Japanese firms pledge to maintain pickup capacity

Japanese automakers Isuzu and Toyota have vowed to maintain pickup manufacturing capacity in Thailand and continue purchasing auto parts, despite a sharp decline in domestic sales, aiming to shield parts suppliers from financial strain.

- LAMONPHET APISITNIRAN

Suppliers are divided into tier 1, comprising subsidiaries of global car companies, and tier 2, made up of small and medium-sized original equipment manufacturers.

Both groups have been hit hard by falling pickup demand, with 90% of their output tied to pickup assembly, said Noriaki Yamashita, president of Toyota Motor Thailand.

"We are trying to help suppliers, including Thai and Japanese companies, maintain their auto parts production. This means they can keep hiring workers during difficult times," said Mr Yamashita.