Mitsubishi Motors (Thailand) notified factory workers on May 7 to voluntarily apply for early retirement, according to Nikkei. According to the age and seniority of the employees, Mitsubishi will provide them with severance pay of 8-35 months salary.
Mitsubishi Motor (Thailand) said that the company needs to integrate internal human resources, and implement the layoff policy for full-time employees with more than one year of service and no more than 54 years of age, excluding retired employees in 2020.
Sales volume of Mitsubishi Thailand fell nearly 30% in the first quarter
It is understood that Mitsubishis annual production in Thailand is about 400000, second only to Toyota in terms of production. At present, Mitsubishi Motors exports automobiles from Thailand to more than 100 countries and regions.
According to foreign media reports, Mitsubishi Motor stopped production at all factories in Chon Buri, Thailand, in April. In addition, Mitsubishis Laem Chabang plant in Sriracha county has been shut down, with employees receiving 85% of their wages during the shutdown.
It is worth mentioning that on April 13 this year, the Thai Investment Committee (BOI) approved the investment application of Mitsubishi Motor (Thailand). The investment will upgrade the electric vehicle production facility of Laemchabang plant with THB 5.48 billion, with a planned annual capacity of 39000 vehicles, including about 9500 pure electric vehicles and 29500 hybrid vehicles, which will be put into production in 2023.
According to the plan, Mitsubishi Motor plans to supply electric vehicles to Thailand and ASEAN.
ASEAN auto market facing challenges
In fact, Mitsubishis experience in Thailands auto market is not unique.
In January, Ford announced an investment of US $82 million to expand the capacity of its Vietnam plant, increasing its annual capacity from the current 14000 units to 40000 units. However, affected by the epidemic, Ford became the first car company to shut down before March 26 in Vietnam. Subsequently, Toyota Motor Vietnam (TMV) also temporarily stopped production from March 30.
At present, the epidemic is still spreading around the world. Although transnational automobile enterprises are actively seeking to resume production, the recovery of ASEAN automobile market represented by Thailand and Vietnam is still full of uncertainty due to multiple factors such as epidemic situation, market demand, supply chain status, dealer inventory and government restrictions.
Affected by the outbreak, sales of passenger vehicles and commercial vehicles in Vietnam fell by 30% and 12% respectively in February, according to the Vietnam Automobile Manufacturers Association (Vama).
As one of the largest automobile exporting countries in ASEAN, Thailand is also affected by domino effect caused by the epidemic to a large extent. Toyota Motor Thailand predicts that by 2020, the sales volume of household cars in the overall car market in Thailand will drop by 6.7% to 940000.
The auto parts industry association under the Thailand Federation of industry (FTI) believes that due to the spread of the epidemic, the local auto parts industry is expected to shrink, which is caused by the temporary closure of factories in Thailand by Toyota, Honda, Ford and Mitsubishi and the decline of global automobile purchasing power.
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Car sales in the ASEAN region plummeted in March. Data shows that in the first quarter of this year, the sales volume of new cars in the six largest markets in Southeast Asia was about 705000, a year-on-year decline of more than 19%.