Ford and Mitsubishi to lead in low-interest campaign

MMC Sittiphon has been the latest to join low-interest campaigns in late-year sales drives aiming to increase share in the booming auto market. In the latest offer, customers who buy a Mitsubishi model from now to December 31 will enjoy a 4.9% interest rate in leasing packages provided by either Mitsubishi Leasing or GE Capital Leasing Co. The rate was brought down from 6.5% in September.

Ford Sales (Thailand) first offered a rate of 5.9% to every purchase of its 2-wheel drive pickup, but the rate was brought down to 4.9%, the ‘lowest possible’ rate, in October, said Saroj Kiatfuengfu, marketing director. Under the lowest interest package, Ford customers will be granted a one-year insurance package worth Baht 19,000 to Baht 26,000 from Viriya Insurance as a compliment, said Mr Saroj.

Honda Cars (Thailand) said it was the first to introduce a low interest campaign months ago offering a 5.5% rate.

Auto sales fell by 9% in October, and floods in provinces were said to be the cause. Mitsubishi sales suffered by 17.7% last month, but the 10-month sales figure lifted 26%, compared to the same period last year.

Software industry growth believed to surpass earlier estimation

The market cap of the local software industry is likely to rise to over Baht 10 billion this year, high above an earlier estimation of about Baht 7 billion by the Association of Thai Computer Industry. An influx of foreign investment in 1999 has been the main cause of the unexpectedly high growth, said Arporn Sripipat, ATCI president.

More foreign investors have entered into the local software industry this year - new entries include Indo-Pacific Group from Silicon Valley, ISCT, Nomura/JAVCO Capital, and Japan Asia Investment fund, Dr Arporn said. Investment capital in the software industry is expected to top Baht 1 billion in 2000, he said.

Notes: V-Net Capital, a local venture fund, said it was ready to join the industry with no limit in investment or holdings. Over US$460 million in capital has been invested in the software industry in the Asia-Pacific region. Local groups said foreign investment would compliment rather than compete.

Crown Princess insists on midnight flight to Japan

Her Royal Highness Princess Maha Chakri Sirindhorn has insisted on maintaining her trip to Japan on a THAI flight which is scheduled to leave Bangkok International Airport just before midnight on December 31, a sign which shows that the national flag carrier is completely Y2K compliant. The trip is fixed amidst worries that the Millennium Bug might still bite into THAI flights despite high confidence from the management.

THAI General Director Dhammanoon Wangli will accompany the Crown Princess on Flight TG 642 which is scheduled to leave at 11:40 p.m., or 20 minutes before the turn of the century, said THAI sources. The cabinet on Monday gave its nod to THAI’s plan to freeze all planes on the ground between December 31 and January 1. However. the Crown Princess has reportedly resisted THAI proposals to postpone Her Japan trip to a later time after midnight of December 31.

Senior government officials were also ordered to stay alert and ready for things to come concerning Y2K affects. THAI might cancel all flights to Europe between December 31, 1999, and January 2000, for fear of Y2K errs at airports in Russia.

Local brand computer producer plans to double market share

Computech Microsystems is set to launch a new marketing drive aiming to increase market share to 14% to 15% in 2000, from about 7% to 8% this year. The group, which is among the largest makers of a local brand PC, has anticipated sales of Laser desktop and laptop PCs to rise to 18,000 units in 1999, while the target has been lifted to 36,000 units next year.

Computech will emphasize both pre-sale and after sales services, while expanding deeper into the institutional market. The company currently offers a 5-year warranty on every Laser set, said Palakorn Jirasopon, sales and marketing manager of the product. The warranty logo was redesigned to be more attractive, Palakorn said.

Laser products will penetrate more into the medium-scale market, and a new marketing technique was ‘imported’ from the Netherlands. Baht 15 million was allocated to support sales drives. The company currently has 60 service centers nationwide, while 24-hour online service is available.

US investors eye infrastructure projects in Thailand

US investors said they were sincere and coming with a determination to join development projects in the Kingdom. A total of 16 US investors from Singapore, led by US Ambassador to Thailand Richard Hecklinger, met on Wednesday with Suthep Thuagsuban, Minister of Transport and Communications.

