Buyers sought for Fuso plant

       The Japanese truck maker Mitsubishi Fuso is expected to finalise talks with two or three manufacturers next month for the purchase of its plant in Thailand.
       Once Mitsubishi Fuso Truck and Bus Corporation (MFTBC) completes the talks, Fuso trucks will continue to be built in Thailand, said a senior official source in the Thai unit of MFTBC.
       Daimler AG of Germany announced earlier this year it would shut the Fuso plant in Thailand by the end of this year as part of a revamp of MFTBC. The German carmaker holds an 85% stake in MFTBC and Mitsubishi Corporation the rest.
       If talks fail, the source said Mitsubishi Fuso Truck (Thailand) Co (MFTTC), a subsidiary of MFTBC, could import Fuso trucks from Indonesia or Malaysia, two major production bases of MFTBC, to keep the brand alive.
       The Indonesian Fuso plant builds more than 40,000 units per year and the Malaysian one 10,000.
       The Japanese truck maker pledged to continue doing business in Thailand even if the plant closes.
       A potential investor is Tan Chong International, a listed automobile and property group in Hong Kong.
       A subsidiary, Tan Chong Machinery Ltd, holds a 100% stake in Nissan Diesel Thailand Co, which is authorised by Volvo of Sweden to produce and distribute Nissan UD trucks in the Thai market. Volvo holds 100% interests in Nissan Diesel Motor Co of Japan, which manufactures and distributes Nissan diesel trucks and buses.
       The source said Tan Chong was interested in the Thai Fuso plant because its licence to build and sell Nissan UD trucks would soon expire.
       But another source in Nissan Diesel Thailand denied an earlier report that Tan Chong would leave the Nissan UD business since its performance was still healthy despite the recession.
       Seiji Akiyama, the president of MFTTC, said the company was approached by many prospective buyers to purchase its plant after it announced it would cease production.
       "There are ongoing negotiations with many interested buyers, and there have been talks about production for domestic sales as well as export that would raise the capacity of the plant. But consideration needs to be given to production costs so that it is competitive,"he said.
       In the past, the Fuso plant had a capacity of 6,000 units per year, but now it assembles about 2,000 trucks per year for the domestic market.
       The plant was originally scheduled to close at the end of this year, but if negotiations bear fruit, production could continue, buoying the confidence of dealers and customers.
       The company said Mitsubishi Fuso remained committed to marketing and servicing commercial trucks in Thailand and continued to invest in products and services for the local market. Asean is the largest international sales area for MFTBC.
       MFTTC announced earlier this year changes in its business structure intended to improve competitiveness.
       A principal change is the integration of Thai production into the overall Asean footprint of MFTBC. This move is to increase overall competitiveness in Thailand by generating further economies of scale. As a result, MFTTC plans to phase out production at Lat Krabang, a suburb of Bangkok, by the end of 2009.
       The local production capacity and workforce will be gradually adjusted.About 150 people are currently employed at the Lat Krabang plant, which makes light-, medium- and heavy-duty trucks.
       In the first half of this year, Mitsubishi Fuso sales grew by 2% compared to a 19% decline in the truck market. By the end of the year, Mitsubishi Fuso is expected to hold a 10% market share,about the same level as last year.

YAMAHA SEES ITS MARKET SHARE RISE

       Motorcycle-maker Yamaha is gearing up to fight back against rivals like Honda and Suzuki, which have launched new models to compete against Yamaha's popular Fino.
       Thai Yamaha Motor vice president Praphan Polthanavisit said from January to September, Thailand's motorcycle market was hit by the slowing economy, and sales fell 14.4 per cent year on year to 1,132,639 units.
       However, Yamaha, supported by strong sales of its Fino model, sold a total of 318,360 units, down only 4.8 per cent year on year. Yamaha's market share moved up by 2.8 per cent, to 28.1 per cent, he said.
       "Yamaha has a large number of models that respond to customers' demands, be they manual or automatic models," he said, adding that the Fino, in particular, was a best-seller because of its unique retro styling.
       Praphan said there were signs of recovery in the global economy in the fourth quarter, while the government had introduced stimulus measures, and consumer confidence was rising.
       "Yamaha is confident the overall motorcycle market will finish the year at 1.5 million units, down 12 per cent from 2008," he said. "Yamaha plans to sell 430,000 motorcycles this year, down 2 per cent from last year for a 28.7-per-cent market share."
       Meanwhile, Yamaha is joinin dealers in offering 600,000 Fino owners around the country free check-ups and engine-oil changes. The promotion lasts until the end of the month.
       "In November, we're planning to offer more special privileges for Fino customers," he said, adding the details would be announced later.

