compact engines, for years; in order to get lower fuel consumption and emission engine. Finally, Suzuki proved to the world with newly created New Suzuki Swift coming with low engine emission recognized at international level.

Apart from dynamic performance serving your swift driving style, Suzuki also provide you comfort, utility and safety. We care for small details – even every single piece of the car, they are produced from good quality raw materials for product durability. Each piece of the car is produced neatly at Suzuki standard which everyone accredited nationally and internationally.

Suzuki designed the interior with unique style – a sporty 3-sproke steering wheel with additional steering wheel control for more convenience and safety, automatic air conditioning system with digital control, seamlessly built-in audio system with integrated radio/CD player, keyless start, air filter, and other equipments; all awaiting for you to visit and touch at Motor Expo 2009.

Suzuki brings you not only driving excitement, but we also provide you confidence in safety such as side impact door beam, ABS, EBD and break assist system. There are also dual front air bags (SRS) and Immobilizer key system. More important than everything, Suzuki offers 24 hours road side assistance with care, and we also have 24 hours hotline (from land line call 1800-600-900, from mobile call 1401-600-900).

Suzuki sets the target for New Suzuki Swift, focusing on first and second jobbers, ones who have self-confidence, uniquely being choosing and doing things differently compared to others, having active personality, living their lives urbanely, confidently making decision by themselves, and daring to think and do things in their own styles and desire. And, Suzuki already has the marketing strategies and plans – products, pricing, dealership and integrated communication, to reach the target.

For products and pricing, Suzuki has just launched 2 models of New Suzuki Swift –
· GA model automatic transmission priced B. 599,000
· GL model automatic transmission priced B. 649,000

For the integrated communication, Suzuki communicates directly to the target groups, creating buzz and awareness from the central control, especially for Bangkok, utilizing advertising materials and various kinds of media – print (newspaper and magazine), OOH, online and P.O.P.

This becomes a very important movement for Suzuki, another step into Thai car market and play important role. Suzuki expects to gain positive response from Thai market, and also expects to achieve the sales target around 2,000 units in 2010.

Mr. Wallop finally said “We would like to invite everyone to swiftly visit our booth; touch and feel our New Suzuki Swift debuted with eye-catching design and exhilarating look. Ones can also experience with exciting and enjoyable test drive and get special privilege when booking New Suzuki Swift.”

Remark: "The product information is mainly on GL Grade. For more details, please see our catalogue."

GOODYEAR TAKES DRIFT TO ANOTHER LEVEL IN ASEAN Company announces

Following its repeated success with Formula DRIFT in Singapore, Goodyear will be kicking things up a notch with a hat trick. Sponsorship of Formula DRIFT Thailand and Formula DRIFT Malaysia Goodyear is proud to announce that it will be sponsoring both Formula DRIFT Thailand and Formula DRIFT Malaysia come November and December this year, respectively.

This occasion marks the second and third leg of the Formula DRIFT series, following the Formula DRIFT ProAm Series 2009 in Singapore from July 4 - 5. Similar to the Formula DRIFT Singapore ProAm Series 2009, Formula DRIFT Thailand will feature both professional and amateur drifters from around the region vying for the coveted first place title. Formula DRIFT Malaysia, on the other hand, will play host to professional drivers from around the globe.

“Goodyear is always on the lookout for different avenues to further underscore our firm commitment to promote the growth of motorsports in the region. When we started our sponsorship of Formula DRIFT Singapore in 2008, we were very pleased with the overwhelming response. The event enjoyed a huge spectator crowd of over 11,000 people. This success is definitely a rev up in our efforts to elevate the sport to international levels,” said Richard Fleming, managing director of Goodyear ASEAN.

The Formula DRIFT Singapore 2009 sponsored by Goodyear again early July was also a success. Although the competition was this year open only for amateur drifters, it attracted as many as 37 racers from across Asia. At the end of the competition, two out of ten Goodyear team members namely Johan Norman Azam and Ariff Johanis made it to the final race and bagged home with them 1st and 2nd runner up titles.

Formula DRIFT is recognised as the first official North American professional championship drifting series. Here, rear-wheeled drive cars will be judged based on their style and execution in manoeuvring the course as opposed to the fastest course completion time.

Started in Japan a decade ago, this extreme motorsport has gathered a strong following around the world. Both professional and amateur drifting events take place in Europe, Australia and in the US. In Asia, it is recognised as the fastest growing motorsport in the region.

Goodyear has had a rich history in supporting motorsports all around the world, starting with its participation with Formula 1 and NASCAR. “Racing is very much part of our legacy and is pivotal in keeping Goodyear on the edge, both on and off track,” said Fleming. “Our involvement with motorsports has enabled our engineers to use the knowledge gained from tire development and translate that into innovative technologies which go into tires people use every day.”
Goodyear International DRIFT Series

Year 2010 will mark yet another milestone for Goodyear. Not contented with being a sponsor, the company is set to host its very own International DRIFT Series. This is indeed a dramatic return of Goodyear to the racing scene in the region.

The Formula DRIFT Series in Singapore, Thailand and Malaysia this year will serve as a precursor to the Goodyear International DRIFT. To be held in Malaysia and Thailand next year, the series will set off at an explosive pace. Consisting of monthly drift competitions with top local and international drivers engaging in adrenaline-filled battles on the track, spectators can expect show-stopping performances amidst the atmosphere of burning rubber and loud exhaust. Drifters are in for a turbocharged time as they will be pitting their skills relentlessly against each other throughout the year. The series will climax at the finale towards the end of the year with the face-off between the best of the best. The competition will be judged and regulated according to Formula DRIFT’s international standards.

“We had a very successful introduction to drifting last year. The sport which requires high performance and precision driving helps us showcase the best qualities of our tires. Goodyear is constantly raising the bar when it comes to tire performance. We are extremely confident that the Goodyear International DRIFT series will unleash the full potential power of drifters and propel the current standard of drifting to international levels,” enthused Fleming.

With a long legacy in racing globally, Goodyear is the first tire company in Asia-Pacific to start its own drift series. Motorsport fans in the region are in for an exciting time as Goodyear accelerates its commitment to demonstrate its innovative product technologies and set the pace in the tire industry.

Thursday, November 19, 2009

Tata to display the Nano and new pickup at Motor Expo

Tata Motors brings the world’s most affordable car that changed the face of global automobile industry, Tata Nano, to Thailand for the first time at the 26th Thailand International Motor Expo. On the same occasion, it will introduce the Single Cab Xenon Giant Super CNG to its commercial pickup range. Motor Expo opens on December 2, 2009 and continues until December 13 at the Challenger Hall 1-3, Impact Muang Thong Thani.


“One of the highlights for Tata Motors at this year’s Motor Expo will be the first-ever appearance of the Nano in Thailand,” said Ajit Venkataraman, Chief Executive Officer of Tata Motors (Thailand) Ltd. “It represents Tata Group’s determination to create innovations in many different aspects, while improving the quality of life of our stakeholders.

“We are also introducing the Single Cab Tata Xenon Giant Super CNG pickup. This is in response to the popularity of our CNG vehicles, and also to underline our commitment to developing new products to meet the commercial requirements of business operators.”

