Toyota to produce more pick-ups

Japanese automaker Toyota Motor Corp will invest almost US$700 million in Thailand, after choosing the emerging automobile manufacturing hub as its base for the production of pick-up trucks.

Toyota announced last Thursday annual production of pick-up trucks and multipurpose vehicles at its Thailand plant will increase five times by mid 2004 to 200,000 units, half of which will be exported.

The plant will also make diesel engines.

Toyota also announced investment in the project would exceed 30 billion baht (US$697 million), and would create about 10,000 jobs, including 3,000 at Toyota and its subsidiaries.

"Toyota's decision to locate a global production base in Thailand came naturally, since the Thai government has encouraged the development of the automotive industry and strengthened competitiveness through vigorous policies," Toyota managing director Akio Toyoda said.

Toyota said it also planned to export parts for pick-up trucks and multipurpose vehicles to other Toyota manufacturing plants in nine countries.

STUTTGART, Germany

Driving into Asia's markets

German-US carmaker DaimlerChrysler unveiled last Friday plans to plug the last gap in its global trucks business by moving into the Asian commercial vehicles market for 1.16 billion euros (US$1.13 billion).

DaimlerChrysler, already the leading truck maker in the United States and Europe, said in a statement it was also moving into the Asian commercial vehicles market, the biggest, fastest growing in the world, by buying stakes in Mitsubishi of Japan and Hyundai of South Korea.

DaimlerChrysler plans to buy a 43-per-cent stake in Mitsubishi's truck business for about 760 million euros (US$745 million), and to purchase a 50-per-cent share of Hyundai's commercial vehicles unit for around 400 million euros (US$392 million).

The agreement with Mitsubishi would take effect by early 2003, once the Japanese group had demerged its trucks division into a separate new company, called Mitsubishi Fuso Truck and Bus Corp.

The deal with Hyundai, scheduled to be completed by year's end, dates back to an option agreed to by the two companies in June 2001.

TOKYO

Honda recalls faulty vehicles

Japan's No 2 automaker, Honda Motor Co, announced last Thursday it will spend 1.9 billion yen (US$16.2 million) to recall 181,526 vehicles throughout the world due to three separate defects.

A spokeswoman said the recalls would not affect Honda's earning forecasts.

A faulty switch inside the engine of the passenger vehicles Accord, Inspire, Vigor, Ascot, Rafaga and Saber made between June 1993 and April 1998 could cause a short-circuit and fire in the engine. Honda said 153,575 vehicles would be recalled domestically.

Honda is also recalling 5,513 Silverwing motorcycles domestically and 21,395 abroad made between March 2001 and August 2002 due to weak wheel spokes that could crack and break from continued use.

There were no domestic complaints.

Honda will also recall 1,043 Capa wagons made domestically in April 1999 due to wear from a faulty ignition switch that could cause the engine to suddenly stop.

One domestic complaint had been received.

NANJING

Anti-collision system passes detour

Beijing Taiyuan Automatic Automobile Collision Avoidance System Co announced last week it will invest 420 million yuan (US$50.8 million) to build a manufacturing base in Nanjing, capital of East China's Jiangsu Province.

The production capacity will be 500,000 units a year during the first stage, and will increase to 1 million units during the second stage, the company announced.

Company President Liu Taiyuan said there is a rosy future for the system due to China's fast-growing vehicle market.

The company will also establish plants in Suzhou, Jiangsu Province and Heze and Zibo, in East China's Shandong Province.

The company developed the system in 2000, and it passed the government's technical test last summer.