MAZDA2 TO BOOST ASEAN SHARE

       Mazda Motor Corp hopes to double its regional market share to 2 per cent, as the company plans to sell 20,000 units of the Mazda2 within Asean in the first year of production.
       Mazda currently has a 1-per-cent market share in Asean, but hopes to increase this to 4-5 per cent within the next five years.
       The statement was made yesterday as the first Mazda2 subcompact (B segment) car rolled off the production line at the Auto Alliance Plant in Rayong.
       The Mazda2, whose official Thai launch will be on November 17, will be the company's second passenger car on sale in the Kingdom.
       The Mazda2 will also be launched in Indonesia next month, in the Phillipines in December and in Malaysia next March.
       "The B segment is the fastest-growing segment in Asean. We expect the total B segment to reach 340,000 units in the region. The Mazda2 is aimed at young, energetic customers who are auto enthusiasts, and we have already sold 362,000 units worldwide. We currently have a very small share in the local market and we see plenty of room for growth," said Yuji Nakamine, managing executive officer at Mazda Motor Corp.
       Mazda sells 1.15 million vehicles worldwide, of which the Asean market accounts for less than 2 per cent.
       The Mazda2 will be a major product for the Japanese auto-maker in the Thai market as it moves deeper into the passenger-car segment.
       Nakamine said Mazda was a "challenger brand", in the sense that it is not as large as Toyota and Honda and requires unique products to attract customers.
       "We have already attracted 7,000 registered prospective customers [for the Mazda2] on our website after three weeks. We plan a 10-per-cent market share in the B segment over the lifetime of the car. We're not going to compete on price, but rather on having a special product that customers want to drive due to the zoom-zoom appeal," said John Ray, managing director of Mazda Sales Thailand.
       The Mazda2 will be manufactured on the same production line as the Ford Fiesta, which will be launched next year. The company has a production capacity of 50,000 units for the Mazda2 at the plant.
       Nakamine added that there are plans to export the Mazda2 beyond Asean, especially to Australia, within the next year. The current Mazda2 sold in Australia is imported from Japan.
       "The Thai market seems to be recovering from the crisis and beginning its upward trend. We expect total auto sales for the Thai automotive market to reach 500,000-520,000 units this year," said Ray.

TOYOTA UNVEILS NEW HYBRID-ONLY VEHICLE

       Toyota has unveiled a new hybrid-only model that is bigger and more expensive than its popular Prius, underlining the Japanese auto-maker's ambitions to make "green technology" more wide spread.
       The Sai sedan is Toyota's second hybrid-ontly model after the Pruis. Toyota offers hybrid versions of other models.
       Sai, which means "talent" and "colour", will be sold only in Japan starting on December 7, targeting monthly sales of 3,000 vehicles. No global sales plans have been decided, the world's biggest auto-maker said yesterday.
       Hybrids get better mileage than regular petrol-engine cars by switching between an electric motor and a petrol engine. Other auto-makers are also beefing up their hybrid line-ups, including hybrid-only models.
       Government incentives, including "Cash for Clunkers" programmes and tax breaks, have Prius orders soaring in Japan. The waiting list for the car has grown to several months.
       Hybrid sales in Japan have been the one bright spot for Toyota, which has been losing money, battered by the global economic downturn.
       The Sai gets 23 kilometres per litre, half the fuel consumption of a comparable petrol-engine model, Toyota said. The Prius gets 38 kilometres per litre under Japanese conditions.
       The Sai comes with a bigger 2.4-litre engine than the 1.8-litre Priusm is roomier and has fancier features, such as an interior made from plastic that uses plant-deruved materials.
       It is also more expensive, starting at 3.38 million yen (Bt1.25 million). The third-generation Prius, which went on sale earlier this year, starts at just over 2 million yen in Japan.
       The Sai looks rather sedate compared with the Prius, with its more circular styling.
       "This model shows our hopes to make hybrids more widespread," said Toyota offical Takuji Nakamoto.
       Like the Prius, the Sai will be sold at all dealer outlets in Japan, totalling about 4,000 around the country. Some Toyota models are sold at only some of the showrooms, because they are designed to appeal to certain kinds of consumers. The Sai will be assembled at Toyota's Kyushu plant in south-western Japan.
       The Prius is the world leader in petrol-electric hybrid sales, selling more than 1.4 million vehicles since its debut a decade ago.

