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.