PM weighs in on Suzuki Motor exodus

PM weighs in on Suzuki Motor exodus

PM weighs in on Suzuki Motor exodus
Srettha Thavisin, the prime minister, travels by uncle lore to the provincial house in Lamphun on Saturday. ( Photo: Government House )

Srettha Thavisin, the prime minister, expressed his confidence on Saturday that another automakers may continue to build their factories there after the Suzuki Motor Corporation made the decision to do so.

According to Mr. Srettha, the government has given particular attention to the production of Japanese fire engines. Meetings were conducted with big car makers, including Toyota, Honda, Isuzu, Mazda and Mitsubishi, to explain the steps they need from the state, he said.

He likewise took part in the Asean- Japan 50th anniversary meet with the mechanical companies operating in Thailand on December 17, of last year.

According to him, the debate has strengthened their trust in increasing Thailand’s investment value.

” We esteem Suzuki’s decision because its market share was comparatively smaller and its vehicles production may not have been in line with the Thailandese demand.

Suzuki still manufactures scooters and maintains service centers in Thailand, he said.

However, Suwanna Khantivisit, chairman of the Chachoengsao Labour Protection and Welfare Office, expressed worry about the worsening left scenario in the state, with a significant amount of susceptible workers at risk of future cuts.

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

Low economic progress has forced the sector to reduce risks, according to Isares Rattanadilok na Phuket, assistant head of the Federation of Thai Industries.

Government procedures, such as the minimum wage increase and the development of EV goods, have harmed market competitiveness.

The state, however, has failed to consistently give support for domestic industries, leading to financial stress due to rising interest rates, fuel costs, electricity rates and new least wage adjustments, he said.

In the first quarter of this year, more than 360 companies had to be shut down, with funding lost estimated at 9.4 billion ringgit.

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

According to Mr. Isares, the number of factory closures could reach 700 if the 400-baht minimum wage increase becomes effective global as some employers are concerned about the impact it might have on some businesses, according to Mr. Isares.