GM Delays Thai Diesel Startup

28 November 2008

Bangkok Post. General Motors will delay its US$445-million diesel project in Thailand—which included building an engine plant and upgrading an existing vehicle assembly plant (earlier post)—by at least one year and halt the introduction of new products next year, according to Steve Carlisle, president of GM Thailand.

The new 14,492 m₂ (156,000 ft₂) facility would be GM’s first diesel engine plant in Southeast Asia and is designed provide 2.5- and 2.8-liter four-cylinder diesel engines for use by Chevrolet in Thailand and other global markets and brands. Output is targeted at more than 100,000 units annually.

GM announced earlier this month that it would halt production in Rayong in December and January but keep its workers on at 75% pay. It said vehicles already on hand would be sufficient to meet demand, which has been declining worldwide.

...Antonio Zara, vice-president for GM Southeast Asia Operations, said the automotive industry in Thailand recorded a drop of 13% for two consecutive months since July due to political and economic concerns and the trend was expected to continue for a while.