Who doesn't like free money? Auto companies sign on to Thailand's eco-car plans

Recently, we wrote about Thailand's plans to be the eco-car Mecca. If you build a plant for more than $147 M making cars that get over 56.5 MPG and emit less than 192 grams of CO2 per mile, you can get a 17 percent tax cut in Thailand. Turns out car companies like free money. Honda signed on. They already planned to build a plant but when they heard tax cuts they doubled the investment. The Honda Thailand plant will cost $186 M and production at the plant is expected to start October 2008.

GM is also showing interest. Here is what GM's president for Thailand and Southeast Asia Stephen Carlisle has to say about Thailand's eco-car plans: "We support the broader idea...We're evaluating options. It's a worthwhile dialogue." Thailand's project is not just for large car companies. Thailand invited the Tata Group, the company working with MDI on the Air Car, to be apart of the eco-car project for just $39 M.

[Source: CNN]

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