Regional News

Iconic American Harley Davidson Motorcycles to be Made in Thailand

Workers unpack new motorcycles arriving at a Harley-Davidson showroom in Bangkok on May 15

BANGKOK -American Motorcycle builder Harley-Davidson, praised by US President Donald Trump as a pillar of American manufacturing and keeping jobs at home, is building a new plant in Thailand.

Harley-Davidson serves as an example of the nuanced economic realities that are pushing US companies to lay off workers at home and set up new factories overseas. Unions representing its workers accuse the company of cutting US jobs to hire lower-paid foreign workers. Yet global trade barriers and proximity to a growing base of new customers also play roles, complexities inherent in Trump’s ambition to overhaul trade policy.

Motorcycles made in the new factory – plans for which had not been previously disclosed – will be sold in Asia, not the United States, which its domestic plants will continue to serve, Harley-Davidson said.

“This is absolutely not about taking jobs out of the United States,” said Marc D McAllister, a managing director of international sales at Harley-Davidson based in Singapore. “This is about growing our business in Asia.”

Still, unions representing its workers in the United States are not pleased.

“Why couldn’t we build them in the US and export them?” asked Leo W Gerard, the international president of the United Steelworkers, which represents Harley-Davidson workers at plants in Wisconsin and Missouri. He expressed concern that the company could be entering a “race to the bottom” in pursuit of lower labour costs.

“It’s a slap in the face to the US workers who built an American icon,” said Robert Martinez Jr, the international president of the International Association of Machinists and Aerospace Workers. The union represents Harley-Davidson workers at plants including one in York, Pennsylvania, where the company plans to lay off over 100 workers.

Harley-Davidson argues that steep trade barriers in a high-growth market, not a desire to cut US jobs, drove the move. Southeast Asia offers rapid development and increasingly affluent spenders, but many countries in the region levy high tariffs on imported goods that make its motorcycles prohibitively expensive, the company says.

“Building bikes in the US and exporting them does not get us the benefits that we’re talking about when it comes to the tariff barriers,” said McAllister, a 22-year veteran of the company.

Harley says the new Thailand plant will help it serve more Asian riders like Akaravech Chotinaruemol, a retired financial analyst in Bangkok who collects Harleys and enjoys taking them on winding road trips in Thailand’s rural and mountainous north. For him, nothing else compares to the sound and sensation of riding a Harley.

“I ride only Harley-Davidson,” he said, “and nothing else.”

“It’s a hobby to me, a toy, holiday entertainment,” he added. “And it’s also like a traveling companion.”

Akaravech Chotinaruemol, a retired financial analyst collector of Harley-Davidsons, in Bangkok, May 15, 2017

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Mr Akaravech’s most expensive Harley, a custom 2013 Road Glide, cost roughly US$60,000 (about 2 million baht), thanks in part to Thailand’s high tariffs. In the United States, the same model retails for just over half that amount. The Thailand plant would assemble lower-cost motorcycles.

Harley-Davidson has long cast its eyes abroad amid sluggish growth at home. It hopes to make half its sales international over the next decade, compared with about one-third last year and less than one-quarter 10 years ago. Its international sales last year grew 2.3%; by contrast, sales in the United States fell 3.9%.

Despite Harley-Davidson’s all-American reputation, the Thai plant will not be its first abroad, or even in Asia. The company opened a similar plant in Bawal, India, in 2011 to help it get around that country’s 100% tariff on imported motorcycles. It also assembles motorcycles at a plant in Brazil and has a wheel factory in Australia. The Thailand plant will assemble motorcycles for Asia that were previously imported from India or the United States.

Harleys at the Bangkok Hot Rod Custom Show. Harley-Davidson hopes to make half its sales international over the next decade.

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Harley-Davidson’s made-in-Thailand motorcycles will avoid the country’s up to 60% tariff on imported motorcycles. They would also get a huge break on tariffs when exported to Thailand’s neighbours, thanks to a trade deal among the 10 members of the Association of Southeast Asian Nations (Asean).

The Thai plant is also intended to help serve a vast market in mainland China. Asean is pursuing an enlarged free-trade area with Beijing. And McAllister of Harley-Davidson said the Thai plant would lower the transport and shipping time to the Chinese market to around five to seven days, from 45 to 60 days from the United States.

For big companies, “the economics are increasingly compelling, and Asean is again attracting the lion’s share of foreign direct investment into Asia, after China had been the primary destination for many years,” said Frederic Neumann, a co-head of Asian economic research at HSBC in Hong Kong.

By contrast, many of those nations charge steep tariffs on foreign-made goods like Harley motorcycles.

Harleys shipped from the United States to Bangkok. The Thailand plant will assemble motorcycles for Asia that were previously imported from India or the United States

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Mr Trump in February used those trade barriers to illustrate the obstacles US manufacturers face when they sell abroad, a central argument as he pushed to renegotiate US trade deals. Four weeks after the Harley-Davidson executives visited the White House, the president said in a speech to congress that he had asked them about international sales.

“They told me – without even complaining, because they have been so mistreated for so long that they’ve become used to it – that it’s very hard to do business with other countries because they tax our goods at such a high rate,” he said.