The Tata Xenon Giant Super CNG has a 2.1L, DOHC multipoint injection, dedicated CNG engine that delivers maximum horsepower of 115 HP and a maximum torque of 175 Nm at 3,750 rpm..

The components used in the CNG system are from leading international CNG component manufacturers. They meet world class standards of quality and safety. For example, the high pressure piping system is from the USA and the high pressure safety system is from Canada.

The engine has a compression ratio of 12:1. This is suitable for CNG combustion and assures optimum performance, excellent fuel economy, durability and ease of maintenance.

The vehicle design incorporates the CNG cylinders and the spare tyre below the load body. This enables full utilization of the large load body area.

The 230 L CNG cylinders allow storage of 38 Kg of CNG. This gives the pickup a range of more than 350 kilometres on just one fill. The flat load body walls can be dropped from three sides. This feature makes it very convenient for commercial users of pickup.

In accordance with the Motor Expo’s theme this year, Driving for Sustainability, the design concept of Tata’s exhibition area number A04 is “Innovation for Sustainable Life.” It is divided into three zones: Innovation Car, displaying the Tata Nano and the history of its development; Sustainable Life, the Super Ace light commercial truck and the Xenon Diesel pickups that can help Thai people earn a living; and CNG Zone for all of Tata’s CNG pickup models, with information on compressed natural gas.

“Tata has introduced three variants of commercial pickups in the last one year. ” said Ajit “With our expanding distribution network of 33 dealerships, we are committed to building a strong foundation for Tata Motors brand in Thailand and providing the best service to all our customers..”
For more information, please contact:
DC Consultants and Marketing Communications Ltd.
Sitthi Wattanayagorn
Tel: 02-6102384 e-mail address: Sitthi@dcconsultants.co.th

Sunday, November 8, 2009

BAT-3K upbeat

       Thai Storage Battery Plc (BAT-3K) may have its highest profit in more than a decade this year as an economic rebound lifts sales, according to executive director Veerawat Korphaibool.
       Net income may be about 400 million baht, compared with a loss of 472 million last year, he said.
       The company expects to sell at least 250,000 batteries a month for the rest of this year, up from a monthly average of 162,000 in the first quarter,he said.
       "It's a much better environment now, as people have more confidence to spend with the economic recovery," he said."Sales have rebounded as consumers are buying new automobile parts such as batteries after deferring them during the bad economy earlier this year."
       BAT-3K posted a net profit of 208 million baht in the first half, compared with a loss of 115 million a year earlier,as lower prices of lead cut production costs. However, lead prices have now risen and the company planned to raise battery prices by as much as 15%, Mr Veerawat said.
       BAT-3K shares closed yesterday on the SET at 61.50 baht, unchanged,in trade worth 516,000 baht.

Double DIN car radios

       Two companies are making sure that car drivers will soon be able to get their radios in the double DIN format.
       Starting in June, Pioneer will sell its AVIC-F310BT, with a CD player, Bluetooth hands-free capabilities, a navigation system, a vehicle log, an SD-card and USB slots and 4 gigabytes of internal memory. It also comes with a 4.3-inch touch display that can be removed to deter theft. It will sell for 800 euros (38,713 baht)).
       Meanwhile, Alpina's IXA-W404R comes without a CD drive, but sells for about 500 euros (24,196 baht) and comes with a 4.3-inch touch display. It can access music from an MP3 player or a flash card, reports the company.

Wednesday, November 4, 2009

GPS to save time - and the world

       GPS is helping to save the world with its latest innovation, ecoRoute, which helps drivers find more fuel-efficient routes and be more aware of fuel consumption.
       The latest Garmin Nuvi 1460 GPS announced by ESRI (Thailand) comes with an updated database and new features,including ecoRoute, which calculates fuel use and the driver's carbon footprint.
       The ecoRoute program helps improve driver behaviour because the driver is likely to compete with himself to achieve better "scores", said Channarong Teerarojanarat, the company's telematics department manager.
       It helps optimise drivers' fuel economy and boost their green score, he said.This figure considers factors including acceleration, deceleration and speed and is marked out of 100- the higher the score, the better.
       ESRI (Thailand) general manager Krairop Luanguthai said the Nuvi 1460 comes with a Thai keyboard, 2GB flash and Bluetooth wireless.
       It is preloaded with the latest ESRI detail map TSM (Thailand Street Map)version10, including more than 1,000 junction views in Bangkok with additional views to indicate proper lane directions.The program also shows speed limits and notifies the driver when they are exceeded.
       There are five selectable Thai voices and a new point of interest page, up to 10 route plans, and automatic routing to show the most direct journey.
       Meanwhile, the company also announced the Garmin Oregon 550, which combines rugged outdoor touchscreen navigation with a 3.2-megapixel digital camera. The Oregon 550 features add high-sensitivity GPS, barometric altimeter, 3-axis electronic compass and microSD card slot.
       Krairop added that the company and its partners have been testing the TMC (Traffic Messaging Centre) system which reports traffic conditions and known accidents. The TMC service is expected to be launched next year.
       Channarong noted that the GPS market this year increased by 50 percent and the company expects to see 500 million baht of sales revenue.
       He noted that the company will launch a website, www.gpssociety.com, a community for GPS users that encompasses dynamic features and information."This will encourage users to take part in more activities as there are also route recommendations for special festivals."
       Recently, ASUS allies with Garmin announced, Novifone, a navigator phone under the brand garmin-asus.
       garmin-asus Nuvifone M20 is equipped with Windows Mobile 6.1 operating system, LBS (Location Based Services), mobile web browser, and navigation tools.
       The phone features call function,search function and view map function which comes with preloaded Thai map.

Wednesday, October 28, 2009

B1bn firm to target US auto parts market

       A Thai-owned auto parts distributor in the United States will join with Thai aftermarket auto-parts producers to set up a holding company worth 1 billion baht to purchase 30 auto repair centres in the US within two years.
       The move is part of a strategy by the Cluster of Thai Automotive Parts to expand its members' markets to improve industry performance when local demand is weak because of the slump in vehicle sales and production.
       "We have been trying to enter the US market for more than 10 years, but were unsuccessful because we didn't use the right channels," said Samart Deebhijarn, the president of the cluster.
       "But the current strategy, through signing a memorandum of understanding to distribute local products to a US parts distributor and to invest in garages there would help us access the US market better."
       He said that owning garages would also give Thai producers a better understanding of US parts customers.
       Cluster members visited the US last week on a mission that also included representatives of the Thailand Trade Representative (TTR) Office, Thailand Automotive Institute and the SME Bank.
       The memorandum calls for cluster members to supply parts to US-based Autotech Engineering Co, one of the largest auto parts distributors in Los Angeles, owned by a Thai businessman.
       The new company would have to purchase 500 million baht worth of Thai auto parts within one year,3 billion baht within five years and 15 billion within the next decade, said Vachara Phanchet, the Thailand Trade Representative.
       Establishing a holding company would raise 1 billion baht from members of the cluster and Autotech Engineering Co to buy 30 garages within the next two years. This should generate parts sale and service income worth 3 billion baht by 2012 to the new firm.
       Vallop Tiasiri, director of the Thailand Automotive Institute, said more American drivers are repairing their cars to keep them in service longer in the downturn, creating opportunities for aftermarket parts makers.
       Vichaya Vitheethum, executive director of the SME Bank, said the market size in the US and the weak dollar also offered opportunities for Thai parts producers.
       The bank is working out measures to support establishing the holding company. Its board is also considering changing its collateral regulations to promote Thai investment overseas.
       "We used to allow overseas collateral to be used as guarantees for our lending to overseas business, but we faced problems estimating asset value so the system was scrapped. But the board is reconsidering this model in order to promote local business to invest overseas," Mr Vichaya said.
       The TTR, meanwhile, is preparing to adopt similar strategies to promote access to other markets such as Germany, Australia and the Middle East.
       "These markets use a lot of Asian cars form which our parts are applicable. Similar strategies such as overseas investment to win distribution channels will also be applied to promote other industries such as processed food,"Mr Vachara said.

