Is GM Thailand as stupid as GM USA ?

Struggling GM Thailand will temporarily shut its plant in Rayong again from March 23-27 to address excessive inventory due to a demand slump. The plant will resume operations on March 30. The company earlier closed its Rayong plant for two months from December last year due to the deepening economic crisis and the need to manage cash-burn.

In its statement yesterday, the firm said the current economic situation impacted all industries and the effect was global in nature. It needed to restructure its operations as the demand for big-ticket items such as automobiles had fallen dramatically. (Bangkok Post)

Fair enough. We knew that. The whole car industry is suffering (Japan, USA, Europe) so it was a dream to think that it wouldn’t be the case… in Thailand (excepted for the clowns of course).

What is rather disturbing is the statement of the company…

GM is committed to the Thai market, is self-sustainable and believes the merits of its projects to Thailand are clear and compelling. Laying off workers is always the last option, and the decision to force any employee to resign is objective and based on strict criteria. At no time has favouritism or personal judgment played a part in the decision-making process.

If employees are forced to resign or resign voluntarily, this is inevitable due to the decline in demand for auto products which has significantly lowered GM Thailand’s production output.

”Contrary to some inaccurate reports, currently we do not have any further plans to lay off workers,” it said.

It also denied reports that GM Thailand and Chevrolet Sales Thailand (CST), its affiliate and marketing arm in Thailand, were on the brink of bankruptcy.

Let’s put it straight : if a company can’t sale the cars it produces… then the company is dead.

Period.

Sure for a while, the company can continue to produce. But after a certain period of time, if there is still no demand for its cars, then the name of the game becomes costs cutting, factories closure, lay-off, then eventually bankruptcy.

It’s fascinating to see the orwellian doublespeak at work here (in the US, in Thailand, in Europe, everywhere).

They would like you to believe that a company producing cars that can’t be sold is indeed a perfectly normal model, sustainable and even good !

To say today that GM Thailand is self-sustainable is a joke. What does “self-sustainable” mean with falling sales and factories closure ? GM USA has been playing the same game for years.

And if the shit continues to hit the thai fan, GM USA will not be “committed” anymore ! Like they are not really committed anymore… to Opel and Saab in Europe.

As for GM USA, it’s probably already over. Obama continues to give life support (very high doses of “taxpayers money-morphine”)… but It won’t be enough to reanimate the corpse.

Here is the lastest news about GM… a rather bad omen…

Bankruptcy Lawyer Joins Obama’s Advisory Team on GM, Chrysler […]

The largest U.S. automaker has lost $82 billion since its last annual profit in 2004 and has been fending off speculation about bankruptcy for more than two years. (Bloomberg)

2 Responses to “Is GM Thailand as stupid as GM USA ?”


  1. 1 Prokster 16 March 2009 at 7:01 am

    GM are toast in Thailand. Plenty of rumours going round. They are a true beast of a company, and with a few rare exceptiptions, make very poor cars.

  2. 2 Lloyd 16 March 2009 at 2:11 pm

    People need to take a long hard look at the parent company(s) and what, if anything, it returns to all the countries where there are operations or manufacturing centers. Are these self sustaining businesses that generate a profit for the country or are they simply manufacturing facilities that are build as a means to an end to avoid taxes or provide subsidised products for the parent company.

    For too long companies like GM have been subsidised by various Governments for the sake of providing employment for unskilled and semi skilled labor. This needs to change and the automotive industry needs to stand on its own feet, if they fail then so be it, others will soon follow with better products and business models.

    I agree GM cars would have to be some of the worse engineer, manufactured and assembled vehicles on the road!


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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