Federal Express (S) Pte. Ltd., which last month announced a plan to expand its service in Singapore, said they had switched their attention from Thailand’s U Tapao to Don Muang Airport, in trying to set up a transport center here. All the US firms told the Thai minister that they were ready to transfer the technology to the Kingdom.

United Technologies International Co. and AEP Resources Inc. are among those to come. Many of the companies said they had explored the opportunity to purchase shares of New Bangkok International Airport Co. at Nong Ngu Hao.

‘Coffee Express’ to be launched at BTS terminals

Black Canyon (Thailand) Co., owner and operator of the Black Canyon coffee restaurant chain, had come up with a plan to launch small coffee outlets at all 22 terminals of Bangkok’s electric train, which is set to start service this December 5. Each of the outlets, under the ‘Coffee Express’ concept, will need an area of 15-30 square meters.

Black Canyon, which is fully Thai-owned, eyes the terminals as locations of opportunities as surveys have found that there would be as many as 400,000 commuters to use the train service each day. Sales promotion campaigns have been planned to encourage coffee drinkers to taste the coffee from beans, said Pravit Jitnarapong, managing director.

A cup of ‘coffee of the day’ would cost only baht 30, from the usual price of between baht 40 to baht 45 a cup.

Bakery, artifacts, and handicraft products have also been considered to be included at Coffee Express shops.

A subsidiary has been set up to run the Coffee Express chain.

Blockbuster expands to compete

US-based video rental chain, Blockbuster will open up 7 more branches in December this year, while 15 more will be opened in 2000, in a plan to build its brand name and establish brand loyalty in the Thai market. Negotiations have been held between the Thai master franchise and US parent over its plan to expand through a sub-franchising system.

Sun-Master International Entertainment Co., owner and operator of Blockbuster in Thailand, said the company might have to spend up to Baht 40 million to support the expansion. Five of the new Blockbuster branches will be in Wang Burapa, Sriyan, Nonthaburi, Kasetsart intersection, and in the district of Minburi, said Penpannee Hor-rungrueng, managing director.

When the expansion plan is fully implemented next year, the number of Blockbuster shops in Bangkok and vicinity will total 33.

The first 11 Blockbuster shops were set up before the Thai crisis two years ago. The chain claims to have won more than 90,000 subscribers since.

Local group to assemble Mercedes cars for DaimlerChrysler

Negotiations have been under way between DaimlerChrysler (Thailand) and old-time partner of Benz cars in Thailand, Thonburi Group to use the Sumut Prakarn assembly plant to make Mercedes and Chrysler cars here. A top executive of DaimlerChrysler said it was decided recently that the company would not set up its own assembly plant in Thailand in the near future.

Gat-Udo Hauser, chairman of Daimler-Benz Southeast Asia (Bangkok), said there was no doubt that the Thonburi plant was the most modern assembly plant in this region. Meanwhile, DaimlerChrysler (Thailand) is set to appoint more authorized dealers of Benz cars next year in a plan to lift its sales target. The first 17 dealers were appointed in the middle of this year.

DCT hopes to sell 1,000-1,500 units of Mercedes cars and 1,200 units of Chrysler cars this year. The Benz sales target increased to 2,500 units in 2000, on the belief that sales of high-performance cars will pick up.

Those involved in the gray market will face uncertainty when DCT runs at full speed here.

PB Air to go its own after talks with Angel failed

PB Air is to go its own in the domestic and regional market after talks on cooperation and investment with Angel Airline, Thailand’s second national airline, failed to produce positive results. PB Air, which is owned by Boon Rawd Brewery Co., brewer of Singha and Leo beers, recently purchased three new 75-seat planes to make up a fleet of five passenger planes.

Seel Sukhum, director for marketing and commerce, said PB Air used its own capital in the new purchases - which showed off the potential of the company. Shareholders are confident in the business, and more investment plans are in the pipeline, he said. The new planes are a symbol of the company’s firm determination to make it in the flying business of PB Air, Seel said. The airline hopes to be a regional player.

PB Air’s new purchases have complicated the operation of Angel Airline, which earlier planned to rent two PB Air Swiss-made Dornier planes to fly its Bangkok-Northeast routes.

PB Air said talks on the plan to invest in Angel Airline were left inconclusive.

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Updated by Boosiri Suansuk