“They weren’t even asking for a change,” he added. “But I am.”

But the month before, citing its potential impact on US workers, Mr Trump killed the Trans-Pacific Partnership, a trade deal that would have slashed the tariffs Harley-Davidson faced in Vietnam and Malaysia to zero. The company had been a supporter of what would have been the 12-nation pact.

“The big opportunity for Harley, growthwise, is in Asia, and a lot of the work with the TPP addresses some of the barriers that are in the way of our growth in Asia,” its chief executive, Matthew S Levatich, said last year in a television appearance.

The new Thai plant is moving into an area already populated with foreign names in the eastern province of Rayong, near the manufacturing operations of Ford, Ducati, General Motors and Suzuki. The plant will initially employ about 100 people assembling motorcycles mainly from imported kits when it opens late next year.

Mr Akaravech said he would not expect there to be a big difference between motorcycles made in Thailand and ones made in the United States. But he expressed concern that an influx of cheaper, zero-tariff, locally made Harleys would bring down valuations for used ones – like those he collects.

“It’s going to hurt the sentiment of the market,” Mr Akaravech said. “If the price is going down, that discourages riders from buying.”

By Neil Gouh – New York Times

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Ryn Jirenuwat contributed reporting from Bangkok.

Regional News

Thai Immigration Police Detain Over 26,000 Illegal Migrant Workers

Thailand’s Immigration Police have detained approximately 26,000 illegal migrant workers from Laos, Myanmar, and Cambodia during an eight-day operation in Bangkok and surrounding regions, according to a Royal Thai Police spokesperson.

Mr Adisorn Keudmeuangkhon of the Bangkok-based Migrant Working Group said the drive was in response to an increasing number of concerns about an influx of illegal migrant labor.

“Some Thai people see that many illegal workers are competing for their job positions in the past few months,” he told me. “That’s why the ministry has to take tougher action.”

Civil strife in Myanmar and the recent implementation of a military conscription have driven thousands of Burmese into Thailand, while severe inflation and limited job opportunities in Laos have also encouraged an influx of workers from that country.

Between June 5 and 12, officials detained and checked 20,111 Myanmar laborers, 1,659 Laotian migrant workers, and 3,971 Cambodian workers, according to the Ministry of Labor.

It marked the start of a 120-day campaign to audit workplaces and arrest unlawful migrant workers, according to the government.

Migrant Workers to be Deported

According to Keudmeuangkhon, undocumented workers face fines ranging from 5,000 to 50,000 Thai baht (US $136 to $1,365), deportation, and a two-year prohibition on re-entering Thailand.

Authorities did not intend to file criminal charges, he claimed.

Authorities raided 1,774 workplaces, according to Moe Gyo, chairman of the Joint Action Committee on Burmese Affairs, which advocates for Myanmar labor rights.

He stated that since the military junta activated conscription, there has been an upsurge in the number of arrests of Myanmar citizens in Thailand who do not have a work permit identity card.

All men aged 18 to 35 and women aged 18 to 27 must serve in the military for at least two years. The first group of 5,000 conscripts summoned by Myanmar’s junta will start duty at the end of this month, military sources told AFP on Monday.

According to Keudmeuangkhon, the bulk of Lao migrant workers in Thailand work as fresh market shopkeepers, restaurant servers, and mall salespeople.

Most people visit Thailand as part of ASEAN’s visa-free policy for tourists, but they stay longer than the 30-day restriction once they find job.

“Employers like to hire Lao migrant workers in the service sector because they can speak fluent Thai,” he told me.

Immigration Police Detain Illegal Migrant Workers

The Thai Cabinet may approve an enhanced program for Thai employers to register their unauthorized foreign workers in July or August. Keudmeuangkhon explained.

Last month, the Thai Ministry of Labor’s Foreign Workers Administration office announced that 268,465 Lao migrant workers were officially working in Thailand.

Baykham Kattiya, Lao Minister of Labor, told Radio Free Asia earlier this month that there are 415,956 migrant workers in other nations, the majority of whom work in Thailand.

According to her, the Lao government believes that over 203,000 persons working outside of the nation lack proper work documents.

However, a Lao official familiar with the labor industry informed Radio Free Asia, a BenarNews-affiliated news station, on June 20 that the number of illegal Lao migrant workers in Thailand and abroad is likely significantly greater.

“They go to other countries as illegal migrant workers through different types of methods – as tourists or students,” said the politician. “Thus, it is hard for the immigration police to collect data on these people.”

Government Officials Responsible for Smuggling in Migrant Workers

Government Officials Responsible for Smuggling in Migrant Workers

News

High School Student Dies After Being Electrocuted By School Water Dispenser

14-year-old boy was electrocuted by a water dispenser: File Image

Thailand’s Office of Basic Education Commission has initiated an investigation into the electrocution of a 14-year-old student by a water dispenser in a high school. The event happened at noon on Friday, during the high school’s sports day. The victim was a Grade 8 student.

According to local media in Trang Province, the incident occurred when a teacher instructed the pupil to turn off a water dispenser amid a heavy rain.

According to a witness, the child collapsed while strolling with his friend near a water station. The friend claimed he attempted to assist but was also shocked by electricity.

