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• W303003003 abstract "All participants in the auto industry confront a global marketplace. Auto assemblers want to sell and source products globally. Parts makers also want to sell throughout the world. This paper analyzes the barriers faced by auto parts makers in one developing Asian country when they attempt to procure U.S. purchasers (auto companies, original equipment manufacturers, and replacement parts manul). The barriers to market penetration in the U.S. are too great for most Thai parts makers. The Thais' best export opportunities are with trading partners in Southeast Asia. INTRODUCTION This study analyzes the barriers that Thai auto parts exporters face in attempting to sell to firms based in the U.S., considered the number one or two (depending on the year) country for autorelated production in the world. Thailand is an example of a small and growing Asian nation. It has assembly plants of foreign manufacturers. It has few formal links to U.S. auto manufacturers or original equipment manufacturers (OEM) compared to the Japanese or Germans. The Automotive News observes this is the fastest growing auto market . . .and the biggest market for pickups outside the U.S. But to look around, you might think the Big Three had never heard of the place. Only in recent years have the U.S. OEM taken a serious look at market opportunities in southeast Asia with special attention to Thailand. Chrysler has a working partnership with Swedish Motors to assemble Jeeps for Thailand. GM Thailand is importing Opel from Germany. GM Motors Trading Corporation is seeking Thai parts makers who can qualify for global sourcing or regional trade. Ford/Mazda is considering truck assembly in Thailand. Some Big Three suppliers (such as Dana Asia Pacific which is based in Thailand) are appreciating the strategic value of Thailand for trade with new markets in neighboring countries such as Vietnam, China, Malaysia, Indonesia, Philippines, and even India and Australia. The Japanese, Korean, Taiwanese and European auto industries have already discovered the value of the regional marketplace and the economies of sourcing from Thailand. BACKGROUND The author has traveled to Thailand three times since 1988. His on-site research resulted in a series of studies on the feasibility of expanded trade in auto parts between U.S.- based firms and Thai firms, prepared for the Thai Department of Export Promotion of the Ministry of Commerce (Department). His research included data from the U.S. S . Department of Commerce, U.S. auto trade associations, the U.S. and European auto trade press and the University of Michigan Office for the Study of Automotive Transportation. Leading authorities in auto trade, auto trend analysis and global sourcing were consulted. His 30 year study of U.S. auto trends was then supplemented by a through review of world economic assessments of Thailand along with relevant Thai government and industry documents on domestic investment in Thailand, as well as feasible auto parts exports. The author developed a two track market strategy for the Thai auto parts makers. The first track outlined the potential for rapidly expanding business relationships in Thailand and the Asia Pacific region. The second and more challenging track addressed exporting directly to North America. He presented a one day seminar on the global sourcing strategies in August 1994 for the Department before an audience of 60 potential exporters who were already selling parts locally. These Thai companies represented the most advanced fraction of the Thai auto industry. Many of these firms already do substantial business with the Japanese, some with Koreans and Taiwanese. These Thai firms felt they were qualified to bid for U.S. contracts. The Department was desirous of encouraging and supporting these leading Thai parts makers in penetrating the North American auto parts marketplace. The author assembled a group of U.S. experts who presented advice on ways to pay greater attention to regional alliances with U. …" @default.
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• W303003003 date "1996-04-01" @default.
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• W303003003 title "Barriers to Thai Auto Makers in the U.S. Marketplace" @default.
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