One of the main reasons electric cars have never before made it to the mass market has been the lack of an affordable, reliable and real-world battery.
Nissan began its battery research and development in 1992, and in 2000 it shifted to using laminated managenese electrodes. The lithium-ion battery pack that powers the Leaf has 48 modules, each containing four laminated strips.
The batteries used in the Leaf are produced by Automotive Energy Sypply, a company formed jointly by Nissan, NEC and NEC Tokin. They allow a range of 160 kilometres and can be completely charged in 8 hours using a 200-volt plug point. A quick-charge port will charge the batteries up to 80 per clent of capacity in just 30 minutes, but this requires a 400-volt supply.
Although costs have been lowered, the battery is still one of the most expensive components in the vehicle. There are concerns that as more auto-makers begin using lithium-ion technology, there could be a shortage of lithium. However, Nissan president Carlos Ghosn says scientists are working on batteries made of other materials.
Upon getting into a Leaf, the first thing the car's information-technology system tells the driver is the radius of travel, or the distance to and from a destination, that the battery's charge is capable of covering.
Nissan is also working on an iPhone application that will allow Leaf owners to remotely log on to the car and check the battery level and temperature of their vehicle,
The Leaf's GPS system will tell drivers the location of charging stations in the vicinity. However, the auto-maker says since electricity is already available everywhere, it should not be long before charging stations are popular.
The Leaf will also have an embedded cellular connection to Nissan headquarters. This will enable the vehicle to alert its owner through his or her mobile phone when charging is complete. Drivers will also be able to turn on the car's air-conditioning by mobile phone.
"The initial cooling by the air-conditioning uses up lots of precious energy that would otherwise be used to propel the vehicle," said Nissan design chief Shiro Nakamura.
"The point of turning on you're air-conditioning by mobile phone is to use that energy while the car is still plugged in."
Another fancy option offered by the Leaf's technology allows owners to set the time at which it charges the battery. Thais is useful in countries where there are cheaper electricity rates at off-peak hours.
While many might consider plugging a car into a power socket an ultimate hi-tech achievement, Nissan is already looking into the "next generation" of wireless battery charging. With this system, the vehicle is fitted with special plate with an internal coil. When the vehicle is parked over another plate on the floor, charging begins automatically.
Nisssan says this system could be used in commercial charging locations like shopping malls and office buildings. Currently, it is only 80-to 85-per-cent efficient, although Nissan engineers says it could get much more efficient if developed for real-world use.
At the launch of the Leaf, Nissan had a Hypermini fitted with a wireless charging system on display.
Monday, August 31, 2009
GM China, China's FAW launch venture
General Motors China and state-owned automaker FAW Group Corp launched a 2-billion-yuan ($293-million)joint venture yesterday to make lightduty trucks and vans, initially for the fast-growing Chinese market.
GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010, GMChina group president Kevin Wale told reporters in a conference call.
Plans call for building a new assembly plant in Harbin, he said.
China is a key growth market for GM,which is expanding here despite its difficulties in the US market.
"Light trucks and vans have a significant role in China and other parts of the world," Mr Wale said."Adding trucks rounds out our vehicle portfolio in China.It's really a key focus for future growth."
The 50-50 joint venture, based in the northeastern Chinese city of Changchun,where FAW is also based, will make FAWbranded vehicles for the Chinese market,GM said in a statement. The venture might make GM-branded vehicles for export later, but the focus for now is on meeting demand in China, Mr Wale said.
Production will be at the existing factories in southwestern China's Yunnan province, a facility owned by FAWaffiliate Hongta Yunnan Automobile Manufacturing Co Ltd and at Harbin Light Vehicle Co Ltd in the northeastern city of Harbin, GM said.
It said the two companies will conduct research and development, exports and after-sales support, as well as vehicle production.
"Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both," Nick Reilly, GM executive vice president, said in a statement.
"It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer," Mr Reilly said.
Discussions on the venture began in early 2007 and it obtained regulatory approval in July, GM said.
FAW, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008.
GM's sales in China jumped 38% in the first half of this year, helped by strong demand for its minivans and other small vehicles. The automaker sold over 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year, the company said.That compares with sales of 1,094,561 GM vehicles in China for all of 2008.
Adding truck production will help expand the company's exposure in one of the few major markets that continues to grow. GM's commercial vehicle sales are expected to reach 80,000 to 90,000 this year and to rise further next year.
GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010, GMChina group president Kevin Wale told reporters in a conference call.
Plans call for building a new assembly plant in Harbin, he said.
China is a key growth market for GM,which is expanding here despite its difficulties in the US market.
"Light trucks and vans have a significant role in China and other parts of the world," Mr Wale said."Adding trucks rounds out our vehicle portfolio in China.It's really a key focus for future growth."
The 50-50 joint venture, based in the northeastern Chinese city of Changchun,where FAW is also based, will make FAWbranded vehicles for the Chinese market,GM said in a statement. The venture might make GM-branded vehicles for export later, but the focus for now is on meeting demand in China, Mr Wale said.
Production will be at the existing factories in southwestern China's Yunnan province, a facility owned by FAWaffiliate Hongta Yunnan Automobile Manufacturing Co Ltd and at Harbin Light Vehicle Co Ltd in the northeastern city of Harbin, GM said.
It said the two companies will conduct research and development, exports and after-sales support, as well as vehicle production.
"Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both," Nick Reilly, GM executive vice president, said in a statement.
"It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer," Mr Reilly said.
Discussions on the venture began in early 2007 and it obtained regulatory approval in July, GM said.
FAW, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008.
GM's sales in China jumped 38% in the first half of this year, helped by strong demand for its minivans and other small vehicles. The automaker sold over 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year, the company said.That compares with sales of 1,094,561 GM vehicles in China for all of 2008.
Adding truck production will help expand the company's exposure in one of the few major markets that continues to grow. GM's commercial vehicle sales are expected to reach 80,000 to 90,000 this year and to rise further next year.
Friday, August 28, 2009
JAPAN CARMAKERS FACE LONG CONTRACTION
Global production at Japan's top auto-makers sank again in July, dragged down by a prolonged slump in demand and lingering uncertainty over a recovery in the battered industry.
Toyota Motor, the world's biggest auto company, yesterday said its global output dropped 20.1 per cent from a year earlier to 576,074, making the 12th straight monthly decline.
Earlier in the day, Toyota said it was pulling out of a California factory joint venture it had previously run with General Motors - the frist time the Japanese auto gaint is closing a major car assembly plant ever.
The move came after the The auto giant withdrew from the 50:50 joint venture in May.
Toyota said it would not be "economically viable" to keep production at the California joint venture.
Hit by plummeting global demand, the company racked up its worst loss ever of 436.9 billion yen(Bt159 million)for the previous fiscal years, and is expecting more red ink for the fiscal year through March 2010.
Toyota's production in the United States fell 20.8 per cent in July to 63,360, while its output in Japan dropped 30 per cent to 261,099. Honda Motor, Japan's No 2 auto-maker, said its global production in July tumble 24.3 per cent to 258,972, down for the ninth consecutive month. Its output in the US dropped 37.6 per cent, while that for Europe nose-dived 48.9 per cent - the 13th straight monthly decline.
Nissan Motor said the pace of decline in global production was becoming moderate, with its worldwide output down 15.9 per cent to 265,623 in July.
But the company, allied with Renault SA of France, said it remained unclear when demand at home and abroad would pick up.
"We cannot really say when demand will recover. Overall, global demand remains sluggish except China," said Nissan spokesman Mitsuru Yonekawa.
China is the bright spot for Nissan with its putput in the world's third-largest economy soaring 42.8 per cent to 54,265 in July, thanks to rising consumer demand.
Yonekawa said the Teana sedan is selling well in China.
Mazda Motor reported a 16.4-per-cent drop in global production at 105,434 vehicles.
Mitsubishi Motors said its global production in July came at 63,540, down 45.6 per cent year-on-year.
It marked the 17th straight monthly decline.
Toyota Motor, the world's biggest auto company, yesterday said its global output dropped 20.1 per cent from a year earlier to 576,074, making the 12th straight monthly decline.
Earlier in the day, Toyota said it was pulling out of a California factory joint venture it had previously run with General Motors - the frist time the Japanese auto gaint is closing a major car assembly plant ever.
The move came after the The auto giant withdrew from the 50:50 joint venture in May.
Toyota said it would not be "economically viable" to keep production at the California joint venture.
Hit by plummeting global demand, the company racked up its worst loss ever of 436.9 billion yen(Bt159 million)for the previous fiscal years, and is expecting more red ink for the fiscal year through March 2010.
Toyota's production in the United States fell 20.8 per cent in July to 63,360, while its output in Japan dropped 30 per cent to 261,099. Honda Motor, Japan's No 2 auto-maker, said its global production in July tumble 24.3 per cent to 258,972, down for the ninth consecutive month. Its output in the US dropped 37.6 per cent, while that for Europe nose-dived 48.9 per cent - the 13th straight monthly decline.
Nissan Motor said the pace of decline in global production was becoming moderate, with its worldwide output down 15.9 per cent to 265,623 in July.
But the company, allied with Renault SA of France, said it remained unclear when demand at home and abroad would pick up.
"We cannot really say when demand will recover. Overall, global demand remains sluggish except China," said Nissan spokesman Mitsuru Yonekawa.
China is the bright spot for Nissan with its putput in the world's third-largest economy soaring 42.8 per cent to 54,265 in July, thanks to rising consumer demand.
Yonekawa said the Teana sedan is selling well in China.
Mazda Motor reported a 16.4-per-cent drop in global production at 105,434 vehicles.
Mitsubishi Motors said its global production in July came at 63,540, down 45.6 per cent year-on-year.
It marked the 17th straight monthly decline.
Thursday, August 27, 2009
"Clunkers" generate nearly 700,000 sales
The "Cash for Clunkers" programme generated nearly 700,000 new car sales and ended under its $3 billion budget, the Transportation Department said on Wednesday.
Releasing final data, the government said dealers submitted 690,114 vouchers totalling $2.88 billion. New car sales through the programme ended late Monday, and dealers were allowed to submit paperwork to the government until late Tuesday.
Japanese automakers Toyota, Honda and Nissan accounted for 41% of the new vehicle sales, outpacing Detroit automakers General Motors, Ford and Chrysler; their share totalled nearly 39%.Toyota Motor Corp led the industry with 19.4% of new sales, followed by General Motors Co with 17.6% and Ford Motor Co with 14.4%.
The Toyota Corolla was the most popular new vehicle bought under the program, followed by the Honda Civic,Toyota Camry and Ford Focus.
Transportation Secretary Ray LaHood said that American consumers and workers were "the clear winners" under the programme.
"Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel-efficient cars that will save them money and improve the environment," he said.
The White House Council of Economic Advisers said the programme would boost economic growth in the third quarter by 0.3 to 0.4 percentage points because of the increased auto sales in July and August."An estimated 42,000 jobs will be created or saved during the second half of the year," the White House said.
The programme, which began in late July, offered consumers rebates of $3,500 or $4,500 off the price of a new vehicle in return for trading in their older, less fuel-efficient vehicles. The trade-ins were then scrapped.
It proved far more popular than lawmakers originally expected. Congress was forced to add another $2 billion to the original $1 billion budget when the first pot of money almost ran out in a week. The extra money was supposed to last until the second week in September, but Cash for Clunkers eventually ran only about a month.
Dealers loved the new sales, but reported major hassles trying to get the government to repay them for the rebates they gave customers. The government extended the deadline for them to file deals, but many still have not received their money.
Peter Kitzmiller, president of the Maryland Automobile Dealers Association, said most dealers appeared to get their paperwork in by the Tuesday night deadline. He expressed hope the pace of repayments would pick up now that government officials are working through the backlog.
The Transportation Department said on Wednesday that 2,000 people are processing dealer applications, but Kitzmiller said the rate of repayment has not increased."I'm a little concerned that we haven't seen any improvement."
The government said 84% of the tradeins were trucks and 59% of the new vehicles were passenger cars. New vehicles bought through Cash for Clunkers had an average fuel-efficiency of 24.9 miles per gallon (10.6 kilometres per liter), compared with an average of 15.8 mpg (6.7 kpl) for trade-ins, a 58% improvement.
American companies accounted for all the top-10 traded-in vehicles. The Ford Explorer four-wheel-drive was the most popular, followed by the Ford F-150 pickup two-wheel-drive, the Jeep Grand Cherokee four-wheel-drive and Ford Explorer two-wheel-drive.
Releasing final data, the government said dealers submitted 690,114 vouchers totalling $2.88 billion. New car sales through the programme ended late Monday, and dealers were allowed to submit paperwork to the government until late Tuesday.
Japanese automakers Toyota, Honda and Nissan accounted for 41% of the new vehicle sales, outpacing Detroit automakers General Motors, Ford and Chrysler; their share totalled nearly 39%.Toyota Motor Corp led the industry with 19.4% of new sales, followed by General Motors Co with 17.6% and Ford Motor Co with 14.4%.
The Toyota Corolla was the most popular new vehicle bought under the program, followed by the Honda Civic,Toyota Camry and Ford Focus.
Transportation Secretary Ray LaHood said that American consumers and workers were "the clear winners" under the programme.
"Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel-efficient cars that will save them money and improve the environment," he said.
The White House Council of Economic Advisers said the programme would boost economic growth in the third quarter by 0.3 to 0.4 percentage points because of the increased auto sales in July and August."An estimated 42,000 jobs will be created or saved during the second half of the year," the White House said.
The programme, which began in late July, offered consumers rebates of $3,500 or $4,500 off the price of a new vehicle in return for trading in their older, less fuel-efficient vehicles. The trade-ins were then scrapped.
It proved far more popular than lawmakers originally expected. Congress was forced to add another $2 billion to the original $1 billion budget when the first pot of money almost ran out in a week. The extra money was supposed to last until the second week in September, but Cash for Clunkers eventually ran only about a month.
Dealers loved the new sales, but reported major hassles trying to get the government to repay them for the rebates they gave customers. The government extended the deadline for them to file deals, but many still have not received their money.
Peter Kitzmiller, president of the Maryland Automobile Dealers Association, said most dealers appeared to get their paperwork in by the Tuesday night deadline. He expressed hope the pace of repayments would pick up now that government officials are working through the backlog.
The Transportation Department said on Wednesday that 2,000 people are processing dealer applications, but Kitzmiller said the rate of repayment has not increased."I'm a little concerned that we haven't seen any improvement."
The government said 84% of the tradeins were trucks and 59% of the new vehicles were passenger cars. New vehicles bought through Cash for Clunkers had an average fuel-efficiency of 24.9 miles per gallon (10.6 kilometres per liter), compared with an average of 15.8 mpg (6.7 kpl) for trade-ins, a 58% improvement.
American companies accounted for all the top-10 traded-in vehicles. The Ford Explorer four-wheel-drive was the most popular, followed by the Ford F-150 pickup two-wheel-drive, the Jeep Grand Cherokee four-wheel-drive and Ford Explorer two-wheel-drive.
MORE ECONOMICAL ENGINE FOR TOYOTA IQ
Toyota is offering a new Dual VVT-i engine for the iQ microcar, with an output of 72 kilowatts/98 horsepower and start-stop technology that brings the fuel consumption down to 4.8 litres per 100 kilometres with a carbon dioxide emission figure of 113 grams per kilometre.
The Japanese manufacturer is also working on plans to produce an electric version of the iQ, with a range of 150 kilometres provided by electric motors to all four wheels.
A prototype of the vehicle was shown at this year's Detroit Motor Show in Michigan. Described in ternally as the BEV, for Battery Electric Vehicle, the new car will not occupy the same market sector as the iQ and will be fitted with a bodywork separate from the iQ. It is schduled for a market launch next year.
The Japanese manufacturer is also working on plans to produce an electric version of the iQ, with a range of 150 kilometres provided by electric motors to all four wheels.
A prototype of the vehicle was shown at this year's Detroit Motor Show in Michigan. Described in ternally as the BEV, for Battery Electric Vehicle, the new car will not occupy the same market sector as the iQ and will be fitted with a bodywork separate from the iQ. It is schduled for a market launch next year.
