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.

Tuesday, September 1, 2009

In-car warning systems help steer around trouble

       We have all heard the voices when driving: "Be careful", "Slow down", and so on.
       But now such warnings may not come from a nagging passenger - it could be the electronic voice of a GPS system that identifies a car's position and issue advice about obstacles, speed limits and more to help motorists drive more safely and efficiently.
       G-Box , a new in-vehicle digital assistant system, has been launched after 18 months of development, said Passakon Prathombutr, Intelligent Transportation System Program Director at the National Electronics and Computer Technology Center (Nectec).
       Its operating system acts similarly to Linux and collects and stores data such as location and speed, which is sent back via the GPRS mobile phone network to a central server.
       The device connects with an electronic control unit (ECU) and automotive controller area network so the device status is known at all times.
       At the central sever, the operator can remotely monitor the vehicle by logging in to the web-based system.
       The central server links to a real-time traffic database to interact with the driver using a small speaker system connected to the G-Box.
       The agency will set warning phrases to warn the driver if, for example, they drive over the speed limit, or are approaching danger areas such as sharp bends, construction areas, accident zones, and so on.
       In cases where the car is involved in an accident and the driver is unconscious, the system will automatically switch to emergency mode and call the rescue services.
       The device has already been tested in two oil trucks plying a route between Tak and Lampang.
       In the case of the oil trucks, the pre-configured warnings focused mainly on ensuring the drivers stopped at checkpoints, took care in potentially dangerous areas, and so on.
       Installing the system on an heavy goods vehicle worth 6-7 million baht could prove cost-effective in the long term because its warnings would significantly reduce the risk of damaging or destroying such an expensive vehicle, as well as the contents it is carrying.
       The system could similarly drive down costs for public service vehicles such as taxis and buses through avoidance of, or encouraging careful driving in, dangerous areas and situations.
       A further cost-effective element to the device is that insurance companies might consider offering discounted rates to owners of vehicles that have the system installed.
       Much like the black box in an aeroplane, the G-Box stores car performance and driver behaviour so that the causes of accidents - both in terms of individual incidents and wider trends - can be investigated and analysed.
       The information gathered from this device can help tutors coach motorists on how to drive more safely, or to focus on a more preventive style of driving, as well to to reduce energy costs and foster a more environmentally friendly traffic culture.
       Furthermore, the G-Box's Linux-like open source could potentially entice developers to create new business models with the technology, with in-vehicle entertainment being one possibility.
       Passakon continued that in the near future, G-Box will become interactive between drivers, as it would become one part of Telemetric, a wireless vehicle-to-vehicle communication system.
       The media between vehicles can be sent via infrared or microwave.
       Nectec has opened research cooperation with King Mongkut's University of Technology North Bangkok and the Asian Institute of Technology to build a prototype with a communication range of at least 500 metres.
       Currently, if there is an accident occurs in the road ahead, drivers further down the route may be unaware of it - and therefore will also be ignorant of any delays or dangers resulting from it.
       With Telemetric up and running, the car involved in the accident could automatically send a warning signal via short-range wireless communication to nearby cars which also have the technology installed.
       Furthermore, cars which cannot receive the signal via G-Box may be able to pick up warning signals via mobile phone.
       As it is impossible to install G-Box in every car, the technology could also be applied to mobile phones, as almost everybody owns or has access to one, Passakon concluded.