Bangkok - In one of the first blows to be felt from the "Hamburger Crisis" in Thailand, General Motors Thursday announced plans to close its Thailand plant for two months, paying employees 75 per cent of their wages.
"If we don't close down we will have an oversupply," said GM spokesman Chartchai Suwannasevok, confirming the US giant's plan to close its plant in Rayong province for the months of December and January.
GM's 2,000 Thai employees will have to take a 25 per cent pay cut during the suspension period and the company has offered 258 employees early retirement with 10 months pay, in preparation for a slowdown in 2009.
GM's Rayong plant has a capacity to produce 130,000 units per annum, but this year's sales are estimated at 100,000 units.
The plant assembles and manufacturers GM Colorado pickups, Captiva SUVs, Optra sedans and Aveo compact cars, mostly for the export markets.
Thailand is a major automobile assembly hub in South-East Asia, manufacturing an estimated 1.4 million units this year, more than half of which were destined for exports.
The local industry, which has attracted all the major Japanese auto manufacturers such as Toyota, Honda, Nissan, Mazda, Mitsubishi, Isuzu along with US giants GM and Ford, employs an estimated 500,000 Thais.
Thailand is expected to suffer massive unemployment next year as its export industries dry up, due to falling demand in the US, European Union and Japan, the kingdom's three main markets.
"With orders for 2009 down 20 to 30 per cent, Thai factories in all sectors are expected to lay-off at least 500,000 employees next year," said Thaveekij Jaturajarernkul, chairman of the labour committee and the Federation of Thai Industries. (dpa)
Shares fell 2.1 per cent Friday on the Seoul stock exchange on general recession fears. South Korea's won dropped against the dollar.
When the Spirit rover landed on Mars five years ago, no one expected it or its sister rover Opportunity to make it to their first birthdays, let alone their fifth.
Amelie Mauresmo fell victim to a leg injury after less than half an hour on court Friday to hand over a 4-0 victory which put French compatriot Marion Bartoli into the final of the Brisbane International.
Mumbai-based movie Slumdog Millionaire won five prizes Thursday night at the Critics Choice Awards, cementing its position as a surprise favourite just as the Oscar season moves into high gear.
After the Taipei Zoo received two giant pandas from China, another Taiwan zoo said Friday it is seeking to receive a pair of pandas from China.