Automakers rehire as demand picks up

As demand for passenger cars in both the domestic and export markets start to recover, many auto producers in Thailand are rehiring workers who have been laid-off since last year. Toyota Motor Thailand, the biggest auto-maker in the country, has also taken back a large number of workers as demand for Toyota passenger cars started to grow in May.

Starting late last year, the company axed 2,900 subcontracted workers through a voluntary retirement programme, but due to increased demand for passenger cars since May this year thanks to popularity of subcompact cars such as the Vios as well as the introduction of the Camry Hybrid midsized car, have rehired 1,000 of them.

Many of Toyota's subcontract workers who were terminated last year have not come back, prompting the company to hire 800 new workers.

"Many of the workers have been employed elsewhere while others used the compensation money to start up their own vending businesses," said an industry source.

Toyota employs about 8,000 workers at its three plants.

Isuzu, the commercial vehicle giant, also said that it has this month reintroduced a second shift at its plant after it was halted in January this year, while subcontracted workers are also being taken back.

Shigeru Wakabayashi, vice president of Tripetch Isuzu Sales Co, said there are signs of slight recovery for the pickup market, which plunged by almost 30 per cent in the first eight months.

AutoAlliance Thailand (AAT), the producer of Ford and Mazda vehicles, has also been hiring additional workers. After terminating 300 subcontract workers in late 2008 from its 3,500-man workforce, AAT started hiring additional workers. From January 2009, it has already hired 800 new workers, according to a company source. Mitsubishi Motors Thailand, after terminating 1,100 of its 4,800 workers in November and December last year, will reintroduce a second shift at its two car assembly plants and one engine plant starting at the end of this month. In January this year it eliminated the second shift due to a plunge in demand and piling stocks.

Company president Nobuyuki Murahashi said Mitsubishi is recruiting 1,300 workers who will start working in November.

"The decision comes as stock levels have been adjusted to its normal level, should the market give a recovery signal," he said in a statement.

Mitsubishi plans to introduce its new Lancer EX compact car in mid-October.

Kim Eng Securities (Thailand) said in its research that the automobile parts industry next year could recover in line with global economy. It is based on the optimistic view on the Federation of Thai Industries' automobile club's forecast that vehicle production in Thailand this year will be 940,000 units, though half-year production was only 389,000 units due to the shrinking demand in domestic and overseas markets.