Ford committed to base in Thailand

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Ford committed to base in Thailand 
Bangkok Post: 20 Oct 2010
Ford remains committed to Thai base

Ford Motor Co says it has no plans to shift production from Thailand despite published reports of its expected plan to sell down its shareholding in Mazda Motor of Japan.

"Continous investment support from the Thai government and its transparency in administration play a major role in Ford investing here," said Peter Fleet, the president of Ford Asean.

"We still had no plans to move the production base away to any other region except for China and India where we also have [operations]."

Ford and Mazda have declined to confirm weekend reports from Japan that the US automaker planned to sell a large portion of its 11% holding in the Japanese carmaker and invest the proceeds in emerging markets. The reports suggested Ford would retain a 3% holding in Mazda.

The two companies operate the AutoAlliance joint venture in Rayong, which produces cars and pickup trucks for local and export sales.

Although Ford ranks sixth in Thailand with only a 2% market share, its sales volume had been growing steadily, said Mr Fleet.

And despite turbulent local politics, he said, Ford always based its investment decisions on the long-term economic outlook.

Ford plans to build a new plant at the Hemaraj Industrial Estate in Rayong as its first wholly owned factory in Thailand, said Mr Fleet.

In late August, Ford and Mazda said they were investing US$350 million in their 50:50 AutoAlliance venture in Thailand to support the production of the next generation of pickup truck to start in mid-2011.

The companies said the investment would support facility upgrades and supplier tooling. It would lift Ford and Mazda's total joint investment in AAT to $1.85 billion since it began in 1995.

http://www.bangkokpost.com/business/economics/202255/ford-remains-committed-to-thai-base