According to reports, the friend then recovered, left the site, and requested assistance from teachers. A teacher ran to the scene and used a towel to pull the boy away by the ankle. He was taken to the hospital, but it was too late, they claimed.

The event sparked criticism from parents and netizens over school safety, as well as the slow response to aid the young youngster.

Mr. Chainarong Changrua, head of Trang-Krabi’s Secondary Educational Service Area Office, told local media on Sunday that forensic officers from Trang Provincial Police had visited the area. They discovered the blown breaker switch behind the water dispenser, he explained.

The breaker was burned out, thus the authorities assumed the disaster was caused by a short circuit that allowed energy to spill to a neighboring power pole. The student also appeared wet and was not wearing shoes when electrocuted.

According to the Office of Basic Education Commission, a probe team will complete its investigation this week.

The student’s father, Mr Pornchai Thepsuwan, 53, claimed he was saddened when he saw his son’s body. The boy (Wayu), was the youngest of two boys, he explained. He stated that following the tragedy, the school director and staff gave financial assistance to the families.

Mr Pornchai also said he would not seek charges against the institution because he believed it was an accident.

Electrical accidents in Thailand

Electrocution instances in Thailand have increased alarmingly in recent years. Many mishaps occur as a result of improper wiring and inadequate maintenance of electrical systems.

Public locations, such as schools and markets, frequently lack adequate safety precautions, putting individuals in danger. In rural areas, antiquated infrastructure exacerbates the situation, resulting in more frequent and serious events.

Although several high-profile cases have brought these challenges to light, genuine progress has been gradual. Furthermore, the rainy season heightens the likelihood of electrical accidents, as water and exposed wires do not mix well.

The government has made steps to strengthen safety standards, but enforcement is patchy. More education on electrical safety could help to reduce these accidents.

Unfortunately, better infrastructure and tougher rules may have prevented many of these incidents. The loss and injuries caused by electrocution are avoidable, emphasizing the need for immediate action.

Over 200 High School Students Facing Sedition Charges in Thailand

Over 200 High School Students Facing Sedition Charges in Thailand

News

Thailand’s Tourist Police Crackdown on Tourist Scammers in Pattaya

Tourist Police Pattaya: File Image

Thailand’s Tourist Police said it is collaborating with embassies from five countries to combat tourist scams and ten criminal gangs in Pattaya. The Tourist Police Bureau, convened a meeting on Thursday Pol Lt Gen Saksira Phuek-am told a press briefing.

Pol Lt Gen Saksira Phuek-am, the Tourist Police bureau commissioner said the participants included ambassadors from South Korea, Ukraine, Russia, India, and Switzerland.

He told the briefing the he had ordered a crackdown on tourist frauds, such as fraudulent or low-quality tour operators and unfair sales of goods and services. Stepped-up operations began on June 19 and will continue until June 25.

He stated that the agency was working with numerous organisations to increase tourists’ confidence in visiting Pattaya.

Gen Saksira spent time on the famed Walking Street speaking with officers on duty and assigned them to seek for members of ten criminal groups known to operate in Pattaya.

Meanwhile, Prime Minister Srettha Thavisin will visit Chon Buri on Saturday to assess the tourism situation. He intends to visit the site of a future Formula One racecourse near Khao Phra Tamnak in Bang Lamung District.

Prime Minister Srettha recently met with Formula One organisers in Italy to examine the potential of including Thailand on the race schedule in the future.

On Sunday, the Prime Minister will pay a visit to Rayong’s U-tapao airport to discuss development on the airport’s land, with the goal of encouraging investment in the Eastern Economic Corridor.

Police Chief Reinstated

In other police news, Pol Gen Torsak Sukvimol has been reinstated as national police chief following the conclusion of an investigation into a highly publicised quarrel, according to Wissanu Krea-ngam, Prime Minister Srettha Thavisin’s counsellor.

Mr Wissanu released the investigation’s findings on Thursday, after the prime minister formed a fact-finding committee chaired by Chatchai Promlert to investigate into the quarrel between Pol Gen Torsak and his deputy, Pol Gen Surachate Hakparn.

The four-month study revealed conflicts and disorder at all levels of the Royal Thai Police, but it was unclear whether these issues arose from a single cause or several causes, according to Mr Wissanu.

The findings revealed that both Pol Gen Torsak and Pol Gen Surachate were involved, with each team contributing to the tensions, he noted.

Mr Wissanu indicated that Pol Gen Surachate was reinstated as deputy national police head on 18 April following his relocation to the Prime Minister’s Office on 20 March. A disciplinary committee was formed to investigate Pol Gen Surachate, and he was ordered temporarily suspended from the police force.

Because there were no further difficulties to explore, it was decided to restore Pol Gen Torsak. He plans to retire on September 30.

On March 20, Mr Srettha abruptly transferred both top police officers to the Prime Minister’s Office in an effort to address the growing schism within the police service.

Kitrat Panphet, Deputy National Police Chief, was subsequently named Acting Police Chief. According to sources, Pol Gen Surachate could face money laundering charges related to online gaming networks.

Source: Bangkok Post