With challenges in Western markets, General Motors has recently cut back on its production in Thailand. The Southeast Asia division of GM will temporarily close several manufacturing plans until the end of the year, signaling how widespread the global economic recession has become. As recently as early this year, car companies hailed emerging markets, such as Thailand, as a prime growth opportunity.

Thai Manufacturing
Today, GM employs a few thousand workers in the county, and had the capacity to produce over 100,000 vehicles at its Thailand plants. With the announcement, the company will lowered its employment roles by roughly 250 workers, and continues to reduce its outlook heading into 2009. In the United States, GM has faced financial difficulties related to its union contracts, high fixed costs and a lack of available financing as its overall sales slow. Just this year, Toyota surpassed the company as the world’s top overall automotive company by sales, signalling a larger shift in the market.
The company formally entered the Thai auto market in 1993, and opened its first domestic plan in 2000 in Rayong at the Eastern Seaboard Industrial Center. The plant produces Chevrolet cars and tracks, including the Zafira truck, the Aveo compact, the Captiva SUV, the Colorado truck and the Lumina car, for the Thai market. With its headquarters in Bangkok, GM has worked closely with the Thai government to expand its operations in recent years.