Magnificent seven

       In the most important, most revered event since the invention of the brontosaurus trap,Microsoft shipped the most incredibly fabulous operating system ever made; the release of Windows 7 also spurred a new generation of personal computers of all sizes at prices well below last month's offers.The top reason Windows 7 does not suck: There is no registered website called Windows7Sucks.com
       Kindle e-book reader maker Amazon.com and new Nook e-book reader vendor Barnes and Noble got it on; B&N got great reviews for the "Kindle killer"Nook, with dual screens and touch controls so you can "turn" pages, plays MP3s and allows many non-B&N book formats, although not the Kindle one;Amazon then killed the US version of its Kindle in favour of the international one, reduced its price to $260(8,700 baht), same as the Nook; it's not yet clear what you can get in Thailand with a Nook, but you sure can't (yet) get much, relatively speaking, with a Kindle;but here's the biggest difference so far,which Amazon.com has ignored: the Nook lets you lend e-books to any other Nook owner, just as if they were paper books; the borrowed books expire on the borrower's Nook in two weeks.
       Phone maker Nokia of Finland announced it is suing iPhone maker Apple of America for being a copycat; lawyers said they figure Nokia can get at least one, probably two per cent (retail) for every iPhone sold by Steve "President for Life" Jobs and crew via the lawsuit,which sure beats working for it -$6 (200 baht) to $12(400 baht) on 30 million phones sold so far, works out to $400 million or 25 percent of the whole Apple empire profits during the last quarter;there were 10 patent thefts, the Finnish executives said, on everything from moving data to security and encryption.
       Nokia of Finland announced that it is one month behind on shipping its new flagship N900 phone, the first to run on Linux software; delay of the $750(25,000 baht) phone had absolutely no part in making Nokia so short that it had to sue Apple, slap yourself for such a thought.
       Tim Berners-Lee, who created the World Wide Web, said he had one regret:the double slash that follows the "http:"in standard web addresses; he estimated that 14.2 gazillion users have wasted 48.72 bazillion hours typing those two keystrokes, and he's sorry; of course there's no reason to ever type that, since your browser does it for you when you type "www.bangkokpost.com" but Tim needs to admit he made one error in his lifetime.
       The International Telecommunication Union of the United Nations, which doesn't sell any phones or services, announced that there should be a mobile phone charger that will work with any phone; now who would ever have thought of that, without a UN body to wind up a major study on the subject?;the GSM Association estimates that 51,000 tonnes of chargers are made each year in order to keep companies able to have their own unique ones.
       The Well, Doh Award of the Week was presented at arm's length to the United Nations Conference on Trade and Development; the group's deputy secretary-general Petko Draganov said that developing countries will miss some of the stuff available on the Internet if they don't install more broadband infrastructure; a report that used your tax baht to compile said that quite a few people use mobile phones but companies are more likely to invest in countries with excellent broadband connections; no one ever had thought of this before, right?
       Sun Microsystems , as a result of the Oracle takeover, said it will allow 3,000 current workers never to bother coming to work again; Sun referred to the losses as "jobs," not people; now the fourth largest server maker in the world, Sun said it lost $2.2 billion in its last fiscal year; European regulators are holding up approval of the Oracle purchase in the hope of getting some money in exchange for not involving Oracle in court cases.
       The multi-gazillionaire and very annoying investor Carl Icahn resigned from the board at Yahoo ; he spun it as a vote of confidence, saying current directors are taking the formerly threatened company seriously; Yahoo reported increased profits but smaller revenues in the third quarter.
       The US House of Representatives voted to censure Vietnam for jailing bloggers; the non-binding resolution sponsored by southern California congresswoman Loretta Sanchez said the Internet is "a crucial tool for the citizens of Vietnam to be able to exercise their freedom of expression and association;"Hanoi has recently jailed at least nine activists for up to six years apiece for holding pro-democracy banners. Iran jailed blogger Hossein "Hoder" Derakshan for 10 months - in solitary confinement.

Belgian triggers drift

       The target is Belgium national Benoit Henry, a major player at Continental AG's tyre division.And depending on whether he cooperates or not,Motoring contemplates using methods employed by Counter Terrorist Unit agent Jack Bauer to extract market share and sales volume information deemed critical in delivering this story.
       By the way, Henry is vice-president marketing &sales for Asia and CEO of Continental Sime Tyre, the latter being the Malaysia-based production arm of Continental for Asia-Pacific... just in case you thought this was some cloak and dagger thriller.
       You see, getting tyre makers to actually divulge their sales volume or market-share figures is on par with agent Bauer breaking a terrorist in the 24 television series.
       Stepping out of my reverie I shake hands with the 47-year-old executive who looks more the part of a GQ magazine model than a manager of Continental's tyre factories in Alor Setang and Petaling Jaya, in addition to heading marketing and sales teams in all AsiaPacific markets.
       So I suggested that the reasons for being tightlipped about market statistics perhaps stem from the notion that tyre makers are evading taxes, concerned about becoming a benchmark for their competition,or simply being humble!
       "No. It's not correct. The game we are in is a technology game. Others are playing catch up with us.
       "Our volume is Asia is still small, especially the knowledge of the Thai tyre market is limited which is why we need to get to know and grow our business here," he says.
       Continental claims that some markets offer transparent information on tyre sales in the form of national statistics, while some markets do not.
       "I don't know the exact numbers for Thailand, but it's about six million tyres in the replacement market.
       "Numbers are not everything. It's the image. Volume is only one element, and profit is the key. High performance tyres [sold in small volumes] can be good profit makers."
       Continental AG recently invested 200 million baht on a Thai sales and marketing unit to step up its presence here and perhaps send a clear message to the market.
       "It [message] has nothing to do with 200 million baht. We want to grow in our own way, in both the OEM and high performance tyre segments, build a quality network with products, products and products."
       Analysts have suggested the current dealership network operated by tyre distributor Stamford Tyres will eventually be phased out, and there'll be a gradual relegation of small independent distributors to megadealers or regular dealerships, just as most automakers are stepping up their Thai presence with investments in production facilities.
       But Henry was quick to point out the Stamford network was here to stay, while Continental's new network will multiply tyre sales.
       "We have a long relationship with Stamford. No conflict, no cannibalising. The sea is still full of fish."
       The picture of Continental's tyre dealership network in Thailand isn't clear for the time being. So, why this sudden urge or commitment to Thailand?
       "Thailand is a market that cannot be ignored. We are late, but Thailand is the centre of the automotive industry in the region and that is why we are here."
       Continental is no slouch in the global arena as it is the world's fourth-largest tyre maker and the number one brand in Europe.
       "In Thailand we expect to take 5% market share in three years. The major brands like Bridgestone and Goodyear won't give their business easily."
       Thailand's annual tyre market is estimated at six million replacement tyres and one million truck tyres;Continental expects to sell about 350,000 tyres in the next three years.
       Falling short of a confirmation, Henry did imply that Thailand was a strong candidate for Continental's tyre production expansion.
       "Our three plants in Asia-Pacific are not sufficient,and where next? The rule of thumb is that we follow our OEM customers."
       As mentioned earlier, Thailand is the regional hub for automotive export production and the largest onetonne pick-up truck market in the world; hence it is home to an abundance of OEM players.
       Someone informed the writer that Henry had 30
       minutes to make it from Centara Hotel on Rajprasong to Soi Asoke off Sukhumvit Road; Henry's appointment was with none other than the outspoken Henk Kiks of B-Quik Thailand, a bonafide Horatio Alger story in the local tyre and automotive quick-fix industry.

