Why Thailand Ford?

[GTP-RPD]

Good luck with your new plant and a stable workforce.

http://edition.cnn.com/2014/01/11/wo...tml?hpt=ias_c1


Ford’s production was hurt by Thailand’s worst flooding in almost 70 years last October, causing losses of more than $80 million, Hinrichs said.

Thailand Floods

“We lost a lot of production in the fourth quarter and coming into the first quarter, we still felt the languishing effects of that,” Hinrichs said. “But it hasn’t changed our fundamental strategy, which is our commitment to Thailand, as an export and manufacturing hub.”

[Fordman1]

FTA for the win !

[Trump]

Why Thailand?

Because FTA made it very attractive to set up a plant. Coupled with very low labour costs, it was a no brainer for Ford.

[Road_Warrior]

Sooner or later these protestors will twig to the fact that the manufacturing belt of Thailand is where they can grab the government by the balls, and instead of blockading the Bangkok CBD, they will blockade the districts with the car plants in.

[rdmr]

Originally Posted by Road_Warrior

Sooner or later these protestors will twig to the fact that the manufacturing belt of Thailand is where they can grab the government by the balls, and instead of blockading the Bangkok CBD, they will blockade the districts with the car plants in.

Send the protest organisers/group an email.

[GQ_Smooth]

Originally Posted by Road_Warrior

Sooner or later these protestors will twig to the fact that the manufacturing belt of Thailand is where they can grab the government by the balls, and instead of blockading the Bangkok CBD, they will blockade the districts with the car plants in.

The day is coming sooner than most people realise. Wait until protesters start getting detained, jailed or worse for stopping production in their manufacturing heartland. They have every right to protest with the conditions some of them have to go through and generations of ingrained corruption in their governments.

The "rule of law" doesn't apply in Thailand to the same level as it does in most western countries there is every possibility the deck of cards can fall.

[Wretched]

Numerous factors I would imagine.
- FTA
- Cost of having to essentially rebuild the plants in AU to accomodate new models
- Export costs (AU$)
- Doing business in AU vs Thailand (taxes, red tape, etc)
- Labor costs

[Kieron]

Thailand is also strategically located in the SE Asia region where I believe Ford have targeted as a high growth area, it's not purely about Ford AU and or the FTA with us.

[jpd80]

Originally Posted by Kieron

Thailand is also strategically located in the SE Asia region where I believe Ford have targeted as a high growth area, it's not purely about Ford AU and or the FTA with us.

Thailand also has access to most Asian markets without penalty of taxes and charges like those thrown at Australian exporters..
The only thing our northern neighbors want us to export is our Aussie jobs and more importantly, our dollars...

[Kieron]

Originally Posted by jpd80

Thailand also has access to most Asian markets without penalty of taxes and charges like those thrown at Australian exporters..
The only thing our northern neighbors want us to export is our Aussie jobs and more importantly, our dollars...

Thailand are no different to Australia in that regard though, naturally Austraila would like their jobs and their dollars but reality is, each country has it's strengths and weaknesses, our weakness are high labor costs, low volumes and relative isolation in comparison to Thailand and those taxes you mention are based on engine capacity, if we produced vehicles with engines under that capacity, we would be in a stronger position and the FTA would work both ways.

Our strengths are digging stuff out of the ground and a highly educated workforce and that's what we should be leveraging on the world stage.

[Wretched]

Originally Posted by Kieron

Thailand are no different to Australia in that regard though, naturally Austraila would like their jobs and their dollars but reality is, each country has it's strengths and weaknesses, our weakness are high labor costs, low volumes and relative isolation in comparison to Thailand and those taxes you mention are based on engine capacity, if we produced vehicles with engines under that capacity, we would be in a stronger position and the FTA would work both ways.

Our strengths are digging stuff out of the ground and a highly educated workforce and that's what we should be leveraging on the world stage.

True, to add to that we have world renowned agriculture business. We should be investing further in this.

Instead of whining and complaining, bagging other countries and organisations for "ditching" Australian workers it would be far more prudent to reflect on what is happening; why are they leaving and going offshore and how can we sell Australia as the place to invest? Would YOU as a business owner invest in AU with your own $$?

Obviously this would need to come from all levels of government, business and individuals but instead of wallowing in our sorrows we should be fighting back by making changes and adapting to the now global economy. We should try and limit our weaknesses and exploit our strengths. Individuals en masse can write to their MPs demanding changes in laws surrounding investments, business, etc. Buying local isn't going to cut it anymore, we need a revolution in the way we do things.

It is easy to sit back and criticise a business for shifting its operations overseas but it would be far better to understand why and compete to win that business back. Unfortunately one of the biggest road blocks is attitude, everyone needs to take a good look at themselves and remember that we reap what we sow.

[Franco Cozzo]

The manufactures won't be laughing all the way to the bank if there is a war in the region or riots.

[buickman]

Originally Posted by Big Damo

The manufactures won't be laughing all the way to the bank if there is a war in the region or riots.

It’s all about the dollar and countries like Japan, South Korea which are stable but have a lunatic in charge at their door step as in Nth Korea that could cause instability in the region and Thailand is not as stable like Australia but it’s cheaper to build them over there until a flood or political unrest stops productivity real shame the automotive manufacturing is coming to an end in Australia

[Road_Warrior]

Originally Posted by Big Damo

The manufactures won't be laughing all the way to the bank if there is a war in the region or riots.

Or another military coup.

