Bangkok - In one of the first blows to be felt from the
'Hamburger Crisis' in Thailand, General Motors Thursday announced
plans to close its Thailand plant for two months, paying employees 75
per cent of their wages.
'If we don't close down we will have an oversupply,' said
GM spokesman Chartchai Suwannasevok, confirming the US giant's plan
to close its plant in Rayong province for the months of December and
January.
GM's 2,000 Thai employees will have to take a 25 per cent pay cut
during the suspension period and the company has offered 258
employees early retirement with 10 months pay, in preparation for a
slowdown in 2009.
GM's Rayong plant has a capacity to produce 130,000 units per
annum, but this year's sales are estimated at 100,000 units.
The plant assembles and manufacturers GM Colorado pickups, Captiva
SUVs, Optra sedans and Aveo compact cars, mostly for the export
markets.
Thailand is a major automobile assembly hub in South-East Asia,
manufacturing an estimated 1.4 million units this year, more than
half of which were destined for exports.
The local industry, which has attracted all the major Japanese
auto manufacturers such as Toyota, Honda, Nissan, Mazda, Mitsubishi,
Isuzu along with US giants GM and Ford, employs an estimated 500,000
Thais.
Thailand is expected to suffer massive unemployment next year as
its export industries dry up, due to falling demand in the US,
European Union and Japan, the kingdom's three main markets.
'With orders for 2009 down 20 to 30 per cent, Thai factories in
all sectors are expected to lay-off at least 500,000 employees next
year,' said Thaveekij Jaturajarernkul, chairman of the labour
committee and the Federation of Thai Industries.
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