Tuesday, October 20, 2009

Under-pressure battery-makers seek price increases of 10-15 per cent

       Unable to shoulder higher production costs, battery producers have sought the government's approval to raise retail prices by 10 to 15 per cent despite the current price-freeze policy.
       Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said car-battery producers had called for the ministry to approve an increase in the retail price soon, as they face higher costs of production. A letter submitted by the makers said they wanted to hike retail prices by 10 to 15 per cent as copper prices have risen by 50 per cent from Bt4,000 to Bt6,000 in the past few months.
       Now, the retail price of an N70 battery is between Bt2,200 and Bt2,300. If the government approved a price increase, the retail price would be quoted at Bt2,420 to Bt2,530.
       However, Yanyong said, the ministry would try to persuade producers to cooperate and retain the current retail prices until the end of the year in line with the government's policy to freeze consumer-goods prices.
       In addition, the retail price of steel is set to soar following an increase in the cost of billet from US$400 (Bt13.300) a tonne to $500 to $600 in the past year.
       Meanwhile, the Commerce Ministry will today ask for the National Rice Policy committee's approval to open pledging for 2 million tonnes of rice to help farmers, whose income has fallen.
       The measure is aimed at boosting the market rice price, which has dropped in the past month as the harvest season has increased supply, said Commerce Minister Porntiva Nakasai.
       Also, the collapse of five banks in Africa has resulted in lower purchasing orders from African countries. This has caused Thai exporters to delay purchasing rice from the market and a drop in rice prices.
       The pledging scheme is one of six government measures to stabilise the rice price. The committee must also address the problem of farmers being unable to participate in the rice-pledging scheme because of a delay on the part of the government in completing its list of registered farmers.

Wednesday, October 14, 2009

California locks out drunk drivers

       Californians convicted of drunk driving will be required to install electronic breath-analysis devices that prevent their cars from being started if they have consumed alcohol.
       The measure has been signed into law by Governor Arnold Schwarzenegger and will initially take effect in a pilojt scheme in four counties.
       The "ignition-tnterlock devices" will prevent cars from being started if the driver's breath shows more than a small amount of alcohol.
       "We must do everything we can to ensure the public's safety on the road,"Schwarzenegger said. "By installing ignition-interlock devices, we are working to save innocent lives."
       California reported 1,355 frunk-driving fatalities last year. An estimated 550 drunk drivers are arrested every day.

Sunday, October 11, 2009

Goodyear switches focus to Autocare

       Goodyear Thailand has stopped expanding its Eagle stores, instead promoting Autocare, its new one-stop outlet for tyre and maintenance services, says managing director Kongkiat Teekamongkol.
       The first Autocare outlet was opened at Om Yai in Nakhon Pathom on Sept 25 by Goodyear's largest dealer, who formerly ran an Eagle store.
       The facility will serve northwest Bangkok with a modern retail look, vehicle maintenance services, and a variety of products, including tyres, oil and batteries. Services will include oil and battery changes, suspension service, tyre rotation, replacement and repair, wheel balancing and alignment.
       "We're selling 3,000 tyres per month at this first outlet," said Mr Kongkiat.
       About eight to 10 outlets will be opened by the end of this year and another 20 to 30 are planned for next year. Each new outlet needs at least 3 million baht in tools and equipment, excluding building and land costs.
       "We've turned to Autocare because we wanted to freshen up the Goodyear service centres and give customers the impression that other maintenance services are provided in addition to tyre changing," said Mr Kongkiat.
       Goodyear welcomes existing dealers replacing Eagle stores with Autocare if they upgrade their outlets for a more contemporary look and service standard.New investors are also welcome.
       Goodyear provides expertise and software to help franchisees manage their businesses, sustain service quality and efficiency, achieve logistical efficiency and make a profit.
       "Autocare is a major part of our growth strategy. Through this world-class service network, we provide greater convenience and access to Goodyear products," he said.
       Autocare is already highly successful in Australia and Malaysia.
       The first Eagle store was opened in 2000 and there are now 65 Eagle locations throughout Thailand.
       A company source said Goodyear was not spurning Eagle stores because they did not perform, but rather the proven success of Autocare in Australia, Malaysia and the Philippines encouraged it to introduce the new franchise in Thailand.
       All Autocare outlets will be standardised, meaning that facilities will have the same shop design and offerings to increase brand visibility, convenience for customers and customer loyalty.
       The Autocare outlets will also help Eagle dealers earn more from providing other maintenance services apart from tyre changes.
       Autocare dealers will also have access to training modules to help them understand the business process, service standards, report analysis, technical assessment, tyres and rims, and other automotive technology.

Wednesday, October 7, 2009

Delphi is out of bankruptcy

       The US auto parts maker Delphi ended four years in bankruptcy on Tuesday, emerging from Chapter 11 as a private company and removing a major uncertainty for former parent General Motors Co.
       Delphi, which filed for bankruptcy on October 8,2005, cut thousands of workers, divested several businesses and agreed to sell its steering systems operations and four plants back to GM for the reorganisation.
       The parts maker's emergence from bankruptcy was executed through a sale of most of its assets to Delphi Holdings LLP, which is led by senior creditors Elliott Management Corp and Silver Point Capital LP.
       "Rodney O'Neal remains chief ex-ecutive officer of Delphi and the leadership remains in place," Delphi said in a statement.
       The group acquiring the now much smaller Delphi has agreed to forgive nearly $3.5 billion of bankruptcy loans it bought from previous bankruptcy lenders, and will invest $900 million in capital in the company.
       Other parts of the company will be sold back to GM and the rest will be liquidated under the plan approved by a US Bankruptcy Court judge in July.The transaction has pending regulatory approvals in Russia and South Africa.
       O'Neal said in a statement that postbankruptcy Delphi would be "a more agile, nimble and resilient company."
       "We expect that the industry and the competitive environment will continue to be demanding, but the restructuring we have already completed creates a strong platform and we expect to capitalise on that," he said.
       GM said it would create two subsidiaries for the re-acquired Delphi businesses, one for the steering business and a separate one for the other four plants.
       "We're pleased to see a final resolution to the bankruptcy and wish the newly emerged Delphi success," GM chief executive Fritz Henderson said in a statement.
       Delphi, which once made a very broad array of auto parts, will narrow it to electronic and safety components;powertrain; thermal; electrical and electronic systems; automaker services; and parts for the independent replacement market.
       The largest US auto parts supplier when it filed for bankruptcy, Delphi succumbed to high costs for wages and legacy benefits inherited in its spin-off from GM in 1999 along with low- or nomargin business.
       Delphi stunned the US auto industry by filing for bankruptcy after negotiations broke down with GM and the United Auto Workers union over supply and labour agreements. It remains the largest bankruptcy for a US auto parts supplier.
       The parts maker, once the biggest in North America, now ranks third behind Magna International and Johnson Controls Inc.
       The auto parts sector stayed under pressure after Delphi's bankruptcy. The credit market collapse in September 2008 and resulting drop in US auto sales and production added to the squeeze on supplier finances and led to more bankruptcies.
       Under the deal approved in July, GM,which has already taken over $11 billion in charges for Delphi's restructuring,will assume $1.1 billion in Delphi's obligations and waive $2.15 billion in its own claims against the supplier.
       GM also plans to invest $1.75 billion and to provide Delphi with loans. A complete failure of Delphi could have forced a near total shutdown of GM production in short order, choking off revenue as the automaker relaunches its own company.
       Delphi reached agreements with its unions and resolved pension funding during the bankruptcy as well.

