PM not worried by Suzuki Motor exodus

PM not worried by Suzuki Motor exodus

Setha convinced that the commitment of major Japanese automakers is still strong.

PM not worried by Suzuki Motor exodus
Srettha Thavisin, the prime minister, rides a samlor bus to the provincial house in Lamphun on Saturday. ( Photo: Government House )

Following the choice of Suzuki Motor Corporation, Prime Minister Srettha Thavisin has expressed assurance that other automakers did not abandon their production bases in Thailand.

Suzuki announced on Friday that it would shut down its 12-year-old plant in Rayong at the end of 2025, affecting 800 employees, as it wanted to concentrate on creating electric cars abroad.

Mr. Srettha claimed on Saturday that the government also gave a lot of thought to the production of Chinese combustion engines. Meetings were held with big companies, including Toyota, Honda, Isuzu, Mazda and Mitsubishi, to explain the steps they need from the state, he said.

He also took part in the Asean-Japan 50th anniversary meeting with professionals from the automotive business that are active in Thailand on December 17, of last year. He claimed that the debate gave them more confidence to invest in Thailand.

The top said,” We respect Suzuki’s decision because its market share was comparatively small, and its vehicles generation may not have been matched by Thailand’s need.”

” Despite that, Suzuki maintains support centers for parts and repair in Thailand and continues to produce motorcycles.”

In a related development, the provincial’s mind of the Chachoengsao Labour Protection and Welfare Office expressed worry about the province’s worsening labor circumstance, which puts a considerable amount of vulnerable workers at risk of being laid off in the future.

In the automotive industry, which employs 39, 321 workers in 137 workplaces, the growing electric vehicle ( EV ) market had led to decline and stagnation in the combustion engine vehicle industry, said Suwanna Khantivisit.

Low economic growth, according to Isares Rattanadilok na Phuket, deputy chair of the Federation of Thai Industries, had forced the sector to take steps to reduce risks.

Government policies, such as the minimum wage increase and the promotion of EV imports, have harmed the sector’s competitiveness.

The government, meanwhile, has failed to consistently provide support for domestic industries, leading to financial strain from rising interest rates, high fuel and electricity costs and recent minimum wage adjustments, he said.

In the first half of this year, said Mr Isares, 360 factories were shut down, with investment loss estimated at 9.4 billion baht.

This resulted in the termination of more than 10, 000 workers, higher than the average of the past two years.

The number of factory closures may reach 700 if the 400- baht minimum wage&nbsp, goes into effect nationwide as some employers fear, as it could render some plants uncompetitive, Mr Isares said.