General Motors Thailand will buy US$1 billion (Bt32.4 billion) worth of auto parts annually over three years when its new plants in Thailand start operating.
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Martin Apfel, president of GM Southeast Asia and GM Thailand, addresses a press conference yesterday. GM's expansion means the procurement of parts worth $1 billion annually over three years.
That will be 10 times the $100 million worth the company currently buys.
The new facilities, financed by loans worth Bt13.5 billion, will produce diesel engines and the next generation Colorado pickup truck.
"Once all our projects are up and running, we'll be producing for the Southeast Asia region and countries worldwide. The new pickup is jointly developed with Isuzu although they will be significantly different from each other. We will not however be producing pickups for Isuzu at our new facility," Martin Apfel, president of GM Southeast Asia and GM Thailand, said yesterday.
This was one of the busiest times for the whole GM Asean team due to the upcoming change, he said.
In turning the Kingdom into the "Detroit of Asia", Thailand has attracted several world-class automakers. Local parts suppliers are also expected to benefit enormously from the local production.
Before a strikingly modern backdrop with 3D visuals, Apfel talked about the future of GM in Thailand and Asean at the "New GM" press conference held at the Centara Grand.
He highlighted how it was now time for growth in the Asean region and how Chevrolet will focus more on putting the needs of the customer first.
"The Thai market is slated to grow by 6.5 per cent this year and our sales for the first six months increased by 24 per cent. We're expecting the total automotive mart in Thailand to reach 700,000 units this year.
"Consumer confidence is returning and the economy is recovering. We'll also be launching the new Cruze here in Thailand along with a new CNG model," he said.
Chevrolet has sold 8,832 units in the first six months.
Chevrolet will also be looking into E85, he said. It is possible that the upcoming Cruze will feature E85. The new Cruze is rumoured to have three engine options - 1.6-litre and 1.8-litre petrol engines along with a 2.0-litre diesel engine. The Cruze made a brief appearance at the press conference.
As for the new NGV model, it is most likely to be a NGV version of the Aveo subcompact. GM will stop manufacturing the NGV Optra after launching the Cruze.
Apfel said it would be better if the quality of NGV was more standard nationwide, which would make it easier for auto companies to calibrate their NGV products. Chevrolet would continue its focus on alternative fuels in Thailand, he said.
"We are also growing our local engineering capabilities and expanding our local engineering centre by 20 per cent. We need to build where we sell and for that to happen we need even more localisation," he added.