       The Sai comes with a bigger 2.4-litre engine than the 1.8-litre Prius, is roomier and has fancier features, such as an interior mamde from plastic that uses plant-derived materials.

BMW PLANS RANGE OF ECOFRIENDLY CARS

       German carmaker BMW plans to boost the number of frugal,ecofriendly models in its range.
       Norbert Reithofer, who will soon take over as board chairman, made the announcement in Leipzig, wher BMW unveiled its new X1 compact off-roader.
       The move marks an expansion of BMW's Efficien Dynamics strategy aimed at cutting the fuel consumption of its vehicle line-up by as much as 15 per cent.
       At the recent Frankfurt car show, BMW showed petrol-electric hybrid versions of the full-size X6 sport-utility vehicle and the 7 Series limousine.
       "In the medium term, we want to hybridise the range right down to the 3 Series," Reithofer said.
       Future BMW technology will include full hybrids in which the internal-combustion enginecharges batteries for electric running and plug-in versions that use mains power to charge on-board power packs regularly.
       BMW is concentrating on what it calls "Project 1",a"mega-city vehicle" due to be slotted in below the present upmarket range.
       "By 2015, this family of vehicles will include a battery electric," Reithofer said.
       In the long-term, Reithofer believes internal-combustijon engines that burn hydrogen are the way ahead for BMW.
       "We will remain loyal to this technology," he said.
       The focus is now on designng a better fuel tank to store liquid hydrogen on board. Onece this problem has been solved, a new generation of demonstration vehicles will emerge.
       Although BMW has been successfully experimenting with hydrogen power for more than 20 years, the technology has been hampered by bulky fuel tanks and the lack of a hydrogen-filling-station infrastructure.

       AT THE RECENT Frankfurt car show, BMW highlighted petrol-electric hybrid versions of the full-size X6 sport-utility vehicle and the 7 Series limousine.

