UPDATE: Thai Fin Min Urges Banks To Provide Loans To GM, Ford
11 Juni 2009 - 8:32AM
Dow Jones News
Thai Finance Minister Korn Chatikavanij said Thursday that he
has asked state-owned and private banks to explore lending
opportunities to help Ford Motor Co. (F) and General Motors Corp
(GM) finance their production expansion plans in Thailand.
He also expects the Board of Investment to grant tax incentives
to the two U.S. auto giants.
The Thai unit of General Motors Corp. has said it is seeking
financial support from local financial institutions for its future
investment in a THB15 billion ($441 million) diesel-engine and
one-ton pickup project.
Ford is planning a $500 million investment with Mazda Motor
Corp. (7261.TO) at their Thai joint venture, AutoAlliance
Thailand.
Thailand's Board of Investment Wednesday approved tax incentives
to lure automobile producers to move their production to Thailand,
including a waiver of tariffs on machinery imports and a temporary
waiver of corporate tax for 5-7 years.
To be eligible for the incentives, a project must invest no less
than THB10 billion to establish new assembly lines that manufacture
at least 100,000 units within the first five years of
operations.
To be granted the incentives, the project must make new models
that have never been produced locally and use new technology, such
as hybrid electric vehicles or those that use alternative
fuels.
-By Phisanu Phromchanya, Dow Jones Newswires; 662-266-0744;
phisanu.phromchanya@dowjones.com