European Cars from an Unlikely Source
The automotive industry today is global like none other. According to a recent International Herald Tribune article, the Thai auto industry will produce 1.2 million cars in 2006, with half being exported to locales including Europe. That makes Thailand the third largest Asian automotive exporter.
The article is significant because it discusses the incentives program currently in place by the government. Despite being a developing country, Thaliand has very stringent new rules. To receive incentives car makers must be producing cars that get a minimum of 47 miles per gallon (5 litres/100KM). Emissions must meet Euro 4 standards.
The key analysis here is that it is difficult for a country that is used to producing larger cars (Thais love big cars) to change over to smaller cars. The parallell is that the same problem exists for manufacturers, producing cars for the USA. In a country that loves to guzzle gas, it may be stringent standards and better fuel efficiency that saves the country from impending economic crisis.