From the recent coronavirus crisis, automotive industry in Thailand has faced challenges from several factors.
The trend of foreign investment shifted to neighboring countries has increased. There is an entry into electric vehicle technology and case concepts (Connected, Autonomous, Shared and Electric), especially European countries. This has affected changes in manufacturing technology which focusing on green energy that is environmentally friendly. The lockdown measures in China have affected business chain of relying only on Chinese raw material source. Nevertheless, after China cancelled lockdown measure more operating costs were affected, including raw materials, freight and container shortages.
The coronavirus outbreak is an accelerator for economic consolidation and rebalancing the global supply chain. The response and adaptation of FPI to these challenges include: 1) diversify the sourcing of raw materials, 2) reduce costs and increase productivity, and 3) create new businesses by creating Culture of Action (4DX) to eliminate gaps in business performance and leverage individual differences in the organization to work as a team. This is to create new culture of helping, sharing, coordinating, having the same goals and better strive to the important goals of the organization. This leads to fostering creativity and freedom to express problem-solving ideas which contributes to create value throughout the business chain that supports the achievement of SDG 4, 9, 8.
FPI has adapted to be more flexible in response to epidemic situations with tightening control measures for business continuity management (BCM) and cooperating with all groups of stakeholders, especially taking care of income and health of employees, suppliers / subcontractors, and communities for facing the COVID epidemic. Therefore, we developed an “ITA” application program that records employees travel data with close situational monitoring technology that supports the achievement of SDG 1, 3.
Science Based Targets initiative has approved FPI’s Climate Change Targets, which covers the control of releasing greenhouse gas emissions for Scope 1, Scope 2 and Scope 3 in the reductions of greenhouse gas emissions by 25.2% across all boundaries by 2024 by using 2018 as the base year. This is in line with the ultimate goals of the Paris Agreement, and creating product responsibility partnerships throughout the business value chain with all stakeholders in accordance with the Circular Economy concept to achieve efficient use of natural resources and create a balance in the environment for leading to Zero Waste to Landfill that supports the achievement of SDG 12, 13, 17.
Finally, on behalf of the Board of Directors, we would like to thank all shareholders for their cooperation and support of the Company’s operations. We would like to thank all our employees for helping to drive the organization in accordance with good governance principles, create sustainable value for stakeholders and enhance the quality of people in the society.
Chairman of the Executive Committee