BMW 7 SERIES WITH HYBRID BRIVE AT FRANKFURT SHOW
At next month's Frankfurt Motor Show, BMW will showcase a 7 Series V8 engine combined with an electric motor that together produce a power package of 465 horsepower with fuel consumption of only 9.4 litres.
The 15-kilowatt/20hp electric motor is integrated into the automatic gearbox. Acceleration from zero to 100kph is 4.9 seconds, with the top speed electronically regulated at 250kph. Roll-resistant 245/45 R19 tyres help improve consumption.
Brake-regeneration energy is stored in a lithium-ion battery pack positioned in the boot. The electric motor both acts as a support during acceleration and helps reduce consumption at a constant speed. It also supplies energy for the air-conditioner and 12-volt onboard energy. Similar to the technology already used in the Toyota Prius, the driver can monitor energy usage on a special display.
The exterior of the BMW 7 Active Hybrid stands out with its 19-inch aerodynamically styled alloys and "blue-water metallic" colour. Standard equipment includes Dynamic Damiping Control, front, side and head air bags, crash-active head support and run-flat tyres.
The 15-kilowatt/20hp electric motor is integrated into the automatic gearbox. Acceleration from zero to 100kph is 4.9 seconds, with the top speed electronically regulated at 250kph. Roll-resistant 245/45 R19 tyres help improve consumption.
Brake-regeneration energy is stored in a lithium-ion battery pack positioned in the boot. The electric motor both acts as a support during acceleration and helps reduce consumption at a constant speed. It also supplies energy for the air-conditioner and 12-volt onboard energy. Similar to the technology already used in the Toyota Prius, the driver can monitor energy usage on a special display.
The exterior of the BMW 7 Active Hybrid stands out with its 19-inch aerodynamically styled alloys and "blue-water metallic" colour. Standard equipment includes Dynamic Damiping Control, front, side and head air bags, crash-active head support and run-flat tyres.
Nissan, Chrysler scrap supply deal
Nissan Motor in Japan and Chrysler in the US have scrapped a plan to supply vehicles to each other, because of ongoing turmoil in the industry.
Nissan last year announced it would provide a compact sedan to Chrysler for the South American market beginning this year and a small vehicle for global markets from next year.
Chrysler, which has since partnered with Italy's Fiat as part of its bankruptcy plan, had been due to supply a pickup to Nissa from 2011.
But the two companies decided to end the project "in light of significant changes in business conditions since the projects were announced", they said in a joint statement on Wednesday.
The move comes after Chrysler and Fiat sealed a deal in June to create a new auto giant after the Italian maker stepped in to salvage the bankrupt US firm.
Fiat will at first own 20 per cent of the Chrysler Group, rising to 35 per cent and eventually to a majority stake if certain targets are achieved and US government funds repaid.
Nissan, Japan's No-3 carmaker, is 44-per-cent owned by France's Renault. It is axing 20,000 jobs in an effort to recover from its first annual loss in a almost a decade.
Nissan last year announced it would provide a compact sedan to Chrysler for the South American market beginning this year and a small vehicle for global markets from next year.
Chrysler, which has since partnered with Italy's Fiat as part of its bankruptcy plan, had been due to supply a pickup to Nissa from 2011.
But the two companies decided to end the project "in light of significant changes in business conditions since the projects were announced", they said in a joint statement on Wednesday.
The move comes after Chrysler and Fiat sealed a deal in June to create a new auto giant after the Italian maker stepped in to salvage the bankrupt US firm.
Fiat will at first own 20 per cent of the Chrysler Group, rising to 35 per cent and eventually to a majority stake if certain targets are achieved and US government funds repaid.
Nissan, Japan's No-3 carmaker, is 44-per-cent owned by France's Renault. It is axing 20,000 jobs in an effort to recover from its first annual loss in a almost a decade.
Harleys roar into India
The US motorcycle maker Harley-Davidson said yesterday it would begin selling its iconic bikes in India,pitching the "freedom of the open road"to some of the world's most densely populated cities.
"A subsidiary has already been established outside New Delhi and sales are expected to begin next year," the firm said in a statement.
According to company president Matthew Levatich, the Harley-Davidson image of "self-expression, adventure,and the freedom of the open road" will resonate as strongly in India as anywhere else in the world.
But while India is the world's secondlargest motorcycle market, most sales are of small, inexpensive bikes that are better suited to the clogged streets of cities like Mumbai and Kolkota than a 1,500cc Harley "Fat Boy."
India does have open roads outside the large cities but many are in a condition that make for less than easy riding.
The market for Harleys will also be narrowed by hefty import duties that experts say could result in a price tag of around two million rupees ($40,000)more than twice the price in the United States.
Harley-Davidson CEO Keith Wandell said moving into India was part of a strategy to break into emerging markets and cited the attraction of India's rapidly growing economy and rising middle class.
"India is important to our vision of being a truly global company," he said.
"A subsidiary has already been established outside New Delhi and sales are expected to begin next year," the firm said in a statement.
According to company president Matthew Levatich, the Harley-Davidson image of "self-expression, adventure,and the freedom of the open road" will resonate as strongly in India as anywhere else in the world.
But while India is the world's secondlargest motorcycle market, most sales are of small, inexpensive bikes that are better suited to the clogged streets of cities like Mumbai and Kolkota than a 1,500cc Harley "Fat Boy."
India does have open roads outside the large cities but many are in a condition that make for less than easy riding.
The market for Harleys will also be narrowed by hefty import duties that experts say could result in a price tag of around two million rupees ($40,000)more than twice the price in the United States.
Harley-Davidson CEO Keith Wandell said moving into India was part of a strategy to break into emerging markets and cited the attraction of India's rapidly growing economy and rising middle class.
"India is important to our vision of being a truly global company," he said.
MERKEL SAYS GM STILL PLANS TO SELL OPEL
German Chancellor Angela Merkel on Wednesday moved to dispel the uncertainty surrounding General Motors' troubled Opel arm, saying there was no evidence the giant US carmaker wanted to retain control of its European operations.
In an interview on Germany's Channel N24, Merkel said Berlin had no evidence that GM was dropping plans to sell off a majority stake in Opel as part of a major restructuring of the Detroit, Michigan-based carmaker's global business.
"Such a solution has never been presented to us," Merkel said.
"We are currently negotiating with the Americans over the remanining questions surrounding the Magna concept," she said.
Merkel's government has thrown its weight behind a bid for Opel led by the Austrian-Canadian auto-parts group Magna International.
Her comments came in the wake of growing tensions between Berlin and GM over Opel's future ownership.
However, the giant US carmaker has also indicated it would like Berlin to consider the merits of an alternative plan for Opel presented by Brussels-based private-equity group RHJ Internationl.
At the same time, it is understood that an improving car market had also led GM to consider retaining control of Opel.
About half of Opel's 50,000 strong European workforce is based in Germany.
After the GM board delayed making a decision on Opel at its meeting last Friday, Merkel said she was now hopeful GM's board would move closer to setting the future of Opel at its gathering set for September 8-9.
In the meantime, German government officials and top GM management representatives are expected to resume their talks on Opel today after a meeting on Tuesday broke up without agreement.
But Merkel insisted the government was not under pressure to reach a deal of what is called the New Opel. Meeting German interests was more important than reaching a speedy decision on Opel's future, Merkel said.
In an interview on Germany's Channel N24, Merkel said Berlin had no evidence that GM was dropping plans to sell off a majority stake in Opel as part of a major restructuring of the Detroit, Michigan-based carmaker's global business.
"Such a solution has never been presented to us," Merkel said.
"We are currently negotiating with the Americans over the remanining questions surrounding the Magna concept," she said.
Merkel's government has thrown its weight behind a bid for Opel led by the Austrian-Canadian auto-parts group Magna International.
Her comments came in the wake of growing tensions between Berlin and GM over Opel's future ownership.
However, the giant US carmaker has also indicated it would like Berlin to consider the merits of an alternative plan for Opel presented by Brussels-based private-equity group RHJ Internationl.
At the same time, it is understood that an improving car market had also led GM to consider retaining control of Opel.
About half of Opel's 50,000 strong European workforce is based in Germany.
After the GM board delayed making a decision on Opel at its meeting last Friday, Merkel said she was now hopeful GM's board would move closer to setting the future of Opel at its gathering set for September 8-9.
In the meantime, German government officials and top GM management representatives are expected to resume their talks on Opel today after a meeting on Tuesday broke up without agreement.
But Merkel insisted the government was not under pressure to reach a deal of what is called the New Opel. Meeting German interests was more important than reaching a speedy decision on Opel's future, Merkel said.
Wednesday, August 26, 2009
SEVEN AGENCIES ON FIRE TRUCK PROBE PANEL
Justice Minister Pirapan Salirathavibhaga has volunteered to chair the joint committee tasked with examining the scandalplagued firevehicle deal.
"The committee will comprise representatives from seven agencies," Bangkok Governor MR Sukhumbhand Paribatra said yesterday.
They are Bangkok Metropolitan Administration (BMA), the Foreign Ministry, the Interior Ministry, the Commerce Ministry, the Office of AttorneyGeneral, the Comptroller General's Department and the Justice Ministry.
"The panel members will share their opinions about the deal," Sukhumbhand said. "We will try to determine whether it can be considered a governmenttogovernment deal."
Under a memorandum of understanding (MoU) signed in 2003 by then interiorminister Bhokin Bhalakula and thenAustrian ambassador to Thailand, the BMA entered into a deal to purchase fire vehicles from an Austrian supplier for Bt6.68 billion.
However, investigations later showed that the vehicles were being sold at a highly inflated price and that the deal was mired in corruption.
The National AntiCorruption Commission has found several politicians, including Bhokin, guilty.
So far, BMA has partially paid for the contract and several fire vehicles have already been delivered. Now the BMA is trying to scrap the contract to stop any additional payments.
"For a long time, BMA felt it had to fight this case alone, but having the joint panel will make a difference," Sukhumbhand said.
The city governor has, so far, insisted that he would not deploy the fire vehicles, as suggested by the Interior Ministry, while all involved parties are trying to sort out the problems.
"I am afraid that the use of the fire vehicles will affect our attempt to annul the purchase contract," he said.
"The committee will comprise representatives from seven agencies," Bangkok Governor MR Sukhumbhand Paribatra said yesterday.
They are Bangkok Metropolitan Administration (BMA), the Foreign Ministry, the Interior Ministry, the Commerce Ministry, the Office of AttorneyGeneral, the Comptroller General's Department and the Justice Ministry.
"The panel members will share their opinions about the deal," Sukhumbhand said. "We will try to determine whether it can be considered a governmenttogovernment deal."
Under a memorandum of understanding (MoU) signed in 2003 by then interiorminister Bhokin Bhalakula and thenAustrian ambassador to Thailand, the BMA entered into a deal to purchase fire vehicles from an Austrian supplier for Bt6.68 billion.
However, investigations later showed that the vehicles were being sold at a highly inflated price and that the deal was mired in corruption.
The National AntiCorruption Commission has found several politicians, including Bhokin, guilty.
So far, BMA has partially paid for the contract and several fire vehicles have already been delivered. Now the BMA is trying to scrap the contract to stop any additional payments.
"For a long time, BMA felt it had to fight this case alone, but having the joint panel will make a difference," Sukhumbhand said.
The city governor has, so far, insisted that he would not deploy the fire vehicles, as suggested by the Interior Ministry, while all involved parties are trying to sort out the problems.
"I am afraid that the use of the fire vehicles will affect our attempt to annul the purchase contract," he said.
Toyota cuts production capacity amid sales slump
Toyota Motor Corp, the world's largest automaker, said it would halt a production line in Japan as it looks to cut excess capacity to return to profitability amid an industrywide sales slump.
Car plants around the world are idle or running below capacity as the industry copes with a slide in sales that sent General Motors Co and Chrysler Group LLC into bankruptcy and has Toyota headed for a record loss this year.
Total cuts could reach 700,000 cars,or 7% of Toyota's global capacity, including a production line in Britain that may be halted and a joint venture with General Motors in the US likely to be closed, a source with knowledge of the matter said."Though sales in some countries have been picking up, the outlook for global car demand is still uncertain, and the company thinks it should be prepared."
Toyota's sales have been boosted over the past few months by government incentives aimed at kick-starting demand, but it is still plagued by an excess capacity of more than three million vehicles following a rapid expansion earlier in the decade.
The company said it has decided to halt a production line in Japan for about a year and a half from next spring.
"The production cut is positive for its earnings, but there is room for further capacity cuts in the United States and elsewhere," said Yoshifumi Tabei, an auto analyst at Kazaka Securities.
Toyota expects to lower its breakeven point by halting some assembly lines, but will not dispose of them so that it can quickly raise production in the event of a demand recovery. Workers on the halted production line will be employed at other Toyota factories.
The source said the extent and timing of the output cuts had not yet been set but the Nikkei business daily reported that Toyota planned to reduce its global capacity by 10%, or one million vehicles,as early as the current financial year to March 2010.
The source, who declined to be named because the matter was not public, said Toyota was also considering halting a line at a British plant.
Toyota has said it will decide this month whether to pull out of New United Manufacturing Inc (NUMMI), a California joint venture with General Motors.
Those three moves would cut capacity by 700,000 vehicles, based on Toyota factory data, from Toyota's annual output capacity of 10 million vehicles.
Toyota has begun restoring some production cut in the wake of the global financial crisis as inventories shrink, but has yet to announce whether it plans longer-term cuts in factory capacity.
It has seen a recovery in sales of fuelefficient cars helped by government mea-sures to promote such vehicles, with its Prius hybrid ranking as Japan's top-selling car in July for the second straight month,but has lagged behind its rivals in costcutting.
Toyota booked an operating loss for the third straight quarter in April-June,while Honda Motor Co and Nissan Motor Co turned profitable during the period thanks to cost reduction measures including pulling out of some motor sports and cutting jobs.
"The idling of plants had been a negative factor for Toyota, so the fact they're moving to tackle this should be evaluated favourably," said Yumi Nishimura, deputy general manager of Daiwa Securities SMBC.
Car plants around the world are idle or running below capacity as the industry copes with a slide in sales that sent General Motors Co and Chrysler Group LLC into bankruptcy and has Toyota headed for a record loss this year.
Total cuts could reach 700,000 cars,or 7% of Toyota's global capacity, including a production line in Britain that may be halted and a joint venture with General Motors in the US likely to be closed, a source with knowledge of the matter said."Though sales in some countries have been picking up, the outlook for global car demand is still uncertain, and the company thinks it should be prepared."
Toyota's sales have been boosted over the past few months by government incentives aimed at kick-starting demand, but it is still plagued by an excess capacity of more than three million vehicles following a rapid expansion earlier in the decade.
The company said it has decided to halt a production line in Japan for about a year and a half from next spring.
"The production cut is positive for its earnings, but there is room for further capacity cuts in the United States and elsewhere," said Yoshifumi Tabei, an auto analyst at Kazaka Securities.
Toyota expects to lower its breakeven point by halting some assembly lines, but will not dispose of them so that it can quickly raise production in the event of a demand recovery. Workers on the halted production line will be employed at other Toyota factories.
The source said the extent and timing of the output cuts had not yet been set but the Nikkei business daily reported that Toyota planned to reduce its global capacity by 10%, or one million vehicles,as early as the current financial year to March 2010.
The source, who declined to be named because the matter was not public, said Toyota was also considering halting a line at a British plant.
Toyota has said it will decide this month whether to pull out of New United Manufacturing Inc (NUMMI), a California joint venture with General Motors.
Those three moves would cut capacity by 700,000 vehicles, based on Toyota factory data, from Toyota's annual output capacity of 10 million vehicles.
Toyota has begun restoring some production cut in the wake of the global financial crisis as inventories shrink, but has yet to announce whether it plans longer-term cuts in factory capacity.
It has seen a recovery in sales of fuelefficient cars helped by government mea-sures to promote such vehicles, with its Prius hybrid ranking as Japan's top-selling car in July for the second straight month,but has lagged behind its rivals in costcutting.
Toyota booked an operating loss for the third straight quarter in April-June,while Honda Motor Co and Nissan Motor Co turned profitable during the period thanks to cost reduction measures including pulling out of some motor sports and cutting jobs.