CHEAP THRILLS, WITH DARN GOOD LOOKS

       It's time for thinking like a kid again, because I guess that's what this car demands.
       Imagine, then, a 20-something man sitting and dreaming as his office hours tick away, lost in a trance of his own. He has no motivation to work despite the boss's deadlines. Does he sound familiar?
       It's his first job, and he spends a lot of time dreaming of a big salary, being the boss, flashing a company credit card and, most of all, driving an impressive car. But he's been at work long enough to know nothing comes easily; there's a long way to go, and it seems he's mired in mediocrity. How much would a good car change his attitude?
       The grim reality is his ony choices for a new car that won't make him "save on that Coke" at lunch are a Honda or a Toyota. And if he feels the need to modify it to turn a few heads, that'll cost a little more.
       The solution may be (and here comes the reason for all of this) the Proton Neo CPS.
       The CPS is a slightly higher-performance version of its little sister, the Neo - a car that looks good and feels great to drive but has poor acceleration. When Phranakorn Auto Sales, the Proton distributor in Thailand, realised many buyers of standard Neos Neos modified their cars, it seemed logical they should bring in a hotshot version.
       The Neo CPS comes with every addition to slacken the jaws of boy racers. Possibly the first most obvious modification is the huge spoilder that sticks out at the rear. Then there is an agressive body kit that includes a front bumper, rear diffuser and side skirts. It makes the Neo CPS a far more menacing sight in a rear-view mirror than the standard model.
       What may be a little overdone are the large wheel arches with bolts on them. While the intention was to lend the Neo CPS a sence of power, the small wheels mena it looks more like a scrawny teenager wearing his daddy's suit. However, new 16-inch alloy wheels attempt to improve the look. On the inside, the modifications are more limited. There is red trim on the seats, door handles and gear lever. "Premium" is a word that simply does not apply in this case. Some might even call it tacky.
       However, the modifications that have created the Neo CPS are not all superficial gloss. The front track has been narrowed by 3 millimetres, while the rear has been widened by 13mm - a change made because Proton accepts that the standard Neo suffers from a little too much oversteer. The 1.6-litre engine produces 125 horsepower, compared with 110hp in the standard Neo.
       As I mentioned earlier, the standard Neo is already a good car to drive. Its weakest link is the engine, which is simply underpowered. You'd think the 15hp addition would make things better with the CPS, but dig deeper into the spec sheet, and you'll see a weight increase of 43 kilograms.
       It's when trying to ovetake that you realise how sluggish the Neo CPS sremains. Like a barking dog with no bite, the Neo CPS will growl all the way to 160kph. But unless you've got a good few minutes and long stretch of empty road, don't try it. The Neo CPS is most comfortable at speeds of 80-110kph. Another annoying fact is that at any point above 2,500rpm, the engine is tool loud for comfort, and you become sligthly tone deaf at speeds of 120-140kph.
       At the rear of the Neo CPS, there's a badge that says: "Handling by Lotus." This signifies that the British sports-car company owned by Proton was involved in beefing up the car's handling. The Neo CPS does handle sharper and holds it ground well in corners.
       But while it can still be considered a driver's car, what the Neo CPS lacks are the little details that lead to perfection. Like a 170-centimentre shorty like me. You head is too close to the roof, and not being low enough diminished the dricing experience. Then there are low-quality plastics and a sound system that can turn some buyers away.
       If I've given you negative impressions of the Neo CPS, then let me turn that around with a number: Bt698,000. That makes it the cheapest and best-looking driver;s car available in the Thai market. But there remainsa dilemma. A standard Neo costs Bt564,000, a whole Bt134,000 cheaper. Is it better value to buy a standard version and slap on some modifications later? Considering the car's cost is similar to that of a Yaris or a Jazz, it may become an emotional decision.
       If you're that 20-something man mentioned above, go for the CPS and drive the wheels off of it! You're sure to be satisfied, if not on the road, then certainly emotionally.

Opel rescue is dogged by European divisions

       Tempers are rising in Europe over Germany's promise of billions of euros in state aid to support the sale of General Motors' loss-making European unit Opel/Vauxhall.
       In a preliminary deal announced in Berlin with great fanfare on September 10, GM is selling a 55-per-cent stake to canadian auto parts-maker Magna and Russian state-onwed lender Sberbank.
       Chancellor Angela Merkel's government, keen to safeguard the jobs of Opel's 25,000 German employees, half the total, agreed to sweeten the deal with Euro4.5 billion (Bt221 billion) worth of public money.
       Merkel, Forbes magazine's most powerful woman on the planet for four years running, was eager to secure a rescue before elections on September 27. She duly won a second term.
       The financing was contingent, however, on other European governments where Opel has plants, such Britain, Spain, Poland and Belgium, stepping up to the plate and providing their own taxpayers' money too.
       But instead, the deal has been met with grumbling, with these countries unwilling to stump up cash for a deal that they see as only guaranteeing German jobs and keeping German plants up and running.
       With Opel losing money fast, dependent on a market wher too many cars are being made for too few customers, Magna is reported to be looking to take around 10,500 workers off the payroll.
       British Prime Minister Gordon Brown's government, which has a far tougher re-election battle than Merkel waiting for it next year, has made clear that it is not amused.
       Peter Mandelson, British business secretary, told the Financial Times in Seoul last Thursday he could not "sign off" on the deal in its current form, citing "shortcomings" identified in an independent auditors' report.
       Britain, where Vauxhall employs 4,700 people, is ready to provide Euro400 million in loan guarantees, but first wants assurances that two plants in Luton and Ellesmere Port remain open, the FT said.
       Spain, where Opel employs 7,000 people in Zaragoza province, has also been up in arms, with Industry Minister Miguel Sebastian boycotting a European meeting on Opel in Berlin on Friday.
       "We have never been favourable ot Magna's offer," a spokesman in Madrid said on Friday, with Sebastian "pretty unhappy" after the last gettogether in the German capital.
       Instead, Sebastian met with Magna boss Siegfried Wolf, appearing aftwards slightly more conciliatory, pledging to improve "communication problems" with the Canadian firm.