Friday, October 2, 2009

Belgian triggers drift

       The target is Belgium national Benoit Henry, a major player at Continental AG's tyre division.And depending on whether he cooperates or not,Motoring contemplates using methods employed by Counter Terrorist Unit agent Jack Bauer to extract market share and sales volume information deemed critical in delivering this story.
       By the way, Henry is vice-president marketing &sales for Asia and CEO of Continental Sime Tyre, the latter being the Malaysia-based production arm of Continental for Asia-Pacific... just in case you thought this was some cloak and dagger thriller.
       You see, getting tyre makers to actually divulge their sales volume or market-share figures is on par with agent Bauer breaking a terrorist in the 24 television series.
       Stepping out of my reverie I shake hands with the 47-year-old executive who looks more the part of a GQ magazine model than a manager of Continental's tyre factories in Alor Setang and Petaling Jaya, in addition to heading marketing and sales teams in all AsiaPacific markets.
       So I suggested that the reasons for being tightlipped about market statistics perhaps stem from the notion that tyre makers are evading taxes, concerned about becoming a benchmark for their competition,or simply being humble!
       "No. It's not correct. The game we are in is a technology game. Others are playing catch up with us.
       "Our volume is Asia is still small, especially the knowledge of the Thai tyre market is limited which is why we need to get to know and grow our business here," he says.
       Continental claims that some markets offer transparent information on tyre sales in the form of national statistics, while some markets do not.
       "I don't know the exact numbers for Thailand, but it's about six million tyres in the replacement market.
       "Numbers are not everything. It's the image. Volume is only one element, and profit is the key. High performance tyres [sold in small volumes] can be good profit makers."
       Continental AG recently invested 200 million baht on a Thai sales and marketing unit to step up its presence here and perhaps send a clear message to the market.
       "It [message] has nothing to do with 200 million baht. We want to grow in our own way, in both the OEM and high performance tyre segments, build a quality network with products, products and products."
       Analysts have suggested the current dealership network operated by tyre distributor Stamford Tyres will eventually be phased out, and there'll be a gradual relegation of small independent distributors to megadealers or regular dealerships, just as most automakers are stepping up their Thai presence with investments in production facilities.
       But Henry was quick to point out the Stamford network was here to stay, while Continental's new network will multiply tyre sales.
       "We have a long relationship with Stamford. No conflict, no cannibalising. The sea is still full of fish."
       The picture of Continental's tyre dealership network in Thailand isn't clear for the time being. So, why this sudden urge or commitment to Thailand?
       "Thailand is a market that cannot be ignored. We are late, but Thailand is the centre of the automotive industry in the region and that is why we are here."
       Continental is no slouch in the global arena as it is the world's fourth-largest tyre maker and the number one brand in Europe.
       "In Thailand we expect to take 5% market share in three years. The major brands like Bridgestone and Goodyear won't give their business easily."
       Thailand's annual tyre market is estimated at six million replacement tyres and one million truck tyres;Continental expects to sell about 350,000 tyres in the next three years.
       Falling short of a confirmation, Henry did imply that Thailand was a strong candidate for Continental's tyre production expansion.
       "Our three plants in Asia-Pacific are not sufficient,and where next? The rule of thumb is that we follow our OEM customers."
       As mentioned earlier, Thailand is the regional hub for automotive export production and the largest onetonne pick-up truck market in the world; hence it is home to an abundance of OEM players.
       Someone informed the writer that Henry had 30
       minutes to make it from Centara Hotel on Rajprasong to Soi Asoke off Sukhumvit Road; Henry's appointment was with none other than the outspoken Henk Kiks of B-Quik Thailand, a bonafide Horatio Alger story in the local tyre and automotive quick-fix industry.

Wednesday, September 30, 2009

Michelin opens service points for trucks, buses

       Fourteen Michelin service points (MSP)will be set up as one-stop service centres this year for trucks and buses to increase convenience and reduce costs for the road transport business.
       The MSPs were planned in light of the steady growth of Michelin radial tyres for trucks and buses despite the transport market's poor outlook.
       Run by Michelin subdealers, MSPs require about 40% of the investment for a Michelin truck service centre (MTSC),each costing at least 10 million baht.
       MSPs, to be located in secondary cities,offer lighter services such as tyre replacement, puncture repair, tyre retreading and on-site service on major roads and highways. MTSCs offer heavy jobs such as wheel alignment in major provinces. There are 42 MTSCs operated na-tionwide by Michelin dealers.
       Michelin will set up another 16 MSPs by the end of 2011, aiming to supply services for trucks and buses not covered by MTSCs, said Jaipetch Chevaphatrakul,Siam Michelin's commercial director for truck, bus and off-road tyre business.
       "The truck and bus radial tyre market has been growing at a stable pace in contrast to the transport market that suffered a slow period earlier this year,"he said. Michelin has exceeded the truck and bus radial tyre market's normal 7-10% annual growth, which led to the decision to set up MSPs, he said.
       The tyre market for trucks and buses is expected to reach 1.8 million units this year, but he declined to say what portion are Michelin tyres.
       "The tyre market for trucks and buses dropped 7% year-on-year in the first half and it was expected to improve in the second half," he said.
       For bias tyres, the market becomes smaller every year, he said. Compared to bias tyres, radials can save 5-10% of fuel consumption, and they performed better in testing for product life, traction and high security levels, he added.
       Radial tyres can also be retread on their original casing with a proprietary Michelin process, offering performance similar to new tyres at half the price.