"The idling of plants had been a negative factor for Toyota, so the fact they're moving to tackle this should be evaluated favourably," said Yumi Nishimura, deputy general manager of Daiwa Securities SMBC.
Column 4X4 CHANGES: ON BECOMING A "CREATIVE" EXECUTIVE OFFICER
Vision can only be realised by creativity. We are moving from an information age to a conceptual age in which survival will depend on high concept and a deft touch.
In order to understand the urgency surrounding your job, your company and your responsibilities to your staff, ask yourself three questions:
Is anyone cheaper than I am? Is anyone faster than I am? Do I add value with the products and services I offer?
If you answer the first two questions with yes and the last with no, then you have good reasons to worry and a need to change.
Start with unusual, "crazy" thinking to find "out of the box" ideas. Issues could be solved a lot faster if all CEOs followed George Bernard Shaw's great portrayal of a visionary: "Some men see things as they are and say: 'Why?' I dream of things that never were and say: 'Why not?'"
In crisis times, a CEO must perceive himself or herself as a creative executive, and not a rank- and status-driven chief executive.
In order to add value, you need ideas and a creativity-focused company culture. There are many ways to learn creativity and what the left and right sides of your brain can do for you. Books by Mihaly Csikszentmihalyi and Daniel Pink are a great start. Creativity can be enhanced by lateral thinking, mind mapping, brainstorming and synectic thinking, to name only a few techniques I work with.
I have interviewed more than 100 people of different nationalities to see where ideas come from - where and how people get ideas. To understand what culture you need to create, undertake this exercise with your staff.
There are three questions that will help you to research and understand the "idea development" process in a team: where do you get ideas? Do the ideas come in a structured or haphazard way? Do the ideas come in a state of stress or relaxation?
If you know the answers to these questions, you will know where and how to get ideas. Create for your team a working place and a situation in which they can generate new ideas. Good ideas are everywhere: at your job, in your hobbies, in your people, in the hospitality economy. You must become a "sponge", with curiosity about everything around you, based on all your senses: observe, read, write, listen, smell, taste and feel new ideas.
Regard other people's brains as gold mines. Do not be afraid to recruit employees with higher IQs than yours, but keep your creative juices running. Fashion designer Paul Smith sums it up in a nut shell with the advice: "Be unique."
This is the fifth of a seven-part series on 4 x 4 Changes, authored by Mercedes-Benz (Thailand) president and CEO Alexander Paufler.
In order to understand the urgency surrounding your job, your company and your responsibilities to your staff, ask yourself three questions:
Is anyone cheaper than I am? Is anyone faster than I am? Do I add value with the products and services I offer?
If you answer the first two questions with yes and the last with no, then you have good reasons to worry and a need to change.
Start with unusual, "crazy" thinking to find "out of the box" ideas. Issues could be solved a lot faster if all CEOs followed George Bernard Shaw's great portrayal of a visionary: "Some men see things as they are and say: 'Why?' I dream of things that never were and say: 'Why not?'"
In crisis times, a CEO must perceive himself or herself as a creative executive, and not a rank- and status-driven chief executive.
In order to add value, you need ideas and a creativity-focused company culture. There are many ways to learn creativity and what the left and right sides of your brain can do for you. Books by Mihaly Csikszentmihalyi and Daniel Pink are a great start. Creativity can be enhanced by lateral thinking, mind mapping, brainstorming and synectic thinking, to name only a few techniques I work with.
I have interviewed more than 100 people of different nationalities to see where ideas come from - where and how people get ideas. To understand what culture you need to create, undertake this exercise with your staff.
There are three questions that will help you to research and understand the "idea development" process in a team: where do you get ideas? Do the ideas come in a structured or haphazard way? Do the ideas come in a state of stress or relaxation?
If you know the answers to these questions, you will know where and how to get ideas. Create for your team a working place and a situation in which they can generate new ideas. Good ideas are everywhere: at your job, in your hobbies, in your people, in the hospitality economy. You must become a "sponge", with curiosity about everything around you, based on all your senses: observe, read, write, listen, smell, taste and feel new ideas.
Regard other people's brains as gold mines. Do not be afraid to recruit employees with higher IQs than yours, but keep your creative juices running. Fashion designer Paul Smith sums it up in a nut shell with the advice: "Be unique."
This is the fifth of a seven-part series on 4 x 4 Changes, authored by Mercedes-Benz (Thailand) president and CEO Alexander Paufler.
Tuesday, August 25, 2009
DOMESTIC PRODUCTION OF FUSO LORRIES LOOKS SET TO CONTINUE
Japanese lorry manufacturer Fuso is searching for a new business alliance and hopes to continue building products in Thailand, says Fuso Trucks (Thailand) presidment Seiji Akiyama.
He said that after announcing it would shut down production of Fusco lorries, the company was approached by many companies seeking to purchase its plant or offering plans to restart Fuso production.
Akiyama said there were "ongoing negotiations" with many interested buyers and that there had been talks about production for domestic sales and for export. That would help raise Thailand's manufacturing capacity. However, consideration also had to be given to production costs, because any manufacturing operation would have to be competitive.
In the past, the local Fuso plant had annual production capacity of 6,000 lorries but usually assembled only 1,600-2,000, for the domestic market.
Akiyama said the plant closure was originally scheduled to take place at the end of this year but that if negotiations with allies bore fruit, production could continue. Results will be known next month.
"If production in Thailand can continue, it would be helpful to the operation of our business in this country, especially in terms of the confidence of dealers and customers. It would also be good for the business of our suppliers. This negotiation with allies is denitely a good thing for Thailand," he said.
In the first half, Fuso sales grew 2 per cent despite a 19-per-cent decline in the lorry market. This was result of two projects with the Royal Thai Army involving 362 lorries.
By year-end, Fuso is expected to be holding a 10-per-cent share of the lorry market-about the same as last year. However, the lorry market is expected to decline 20 per cent.
Akiyama said that in the second half, the lorry market would be affected by a rise in fuel prices.
Fuso plans to launch its new Canter and FN series, meaning all Fuso products will then be Euro 3-certified. The company will also increase its number of dealerships from 11 to 14 this year.
He said that after announcing it would shut down production of Fusco lorries, the company was approached by many companies seeking to purchase its plant or offering plans to restart Fuso production.
Akiyama said there were "ongoing negotiations" with many interested buyers and that there had been talks about production for domestic sales and for export. That would help raise Thailand's manufacturing capacity. However, consideration also had to be given to production costs, because any manufacturing operation would have to be competitive.
In the past, the local Fuso plant had annual production capacity of 6,000 lorries but usually assembled only 1,600-2,000, for the domestic market.
Akiyama said the plant closure was originally scheduled to take place at the end of this year but that if negotiations with allies bore fruit, production could continue. Results will be known next month.
"If production in Thailand can continue, it would be helpful to the operation of our business in this country, especially in terms of the confidence of dealers and customers. It would also be good for the business of our suppliers. This negotiation with allies is denitely a good thing for Thailand," he said.
In the first half, Fuso sales grew 2 per cent despite a 19-per-cent decline in the lorry market. This was result of two projects with the Royal Thai Army involving 362 lorries.
By year-end, Fuso is expected to be holding a 10-per-cent share of the lorry market-about the same as last year. However, the lorry market is expected to decline 20 per cent.
Akiyama said that in the second half, the lorry market would be affected by a rise in fuel prices.
Fuso plans to launch its new Canter and FN series, meaning all Fuso products will then be Euro 3-certified. The company will also increase its number of dealerships from 11 to 14 this year.
NEW BMW SHOWROOM OPENS ON VIBHAVADI-RANGSIT ROAD
Barcelona Motor has opened a new BMW showroom on Vibhavadi-Rangsit Road, to expand its sales and offer after-sales services for BMW cars and motorcycles in northern Bangkok.
The new showroom is a state-of-the-art facility equipped to provide a full range of customer services for both new and used BMWs.
"Barcelona Motor has long-established expertise and experience in servicing BMW cars and motorcycles," said president Vithit Leenutaphong.
"Following last year's investments in expanding our sales and after-sales coverage in Phuket and Chiang Mai, the new showroom on Vibhavadi-Rangsit Road will further strengthen our ability to provide top-class services to BMW customers owning both authomobiles and motorcycles."
The new Barcelona Motor showroom features BMW's latest "gallery" concept, providing a comfortable environment for customers to spend time learning about new BMW products as if they were viewing the finest pieces of art in a top-class gallery.
Floor space of 3,500 square metres is taken up by the showroom and workshop. In the 1,000-square-metre showroom, BMW cars and motorcycles are displayed in a gallery format, affording customers easy access to any of the products. There is also a relaxing corner for BMW enthusiasts to use as a meeting point for their group activities.
The after-sales service area covers 2,500 square metres and features 14 service bays with access to advanced diagnostic systems linked directly to BMW's technical data centre in Germany and access to a space parts warehouse.
BMW Group Thailand president Michael Kordys said the new Barcelona Motor showroom was a significant step towards expanding BMW sales and services in northern Bangkok.
"This year, BMW Thailand has not only continued to expand its product protfolio with new advanced technology for Thai consumers, but also focused on customer service, to ensure a strong foundation for future growth," he said.
"The new presence will allow us to continue serving our high-potential customers in the area, as well as give us a great opportunity to access a new customer base."
The new showroom is a state-of-the-art facility equipped to provide a full range of customer services for both new and used BMWs.
"Barcelona Motor has long-established expertise and experience in servicing BMW cars and motorcycles," said president Vithit Leenutaphong.
"Following last year's investments in expanding our sales and after-sales coverage in Phuket and Chiang Mai, the new showroom on Vibhavadi-Rangsit Road will further strengthen our ability to provide top-class services to BMW customers owning both authomobiles and motorcycles."
The new Barcelona Motor showroom features BMW's latest "gallery" concept, providing a comfortable environment for customers to spend time learning about new BMW products as if they were viewing the finest pieces of art in a top-class gallery.
Floor space of 3,500 square metres is taken up by the showroom and workshop. In the 1,000-square-metre showroom, BMW cars and motorcycles are displayed in a gallery format, affording customers easy access to any of the products. There is also a relaxing corner for BMW enthusiasts to use as a meeting point for their group activities.
The after-sales service area covers 2,500 square metres and features 14 service bays with access to advanced diagnostic systems linked directly to BMW's technical data centre in Germany and access to a space parts warehouse.
BMW Group Thailand president Michael Kordys said the new Barcelona Motor showroom was a significant step towards expanding BMW sales and services in northern Bangkok.
"This year, BMW Thailand has not only continued to expand its product protfolio with new advanced technology for Thai consumers, but also focused on customer service, to ensure a strong foundation for future growth," he said.
"The new presence will allow us to continue serving our high-potential customers in the area, as well as give us a great opportunity to access a new customer base."
Auto-makers join Energy Ministry's B5 promotion
Thirteen auto-makers have joined the Energy Ministry to promote use of B5 diesel throughout Thailand.
Energy Minister Wannarat Charnnukul told a recent media conference the ministry's Energy Business Department had been striving to improve the quality of biodiesel, which was mixed with ordinary diesel fuel to produce B5 diesel.
He said these efforts had taken effect on August 15 and that he was asking the automakers for confirmation that B5 diesel was of sufficient quality to meet with their approval, in order to create confidence among consumers and promote the use of B5 fuel.
There are now two types of biodiesel fuel on the market: B2 and B5. Sales of B5 are now 24 million litres a day, or about half of all diesel consumption, up from only 11 million litres a day, or 23 per cent of diesel consumption, a year ago.
Wannarat said promotion of B5 had been successful "to a certain extent" and that the ministry's policy was to have only one grade - B5 diesel - in use throughout Thailand by 2011.
"The ministry's policy is clearly to promote alternative fuels, and the next step is to encourage more people to use B5 fuel. If everyone uses B5, then we could lower oil imports 5 per cent, save Bt17 billion per year and help our farmers at the same time," he said.
Among the auto-makers supporting the B5 drive are the BMW Group Thailand, General Motors (Thailand), Chevrolet Sales (Thailand), Ford Sales and Service (Thaikand), Hino Motors (Thailand), Hyundai Motor (Thailand), Tri Petch Isuzu Sales, Mazda Sales (Thailand), Mercedes-Benz (Thailand), Mitsubishi Motors (Thailand), Nissan Motor (Thailand), Toyota Motor Thailand, Volvo Car (Thailand) and Volvo Truck and Bus (Thailand).
Energy Minister Wannarat Charnnukul told a recent media conference the ministry's Energy Business Department had been striving to improve the quality of biodiesel, which was mixed with ordinary diesel fuel to produce B5 diesel.
He said these efforts had taken effect on August 15 and that he was asking the automakers for confirmation that B5 diesel was of sufficient quality to meet with their approval, in order to create confidence among consumers and promote the use of B5 fuel.
There are now two types of biodiesel fuel on the market: B2 and B5. Sales of B5 are now 24 million litres a day, or about half of all diesel consumption, up from only 11 million litres a day, or 23 per cent of diesel consumption, a year ago.
Wannarat said promotion of B5 had been successful "to a certain extent" and that the ministry's policy was to have only one grade - B5 diesel - in use throughout Thailand by 2011.
"The ministry's policy is clearly to promote alternative fuels, and the next step is to encourage more people to use B5 fuel. If everyone uses B5, then we could lower oil imports 5 per cent, save Bt17 billion per year and help our farmers at the same time," he said.
Among the auto-makers supporting the B5 drive are the BMW Group Thailand, General Motors (Thailand), Chevrolet Sales (Thailand), Ford Sales and Service (Thaikand), Hino Motors (Thailand), Hyundai Motor (Thailand), Tri Petch Isuzu Sales, Mazda Sales (Thailand), Mercedes-Benz (Thailand), Mitsubishi Motors (Thailand), Nissan Motor (Thailand), Toyota Motor Thailand, Volvo Car (Thailand) and Volvo Truck and Bus (Thailand).
FORD LAUNCHES AFTER-SALES PLAN
Ford Thailand has boosted the attractiveness of its after-sales service by launching what it calls the Scheduled Service Plan (SSP), a programme that will save customers more than 15 per cent of recommended scheduled-maintenance costs.
Customers buying into the SSP when buying a new car will fill future maintenance costs for items like engine oil, filters and spark plugs. Labour costs are also included.
The SSP is sepatate from the three-year, 100,000-kilometre warrantly that comes with new Ford vehicles. Customers can buy different packages, depending on how long they want to stay with the plan, ranging from 18 to 63 months. Buying into the SSP for a new Ford Focus will cost between Bt2,900 and Bt14,200. All vehicles in the Ford Thailand's portfolio qualify.
"With the SSP programme, we wanted to take the stress of future price increase off of our customers," said Wichit Wongwatthanakan, vice president for customer service.
"Besides this, customers receive genuine Ford products, with quality assured. The SSP programme adds to the Ford Solutions brand, which places great importance on customer service and satisfaction. With SSP, Ford is taking the risks involve in future price inflation and giving customers more peace of mind."
The Ford Solutions brand is an after-sales programme launched in 2007 and aimed at boosting customer satisfaction. Initially, it included only extended-warranty programmes and 24-hour roadside assistance. In 2007, 22.4 per cent of new Ford buyers bought into it. Last year, that figure reached 37.8 per cent, and it is expected to be 45 per cent this year.
"Most who have opted for the Ford Solutions programmes have bought 24-hour roadside assitance. This is especially useful for women drivers, who run the risk of a flat tyre or other technical difficulties at night. Most of the calls we get for assistance are cases of fuel running out, flat tyres and even locking the keys in the car.
"We prelaunched the SSP programmed two months ago at our dealerships, and the response has been very good. Customers instantly understand the benefits of such a programme," Wichit said.
The number of new Ford customers using after-sales service at dealerships for maintenance like oil, filter and spark plug changes is about 95 per cent in the first year of ownership. This drops to 70 per cent by the third year as customers turn to local garages for maintenance work.
Wichit said he expected the percentrage seeking to use after-sales services at dealerships to increase 2-3 per cent with the launch of the SSP programme.
There are 150,000 Ford customers in Thailand.
