Mitsubishi Motors Thailand has temporarily suspended operations at its headquarters in Pathum Thani and two factories in Chon Buri, the latest measure to counter the deepening recession and automotive industry slump.
Earlier this year, the Japanese automaker laid off 1,100 temporary workers and offered voluntary resignation for permanent staff with maximum compensation of 26 months’ salary for those serving more than 25 years and aged between 51 and 55 after auto demand at home and abroad plummeted.
To avoid a buildup of inventory, the company started cutting its production by 40% from previous forecasts in line with the declining demand. About 80% of vehicles produced are slated for export.
Under the suspension plans, two factories will be shut down for five days in April and 10 days in May and for an undetermined period in June. The headquarters will be closed one day this month, three days in May and an unfixed period in June. […]
Automobile sales for Mitsubishi in the first quarter of this year dropped 51.8% to 3,857 units from from 8,006 in the same period a year earlier. (Bangkok Post)
This decision shows that the car market for exports doesn’t get better… It’s like an avant-gout of the figures that should be published monday, about total exports in march.
How long can it go like this ? How long “temporary” can be sustainable ? Can “temporary” become “permanent” ?
As I wrote before : duration is one of the key factor of the crisis.
If the exports market doesn’t recover quickly, then the thai car industry will have to take more… “permanent” decisions…
[We are going to hear about General Motors soon… I recommend you to read my article about GM Thailand, written in march]