There's a lot of instability in the region at the moment, not getting much coverage in the press here, but China is assertively staking its territorial claim over the South China Sea. Other nations who share this body of water are challenging China's claim...with warships...

[Road_Warrior]

Originally Posted by Road_Warrior

Or another military coup.

There's a lot of instability in the region at the moment, not getting much coverage in the press here, but China is assertively staking its territorial claim over the South China Sea. Other nations who share this body of water are challenging China's claim...with warships...

Hmm crystal ball was working well that day.

This will all be over in a few days, chaps.

Maybe.

[Dodge]

im in the stainless business when i go to china they tell me lots of factorys from china moved to thailand because the china gov charges export tax to the factorys so they move to thailand for even cheaper manufacturing . where does it stop even china is winging to much overheads

[aussie muscle]

Originally Posted by Dodge

im in the stainless business when i go to china they tell me lots of factorys from china moved to thailand because the china gov charges export tax to the factorys so they move to thailand for even cheaper manufacturing . where does it stop even china is winging to much overheads

It's been a constant moving of seats. they started in Japan after WW2, when that got too expensive, they moved to Taiwan, that's too expensive now, so they moved to mainland china and now that they are getting expensive they are moving to countries like Malaysia and Vietnam. Next they'll move to northern africa for cheap labor.

[Itsme]

Originally Posted by aussie muscle

It's been a constant moving of seats. they started in Japan after WW2, when that got too expensive, they moved to Taiwan, that's too expensive now, so they moved to mainland china and now that they are getting expensive they are moving to countries like Malaysia and Vietnam. Next they'll move to northern africa for cheap labor.

The companies will go off shore to chase 3rd world countries for cheap labour for increase profit under the guise for the shareholders benefit.
Just pure greed imo.

I think it is about time the share holders spoke up for the benefit of their own future generations.

[BHDOGS]

One night in Bangkok makes a hard man humble
Not much between despair and ecstasy
One night in Bangkok and the tough guys tumble
Can't be too careful with your company
I can feel the Devil walking next to me

[zilo]

Makes you wonder if a car company is worth supporting when they tell you that your people aren't good enough to employ, but will happily sell you their goods?

[Road_Warrior]

Originally Posted by zilo

Makes you wonder if a car company is worth supporting when they tell you that your people aren't good enough to employ, but will happily sell you their goods?

I don't think it was a case of being not good enough, more it was that we are too expensive. But I agree with your other sentiment.

[HULK_I6T]

Just territory to be built in Thailand?

[monte.b]

civil war maybe ,problem is the army has all the guns doesnt look like a very good place to invest millions of dollars to me ,they could burn the lot and i hope they do

[GTP-RPD]

Not to re-direct the discussion but I have also now stopped eating Tuna after realising that MOST of the the big brand Tuna sold here is YOU GUESSED IT from Thailand.

It used to be caught, cooked and tinned right here in Pt Lincoln.

I have decided to draw the line folks......

[Vesper Martini]

Originally Posted by GTP-RPD

Not to re-direct the discussion but I have also now stopped eating Tuna after realising that MOST of the the big brand Tuna sold here is YOU GUESSED IT from Thailand.

It used to be caught, cooked and tinned right here in Pt Lincoln.

I have decided to draw the line folks......

I heard seafood caught in Australian waters was sent to Thailand to process before it returns here. as fresh.
Thailand is booming at the moment, its not the cheap backpacker holiday I once knew either.

[GTP-RPD]

Originally Posted by Bevsta007

I heard seafood caught in Australian waters was sent to Thailand to process before it returns here. as fresh.
Thailand is booming at the moment, its not the cheap backpacker holiday I once knew either.

Thats what i though but not the case..

Made in Thailand from local and imported ingredients....no mention of "aussie tuna".......anywhere.... so I guess this is one tuna "I reject" Mr West et al.....

One theory of Thailand booming could be the second "The Hangover" instalment...lol....

[Golioth]

Originally Posted by GTP-RPD

Not to re-direct the discussion but I have also now stopped eating Tuna after realising that MOST of the the big brand Tuna sold here is YOU GUESSED IT from Thailand.

It used to be caught, cooked and tinned right here in Pt Lincoln.

I have decided to draw the line folks......

They are opening up new canneries in PNG.....must be cheap and have a lot of government support/brown paper bags

[XR Martin]

Originally Posted by GTP-RPD

Not to re-direct the discussion but I have also now stopped eating Tuna after realising that MOST of the the big brand Tuna sold here is YOU GUESSED IT from Thailand.

It used to be caught, cooked and tinned right here in Pt Lincoln.

I have decided to draw the line folks......

Ironically our best seafood gets sent to Asia because they are willing to pay for top quality product.
In exchange we get their rubbish dragged from dangerously polluted waters because we want everything as cheap as possible.

[Theo@BluePower]

Build a car in Thailand costs Ford about $800
Build a car in Australia costs Ford about $10,000

This is a big difference, The Thailand factory is running at like 20% and its the most modern factory ford have. The cars wont be that much different to the ones Made in USA

[zilo]

Originally Posted by Theo@BluePower

Build a car in Thailand costs Ford about $800
Build a car in Australia costs Ford about $10,000

Sure, but that is not completely attributable to labour cost alone.

Ford Australia have to pay govt costs that are often non existent in Asian countries.

Like factoring in overall profits that can be sent back to the US with much less tax paid as incentives to manufacture there.

Ask Ireland how many Intel microprocessors are manufactured there since the tax breaks finished....ZERO