Customers buying into the SSP when buying a new car will fill future maintenance costs for items like engine oil, filters and spark plugs. Labour costs are also included.
The SSP is sepatate from the three-year, 100,000-kilometre warrantly that comes with new Ford vehicles. Customers can buy different packages, depending on how long they want to stay with the plan, ranging from 18 to 63 months. Buying into the SSP for a new Ford Focus will cost between Bt2,900 and Bt14,200. All vehicles in the Ford Thailand's portfolio qualify.
"With the SSP programme, we wanted to take the stress of future price increase off of our customers," said Wichit Wongwatthanakan, vice president for customer service.
"Besides this, customers receive genuine Ford products, with quality assured. The SSP programme adds to the Ford Solutions brand, which places great importance on customer service and satisfaction. With SSP, Ford is taking the risks involve in future price inflation and giving customers more peace of mind."
The Ford Solutions brand is an after-sales programme launched in 2007 and aimed at boosting customer satisfaction. Initially, it included only extended-warranty programmes and 24-hour roadside assistance. In 2007, 22.4 per cent of new Ford buyers bought into it. Last year, that figure reached 37.8 per cent, and it is expected to be 45 per cent this year.
"Most who have opted for the Ford Solutions programmes have bought 24-hour roadside assitance. This is especially useful for women drivers, who run the risk of a flat tyre or other technical difficulties at night. Most of the calls we get for assistance are cases of fuel running out, flat tyres and even locking the keys in the car.
"We prelaunched the SSP programmed two months ago at our dealerships, and the response has been very good. Customers instantly understand the benefits of such a programme," Wichit said.
The number of new Ford customers using after-sales service at dealerships for maintenance like oil, filter and spark plug changes is about 95 per cent in the first year of ownership. This drops to 70 per cent by the third year as customers turn to local garages for maintenance work.
Wichit said he expected the percentrage seeking to use after-sales services at dealerships to increase 2-3 per cent with the launch of the SSP programme.
There are 150,000 Ford customers in Thailand.
Osaka keen on high-tech options
Japanese investment in Thailand is set to surge - with life-sciences and hightech companies, in particular, seeking to expand their presence - from the beginning of next year as the two economies recover from recession.
Both Japan and Thailand will be more stable economically and politically next year, said representatives of the Osaka Chamber of Commerce and Industry (OCCI) during a three-day visit to Bangkok.
Japan will hold an election by the end of this month, while the political uncertainties that have plagued investment in Thailand for years are expected to ease during the rest of the year, OCCI vice-chairman Makoto Kato said yesterday.
"The Japanese economy is coming back from recession and companies will be ready to aggressively invest abroad from the beginning of next year," said Mr Kato, who is accompanying governor Toru Hashimoto and executives of 14 Osaka-based firms as they explore business opportunities in Thailand.
"By then, I think the Thai economy will be also on the recovery path while political issues will see some improvement."
Osaka, with 8.8 million residents, contributes 8% of the Japanese economy with a gross domestic product of $333.5 billion. The city is home to the whitegoods giants Sharp and Panasonic and to other leading Japanese brands such as Daihatsu, Kubota, Suntory, Takeda and Mizuno.
"The new wave of Japanese investment in Thailand will be more in high-tech and value-added industries to avoid rising competition from lower-wage countries.Osaka itself has a strong expertise in life sciences, biotechnology and alternative energies and we are keen to invest here,"said Mr Kato.
Technologies for hybrid vehicles and eco-cars, as well as for electric vehicles,are elements Osaka could deliver to Thai partners, he added.
With 258 of its firms present in Thailand, Osaka is second only to Tokyo for its businesses' investment in Thailand.Japan is also Thailand's largest foreign investor with 130 projects worth more than 30 billion baht approved by the Board of Investment in the first seven months of this year.
Thailand Trade Representative Vachara Phanchet said the time is right for Thai investors to invest in Osaka by forming joint ventures with Japanese partners.
"The Japanese economy is bouncing back from the crisis but is not yet as strong as in the past. This provides a good chance for Thai companies to have greater access for investing there," he said.
Japanese financial institutions, including the Japan Bank for International Co-operation and the Development Bank of Japan, have recently agreed to provide financial support to foreign small and medium-sized companies investing in the country, added Mr Vachara.
Osaka is in the mid-western Kansai region, where bilateral trade with Thailand has increased since the launch of the Japan-Thailand Economic Partnership Agreement in November 2007. Exports from Kansai to Thailand stayed at about $6 billion with imports totalling $3.6 billion last year.
Both Japan and Thailand will be more stable economically and politically next year, said representatives of the Osaka Chamber of Commerce and Industry (OCCI) during a three-day visit to Bangkok.
Japan will hold an election by the end of this month, while the political uncertainties that have plagued investment in Thailand for years are expected to ease during the rest of the year, OCCI vice-chairman Makoto Kato said yesterday.
"The Japanese economy is coming back from recession and companies will be ready to aggressively invest abroad from the beginning of next year," said Mr Kato, who is accompanying governor Toru Hashimoto and executives of 14 Osaka-based firms as they explore business opportunities in Thailand.
"By then, I think the Thai economy will be also on the recovery path while political issues will see some improvement."
Osaka, with 8.8 million residents, contributes 8% of the Japanese economy with a gross domestic product of $333.5 billion. The city is home to the whitegoods giants Sharp and Panasonic and to other leading Japanese brands such as Daihatsu, Kubota, Suntory, Takeda and Mizuno.
"The new wave of Japanese investment in Thailand will be more in high-tech and value-added industries to avoid rising competition from lower-wage countries.Osaka itself has a strong expertise in life sciences, biotechnology and alternative energies and we are keen to invest here,"said Mr Kato.
Technologies for hybrid vehicles and eco-cars, as well as for electric vehicles,are elements Osaka could deliver to Thai partners, he added.
With 258 of its firms present in Thailand, Osaka is second only to Tokyo for its businesses' investment in Thailand.Japan is also Thailand's largest foreign investor with 130 projects worth more than 30 billion baht approved by the Board of Investment in the first seven months of this year.
Thailand Trade Representative Vachara Phanchet said the time is right for Thai investors to invest in Osaka by forming joint ventures with Japanese partners.
"The Japanese economy is bouncing back from the crisis but is not yet as strong as in the past. This provides a good chance for Thai companies to have greater access for investing there," he said.
Japanese financial institutions, including the Japan Bank for International Co-operation and the Development Bank of Japan, have recently agreed to provide financial support to foreign small and medium-sized companies investing in the country, added Mr Vachara.
Osaka is in the mid-western Kansai region, where bilateral trade with Thailand has increased since the launch of the Japan-Thailand Economic Partnership Agreement in November 2007. Exports from Kansai to Thailand stayed at about $6 billion with imports totalling $3.6 billion last year.
Exports sink 41% this year
The number of Thai-built automobiles exported in the first seven months of this year fell 40.65% year-on-year to 271,339 units, while their value sank 39.5% to 125.68 billion baht, said the Federation of Thai Industries (FTI).
"The global financial crisis still has an effect on the Thai economy and auto exports - despite overseas orders beginning to climb but remaining small,"said Surapong Phaisitpattanapong, a spokesman for FTI's automobile industry club.
Vehicle exports in July plunged 48.7%year-on-year to 36,555 units, while edging up 3.25% from the previous month. The value of last month's vehicle exports dropped 46.7% from July 2008 to 17.36 billion baht.
Local auto production from January to July fell 44.8% year-on-year to 464,068 units:149,416 cars (a 37.6% fall yearon-year) and 307,030 pickup trucks (down 47.96%).
In the same period,263,768 vehicles were produced for export (a 42.65% yearon-year drop) and 200,300 were manufactured for the domestic market (down 47.46%).
Motorcycle production in the first seven months skidded 43.5% year-onyear to 1.09 million units. Motorcycle exports slipped 68.8% to 285,929 units worth 11.3 billion, a decline of 27.37%.
"The global financial crisis still has an effect on the Thai economy and auto exports - despite overseas orders beginning to climb but remaining small,"said Surapong Phaisitpattanapong, a spokesman for FTI's automobile industry club.
Vehicle exports in July plunged 48.7%year-on-year to 36,555 units, while edging up 3.25% from the previous month. The value of last month's vehicle exports dropped 46.7% from July 2008 to 17.36 billion baht.
Local auto production from January to July fell 44.8% year-on-year to 464,068 units:149,416 cars (a 37.6% fall yearon-year) and 307,030 pickup trucks (down 47.96%).
In the same period,263,768 vehicles were produced for export (a 42.65% yearon-year drop) and 200,300 were manufactured for the domestic market (down 47.46%).
Motorcycle production in the first seven months skidded 43.5% year-onyear to 1.09 million units. Motorcycle exports slipped 68.8% to 285,929 units worth 11.3 billion, a decline of 27.37%.
GM MAY TRY TO BACKTRACK ON OPEL SALE
Generalo Motors, which for months has been trying to sell Opel, is reportedly now trying to keep the ailing German brand, a move that would drive a stake in berlin's favoured option: a takeover by Magna.
GM, which emerged from bankruptcy protection last month with the US government owning a majority stake, is trying to develop a US$4.3-billion (Bt146.8-billion) the German government is offering in public financing to supporat a takeover by Canadian auto-parts maker Magna.
It also is roughly in line with the 3.8 billion pound offered by rival bidder, RHJ International.
Accoding to The Wall Street Journal, citing three sources involved in the matter, GM chief executive Fritz Henderson on Friday persented the options to the company's newly formed board of directors in hopes of winning support for the Magna offer.
"The board turned down the Magna deal, these people said, raising questions about how such a sale would affect GM's strategy in Europe, and also voicing concern about specific details related to the German government's financing commitment," the newspaper said.
According to the sources, the management team was asked to rethink its options, and also to prepare more scenarios for consideration, including a plan to raise billions in new financing that would allow GM to keep Opel for itself.
Another option to be considered, "albeit remote," the Journal said, is the potential liquidation of the Opel.
GM, which emerged from bankruptcy protection last month with the US government owning a majority stake, is trying to develop a US$4.3-billion (Bt146.8-billion) the German government is offering in public financing to supporat a takeover by Canadian auto-parts maker Magna.
It also is roughly in line with the 3.8 billion pound offered by rival bidder, RHJ International.
Accoding to The Wall Street Journal, citing three sources involved in the matter, GM chief executive Fritz Henderson on Friday persented the options to the company's newly formed board of directors in hopes of winning support for the Magna offer.
"The board turned down the Magna deal, these people said, raising questions about how such a sale would affect GM's strategy in Europe, and also voicing concern about specific details related to the German government's financing commitment," the newspaper said.
According to the sources, the management team was asked to rethink its options, and also to prepare more scenarios for consideration, including a plan to raise billions in new financing that would allow GM to keep Opel for itself.
Another option to be considered, "albeit remote," the Journal said, is the potential liquidation of the Opel.
Dealers get rough ride as "cash for clunkers" programme ends
Now comes the hard part for the auto industry luring customers without big Cash for Clunkers discounts.
The popular government rebates gave auto sales a jolt, but it was only temporary.Now carmakers and dealerships are forced once again to confront the worst market in a quarter-century.
While Cash for Clunkers may have proved there are still car buyers out there, it is unlikely the heavy demand will last. In fact, the big rush to car lots this month may have had the unintended effect of stealing sales from this autumn and next year.
"I am really worried about this winter,"said J.P. Bishop, president of a dealership chain in central Maryland."If you didn't buy now, the only reason you are going to buy over the next three or four months is because your car died."
Cash for Clunkers, which offered drivers as much as $4,500 off the price of a new, more fuel-efficient car, proved far more popular than anyone imagined.Through Monday, dealers reported selling 625,000 vehicles in just a month with the rebates.
The programme was set to come to an end Monday night. The government had set the deadline on estimates that most of the $3 billion set aside for rebates would be used up by then. Analysts initially figured the cash would last until as long as November.
Cash for Clunkers had its complications: Congress had to race to approve $2 billion more for the program after the first $1 billion quickly ran out. Dealers complained the government was slow to reimburse them for deals they made on new sales.
Hours before the Monday night deadline for Cash for Clunkers sales, the government gave dealers an extension, until noon Tuesday, to file the paperwork to get repaid. The deadline for sales was not affected.
The Transportation Department granted the extension after the website set up to handle the claims was temporarily shut down from overload. Later on Monday, the DOT said the website wouldn't be fully operational until Tuesday morning, and promised that dealers would have "time to submit pending deals equivalent to the time that was lost this afternoon while the system was down."
The DOT declined to elaborate further.For the auto industry, coming off the programme could be like a letdown after a sugar high.
Automakers and dealers got a reprieve from a dismal year of plummeting sales,big lay-offs and the bankruptcies of General Motors and Chrysler.
Cars, trucks and sport utility vehicles sold in July at an annual rate of 11.2 million vehicles, the first time this year the figure has crept above 10 million.That's still far below the 16 million ve-hicles sold just two years ago.
While Cash for Clunkers has helped the auto industry stabilise, it will probably take a full economic recovery to give car and truck sales a lasting rebound.
"There's still a sizeable amount of pent-up demand that's going to be felt,"said Erich Merkle, president of auto industry website autoconomy.com.
He said the "baton of Cash for Clunkers" could eventually be passed to a "fundamentally stronger economy".
"Sure signs of that, of course, are a ways off. Unemployment is still high and the housing market still weak,enough to keep people shy about making big-ticket purchases," said Rebecca Lindland, a Global Insight analyst.
"While this Cash for Clunkers pro-gramme provided a respite for an ailing industry, we are not out of the woods yet and we still have a long road to recovery," she said.
There also simply isn't much left for drivers to shop for especially when it comes to the most popular Cash for Clunkers vehicles, such as the Ford Focus,the Toyota Corolla and some hybrids.
GM, Hyundai, Toyota and Ford have ramped up production of their more efficient models because of inventory shortfalls, but those vehicles won't reach dealers for a while.
Automakers are approaching the next few months cautiously. They are moving to replenish dealer showrooms, but are wary about building too many cars if demand fizzles.
The popular government rebates gave auto sales a jolt, but it was only temporary.Now carmakers and dealerships are forced once again to confront the worst market in a quarter-century.
While Cash for Clunkers may have proved there are still car buyers out there, it is unlikely the heavy demand will last. In fact, the big rush to car lots this month may have had the unintended effect of stealing sales from this autumn and next year.
"I am really worried about this winter,"said J.P. Bishop, president of a dealership chain in central Maryland."If you didn't buy now, the only reason you are going to buy over the next three or four months is because your car died."
Cash for Clunkers, which offered drivers as much as $4,500 off the price of a new, more fuel-efficient car, proved far more popular than anyone imagined.Through Monday, dealers reported selling 625,000 vehicles in just a month with the rebates.
The programme was set to come to an end Monday night. The government had set the deadline on estimates that most of the $3 billion set aside for rebates would be used up by then. Analysts initially figured the cash would last until as long as November.
Cash for Clunkers had its complications: Congress had to race to approve $2 billion more for the program after the first $1 billion quickly ran out. Dealers complained the government was slow to reimburse them for deals they made on new sales.
Hours before the Monday night deadline for Cash for Clunkers sales, the government gave dealers an extension, until noon Tuesday, to file the paperwork to get repaid. The deadline for sales was not affected.
The Transportation Department granted the extension after the website set up to handle the claims was temporarily shut down from overload. Later on Monday, the DOT said the website wouldn't be fully operational until Tuesday morning, and promised that dealers would have "time to submit pending deals equivalent to the time that was lost this afternoon while the system was down."
The DOT declined to elaborate further.For the auto industry, coming off the programme could be like a letdown after a sugar high.
Automakers and dealers got a reprieve from a dismal year of plummeting sales,big lay-offs and the bankruptcies of General Motors and Chrysler.
Cars, trucks and sport utility vehicles sold in July at an annual rate of 11.2 million vehicles, the first time this year the figure has crept above 10 million.That's still far below the 16 million ve-hicles sold just two years ago.
While Cash for Clunkers has helped the auto industry stabilise, it will probably take a full economic recovery to give car and truck sales a lasting rebound.
"There's still a sizeable amount of pent-up demand that's going to be felt,"said Erich Merkle, president of auto industry website autoconomy.com.