Michelin Siam expects another 7% decline

       Michelin Siam says it expects a 7-per-cent drop in the overall lorry and bus tyre market this year, similar to last year's decline.
       The economic crisis and domestic problems have been blamed for the lower performances.
       The overall lorry and bus tyre market is expected to reach 1.8 million treads this year, with 90 per cent in the replacement market and the remaining 10 percent in the original-equipment market.
       The Thai market is now split 50:50 between radial and bias-ply tyres, although the market share for radials is growing 7-10 per cent annually.
       The company made the remarks yesterday at a contract signing for 14 new Michelin Service Point dealerships, which will expand Michelin Siam's nationwide network further.
       The Service Points provide nearly full services, similar to the Michelin Truck Service Centres. Each Service Point will have a one-year contract with the company.
       Michelin Siam has 42 Michelin Truck Service Centres throughout the Kingdom, providing advanced services like wheel alignments that are not available at Service Points.
       "The purpose of Michelin Service Points is to expand our network and provide a cheaper option to dealers wanting to sell and provide Michelin-tyre services. A Truck Service Centre can cost more than Bt10 million, a Service Point only 40 per cent of that. We hope to have 16 more Service Points by 2011, bringing the total number to 30. In the lorry-tyre business, service is a very important factor," said Jaipetch Chevaphatrakul, commercial director for lorry, bus and off-road tyres at Michelin Siam.
       Michelin Truck Service Centres cover every major city in Thailand, while the Service Points are targeted at more rural areas.
       The Service Points also sell Michelin tyres, as well as other brands, but dealers have a set percentage for how many of each brand may be sold.
       Michelin is also promoting its Energy series, which the company says provides a fuel saving of 5-10 per cent. Jaipetch said more customers were opting for Energy tyres but declined to give exact figures.
       Michelin also wants more of its customers to retread their tyres, which almost doubles their life. Retreading costs only about half the price of a new tyre.
       Michelin will now retread old tyres from its competitors, as well. The main competition for Michelin Truck tyres in Thailand is Bridgestone.
       Bridgestone operates similar service centres located nationwide, called Bridgestone Truck Tire Centres.

Sunday, September 27, 2009

GS Battery increases production

       GS Battery is raising its output to keep pace with the rapid growth of the replacement market amid signs the new auto market is also recovering.
       "Sales of GS batteries in the after market performed better than expected,with growth surpassing 50% year-onyear in the first eight months this year,"said Saran Chinprahat, managing director of Siam GS Sales Co, the distribution arm of GS Battery Group.
       The planned output increase is destined for the replacement market. Most existing production will be supplied to new vehicles. Output will be raised by 50,000 batteries per month for total production of 4.2 million units per year.
       The output increase will cost about 75 million baht in investment and plant expansion will start in November so new output can roll out early next year.
       GS supplies batteries to every vehicle maker except Honda. Mitsubishi and Chevrolet exclusively use GS batteries while others order equal amounts from three producers to balance supply.
       Sales of GS batteries reached 2.3 billion baht in the first eight months this year and could reach the target of 3.3 billion baht for the full year, 10.7% up from 2.98 billion in 2008, which would allow it to stay market leader. The battery market is valued at 6 billion baht.
       Mr Saran said the cost of battery production this year soared due to lead, the main raw material. Lead traded on the London Metals Exchange more than doubled to US$2,300 per tonne from $1,100 per tonne last year.
       If production costs keep growing, GS expects to raise retail prices in the fourth quarter. For the time being, Mr Saran said GS will absorb rising costs to help relieve consumers' economic hardships.
       Both GS Battery Sales and Siam GS Battery are part of Siam Motor Group,the country's major auto parts manufacturer and also the dealer of Nissan and Honda automobiles.

Saturday, September 19, 2009

Elf faces down fake-oil fears

       The confiscation of large stocks of adulterated and substandard Elf lubricants after a factory raid in Samut Prakan last week has played havoc with distributors Sittipol 1919 Co and Total Oil Thailand Co.
       Both companies have moved quickly to defend Elf oils in light of fears about adulteration.
       Sittipol 1919, a distributor of car and motorcycle parts owned by the Leeissaranukul family, is the exclusive distributor of Elf lubricating oils. Total Oil Thailand is the only representative authorised by France's Total Group to run its lube oil business in Thailand.
       Marketing lubricating oils for motor vehicles is the responsibility of Total Oil Thailand.
       The seizure of adulterated lubricant damaged Elf's brand reputation and confused its dealers and customers, said executives of both companies.
       Elf dealers have called on Sittipol 1919 and Total Oil Thailand to address the issue to prevent customers fearing that Elf motor oils could damage their motorcycles.
       "They're not clear about the fake products and want the distributor to assure them the products they buy are authentic," said Pipop Yingpattana, manager of Sittipol 1919's Elf oil product group.
       Sumate Srimanotham, the director of Total Oil Thailand's sales and marketing, insists the adulterated Elf products in white packaging were not in Total Oil's product lineup.
       Genuine Elf products come in blue containers, which are the standard packaging worldwide, said Mr Pipop. Their labels also say that the oil has been produced by Total Oil Thailand and distributed by Sittipol 1919.
       Sittipol 1919 acquired the distributorship of Elf motorcycle lubricating oils in 2007 in Thailand - where fourstroke and automatic-transmission motorcycles are becoming increasingly more common.
       RAC Trading Co had previously distributed Elf products for two-stroke bikes, which have been almost com-pletely phased out from the market.
       Four grades of Elf products are currently available in the Thai market three for four-stroke bikes and one for two-stroke bikes.
       Two-stroke lubricating oil is kept on the market because traditional twostroke motorcyles are still in wide use in rural areas, said Mr Pipop.
       Elf two-stroke oil currently has a 15% share of its market - although Elf expects to hold only 2% of the 80-million-baht market for lubricating oil for both motorcycle types by the year-end.
       Sittipol 1919's sales of Elf products are satisfactory given the short period the company has had to promote the products and the slump in the motorcycle market, said Mr Sumate.

Wednesday, September 16, 2009

Continental Tyres sets up B200m office

       The new 200-million-baht Continental Tyres (Thailand) office consolidates the company's operational focus in Southeast Asia, say company executives.
       "It was only natural that Continental Tyres would seek to strengthen its position in Thailand, given the kingdom's strategic importance and status as an important regional hub of automotive manufacturing," said Benoit Henry, vicepresident for the marketing and sales business unit for replacement tyres in Asia-Pacific.
       Continental, which claims to be the world's fourth-largest tyre manufacturer,has gained a foothold in the Thai tyre market through a multi-brand strategy covering the aftermarket in the mass market and in European passenger cars,commercial vehicles, off-road vehicles and pickup trucks.
       Its flagship products based on German technology include ComfortContact1,SportContact1, ContiPremiumContact2 and ContiCrossXContact AT.
       CTT country manager Wiroj Wachiradechkul will spearhead the Thai unit in enhancing and streamlining distribution, marketing and competitiveness through the dealership network.
       "Our Thai office [Olympia Thai Tower on Ratchadaphisek Road, Huai Khwang]will bring us closer to our customers and enable us to better respond to their specific, localised needs," he said."Our image will be further enhanced through ... sponsorship of the 2010 World Cup in South Africa."
       Continental's two divisions - Passenger and Light Truck Tyres (PLT) and Commercial Vehicle Tyres (CLT)- have plants in Petaling Jaya and Alor Seta in Malaysia for Asia-Pacific markets.
       Continental will penetrate markets by establishing business relationships,staying close to its customers and de-livering innovations employing German engineering, which accounts for a large share of the original equipment manufacturer (OEM) market for highperformance vehicles, said Mr Wiroj.
       Continental Tyres is an affiliate of Continental Corporation, which had sales of more than 24 billion last year as a top supplier of automotive brake systems,powertrains and chassis, instrumentation, vehicle electronics, entertainment systems and tyres.

