Toyota Motor Thailand will reportedly rehire 500 workers at its Gateway plant in Chachoengsao to increase production of its passenger cars for the domestic market.


A Bangkok Post report cited remarks by Wichien Emprasertsuk, a senior vice-president.


The report said that the workers were among 2,000 subcontract staff who were laid off by the company late last year, when auto sales at home and abroad plunged as the global economy worsened.


Car production at Gateway will be increased through the reintroduction of a second daily shift at the plant.


“Bringing back the workers has nothing to do with the economic situation or the improving export market. It is related to the domestic market’s outlook which is not as bad as the forecasts,” Mr Wichien said.

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The report said that automakers were adjusting to a picture for domestic sales that is not as bad as initially feared.


Earlier the industry forecast that domestic car sales would fall by 30% this year, but first quarter sales dropped by only 17% over the previous year.


Toyota said its cars are now in short supply with back orders waiting one or two months for delivery.