He said the "baton of Cash for Clunkers" could eventually be passed to a "fundamentally stronger economy".
"Sure signs of that, of course, are a ways off. Unemployment is still high and the housing market still weak,enough to keep people shy about making big-ticket purchases," said Rebecca Lindland, a Global Insight analyst.
"While this Cash for Clunkers pro-gramme provided a respite for an ailing industry, we are not out of the woods yet and we still have a long road to recovery," she said.
There also simply isn't much left for drivers to shop for especially when it comes to the most popular Cash for Clunkers vehicles, such as the Ford Focus,the Toyota Corolla and some hybrids.
GM, Hyundai, Toyota and Ford have ramped up production of their more efficient models because of inventory shortfalls, but those vehicles won't reach dealers for a while.
Automakers are approaching the next few months cautiously. They are moving to replenish dealer showrooms, but are wary about building too many cars if demand fizzles.
Monday, August 24, 2009
ASIA'S PROSPECTS FOR RECOVERY ARE GOOD, IF IT IS WARY OF EASY MONEY
In the second and final part of his interview with Nation editor-in-chief Suthichai Yoon, Nobel laureate Joseph Stiglitz explains why he has confidence in Asia amid hard times in America.
Why did [the Americans] have a double standard? Is it because Obama could have faced some serious political consequences if he didn't bail out the banks?
Well, they tried to sell the idea that if you play by the rules of capitalism, the whole thing will fall apart. To me, if you have good governance, it will make the economy grow. Now, what happens is, you have a system where you've given out hundreds of billions of dollars and everybody wants it - the car companies, the car suppliers. Everybody would say why do you give it to them, but what about us?
So we have a double standard between Asia and America and we have a double standard in America. We fired GM's president but the guys on Wall Street who got us into this mess, we haven't done anything about them. So we've all these double standards which are undermining confidence in the government. It gives you a smell of corruption. Corruption American's style, but it's still corruption.
President Obama's excuse is that if we let the financial institutions fall, the whole world economy will collapse.
Here again we see the double standard. In the case of GM and Chrysler he saved the companies but not the shareholders. He could have done that with banks, but that's playing by the rules of capitalism, which he chose not to play. For no good reason.
Why is that?
They tried to tell us a story. The story was you would create panic. This is the tactic the Bush administration perfected every time they wanted something, [like] the war on terror. Well, we continue that, but now it isn't the fear of terrorism, it's the fear of financial meltdown. If you took a moment to look at it, if we had debt for equity swap and watched the shareholders fall, you play the rules of capitalism. People would have had more confidence in the companies because the money is not going out to the shareholders.
So is Obama a socialist?
Oh, defenitely not. Quite the contrary. It's not socialism because socialism cares about people, ordinary people but we're giving money to the rich system. This is old-fashioned corporate welfarism. It's the same thing that Bush did, saving the corporations. What we do in the US is we put the bank first and we don't do very much about the people who are in their homes. We said if we pour enough hundreds of billions dollars into banks, maybe ordinary Americans would benefit, maybe that will happen.
Does it happen?
No. It doesn't happen.
You sometimes advocate government intervention. So why are you against Obama's intervention?
There wasn't any government intervention, absolutely not. The private sector has totally failed. We should have had government intervention much earlier without the failure. The irony is that, in the name of keeping government out of the market, we wound up with the biggest intervention in the market. So the mistakes of the free markets economics like Greenspan's has led to the largest role of government in America in its history, so you have to appreciate the irony of the situation. We should have had intervention that makes sure we get the quickest recovery with the least cost. Which means for instance that if we gave money to the banks, we would get claims on the banks that would compensate us.
That's not the case now?
Studies show that if we gave a dollar we got back 67 cents, and the more recent ones put it at 25 cents. We were cheated, and it was very clear that the people who were negotiating for us were working for the banks not for American taxpayers. If they were working for a private company, they would have been fired.
Back to Asia, the Thai prime minister said we are recovering with a V-shape start. Do you agree?
Yes, all the evidence suggests that. America is likely not to have a robust recovery, so if Asia is going to have a robust road, it has to change its model. It cannot be as dependent on exports to the US. This is the problem that Asia as a whole has to face. Not every country in Asia exports to the US - some export to China, but many exports to China become Chinese exports to the US. So, the Asian system is very dependent on exports to the US. That has to change.
What would you advise the Thai PM?
Economies in Asia are dynamic. So, Asia is always doing very well, and now the big challenge is to increase the domestic base - investment and consumption - and to open to but not be dependent on the US. The other point is, it's a very difficult time because the US and some other countries are flooding the world with liquidity. Understandable, because they want to make sure that they don't suffer from problems. But we have a global financial system while liquidity is being decided at the national level. You provide liquidity to American firms but they do not spend in America, and they do sell it out. They look for the best economies in the world, in Asia, but now the problem is that too often they simply look for easy opportunities - real estate, commodities. Another bubble [will] distort the economies in Asia. You have to protect yourself against the mismanagement of financial policies in US.
Be careful. You may be getting the easy money, but it's overnight money. You don't build robust growth based on easy money. You have to say, if they come in for a longer-haul investment, that is great. But for speculation, well, it's not interesting. We'll tax you. We'll tax you with capital gains. You have to recognise how dangerous hot money can be; you really have to remember the lesson of 97. It's worth it for the money to come in only if it improves the productivity of the economy.
So would you specifically advise Thailand to be less dependent on the US market?
That's right, and become more focused on the region and to continue your stimulus package for the country and all the lines that you've done. You have to try to fill in the gap until the region or the world recovers. But beware of the flood of liquidity coming from the West and use the full arsenal of tools that you have in your disposal. Don't buy into the notion that the market knows best. Don't buy into the notion that you only have one instrument, that is interest rates. You have many instruments. Use every one that you can so the government has both the opportunity and the responsibility to insulate the country from the volatility that comes from abroad.
Why did [the Americans] have a double standard? Is it because Obama could have faced some serious political consequences if he didn't bail out the banks?
Well, they tried to sell the idea that if you play by the rules of capitalism, the whole thing will fall apart. To me, if you have good governance, it will make the economy grow. Now, what happens is, you have a system where you've given out hundreds of billions of dollars and everybody wants it - the car companies, the car suppliers. Everybody would say why do you give it to them, but what about us?
So we have a double standard between Asia and America and we have a double standard in America. We fired GM's president but the guys on Wall Street who got us into this mess, we haven't done anything about them. So we've all these double standards which are undermining confidence in the government. It gives you a smell of corruption. Corruption American's style, but it's still corruption.
President Obama's excuse is that if we let the financial institutions fall, the whole world economy will collapse.
Here again we see the double standard. In the case of GM and Chrysler he saved the companies but not the shareholders. He could have done that with banks, but that's playing by the rules of capitalism, which he chose not to play. For no good reason.
Why is that?
They tried to tell us a story. The story was you would create panic. This is the tactic the Bush administration perfected every time they wanted something, [like] the war on terror. Well, we continue that, but now it isn't the fear of terrorism, it's the fear of financial meltdown. If you took a moment to look at it, if we had debt for equity swap and watched the shareholders fall, you play the rules of capitalism. People would have had more confidence in the companies because the money is not going out to the shareholders.
So is Obama a socialist?
Oh, defenitely not. Quite the contrary. It's not socialism because socialism cares about people, ordinary people but we're giving money to the rich system. This is old-fashioned corporate welfarism. It's the same thing that Bush did, saving the corporations. What we do in the US is we put the bank first and we don't do very much about the people who are in their homes. We said if we pour enough hundreds of billions dollars into banks, maybe ordinary Americans would benefit, maybe that will happen.
Does it happen?
No. It doesn't happen.
You sometimes advocate government intervention. So why are you against Obama's intervention?
There wasn't any government intervention, absolutely not. The private sector has totally failed. We should have had government intervention much earlier without the failure. The irony is that, in the name of keeping government out of the market, we wound up with the biggest intervention in the market. So the mistakes of the free markets economics like Greenspan's has led to the largest role of government in America in its history, so you have to appreciate the irony of the situation. We should have had intervention that makes sure we get the quickest recovery with the least cost. Which means for instance that if we gave money to the banks, we would get claims on the banks that would compensate us.
That's not the case now?
Studies show that if we gave a dollar we got back 67 cents, and the more recent ones put it at 25 cents. We were cheated, and it was very clear that the people who were negotiating for us were working for the banks not for American taxpayers. If they were working for a private company, they would have been fired.
Back to Asia, the Thai prime minister said we are recovering with a V-shape start. Do you agree?
Yes, all the evidence suggests that. America is likely not to have a robust recovery, so if Asia is going to have a robust road, it has to change its model. It cannot be as dependent on exports to the US. This is the problem that Asia as a whole has to face. Not every country in Asia exports to the US - some export to China, but many exports to China become Chinese exports to the US. So, the Asian system is very dependent on exports to the US. That has to change.
What would you advise the Thai PM?
Economies in Asia are dynamic. So, Asia is always doing very well, and now the big challenge is to increase the domestic base - investment and consumption - and to open to but not be dependent on the US. The other point is, it's a very difficult time because the US and some other countries are flooding the world with liquidity. Understandable, because they want to make sure that they don't suffer from problems. But we have a global financial system while liquidity is being decided at the national level. You provide liquidity to American firms but they do not spend in America, and they do sell it out. They look for the best economies in the world, in Asia, but now the problem is that too often they simply look for easy opportunities - real estate, commodities. Another bubble [will] distort the economies in Asia. You have to protect yourself against the mismanagement of financial policies in US.
Be careful. You may be getting the easy money, but it's overnight money. You don't build robust growth based on easy money. You have to say, if they come in for a longer-haul investment, that is great. But for speculation, well, it's not interesting. We'll tax you. We'll tax you with capital gains. You have to recognise how dangerous hot money can be; you really have to remember the lesson of 97. It's worth it for the money to come in only if it improves the productivity of the economy.
So would you specifically advise Thailand to be less dependent on the US market?
That's right, and become more focused on the region and to continue your stimulus package for the country and all the lines that you've done. You have to try to fill in the gap until the region or the world recovers. But beware of the flood of liquidity coming from the West and use the full arsenal of tools that you have in your disposal. Don't buy into the notion that the market knows best. Don't buy into the notion that you only have one instrument, that is interest rates. You have many instruments. Use every one that you can so the government has both the opportunity and the responsibility to insulate the country from the volatility that comes from abroad.
Vehicular intelligence
The Robotics Society, in collaboration with Seagate Technology (Thailand) and the Asian Institute of Technology (AIT), held the final round of the Thailand Intelligent Vehicle Challenge 2009 (TIVC) at the Bangkok Racing Circuit, on July 29.
A winning unmanned vehicle from Asian Institute of Technology competes in the final race of the Thailand Intelligent Vehicle Challenge 2009.
This year eight teams from seven universities competed in the driverless-car race.
The challenge was designed to foster creativity and innovative skills in Thai university students through robotic automation and automotive technologies. To compete in the competition, each team had to design and construct an unmanned intelligent vehicle.
Driverless race The cars could not have a driver, nor could they be controlled remotely. The teams had to programme their cars to travel along the planned course, exceed the distance set and avoid obstacles as defined by the cars' programming that is designed to assist the cars during self-navigation along the prescribed route.
In the race, the teams paired up to compete in each round. Two cars started from different starting points about 900 metres away from each other. The team whose car comes at least 100 metres closer to the finish line than their opponent's car would win.
Alternatively, the car that could cover the longest distance within 20 minutes would be the winner. Cars that could avoid obstacles placed along the way would get a 100-metre bonus per obstacle.
It was the first time that the competition divided the teams into pairs, with one team in a pair competing against the other.
The speed was limited to 43km per hour. "Someday we expect that the cars can be applied in real-life situations," said Assoc Prof Dr Manukid Parnichkun, chairman of the contest's organising committee.
Winners The victorious team was the Khenchai team from AIT. It was awarded a 300,000-baht cash prize and a trophy. The first runner-up position went to the Air Force II team from the Royal Thai Air Force Academy, which received 200,000 baht in cash and a plaque.
Both the Khenchai and Air Force II teams were worthy rivals. The winner was selected by comparing the distances the two cars had covered. Khenchai ran a total of 7,901.2 metres and obtained 1,800 metres in bonuses by avoiding several obstacles on its tracks, while Air Force II scored 7,161.4 metres plus 1,400 metres in bonus points. As a result, Khenchai won by a narrow margin.
The other teams that received prizes included Arrive-II from Mae Fah Luang University, Pakchee from AIT and Duck Riders from King Mongkut's University of Technology North Bangkok. They won the Excellent Technique Award, Excellent Creativity Award and Excellent Energy-saving Design Award, respectively.
The challenge "In a normal robotic challenge, students need to apply their mechatronic, mechanical and computer skills, however, in this competition, they must have in-depth knowledge of automobile design as well," Prof Manukid said, explaining the challenges that the contestants had to surmount.
Methee Srisupundit, a member of the Khenchai team, said that this year's most-daunting hurdle required the teams to incorporate speed in their cars as well.
He explained that last year, the winner of the competition was the car that simply covered the greatest distance.
"When we programme the computer installed in the car, we have to seriously consider the safety and stability of the electronic components. We have to ensure that these devices can work effectively despite frequent use over a long period of time and do not give rise to any problem," said Methee, talking about what he considered was the most important lesson he learned from participating in the competition.
He recommends that those interested in taking part in the competition next year practise assembling a vehicle regularly. "The more you practise, the more problems you can come across and find solutions to," Methee said.
A winning unmanned vehicle from Asian Institute of Technology competes in the final race of the Thailand Intelligent Vehicle Challenge 2009.
This year eight teams from seven universities competed in the driverless-car race.
The challenge was designed to foster creativity and innovative skills in Thai university students through robotic automation and automotive technologies. To compete in the competition, each team had to design and construct an unmanned intelligent vehicle.
Driverless race The cars could not have a driver, nor could they be controlled remotely. The teams had to programme their cars to travel along the planned course, exceed the distance set and avoid obstacles as defined by the cars' programming that is designed to assist the cars during self-navigation along the prescribed route.
In the race, the teams paired up to compete in each round. Two cars started from different starting points about 900 metres away from each other. The team whose car comes at least 100 metres closer to the finish line than their opponent's car would win.
Alternatively, the car that could cover the longest distance within 20 minutes would be the winner. Cars that could avoid obstacles placed along the way would get a 100-metre bonus per obstacle.
It was the first time that the competition divided the teams into pairs, with one team in a pair competing against the other.
The speed was limited to 43km per hour. "Someday we expect that the cars can be applied in real-life situations," said Assoc Prof Dr Manukid Parnichkun, chairman of the contest's organising committee.
Winners The victorious team was the Khenchai team from AIT. It was awarded a 300,000-baht cash prize and a trophy. The first runner-up position went to the Air Force II team from the Royal Thai Air Force Academy, which received 200,000 baht in cash and a plaque.
Both the Khenchai and Air Force II teams were worthy rivals. The winner was selected by comparing the distances the two cars had covered. Khenchai ran a total of 7,901.2 metres and obtained 1,800 metres in bonuses by avoiding several obstacles on its tracks, while Air Force II scored 7,161.4 metres plus 1,400 metres in bonus points. As a result, Khenchai won by a narrow margin.
The other teams that received prizes included Arrive-II from Mae Fah Luang University, Pakchee from AIT and Duck Riders from King Mongkut's University of Technology North Bangkok. They won the Excellent Technique Award, Excellent Creativity Award and Excellent Energy-saving Design Award, respectively.
The challenge "In a normal robotic challenge, students need to apply their mechatronic, mechanical and computer skills, however, in this competition, they must have in-depth knowledge of automobile design as well," Prof Manukid said, explaining the challenges that the contestants had to surmount.
Methee Srisupundit, a member of the Khenchai team, said that this year's most-daunting hurdle required the teams to incorporate speed in their cars as well.
He explained that last year, the winner of the competition was the car that simply covered the greatest distance.
"When we programme the computer installed in the car, we have to seriously consider the safety and stability of the electronic components. We have to ensure that these devices can work effectively despite frequent use over a long period of time and do not give rise to any problem," said Methee, talking about what he considered was the most important lesson he learned from participating in the competition.