Sunday, September 13, 2009

CHINA IRE OVER US TYRE TARIFFS

       The decision by the US administration to impose tariffs on tyre imports from China will be a huge blow to the Chinese tyre producers and the Chinese government should take strong counter-measures against exports from America, an industry official said.
       "President [Barack] Obama has increased duties to all imports of passenger vehicle and light-truck tyres from China for a period of three years," the White House said in a statement on Friday.
       In addition to the existing duty of 4 per cent, tariffs will surge by a further 35 per cent in the first year, 30 per cent in the second and 25 per cent in the third. The tariffs will take effect any day before September 26.
       "The new tariffs will be highly damaging to China's tyre industry," said Fan Rende, chairman of China Rubber Industry Association, adding that Chinese tyre companies may not be able to export tyres to the US due to the unreasonably high tariff of 35 per cent starting from next year.
       "Obama's decision may affect the employment of 100,000 tyre workers in China and may bring an aggregated loss of $1 billion (Bt34.4 billion) to China's tyre exporters," Fan said.
       There are currently twenty tyre makers in China and four of them are from the US. He did not reveals the names of the four producers, but currently US tyre manufacturers, such as Bridhestone/Firestone, Goodyear, Michelin and Cooper have operations in China.
       Actually, the US had already ordered Chinese tyre companies to stop supplying tyres to the US, Fan said. "The order is effective immediately," he said.
       Fan urged the Chinese government to take countermeasures against US tariffs, especially on US exports of agricultural products and cars to China.
       "I believe we could find ample cases that are also in line with the WTO rule," he said.
       China Rubber Industry Association, China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters as well as some affected companies had already signed a complaint letter to President Obama.
       In addition, they are considering seeking justice from the United States Court of International Trade, Fan said.

Friday, September 11, 2009

JAPANESE FIRMS TO CONTINUE THAI STAKE

       The Industry Ministry wants Japanese manufacturers to make energy-saving autos apart from eco-cars and companies like Panasonic to produce batteries for electric-vehicle (EV) production in Thailand.
       Minister Charnchai Chairungrueng said following a road show here staged by the Board of Investment (BoI) and the Thailand Automotive Institute, four auto-makers - Nissan, Honda, Mitsubishi and Suzuki - expressed their intention to continue their investment in Thailand. That will be in the form of eco-cars and other types of energy-saving and ecological vehicles, including hybrid and electric vehicles.
       "We asked them to draw up their proposals in detail and submit them as soon as possible. Their investment plans will have our full support as long as they benefit our country," he said.
       Charnchai also met with Panasonic executives yesterday and said the company would also expand its investment in the Kingdom. It is interested in producing hi-tech screens and building a plant to make batteries for EVs.
       Amid strong concerns about global warming and fossil-fuel depletion, auto-makers have shifted their focus in recent years to developing models that are more environmentally friendly and energy-efficient.
       Thailand began to be aware of these changing trends in the automotive industry in 2007 and last year announced it would promote eco-car investment and approve tax incentives for six auto-makers: Honda, Nissan, Toyota, Mitsubishi, Suzuki and Tata.
       However, under pressure from the global financial meltdown, most of them postponed their eco-car production plans until demand recovered.
       Only Nissan insisted it would move forward and launch eco-cars in next year's first quarter.
       Although it, too, was hit by the economic crisis, Nissan accelerated development of hybrid and electric cars, in order to boost sales aggressively.
       Mitsubishi is scheduled to start commercial production of EVs by next year, while Toyota has received a good response for hybrid cars from the Japanese market, with an eight-month backlog of orders.
       "The outlook for the automotive industry is becoming brighter, with demand picking up in some segments, such as passenger cars and energy-saving vehicles.
       Although other segments remain murky, we are at least seeing a clearer direction for the automotive industry," said Vice Minister Sorayut Phettakul.
       He said to enhance Thailand's competitiveness in making EVs, the Kingdom needed a strong supply chain, particularly regarding battery technology.
       "That's why we're trying to persuade Panasonic, the leader in EV batteries, to expand its investment in Thailand," he said.
       Santi Leelawong, director of the BoI's Osaka office, said energy-saving vehicles had been well received by the Japanese, due partly to a government subsidy of 15-20 per cent of the selling price.
       So far, Mitsubishi is the only company to produce EVs for the market. The battery in its cars is good for 160 kilometres, but development continues in a bid to extend the range.

Wednesday, September 9, 2009

US STEEL PUSHES OBAMA TO CHOOSE WORKERS OVER TRADE

       As presidential candidate Barack Obama pledged to stand up for workers by cracking down on imports from China.
       Now President, Obama has promised to fight protectionism and trade barriers.
       His administration must decide which path to take in two of the biggest US trade cases against China.
       US Steel and the United Steelworkers Union are behind a complaint on imported pipe. The union, an Obama political ally, is also pushing for curbs on Chinese auto tyres.
       "These are decisions that can't be avoided, so they'll be perceived as setting the tone for what the Obama administration trade policy is," said Timothy Keeler, the former chief of staff for the US Trade Representative's office. Keeler, a lawyer at Mayer Brown in Washington, represents GITI Tyre, the largest Chinese maker of tyres, in the trade case.
       The decisions may help shape the future of US-China commercial relations. The two countries trade totalled more than $400 billion (Bt13.7 trillion) last year, making China the second largest US trading partner after Canada. China is also the largest foreign holder of US debt, with $776.4 billion.
       The US International Trade Commission, an independent body, has ruled against Chinese importers in both cases. Because the complaints were brought under different provisions of trade law, the Commerce Department has the final say over tariffs on the pipe, used in oil and gas drilling, and Obama will make the call on tyres.
       In a ruling scheduled to be released today, the Commerce Department must decide whether to place duties on $2.8 billion in steelpipe imports from China to compensate for subsidies that Chinese companies collect. The case was brought by the steelworkers; US Steel, the largest US-based steelmaker; US operations of Evraz Group, Russia's second-largest steelmaker; and Wheatland Tube.
       The case is the largest so-called countervailing duty and dumping case filed against China, according to daniel Porter, a lawyer for Winston and Strawn, which represents Chinese producers in the case.
       Obama must decide by September 17 on a petition by the steelworkers to cap or put tariffs on imports of $1.7 billion of tyres from China. It is a test of whether Obama will make good on a campaign pledge to reverse course from former President George W Bush and apply the so-called safeguard measures.
       Bush turned down all four requests he received to impose duties or quotas on Chinese imports, saying the benefits of protection would be dwarfed by the costs. During the presidential campaign, Obama told the textile industry in a letter on October 24, 2008, that he would "decide those cases on their merits".
       "The one thing that is on the line here is the president's credibility," said Scott Paul, executive director of the Alliance for American Manufacturing, a coalition of steel companies such as US Steel and the Steelworkers Union.
       On April 14, 2008, presidential candidate Obama spoke to the United Steelworkers in Pittsburgh, a week before the contested Democratic primary in Pennsylvania.
       "I have consistently supported in the Senate going after China," Obama said then, after embracing union president leo Gerard. "Here's the thing that people don't understand: China needs our market. Their economy is dependent on exports to the United States. We have bargaining power."
       Obama, referring to China's purchase of US Treasuries, added this caveat: "It's pretty hard to argue with your banker," he said. "That's part of our problem with China."

