Malaysiaminilover

Category: Thailand

Cars in MML garage from Thailand

  • Honda Thailand scrapped 1055 cars to convince its customers

    Honda scrapped car

    Severe flooding happened in Thailand last year October has causes 1055 Honda cars to completely become scrap metal. These are brand new cars and sitting in Honda Thailand factory waiting for its new customers. Unfortunately, the flood water comes before the new customers. These cars cannot be sold because all of them had been sunken in flood waters and covered by mud. Honda tried to take action to save these remaining cars before the flood water comes but time is inadequate, resulting 1055 cars have to be the victim of the flood. Individual is able to save their car from flood but not Honda that has over one thousand cars sitting in the factory in Nikom Rojna industrial estate.

    During end of December 2011, the flood situation eases after rain stops. Honda Thailand has to clean up the factory just like many other companies do. They have to clear these cars after they suffered a massive financial loss due to the factory being non-operational for several months. More than 60,000 units of vehicle could not be produced and now 1055 completed cars have to be cleared. We would have to say Honda did a great job in the scrapping process to prevent the cars from ever being sold. Every car is scrapped completely and become a piece of metal for recycle purpose.

    Honda scrapped car

    There are six stations for the scrapping process. At first station and second station, brake fluid, transmission fluid, power steering fluid, engine oil, and coolant were completely drained. Air condition refrigerant is discharge too in order to protect the environment during the scrapping process.Battery, wheels, exhaust pipe, fuel tank, car hood, bumper, side mirrors, and engine were removed before the car send to scrapping zone. Plastic parts, dampers, radiator, condenser, wiring, spare tire, and transmission were removed at third and fourth station.

    Honda scrapped car

    Basically, the body and all other parts are killed in the process to prevent it from being resold again including suspension, sub-frame, brake pump, fuel system, and engine. At fifth station, wheels were drilled with holes or damaged by Honda engineers with fire gun to avoid someone have them cleaned up and resold. Other components get destroyed in this station. All the recycle materials including battery, rubber, plastic, aluminium, steel, and metal go to the right place for recycle in the last station.

    The most painful part of the process is the total value of these cars which has not revealed by Honda. There are 217 units of Honda Brio, 213 units of Honda Jazz, 353 units of Honda City, 150 units of Honda Civic, 91 units of Honda Accord, 30 units of Honda CR-V, and 1 unit of Honda Freed out of 1055 cars. Base onThailand market value for the cheapest model for all cars, it is approximately 417 million Thai baht (approximately 13 million USD as of January 2012).

    Honda scrapped car

    Honda’s mission is to convince their customers to believe their quality in new vehicles. Cars and parts affected by flood will never be sold. The process is being done inRojanaIndustrial Parkunder the witness of media companies, Honda dealers, Ministry of Transport and Communications, and some other government agencies. Vehicle Identification Number (VIN) of every car is published atThailand’s Honda website. Source from Honda Thailand.

  • Cost to own a car vs. Cost to take taxi

    Most of the people who depend on public transport in their daily life may think about getting a car for their own. Anyone can purchase a cheap car with low maintenance cost, low monthly car payment, as well as low cost car insurance. However, does one really need an own car when the public transport is so convenience at such low cost? Here we did a calculation based on a case study in Thailand.

    In Thailand, the taxi is 35 baht once you get on it, every km after the first km is charged 10 baht accordingly. Let’s say you are going to travel 10 km from home to work everyday, it will cost 125 baht one day, and return will be 250 baht. In a month, we roughly work 22 days, the total cost of using taxi to work will be 22 x 250 baht = 5500 baht a month.

    So, what about getting one cheap new car for 508,500 baht? Now we do a calculation if you get a Honda Brio for work. Honda Brio gives 47 mpg, which is roughly 19.8 km per liter of petrol. A liter of petrol cost 34 baht and the cost to travel 20 km a day in a Honda Brio will be (34/19.8) * 20 = 34.34 baht a day. In 22 work days, it will be 686.8 baht. Other than the petrol, there is a monthly car installment of 9746.25 baht. The total cost for a month is now 10,433 baht. So, owning a car may anytime cost you double compared to using taxi for work.

    The true cost to own the car in 5 years time

    In long term, the calculation will be different compared to what we showed above. There is something else is excluded, the value of the car. If you spend 5500 baht a month for public transport to go for work, in 5 years it will be 330,000 baht. You get nothing because the money you paid goes for the service. Well, you have someone drive you to work.

    On the other hand, if you bought a Honda Brio 5-year ago, now you can probably sell it for 300,000 baht. In 5-year time, you paid a total of 584,775 baht for the car price including car loan interest. The cost for petrol in 5 years is 686.8 * 60 = 41,208 baht. The total cost to use the car for work in 5 years without including the maintenance fee will be 625,983 – 300,000 = 325,983 baht.

    Here is the conclusion of having an own car to go for work and using taxi to go for wok.

    Using car to go for work

    • Pros to own a car: Flexible in time, convenience, and can use the car on weekend for other purposes.
    • Cons to own a car: Extra monthly car payment compared to taxi, having extra cost like car insurance, car park fee, car maintenance, and some intangible cost like car wash as well as anti-theft accessories.
    • True cost to own the car over 5 years: 325,983 baht excluded car insurance and maintenance cost.

    Using taxi to work

    • Pros to use taxi: Just sit and relax in the car and need no tired to drive alone. Taxis are almost everywhere in the town.
    • Cons to use car: Extra cost may occur during weekend when you are going to somewhere else.
    • True cost to use taxi over 5 years: 330,000 baht excluded extra cost during other day.

    From the comparison we made here, the cost to own a car and cost to use taxi to go for work is more or less the same. The only different is that owning a car will have higher cost for every month. It is up to individual and which way you prefer. What will be your choice?

  • Bangkok: BMW Xpo 2011 at Siam Paragon 22 – 25 September 2011

    If the recent Frankfurt Auto Show is too far for you to go, no worries, there is a small-size auto show held in Bangkok, the BMW Xpo 2011 at Siam Paragon. BMW Bangkok invites anyone to explore the latest design and innovation from BMW. This event will be held in Siam Paragon,Bangkok,Thailand, from 22 to 25 September 2011. For those who want to see the latest BMW Vision EfficientDynamics, now it is your chance. (more…)

  • Best selling cars in Thailand

    Here is the top 10 best selling cars in Thailand for the year of 2010 with the number of cars sold in Thailand. Every country has its own culture, its road condition, the market needs, and how one car model is advertised in the country. With many reasons, the best selling cars in one country could be different from another. Check out the best selling cars in Thailand, the only country in Southeast Asia never colonized by any European power. Thailand, the land of smile. (more…)