He recommends that those interested in taking part in the competition next year practise assembling a vehicle regularly. "The more you practise, the more problems you can come across and find solutions to," Methee said.
CAMRY HYBRID PROVES ITS THRIFT IN BANGKOK JAMS
Toyota believes its Camry Hybrid will be a big hit in the Thai passenger-car market.
Already, after its launch late last month, the car has become the talk of the town, being the first locally assembled petrol-electric hybrid.
Although petrol-electric hybrids have been presenton Thailand's roads for many years, their numbers have been somewhat limited. Most of them have been sold by grey-market importers, while distributors like Toyota(and Honda) have only experimented with sales of hybrid vehichles.
Toyota brought in a previous-generation Prius for marketing research purposes, which obviously paved the way to the decision to assemble the Camry Hybrid locally. At the same time, Honda offered its Civic Hybrid through a leasing programme that was far from successful because of the small number of cars involved.
The main problem with sales of hybrid vehicles in Thailand has been high retail prices, because the vehicles have been imported and subject to high import duties.So even if they offered outstanding fuel savings, hybrids in fact did not offer customers overall money savings because the retail prices were too high to start with.
But the Camry Hhbrid is a totally different story.
Prices range from Bt1.59 million to Bt1.77 million, or only Bt70,000 to Bt100,000 more than the petrol-driven versiions of the outgoing model.
Apart from low excise duties for hybrid vehicles, the retail prices for the Camry Hybrid are based on there being no import duties for hybrid components that are not presently produced in Thailand. These include the battery, electric motor and inverter.
Government approval has not yet been given for the abolition of import duties on hybrid components, but Toyota is confident the Finance Ministry will grant approval, and it has launched the car with prices calculated on the basis of no import duties for the vital components.
So what happens if import duties are not cut as expected?
Toyota says the current prices are introductory and will be revised at the end of the year, meaning if it does not receive approval, then customers can expect prices to rise.
Meanwhile, Toyota is proceeding at full speed with marketing activities. Last week it staged a media test drive for the Camry Hybrid that was quite different to its usual test-drive events.
Instead of mapping a test route to a nearby province or staging a group drive upcountry as usual, the Camry Hybrid test drive was held in Bangkok's most congested areas.
Starting off at the Dusit Thani Hotel on Rama IV Road, the Camry Hybrids were driven to Chinatown (Yaowarat Road) and crossed the Rama VIII Bridge over the Chao Phya River to the Thon Buri side. Then the cars took Charan Sanitwong Road before crossing back via the Rama VII Bridge to Ratchadaphisek Road, Lat Phrao, Rama IX, Ekamai, Sukhumvit and then Rama IV Road once again for refuelling.
The purpose of the test drive route was to display the Camry Hybrid's excellent fuel economy. For most of the distance they were driven in stop-and-go traffic conditions and they ran on electric power.
Starting with a full fuel tank, by the time I returned to the Rama IV Esso fuel station, five hours and 49.8 kilometres after setting out, the Camry Hybrid had used only 4.32 litres of 95-octane gasohol.
This translates into a fuel-economy figure of 11.5km per litre, which was 42.4 per cent lower than the petrol-engine version Camry 2.4V that drove the same route that day. But it should be borne in mind this figure may not be precisely accurate, because of the small amount of fuel involved. However, you can get the overall picture of a substantial difference.
Also remember that at higher speeds, such as highway cruising, savings from fuel consumption will be much smaller than those in the city because the car is powered by the petrol engine rather than the electric motor. Perhaps Toyota could have followed the city driving with a cruise down to Pattaya on the Expressway, so that average fuel consumption could be recorded. With more fuel consumed, the accuracy would also have improved.
Another point to be aware of is when you get stuck in really bad traffic, such as inbound on Sukhumvit Road during rush hour (an ironic term considering no one is moving), it is easy to use up the battery, especially with the air-conditioner running, and surely no one turns off the air-con in Bangkok, Under normal city driving conditions, the battery power is used up and charged again in quick cycles as you decelerate or brake.
However, it took me more than an hour to crawl from the top of Sukhumvit Soi 55 to Soi 26, and there was not much opportunity for the battery to be recharged. The engine started automatically while the car was stationary, and since it was still not moving. I was informed by an onboard warning to shift the transmission from N to P. I wa told later that recharging only happens in D or P. This is something of which Camry Hybrid drivers must be aware.
Although many Camry sales will come from 2-litre baseline models (priced at Bt1.26 million for the 2.0G and Bt1.21 million fro the 2.OE), the hybrid models, which come with higher equipment levels, will still represent the majority of sales.
In general, the Camry Hybrid is a great everyday car. There's plenty of space, even in the trunk, which can accommadate four golf bags despite the compact battery unit, located behind the rear-seat cushion. The petrol-electric power train, mated to a continuously variable transmission, offers great performance.
There is loads of torque for acceleration when both the 2.4-litre engine and the electric motor rev up, and the cabin is really quiet when the car runs in electric mode.
In terms of envionmental issues, the Camry Hybrid not only passes the Euro 4 emission standards that will be implemented in Thailand in 2012, but also the Advanced Technology Partial Zero Emissions Vehicle (ATPZEV) rating from the United States, marking it one of the cleanest vehicles you can buy.
As for battery disposal(Toyota claims the battery will last for the lifespan of the car), this will be carried out by Toyota. Safety is also endured, with an Electronic Control Unit that cuts the electricity supply if there are any irregularities. There is also cable insulation and a service plug for safety.
Apart from representing a big step for the local auto industry in the production of higher-technology vehicles, the Camry Hybrid is also a midsized sedan offering great value, with attractive pricing as well as low running costs, thanks to its excellent fuel economy.
Toyota Camry 2.4 Hybrid
Engine: 4-cylinder DOHC 16-valve
Displacement: 2,362cc
Bore and stroke: 88.5 x 96
Compression ration: 12.5:1
Max power: 150hp at 6,000rpm
Max torque: 187Nm at 4,400rpm
Electric Motor: Permanent magnetic synchronous motor
Voltage: 650 volts
Max power: 142hp
Max torque: 270Nm
Battery: Nickel-metal hydride
Voltage: 244.8 volts
Modules: 34 modules/204 cells
Capacity: 6.5A(3 hours)
Transmission: Electronically controlled continuously variable transmission
Suspension(f/r): McPherson struts, stabiliser/dual-link strut
Steering: Electrically powered rack and pinion
Turning circle: 11 metres
Braker(f/r): Vented discs/discs
Dimensions(mm)
Length: 4,825
Width: 1,820
Height: 1,470
Wheelbase: 2,775
Track(f/r): 1,575/1,565
Weight: 1,600kgs
Wheels: 16-inch alloys
Tyres: 215/60R16
Fuel-tank capacity: 65 litres
Price: Bt1.779 million
Distributor: Toyota Motor Thailand
Already, after its launch late last month, the car has become the talk of the town, being the first locally assembled petrol-electric hybrid.
Although petrol-electric hybrids have been presenton Thailand's roads for many years, their numbers have been somewhat limited. Most of them have been sold by grey-market importers, while distributors like Toyota(and Honda) have only experimented with sales of hybrid vehichles.
Toyota brought in a previous-generation Prius for marketing research purposes, which obviously paved the way to the decision to assemble the Camry Hybrid locally. At the same time, Honda offered its Civic Hybrid through a leasing programme that was far from successful because of the small number of cars involved.
The main problem with sales of hybrid vehicles in Thailand has been high retail prices, because the vehicles have been imported and subject to high import duties.So even if they offered outstanding fuel savings, hybrids in fact did not offer customers overall money savings because the retail prices were too high to start with.
But the Camry Hhbrid is a totally different story.
Prices range from Bt1.59 million to Bt1.77 million, or only Bt70,000 to Bt100,000 more than the petrol-driven versiions of the outgoing model.
Apart from low excise duties for hybrid vehicles, the retail prices for the Camry Hybrid are based on there being no import duties for hybrid components that are not presently produced in Thailand. These include the battery, electric motor and inverter.
Government approval has not yet been given for the abolition of import duties on hybrid components, but Toyota is confident the Finance Ministry will grant approval, and it has launched the car with prices calculated on the basis of no import duties for the vital components.
So what happens if import duties are not cut as expected?
Toyota says the current prices are introductory and will be revised at the end of the year, meaning if it does not receive approval, then customers can expect prices to rise.
Meanwhile, Toyota is proceeding at full speed with marketing activities. Last week it staged a media test drive for the Camry Hybrid that was quite different to its usual test-drive events.
Instead of mapping a test route to a nearby province or staging a group drive upcountry as usual, the Camry Hybrid test drive was held in Bangkok's most congested areas.
Starting off at the Dusit Thani Hotel on Rama IV Road, the Camry Hybrids were driven to Chinatown (Yaowarat Road) and crossed the Rama VIII Bridge over the Chao Phya River to the Thon Buri side. Then the cars took Charan Sanitwong Road before crossing back via the Rama VII Bridge to Ratchadaphisek Road, Lat Phrao, Rama IX, Ekamai, Sukhumvit and then Rama IV Road once again for refuelling.
The purpose of the test drive route was to display the Camry Hybrid's excellent fuel economy. For most of the distance they were driven in stop-and-go traffic conditions and they ran on electric power.
Starting with a full fuel tank, by the time I returned to the Rama IV Esso fuel station, five hours and 49.8 kilometres after setting out, the Camry Hybrid had used only 4.32 litres of 95-octane gasohol.
This translates into a fuel-economy figure of 11.5km per litre, which was 42.4 per cent lower than the petrol-engine version Camry 2.4V that drove the same route that day. But it should be borne in mind this figure may not be precisely accurate, because of the small amount of fuel involved. However, you can get the overall picture of a substantial difference.
Also remember that at higher speeds, such as highway cruising, savings from fuel consumption will be much smaller than those in the city because the car is powered by the petrol engine rather than the electric motor. Perhaps Toyota could have followed the city driving with a cruise down to Pattaya on the Expressway, so that average fuel consumption could be recorded. With more fuel consumed, the accuracy would also have improved.
Another point to be aware of is when you get stuck in really bad traffic, such as inbound on Sukhumvit Road during rush hour (an ironic term considering no one is moving), it is easy to use up the battery, especially with the air-conditioner running, and surely no one turns off the air-con in Bangkok, Under normal city driving conditions, the battery power is used up and charged again in quick cycles as you decelerate or brake.
However, it took me more than an hour to crawl from the top of Sukhumvit Soi 55 to Soi 26, and there was not much opportunity for the battery to be recharged. The engine started automatically while the car was stationary, and since it was still not moving. I was informed by an onboard warning to shift the transmission from N to P. I wa told later that recharging only happens in D or P. This is something of which Camry Hybrid drivers must be aware.
Although many Camry sales will come from 2-litre baseline models (priced at Bt1.26 million for the 2.0G and Bt1.21 million fro the 2.OE), the hybrid models, which come with higher equipment levels, will still represent the majority of sales.
In general, the Camry Hybrid is a great everyday car. There's plenty of space, even in the trunk, which can accommadate four golf bags despite the compact battery unit, located behind the rear-seat cushion. The petrol-electric power train, mated to a continuously variable transmission, offers great performance.
There is loads of torque for acceleration when both the 2.4-litre engine and the electric motor rev up, and the cabin is really quiet when the car runs in electric mode.
In terms of envionmental issues, the Camry Hybrid not only passes the Euro 4 emission standards that will be implemented in Thailand in 2012, but also the Advanced Technology Partial Zero Emissions Vehicle (ATPZEV) rating from the United States, marking it one of the cleanest vehicles you can buy.
As for battery disposal(Toyota claims the battery will last for the lifespan of the car), this will be carried out by Toyota. Safety is also endured, with an Electronic Control Unit that cuts the electricity supply if there are any irregularities. There is also cable insulation and a service plug for safety.
Apart from representing a big step for the local auto industry in the production of higher-technology vehicles, the Camry Hybrid is also a midsized sedan offering great value, with attractive pricing as well as low running costs, thanks to its excellent fuel economy.
Toyota Camry 2.4 Hybrid
Engine: 4-cylinder DOHC 16-valve
Displacement: 2,362cc
Bore and stroke: 88.5 x 96
Compression ration: 12.5:1
Max power: 150hp at 6,000rpm
Max torque: 187Nm at 4,400rpm
Electric Motor: Permanent magnetic synchronous motor
Voltage: 650 volts
Max power: 142hp
Max torque: 270Nm
Battery: Nickel-metal hydride
Voltage: 244.8 volts
Modules: 34 modules/204 cells
Capacity: 6.5A(3 hours)
Transmission: Electronically controlled continuously variable transmission
Suspension(f/r): McPherson struts, stabiliser/dual-link strut
Steering: Electrically powered rack and pinion
Turning circle: 11 metres
Braker(f/r): Vented discs/discs
Dimensions(mm)
Length: 4,825
Width: 1,820
Height: 1,470
Wheelbase: 2,775
Track(f/r): 1,575/1,565
Weight: 1,600kgs
Wheels: 16-inch alloys
Tyres: 215/60R16
Fuel-tank capacity: 65 litres
Price: Bt1.779 million
Distributor: Toyota Motor Thailand
Opel labour chief threatens action
Opel labour leader Klaus Franz called on General Motors to pick a buyer for its European unit this week, and threatened "spectacular measures" if the US group did not make a decision.
On Friday GM failed to reach a decision either in favour of the Canadian automotive firm Magna, which is Germany's preferred buyer for Opel, or rival bidder RHJ International, leaving the carmaker's fate up in the air.
"We have run out of patience," Opel's works council head Franz told Deutschlandfunk radio yesterday.
"We have been calm so far, listened diligently and made comments, but that is over now. If nothing changes from General Motors' side by the end of this week, then we will be active, and there will definitely be spectacular measures from us," he said.
German Chancellor Angela Merkel also expressed her regret on Sunday at GM's failure to choose a buyer and said a decision was urgently needed for the carmaker's future.
GM, which emerged from bankruptcy protection on July 10, last week agreed to sell its Saab car business to Koenigsegg,a tiny Swedish luxury carmaker, the first in a series of big disposals the US group is planning as it slims down.
Delays have also dogged negotiations to sell GM brand Hummer. Chinese reports said over the weekend that regulators there had approved Tengzhong's bid for Hummer, but the Chinese company said it was still awaiting official word.
In Europe, talks to sell Opel have been dragging on for months, and the German government and GM now seem to be split over who should be allowed to buy the company.
Berlin, which is facing a federal election on Sept 27, has offered financial backing for Magna's bid because it believes it would be the best option to save jobs at Opel. In Germany, Opel employs over 25,000 people in four major plants making models including the three-door Corsa subcompacts and Zafira vans. In the UK, there are two factories that produce automobiles under the Vauxhall badge. Opel has other facilities in Belgium, Poland and Spain.
Opel and sister brand Vauxhall sold just over 560,000 cars in Europe in the first half of the year for a market share of 7.6%, according to data compiled by the ACEA auto industry association.
A Magna victory would be a coup for its founder and chairman, Frank Stronach, who left Europe a poor toolmaker half a century ago and built his company into one of the world's biggest automotive suppliers.
It would mark a setback for Leonhard Fischer, the former investment banker and turnaround specialist who runs RHJ.
The failure to make a decision on the firm's future drew angry reactions from a number of German politicians at the weekend, while they reaffirmed their support for Magna's bid.
Berlin and GM are expected to resume talks this week.
On Friday GM failed to reach a decision either in favour of the Canadian automotive firm Magna, which is Germany's preferred buyer for Opel, or rival bidder RHJ International, leaving the carmaker's fate up in the air.
"We have run out of patience," Opel's works council head Franz told Deutschlandfunk radio yesterday.
"We have been calm so far, listened diligently and made comments, but that is over now. If nothing changes from General Motors' side by the end of this week, then we will be active, and there will definitely be spectacular measures from us," he said.
German Chancellor Angela Merkel also expressed her regret on Sunday at GM's failure to choose a buyer and said a decision was urgently needed for the carmaker's future.