Tuesday, September 8, 2009

Car exports need weeding

       For Thai automakers, meeting international emission requirements and quality standards may be the easy part.Making sure car exports are weed-free is a different challenge altogether.
       Over the past several months, complaints have been building from Australian authorities that Thai cars imported into the country have come with weeds in the wheelwells, tyres and other rubber parts, engine compartment or chassis.
       Weeds ranging from cat-tails to cogongrass, bitter bush and Siam weed are banned by the Australian Quarantine and Inspection Service.
       "These weeds come with the wind and cling to vehicles awaiting shipment at ports or while they are being transported from assembly plants. Sometimes,they come in such large quantities that entire shipments are rejected by Australia.We then have to clean up the cars before they are unloaded," said Thavorn Thammakorn, an official of the Agriculture Department.
       Agencies in both countries agreed to ensure Thai vehicles will be free of weeds.
       Representatives from leading car companies and from the Thai Automotive Industry Association will receive guidelines today from Australian officials on how to avoid weeds. The Thai side has to set up a new inspection unit to check vehicles before departure.
       Of the 530,000 automobiles shipped from Thailand each year,25% each go to Australia and Asian countries,19% to the Middle East, and 13% to Europe.

Sunday, September 6, 2009

Auto-parts suppliers plan US trip

       The government is preparing to lead a trade mission to the United States early next month to look for investment opportunities in auto parts and services in the world's largest economy.
       The mission - scheduled for Oct 1-8 - will be primarily for members of the newly established Thai Auto Parts Aftermarket Association who want to establish Thai auto services and parts centres in Los Angeles, said Thailand Trade Representative Vachara Phanchet.
       The association for second-tier suppliers was established early this year. It now has 147 members, all Thai-owned,from 2,000 local suppliers.
       Thailand's second-tier industry is currently facing not only higher competition from China but also hardship from a bearish automotive industry."The government wants to help the industry to invest abroad to stave off head-on competition with China. The investment in auto services and parts centres in the US will help the industry export more of its products," he said.
       The government has selected Los Angeles as its first target because many Thais live there, he said.
       The mission has a goal for Thai companies to buy and set up 30 auto services centres in 2010 and up to 100 centres within five years.
       The US has 50,000 to 70,000 auto services and parts centres. Large and popular chains include Pep Boys, Auto Zone, Midas and Jiffy Lube.
       The government would ask the SME Bank and the Export and Import Bank of Thailand to support credit facilities for the participating businesses, said Mr Vachara.

B-Quik sets sights beyond Thailand

       B-Quik, the country's largest automobile service chain, is exploring business and investment opportunities in three neighbouring countries as prospects look promising.
       "We desire to be the first fast-fit operator in Vietnam, Laos and Cambodia,"said chief executive Henk Kiks.
       B-Quik is looking at Hanoi and Ho Chi Minh City, where the number of automobiles is growing rapidly. About one million vehicles are running on the streets in both cities, but maintenance services are still mainly limited to old shophouses that offer tyre replacements.
       The company expects to bring the B-Quik concept into Vietnam in 2011.The investment cost is close to that in Thailand as land costs in both Hanoi and Ho Chi Minh City are on par with those in Bangkok.
       Mr Kiks said the company also aimed to enter Phnom Penh and Vientiane,where modern auto service centres are also scarce.
       B-Quik has turned its attention to the three countries after failing to make inroads into Malaysia, where regulations requiring Malaysian majority ownership slowed talks with prospective local partners.
       "We are still interested in this market and are aware that this requirement will be revoked next year," Mr Kiks said.
       In Thailand, he said B-Quik's per-formance in the first half of this year had been excellent despite the sluggish market conditions. Sales grew more than 30% year-on-year even though tyre demand was down. Tyres account for 55%of B-Quik's total annual revenue, and the company has a 15% share of the tyre market in Bangkok.
       B-Quik is the only independent service provider that offers all tyre brands and models.
       The company expects to post sales of about 2 billion baht this year, up 30%from 2008, with tyre sales forecast at 500,000.
       The better-than expected performance in the first half prompted B-Quik to gear up for full expansion in the second half.Many department stores and shopping malls have persuaded B-Quik to expand its centres on their premises to attract more affluent customers.
       B-Quik intends to add at least eight maintenance centres this year, three of which have already opened, with the remaining five to open by year-end. Each centre costs about 100 million baht.
       The company now has 58 centres nationwide and attracts about 40,000 customers a month.
       Mr Kiks said B-Quik also planed a second brand to offer budget products and light maintenance services.
       In addition to tyres, B-Quik offers services including oil changes, brake and suspension system replacement and airconditioner repairs.

Thursday, September 3, 2009

SIAM GS GRAES FOR DEMAND

       Siam GS Battery is expanding its capacity next year on optimism that demand for replacements from car owners and for new batteries among auto-makers will increase following the economic recovery.
       The company has set aside Bt75 million for capacity expansion at its Bang Phumai plant.
       The investment will increase production capacity from the current 3.5 million units per year to between 4.2 million and 4.5 million units per year, said Saran Chinprahat, managing director of Siam GS Sales, the marketing arm of Siam GS Battery.
       "The expansion is to serve the expected higher demand next year in the domestic market by those who want to replace their old batteries and by the car manufacturers," Saran said.
       He added that manufacturers are expected to boost their vehicle production capacity in the second half in line with the signs of the recovering economy.
       He said the company would install new machines at the Bang Phumai plant in October as part of the production capacity expansion, and the plant would test run the new machinery in November.
       "Also, we will renovate our existing plant in order to maximise the utilisation space," he said.
       Of the company's total current production, 60 per cent is for the replacement market, while another 30 per cent supplies the auto-makers on the Original Equipment Manufacturing basis (OEM). It exports the remaining 10 per cent mainly to the Asean market, including Burma, Laos and Cambodia.
       For the replacement market alone, GS Battery targets to sell 1.9 million units of the batteries this year, of which more than one million units were achieved in the first seven months.
       "We target a 50-per-cent share of the replacement market this year before rising to 60 per cent next year after the capacity expansion, up from the present level of around 40 per cent," Saran said. Total sales of batteries in Thailand is about four million units per year.
       The company also launched its latest product model, the D-Tech (Dry-MF Technology) battery, in the middle of last month, which targets the replacement market.
       "Our performance in the domestic replacement market during the first half of this year was satisfactory, as it saw year-on-year growth of 15 per cent in value and 50 per cent in volume," he said.
       He said that GS Battery was also the leader in the OEM market, with 55-per-cent market share.
       Saran said the company had seen a significant drop in its OEM sales by almost 40 per cent year on year in the first six months of this year due to a heavy decline in automotive production and sales in Thailand.
       "However we have seen a better sign of recovery for OEM production, especially in the second half of this year. Many carmakers to which we supply batteries, such as Toyota, Isuzu, Mitsubishi, General Motors, Tata, Mazda and Ford, have started to increase their vehicle production," he said.