Japan's Nissan Motor Co will invest US$195 million in two Thai joint ventures to increase its stakes from about 25 percent now to 75 percent, the company said in a statement yesterday.
The two joint ventures -- Siam Nissan Automobile Co, Nissan's manufacturer and distributor in Thailand, and Siam Motors & Nissan Co, the Japanese automaker's regional assembler -- serve as Nissan's export bases for the Southeast Asian market.
The companies are currently controlled by Siam Motors Group, a Thai family concern. However, the new investments would hand the Japan-based parent company a controlling interest in operations.
The Nissan statement did not say when the fresh investment would be made.
"Thailand offers a great opportunity for Nissan. This market offers both potential for future growth and an excellent base for us to expand our presence in the Southeast Asian region," Nissan President Carlos Ghosn said in the statement.
He said the move is an important step in the company's business expansion plans. As part of its medium-term business plan, Nissan aims to lift its global sales by 1 million vehicles from 2001 levels to 3.6 million by September, 2005.
The two ventures produce a combined 40,000 vehicles annually for sale in Thailand as well as for export to Indonesia and Singapore.
Nissan also operates production bases in the Philippines, Malaysia and Indonesia, but their output capacities are significantly smaller than those of the Thai ventures.
Nissan entered the Thai market in 1973. Its sales in Thailand last year totaled 43,557 vehicles, giving it a 8.2 percent market share, ranking fourth after Toyota Motor Corp, Isuzu Motors Ltd and Honda Motor Co. Most of Nissan's production is for domestic consumption.
Siam Motors was the only major auto company in the country that remained in the hands of a Thai family. Following the 1997 economic crisis, foreign automakers such as Honda, Toyota, BMW, Mitsubishi and Ford took control of distribution and manufacturing businesses from local companies.
The Nation newspaper reported last week that Nissan is likely to implement a capital increase after the takeover to expand the business and further dilute the stake of the Phornprapha family of Siam Motors Group.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
SHOT IN THE ARM: The new system can be integrated with Avenger and Stinger missiles to bolster regional air defense capabilities, a defense ministry report said Domestically developed Land Sword II (陸射劍二) missiles were successfully launched and hit target drones during a live-fire exercise at the Jiupeng Military Base in Pingtung County yesterday. The missiles, developed by the Chungshan Institute of Science and Technology (CSIST), were originally scheduled to launch on Tuesday last week, after the Tomb Sweeping Day holiday long weekend, but were postponed to yesterday due to weather conditions. Local residents and military enthusiasts gathered outside the base to watch the missile tests, with the first one launching at 9:10am. The Land Sword II system, which is derived from the Sky Sword II (天劍二) series, was turned