GM, which emerged from bankruptcy protection on July 10, last week agreed to sell its Saab car business to Koenigsegg,a tiny Swedish luxury carmaker, the first in a series of big disposals the US group is planning as it slims down.
Delays have also dogged negotiations to sell GM brand Hummer. Chinese reports said over the weekend that regulators there had approved Tengzhong's bid for Hummer, but the Chinese company said it was still awaiting official word.
In Europe, talks to sell Opel have been dragging on for months, and the German government and GM now seem to be split over who should be allowed to buy the company.
Berlin, which is facing a federal election on Sept 27, has offered financial backing for Magna's bid because it believes it would be the best option to save jobs at Opel. In Germany, Opel employs over 25,000 people in four major plants making models including the three-door Corsa subcompacts and Zafira vans. In the UK, there are two factories that produce automobiles under the Vauxhall badge. Opel has other facilities in Belgium, Poland and Spain.
Opel and sister brand Vauxhall sold just over 560,000 cars in Europe in the first half of the year for a market share of 7.6%, according to data compiled by the ACEA auto industry association.
A Magna victory would be a coup for its founder and chairman, Frank Stronach, who left Europe a poor toolmaker half a century ago and built his company into one of the world's biggest automotive suppliers.
It would mark a setback for Leonhard Fischer, the former investment banker and turnaround specialist who runs RHJ.
The failure to make a decision on the firm's future drew angry reactions from a number of German politicians at the weekend, while they reaffirmed their support for Magna's bid.
Berlin and GM are expected to resume talks this week.
The charm of the Mini rolls on at 50
The Mini might be 50 years old, but the love for the little British car showed no signs of waning as thousands of "Minimaniacs"gathered earlier this month to celebrate the anniversary.
"They come from everywhere: Australia, Japan, Germany, France... We have 450 Miniclubs from all over the world,"marvelled Glenys Price, one of the organisers of the meeting in Longbridge,central England, where it all began.
About 5,000"Minimaniacs", driving Minis of every colour and model, set up camp opposite the old factory that produced the first Minis in an industrial suburb of Birmingham, swapping advice,stories and spare parts.
"Oh yes, the passion's still alive. It was a young people's car but the fathers passed on to their son and now the grandchildren have one," Price said,ahead of the August 27 anniversary of the Mini going on the market in 1959.
Mathieu Faucon,25, arrived with his father Michel at the event, and admits that it was "love at first sight" for him and the little cars.
Despite their tendency to break down - causing critics to describe them as less a car, more a tin can on wheels he says he "caught the bug" from his father and now owns three of the little cars.
"It's true, you have to enjoy being a mechanic," Faucon said, admitting he has spent hours under the bonnet.
His father Michel Faucon,60, bought his first Mini in his 20s and recalls fondly how "having a Mini was the coolest thing"- especially when it came to attracting women.
Despite also admitting its flaws, he says:"It weaves its way everywhere, you feel like you're going fast. Normal cars are so mundane."
"You are so close to the ground, its like a go-kart. You can feel everything through the steering wheel. In the back,too," chipped in a family friend,26-yearold Mathieu Duval.
When production stopped in 2000,Minis only became more collectable. A new version was released in 2001 following BMW's takeover of Rover, but for many fans,"the big one", as they call it here, simply cannot compete.
"Since they stopped making it, the passion's gone to the roof," said John Griffin, the 46-year-old secretary of the London and Surrey Mini Owners' Club.
Holger George, the 55-year-old president of a German group which incorporates 40 clubs from around the country,dismissed the new car, saying:"It has nothing to do with the old Mini."
With its basic construction, the original car is a dream for a mechanic, says Holger,who is here with his 15-year-old step son."You can do everything yourself,its very adaptable. It's a real toy for adults," he said.
Some Mini fans are more flexible,however, including Barry Tilbury, a member of the London and Surrey club who owns 16 cars - including a new Mini.
"It's my investment, it's like putting your money in a bank," he said.
In a tent nearby, two little blonde boys sing the song from The Italian Job ,the cult movie starring Michael Caine which put Minis centre stage.
Aged just nine and six years old, they "already have the passion", said their father, Mattias Wahlstedt,39.
He proudly introduces himself as president of the Mini Seven Club Sweden,"the first Mini club in the world, created in 1961, six months before the English one".
How to describe the allure of the Mini?"Kids don't recognise a Saab from a Volvo but they always recognise a Mini,"Wahlstedt said.
"They come from everywhere: Australia, Japan, Germany, France... We have 450 Miniclubs from all over the world,"marvelled Glenys Price, one of the organisers of the meeting in Longbridge,central England, where it all began.
About 5,000"Minimaniacs", driving Minis of every colour and model, set up camp opposite the old factory that produced the first Minis in an industrial suburb of Birmingham, swapping advice,stories and spare parts.
"Oh yes, the passion's still alive. It was a young people's car but the fathers passed on to their son and now the grandchildren have one," Price said,ahead of the August 27 anniversary of the Mini going on the market in 1959.
Mathieu Faucon,25, arrived with his father Michel at the event, and admits that it was "love at first sight" for him and the little cars.
Despite their tendency to break down - causing critics to describe them as less a car, more a tin can on wheels he says he "caught the bug" from his father and now owns three of the little cars.
"It's true, you have to enjoy being a mechanic," Faucon said, admitting he has spent hours under the bonnet.
His father Michel Faucon,60, bought his first Mini in his 20s and recalls fondly how "having a Mini was the coolest thing"- especially when it came to attracting women.
Despite also admitting its flaws, he says:"It weaves its way everywhere, you feel like you're going fast. Normal cars are so mundane."
"You are so close to the ground, its like a go-kart. You can feel everything through the steering wheel. In the back,too," chipped in a family friend,26-yearold Mathieu Duval.
When production stopped in 2000,Minis only became more collectable. A new version was released in 2001 following BMW's takeover of Rover, but for many fans,"the big one", as they call it here, simply cannot compete.
"Since they stopped making it, the passion's gone to the roof," said John Griffin, the 46-year-old secretary of the London and Surrey Mini Owners' Club.
Holger George, the 55-year-old president of a German group which incorporates 40 clubs from around the country,dismissed the new car, saying:"It has nothing to do with the old Mini."
With its basic construction, the original car is a dream for a mechanic, says Holger,who is here with his 15-year-old step son."You can do everything yourself,its very adaptable. It's a real toy for adults," he said.
Some Mini fans are more flexible,however, including Barry Tilbury, a member of the London and Surrey club who owns 16 cars - including a new Mini.
"It's my investment, it's like putting your money in a bank," he said.
In a tent nearby, two little blonde boys sing the song from The Italian Job ,the cult movie starring Michael Caine which put Minis centre stage.
Aged just nine and six years old, they "already have the passion", said their father, Mattias Wahlstedt,39.
He proudly introduces himself as president of the Mini Seven Club Sweden,"the first Mini club in the world, created in 1961, six months before the English one".
How to describe the allure of the Mini?"Kids don't recognise a Saab from a Volvo but they always recognise a Mini,"Wahlstedt said.
Mitsubishi pushes lithium battery car
The Japanese car maker Mitsubishi Motors has lobbied the Industry Ministry for government support for its lithium battery cars.
Mitsubishi has proposed that the ministry push local production toward battery-powered cars and list the product as a strategic direction for the nation's 2010-2015 automotive plan.
The ministry is now drafting the fiveyear strategic plan as a guideline for the automotive industry.
In addition to privileges, the government should persuade investors to support local production of this car, said Nobuyuki Murahashi, president of Mitsubishi Motors (Thailand).
He added that building parts to supply the industry and public infrastructure such as charging stations need to be planned.
A local production base would need to import motors and batteries from Japan.
The lithium battery would be charged through household power stations. It is for driving in the city and may deliver 160 kilometres per charge. Mitsubishi recently launched a plug-in car commercially in Japan.
"When we visit Japan to hear suggestions from automobile operators next month, we should know if others support the premise or not. Then we will return to work out the incentives," said Sorayud Petchtrakul, an adviser to the industry minister.
Mitsubishi also confirmed its plan to launch an E85 Lancer model in the final quarter of the year.
Mr Sorayud said the ministry is in the process of determining the best direction for the automotive industry the next five years and plans on visiting Japanese and European car manufacturers to hear their suggestions.
"Eco-car vehicles are about to be outdated. The new direction for the industry could be something like this lithium battery technology, which is light in body,has less combustion and no fuel consumption.
"This could be the technology that answers future fuel and vehicle demands as we move toward a more fuelindependent society," he said.
Mitsubishi has proposed that the ministry push local production toward battery-powered cars and list the product as a strategic direction for the nation's 2010-2015 automotive plan.
The ministry is now drafting the fiveyear strategic plan as a guideline for the automotive industry.
In addition to privileges, the government should persuade investors to support local production of this car, said Nobuyuki Murahashi, president of Mitsubishi Motors (Thailand).
He added that building parts to supply the industry and public infrastructure such as charging stations need to be planned.
A local production base would need to import motors and batteries from Japan.
The lithium battery would be charged through household power stations. It is for driving in the city and may deliver 160 kilometres per charge. Mitsubishi recently launched a plug-in car commercially in Japan.
"When we visit Japan to hear suggestions from automobile operators next month, we should know if others support the premise or not. Then we will return to work out the incentives," said Sorayud Petchtrakul, an adviser to the industry minister.
Mitsubishi also confirmed its plan to launch an E85 Lancer model in the final quarter of the year.
Mr Sorayud said the ministry is in the process of determining the best direction for the automotive industry the next five years and plans on visiting Japanese and European car manufacturers to hear their suggestions.
"Eco-car vehicles are about to be outdated. The new direction for the industry could be something like this lithium battery technology, which is light in body,has less combustion and no fuel consumption.
"This could be the technology that answers future fuel and vehicle demands as we move toward a more fuelindependent society," he said.
Mercedes unveils new E500 E-Class
Mercedes Benz Thailand yesterday moved to preserve its image as the luxury car leader by giving a preview of the E500- the model topping the company's E-Class range - which has already been imported in a right-hand drive version by independent companies over the last two months.
More than 12 million E-Class saloons have been sold worldwide in the past 60 years, making the E-Class the best-selling Mercedes Benz range, said president Alexander Paufler.
In Thailand, the current E-Class generation is among Mercedes Benz Thailand's top performers, with a 77%market share of 1,421 units in the first seventh months.
"Now, with our new E-Class, we're raising the bar yet again - be it in fuel efficiency or environmental compatibility, be it comfort, safety or product quality.
"At the same time - and despite all innovation - we have stuck firmly to our philosophy that an E-Class is focused not on short-lived hype but on lasting value," he said.
The new E500 comes with a 5,462cc V8 petrol engine, eight cylinders and a seven-speed automatic transmission and it has a top speed at 250 kilometres per hour.
E500 cars imported from Germany will go on sale in the fourth quarter this year at slightly more than 10 million baht. Observers said the car was previewed to inform Mercedes Benz Thailand's dealers and customers that the new model is coming to Thailand soon.
Independent car importers beat the authorised Mercedes Benz distributor in launching the E-Class model because Mercedes Benz Thailand wasted time preparing kits for local assembling, said industry figures.
Independent importers brought in the smaller-engine models of the E-Class with right-hand drive.
Mercedes Benz Thailand will assemble the E-Class model in the fourth quarter of this year with both diesel and benzene engines of no more than 2,500cc.
Bosch debuts no top-up auto battery
SANTAN SANTIVIMOLNAT
Bosch has launched asealed maintenance-free battery to strengthen its product lineup in the increasingly competitive auto-battery market.
The S3 MF is an entirely maintenancefree battery with a labyrinth structure and ventilated cover that is sealed from the factory. The battery therefore requires no topping up over its lifespan of 18-24 months.
"This will make the battery problemfree for customers and increase their convenience," said Yingyuad Whangprayoat, general manager of Robert Bosch Thailand's automotive after-market division.
The S3 MF battery also uses calcium production technology, which ensures precise starting power.
The automative battery aftermarket has heated up this year with manufacturers shifting their focus to the aftermarket as demand from automakers dried up.
Bosch is aiming the S3 MF battery at almost all Japanese passenger and pickup vehicles.
But Mr Yingyuad gave no figure for the targeted market share or total value of the market.
More than 12 million E-Class saloons have been sold worldwide in the past 60 years, making the E-Class the best-selling Mercedes Benz range, said president Alexander Paufler.
In Thailand, the current E-Class generation is among Mercedes Benz Thailand's top performers, with a 77%market share of 1,421 units in the first seventh months.
"Now, with our new E-Class, we're raising the bar yet again - be it in fuel efficiency or environmental compatibility, be it comfort, safety or product quality.
"At the same time - and despite all innovation - we have stuck firmly to our philosophy that an E-Class is focused not on short-lived hype but on lasting value," he said.
The new E500 comes with a 5,462cc V8 petrol engine, eight cylinders and a seven-speed automatic transmission and it has a top speed at 250 kilometres per hour.
E500 cars imported from Germany will go on sale in the fourth quarter this year at slightly more than 10 million baht. Observers said the car was previewed to inform Mercedes Benz Thailand's dealers and customers that the new model is coming to Thailand soon.
Independent car importers beat the authorised Mercedes Benz distributor in launching the E-Class model because Mercedes Benz Thailand wasted time preparing kits for local assembling, said industry figures.
Independent importers brought in the smaller-engine models of the E-Class with right-hand drive.
Mercedes Benz Thailand will assemble the E-Class model in the fourth quarter of this year with both diesel and benzene engines of no more than 2,500cc.
Bosch debuts no top-up auto battery
SANTAN SANTIVIMOLNAT
Bosch has launched asealed maintenance-free battery to strengthen its product lineup in the increasingly competitive auto-battery market.
The S3 MF is an entirely maintenancefree battery with a labyrinth structure and ventilated cover that is sealed from the factory. The battery therefore requires no topping up over its lifespan of 18-24 months.
"This will make the battery problemfree for customers and increase their convenience," said Yingyuad Whangprayoat, general manager of Robert Bosch Thailand's automotive after-market division.
The S3 MF battery also uses calcium production technology, which ensures precise starting power.
The automative battery aftermarket has heated up this year with manufacturers shifting their focus to the aftermarket as demand from automakers dried up.
Bosch is aiming the S3 MF battery at almost all Japanese passenger and pickup vehicles.
But Mr Yingyuad gave no figure for the targeted market share or total value of the market.
Sunday, August 23, 2009
BRINGING BACK MEMORIES OF 1997
The lifestyles of the rich and famous are up for sale at the Marketplace of the Formerly Rich By Nina Suebsukcharoen
Disturbing memories of the Asian economic meltdown of 1997 are flooding back with the revival of the Marketplace of the Formerly Rich by Benz Thonglor at its seven-storey building in the chic Thong Lor neighbourhood of Bangkok.
However, there is a big difference this time. Company president Wasant Pothipimpanon says that this time around, it is mostly businesses selling surplus inventory, including
jewellery, used high-end watches earlier destined for the US and antiques.
Of course there are also second-hand Mercedes-Benz saloons for sale too but these are being sold by private individuals who are saddled with too many belongings, and not out of financial desperation as happened during the last economic shake-up.
"I am clearing goods for the private sector and those people who have accumulated too many things," says Mr Wasant."These people brought in their stuff to sell for fun but they are not in trouble yet, they haven't reached that point. Right now it is companies and not private individuals that are in trouble."
However, Mr Wasant is very pessimistic about the general outlook and expects households to face more financial woes very soon.But he believes that Thais are born to buy and think it is a loss of face to sell one's possessions."It's not like farang - they have garage sales, they aren't ashamed, they try to sell when they move house."
He blames the banks and their unreasonably tight credit policies for the problems that many businesses are currently facing, noting that they have gone beyond just pressuring executives to not giving them any additional loans at all."I talk to bankers but I don't understand their philosophy."
As Mr Wasant sees it, if a company wants to borrow money against a building worth 100 million baht, banks will only give 50% of that value today although previously they gave 80%, or even 100% if the borrower's credit was good. Those who had previously borrowed against a building and repaid, say,80% of the loan over seven years will not get additional credit even if the building today has appreciated in value by 50%, he says.
Mr Wasant himself ran into this problem with his building, which is worth 300 million baht. He had previously borrowed more than 200 million against it, but reduced the loan to around 100 million baht over a seven- to eight-year period. He asked the bank whether he could borrow more against it for working capital but was turned down. He asked whether he could take out a second mortgage with another bank and was again rebuffed.
"So I had to find 100 million baht from elsewhere to clear [the original loan] and then I moved to another place and got 250 million baht. But at that time, finding 100 million baht to clear it was difficult. Businesses have plunged into this trap and are stuck there.
"I don't understand banks today, they have my 100 million baht back but now have to find new parties to release the money to,maybe 10 parties at 10 million baht each and the assets placed as collateral may not be as good as this one. I don't know what goes on in their heads."
Mr Wasant maintains that the Thai economy need not have deteriorated so much,regardless of what has been taking place elsewhere. Again he blasted bankers for dragging the country down by not adapting foreign economic theories to Thai conditions. In other countries, if a loan against a building turns bad, they have other options besides seeking a court-ordered seizure, which could take five or six years. Instead, they could sell the building and lease it back.
"I go to the bank with my 300 million baht building, I transfer it to the bank, it's a sale and I lease it back with a buy-back option. If I don't buy it back they can seize it without having to sue. Why is this not in place in Thailand?"
Mr Wasant also pointed to another key difference between today and the 1997 crash,which is that the latter hit very suddenly like an earthquake, while this time it is more like a flood but with the waters slowly rising.This has given businessmen time to adjust and move on but some have scaled back their businesses and are not investing anymore. The reduced business activity in turn means less revenue for the government which needs money to help farmers and those who are jobless.
Mr Wasant says the government could promote the sale of goods by restructuring tax collection with automobiles a prime example. Vehicles are currently taxed as they leave the factory, not when they are registered by their owners as occurs elsewhere. This approach deters foreigners from buying.
"Here we collect beforehand because we are afraid we won't be able to collect anything at all. This makes it expensive for people coming from overseas. The tax on a car sold for four million baht is three million baht. If I could park a car here for sale at only one million baht, a foreigner might buy it and take it home."
However it is reassuring that today's economic situation is not as bad as in 1997, with the price of second-hand saloons being sold at the Benz Thonglor fair one indicator. Back in 1997 Mr Wasant recalls selling a 2.4 million baht car for 1.6 million baht and throwing in a house to sweeten the deal. The discounts at the current fair are around 10-15% below the market price, basically the amount saved by cutting out a second-hand dealer.
Mercedes-Benz saloons continue to be big local favourites based on the perception of durability and fuel efficiency - up to 19 kilometres on a litre of diesel, he says.
While the cars are pricey - the cheapest new one at Benz Thonglor costs 2.5 million baht - one can get a 15-year-old vehicle in passable condition for just 300,000 baht.
"Fifteen years old but still a good car, a 15-year-old Benz is still perfect, but Japanese cars can't run after 15 years. While already 15-years-old, a Benz can easily operate for another 10 years."
Disturbing memories of the Asian economic meltdown of 1997 are flooding back with the revival of the Marketplace of the Formerly Rich by Benz Thonglor at its seven-storey building in the chic Thong Lor neighbourhood of Bangkok.
However, there is a big difference this time. Company president Wasant Pothipimpanon says that this time around, it is mostly businesses selling surplus inventory, including
jewellery, used high-end watches earlier destined for the US and antiques.
Of course there are also second-hand Mercedes-Benz saloons for sale too but these are being sold by private individuals who are saddled with too many belongings, and not out of financial desperation as happened during the last economic shake-up.
"I am clearing goods for the private sector and those people who have accumulated too many things," says Mr Wasant."These people brought in their stuff to sell for fun but they are not in trouble yet, they haven't reached that point. Right now it is companies and not private individuals that are in trouble."
However, Mr Wasant is very pessimistic about the general outlook and expects households to face more financial woes very soon.But he believes that Thais are born to buy and think it is a loss of face to sell one's possessions."It's not like farang - they have garage sales, they aren't ashamed, they try to sell when they move house."
He blames the banks and their unreasonably tight credit policies for the problems that many businesses are currently facing, noting that they have gone beyond just pressuring executives to not giving them any additional loans at all."I talk to bankers but I don't understand their philosophy."
As Mr Wasant sees it, if a company wants to borrow money against a building worth 100 million baht, banks will only give 50% of that value today although previously they gave 80%, or even 100% if the borrower's credit was good. Those who had previously borrowed against a building and repaid, say,80% of the loan over seven years will not get additional credit even if the building today has appreciated in value by 50%, he says.
Mr Wasant himself ran into this problem with his building, which is worth 300 million baht. He had previously borrowed more than 200 million against it, but reduced the loan to around 100 million baht over a seven- to eight-year period. He asked the bank whether he could borrow more against it for working capital but was turned down. He asked whether he could take out a second mortgage with another bank and was again rebuffed.
"So I had to find 100 million baht from elsewhere to clear [the original loan] and then I moved to another place and got 250 million baht. But at that time, finding 100 million baht to clear it was difficult. Businesses have plunged into this trap and are stuck there.
"I don't understand banks today, they have my 100 million baht back but now have to find new parties to release the money to,maybe 10 parties at 10 million baht each and the assets placed as collateral may not be as good as this one. I don't know what goes on in their heads."
Mr Wasant maintains that the Thai economy need not have deteriorated so much,regardless of what has been taking place elsewhere. Again he blasted bankers for dragging the country down by not adapting foreign economic theories to Thai conditions. In other countries, if a loan against a building turns bad, they have other options besides seeking a court-ordered seizure, which could take five or six years. Instead, they could sell the building and lease it back.
"I go to the bank with my 300 million baht building, I transfer it to the bank, it's a sale and I lease it back with a buy-back option. If I don't buy it back they can seize it without having to sue. Why is this not in place in Thailand?"
Mr Wasant also pointed to another key difference between today and the 1997 crash,which is that the latter hit very suddenly like an earthquake, while this time it is more like a flood but with the waters slowly rising.This has given businessmen time to adjust and move on but some have scaled back their businesses and are not investing anymore. The reduced business activity in turn means less revenue for the government which needs money to help farmers and those who are jobless.
Mr Wasant says the government could promote the sale of goods by restructuring tax collection with automobiles a prime example. Vehicles are currently taxed as they leave the factory, not when they are registered by their owners as occurs elsewhere. This approach deters foreigners from buying.
"Here we collect beforehand because we are afraid we won't be able to collect anything at all. This makes it expensive for people coming from overseas. The tax on a car sold for four million baht is three million baht. If I could park a car here for sale at only one million baht, a foreigner might buy it and take it home."
However it is reassuring that today's economic situation is not as bad as in 1997, with the price of second-hand saloons being sold at the Benz Thonglor fair one indicator. Back in 1997 Mr Wasant recalls selling a 2.4 million baht car for 1.6 million baht and throwing in a house to sweeten the deal. The discounts at the current fair are around 10-15% below the market price, basically the amount saved by cutting out a second-hand dealer.
Mercedes-Benz saloons continue to be big local favourites based on the perception of durability and fuel efficiency - up to 19 kilometres on a litre of diesel, he says.
While the cars are pricey - the cheapest new one at Benz Thonglor costs 2.5 million baht - one can get a 15-year-old vehicle in passable condition for just 300,000 baht.
"Fifteen years old but still a good car, a 15-year-old Benz is still perfect, but Japanese cars can't run after 15 years. While already 15-years-old, a Benz can easily operate for another 10 years."
Just once in your life!
"Along the road, your steps may tumble, your thoughts may start to stray. But through it all a heart held humble, levels and lights your way. Joy at the start, fear in the journey. Joy in the coming home. A part of the heart gets lost in the learning somewhere along the road..."
Those are the lyrics of a beautiful song called "Along the road" by Dan Fogelberg. I couldn't stop singing it as I wrote about this intrepid expedition.
One fine evening at the super cool Jazz Blues Bar and Restaurant on Silom Road, I met Lukas and the team he assembled around himself for the "Volvo challenge -driving from Switzerland to Singapore across Australia overland".
This imaginative venture came from the initiative of Lukas and Shaun who felt inspired to live life to the fullest from what was going on around them. If you can survive a helicopter crash, as Shaun did in mid-February 2009, surviving a trip through several countries to Australia shouldn't be a big problem. Everything around them was telling them to "Seize the Day".
"My family likes to travel so much. My mother is Argentinean and she loves to travel by car. She told me that if I wanted her to go with me, I would have to drive! So I can truly say this is a family enterprise," said Lukas
Lukas Baumann lives in Switzerland and turns 39 this year. He recently resigned from his job as an executive board member, head of marketing and sales, for Gutzwiller Fonds Management AG. Shaun Rolevink lives in Australia, although he works as a radiographer and inspector on an oil field in Papua New Guinea. The two men are chasing their dreams and following their hearts to do a great thing together -drive across 16 countries, including Switzerland, Lichtenstein, Germany, Austria, Hungary, Romania, Bulgaria, Turkey, Iran, Pakistan, India, Bangladesh, Burma, Thailand, Malaysia, Singapore and Australia, over a distance of 25,000 kms.
They will drive a Volvo 940 Polar Estate. That's right! The 940 Polar Estate is fourteen years old already! The 4-speed automatic station wagon has almost 300,000 km on the clock. When I found out they were making the journey in this classic car, I got a big surprise. Then, I asked Lukas what parts and maintenance equipment they would need to take along and how they would keep the car running along the way.
"I'm so glad I picked this car to be my partner on this journey," he told me. "As eveyone knows Volvo has a good reputation for safety and security so I have great trust in driving one, especially one that belongs to my family. We all believe in this brand. Almost immediately on arriving here in Thailand, I contact Wearnes Automotive to support me with the maintenance and I got a great response and lots of kindness."
"They told me, my car needed regular checks and careful preparation to drive such a long distance. There was a strange sound I was hearing from the engine along the way and the engineers at Wearnes Automotive checked everything and found it was caused by poor quality gasoline (not in Thailand though). So they drained off the gasoline and put new stuff in the car. After that, the bad soundn totally disappeared. The only other thing I had to change were the brake pads on the rear wheels," said Lukas.
His answer underscored the famous Volvo brand values, namely safety, sustainability, quality, design & development, environment and lifestyle. It has been widely known for some time that Volvo is number on for safety. Putting all this information together, I had no trouble accepting that Lukas and Shaun could make their dreams come true driving such a car.
For the discerning car lover, Volvo is the most trustworthy brand. With a Volvo you can always be sure of driving safely and in style.
If you would like more information about Volvo, it's easy - just contact Wearnes Automotive, the biggest Volvo dealership in Bangkok, telephone +66 2 319 9800-9. Alternatively, drop by Wearnes' Volvo showroom at Huamark or Ladprao. If you do, you'll be sure to fall in love with them.
Anyway, the rally isn't a competitive event, although there are lots of fans supporting it. Really, it is just a way for the two men to chase their dreams. With the support of their relatives, colleagues, business associates, clients and friends, all should be well.
For myself, many thing about this project made me smile, even as the world around me was suffering from the financial crisis.
Find out more about just how inspiring it all is by clicking to their blog at www.LCBdirect. Perhaps next time it will be your turn to chase your dream, at least once in your life.
Those are the lyrics of a beautiful song called "Along the road" by Dan Fogelberg. I couldn't stop singing it as I wrote about this intrepid expedition.
One fine evening at the super cool Jazz Blues Bar and Restaurant on Silom Road, I met Lukas and the team he assembled around himself for the "Volvo challenge -driving from Switzerland to Singapore across Australia overland".
This imaginative venture came from the initiative of Lukas and Shaun who felt inspired to live life to the fullest from what was going on around them. If you can survive a helicopter crash, as Shaun did in mid-February 2009, surviving a trip through several countries to Australia shouldn't be a big problem. Everything around them was telling them to "Seize the Day".
"My family likes to travel so much. My mother is Argentinean and she loves to travel by car. She told me that if I wanted her to go with me, I would have to drive! So I can truly say this is a family enterprise," said Lukas
Lukas Baumann lives in Switzerland and turns 39 this year. He recently resigned from his job as an executive board member, head of marketing and sales, for Gutzwiller Fonds Management AG. Shaun Rolevink lives in Australia, although he works as a radiographer and inspector on an oil field in Papua New Guinea. The two men are chasing their dreams and following their hearts to do a great thing together -drive across 16 countries, including Switzerland, Lichtenstein, Germany, Austria, Hungary, Romania, Bulgaria, Turkey, Iran, Pakistan, India, Bangladesh, Burma, Thailand, Malaysia, Singapore and Australia, over a distance of 25,000 kms.
They will drive a Volvo 940 Polar Estate. That's right! The 940 Polar Estate is fourteen years old already! The 4-speed automatic station wagon has almost 300,000 km on the clock. When I found out they were making the journey in this classic car, I got a big surprise. Then, I asked Lukas what parts and maintenance equipment they would need to take along and how they would keep the car running along the way.
"I'm so glad I picked this car to be my partner on this journey," he told me. "As eveyone knows Volvo has a good reputation for safety and security so I have great trust in driving one, especially one that belongs to my family. We all believe in this brand. Almost immediately on arriving here in Thailand, I contact Wearnes Automotive to support me with the maintenance and I got a great response and lots of kindness."
"They told me, my car needed regular checks and careful preparation to drive such a long distance. There was a strange sound I was hearing from the engine along the way and the engineers at Wearnes Automotive checked everything and found it was caused by poor quality gasoline (not in Thailand though). So they drained off the gasoline and put new stuff in the car. After that, the bad soundn totally disappeared. The only other thing I had to change were the brake pads on the rear wheels," said Lukas.
His answer underscored the famous Volvo brand values, namely safety, sustainability, quality, design & development, environment and lifestyle. It has been widely known for some time that Volvo is number on for safety. Putting all this information together, I had no trouble accepting that Lukas and Shaun could make their dreams come true driving such a car.
For the discerning car lover, Volvo is the most trustworthy brand. With a Volvo you can always be sure of driving safely and in style.
If you would like more information about Volvo, it's easy - just contact Wearnes Automotive, the biggest Volvo dealership in Bangkok, telephone +66 2 319 9800-9. Alternatively, drop by Wearnes' Volvo showroom at Huamark or Ladprao. If you do, you'll be sure to fall in love with them.
Anyway, the rally isn't a competitive event, although there are lots of fans supporting it. Really, it is just a way for the two men to chase their dreams. With the support of their relatives, colleagues, business associates, clients and friends, all should be well.
For myself, many thing about this project made me smile, even as the world around me was suffering from the financial crisis.
Find out more about just how inspiring it all is by clicking to their blog at www.LCBdirect. Perhaps next time it will be your turn to chase your dream, at least once in your life.
WORLD'S FASTEST FIRE-FIGHTER?
It has 485 horsepower, four-wheeldrive and a 300kph-plus top speed this has to be one of the world's fastest fire-engines.
This Nissan GT-R supercar has been modified to hold a 50 litre water tank and two minutes' worth of fire-retarding foam that can be sprayed up to 18 metres.
Okay, so that tiny fire-fighting power is never going to suffice for any house fire, but that's because it's custombuilt to handle car fires around the infamous Nordschleife circuit of the Nurburgring in Germany.
It is where thousands of amateur drivers go each week and give it a go in their cars and motorbikes, and where professionals assess the performance of race cars on the 20.8km track with 73 turns.
Nissan claims that even with the extra 200kg of equipment on board,the car can still lap the circuit within eight minutes, averaging 156kph now, that's still bloody quick.
This Nissan GT-R supercar has been modified to hold a 50 litre water tank and two minutes' worth of fire-retarding foam that can be sprayed up to 18 metres.
Okay, so that tiny fire-fighting power is never going to suffice for any house fire, but that's because it's custombuilt to handle car fires around the infamous Nordschleife circuit of the Nurburgring in Germany.
It is where thousands of amateur drivers go each week and give it a go in their cars and motorbikes, and where professionals assess the performance of race cars on the 20.8km track with 73 turns.
Nissan claims that even with the extra 200kg of equipment on board,the car can still lap the circuit within eight minutes, averaging 156kph now, that's still bloody quick.
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