Ford May Stop Thailand Investment

[John K]

American companies are looking to establish themselves in other countries to remain competitive. The lower labor costs are the primary reason. The 30% rule has soured the milk and in the highly competitive car market that certainly makes it more difficult to compete. This thread is really all about cause and effect and setting the stage for other companies.

I agree with lukamar in post #29, and adding to that I think Thailand will actually end up with less money if they continue with the 30% rule. If you want to use other peoples money go to a bank and not the coffers of other companies. To me it certainly looks like Thailand is trying to secure interest free loans.

Edited February 1, 2007 by John K

[Scott]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

Please tell me you are joking. If not, this is perhaps one of the most idiotic posts I've ever read on TV.

Of course I am joking. I can't believe you needed to ask.

[LaoPo]

``The measures that they've taken are going to result in foreign direct investment outflows, not inflows, in 2007,'' said Tim Condon, an economist at ING Bank NV in Singapore. ``The government seems to be trying to sort out the regulatory framework and the outcome is one that looks investor unfriendly.''

Total foreign investment in Thailand last year dropped 18 percent from 2005, according to Board of Investment data. Investment fell amid a political standoff that ended in the coup ousting the government of Prime Minister Thaksin Shinawatra.

Ford's vehicle sales rose by more than 80 percent in both China and India last year. Ford has invested more than $1.5 billion in China since 2001 and more than $500 million in India since 2005. In Thailand sales fell 18 percent last year.

Consumer confidence in Southeast Asia's second-largest economy fell to a five-month low after Dec. 31 bomb blasts killed three. Prime Minister Surayud Chulanont, a retired army chief installed by coup leaders, blamed them on ``people who lost their political power'' following the military coup.

``One government can give you what you need to develop a successful business plan,'' said Biegun. ``Another coup, another government and you could lose it all.''

From:

http://www.bloomberg.com/apps/news?pid=206...&refer=home

The huge losses of Ford will 'force' them to think twice or three times before they decide where to invest the 1 Billion $....

LaoPo

[johnnyk]

Seagate pulled a major project out of Thailand last year. 40,000 new jobs went somewhere else.

Corruption is a big factor.

Tough to run a business when the Thai Officials want a piece of the action.

And Intel just made the decision to build a chip foundry in Viet Nam.

[Plus]

Was the OP a hoax? There was a totally different take in The Nation:

Ford Motor mulls eco-car plant here

Published on Jan 31, 2007

US-based carmaker Ford Motor is considering Thailand as a potential location for a plant to build small and fuel-efficient eco-cars specifically for export, Commerce Minister Krirk-krai Jirapaet said yesterday.

Initial capital investment for the project would be US$1 billion (Bt35.81 billion) to produce of 20,000 units a year. The plant is expected to employ at least 10,000 people.

Ford Motor group vice president Ziad Ojakli and vice president Stephen Beigun of Ford Operations (Thailand) met with the minister yesterday to obtain information on the government's eco-car manufacturing support.

Besides South American and East European countries, Thailand is one of Ford's target areas to set up an eco-car manufacturing facility.

The company will make a final decision by May after they have considered the government's policy to promote eco-car production, which will come out in March.

Krirk-krai said Ford is due to meet with Industry Minister Kosit Panpiemras and the Board of Investment to establish what "favourable incentives" the government would provide to carmakers who focusing on eco-car production.....

[TimTang]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

Please tell me you are joking. If not, this is perhaps one of the most idiotic posts I've ever read on TV.

Of course I am joking. I can't believe you needed to ask.

You mean all this time those evil bastards at Ford have been working for MONEY! And I thought they were a non-profit organization with a mission to make it possible for poor people like myself to have a car too.

Well I won't be sitting by the phone waiting for my free car any more.

Edited February 1, 2007 by TimTang

[hiromj]

Ford has invested heavily in Thailand already, it was the first car-maker that targeted primarily exports.

Their domestic sales have been disastrous and they've burned on Thai government a few times already - first over the taxes on their pickups, then on their ethanol 20 engines. Doubts about Ford's future investments were expressed last year, before capital controls and FBA.

What were they going to do with their billion anyway? Thailand doesn't need more Ford trucks, and they can't build another pickups for export plant somewhere in India, split away from Mazda (they use the same plant and same designs), it won't be competitive with Thai made trucks from Mitsubishi and Toyota, and even Ford itself.

Maybe it's a payback time. Ford certainly doesn't have a lot of sympathy left.

Maybe Ford simply admits losing another market to Japanese.

You are well informed Plus. Just drive to Eastern Seaboard and count the lots full of trucks that can't be sold.

Edited February 1, 2007 by hiromj

[alexth]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

[Plus]

Just drive to Eastern Seaboard and count the lots full of trucks that can't be sold.

I'll pass, thank you. Didn't someone mention that Ford sales contracted 18% in Thailand last year? It was the only company that had new products in all key market segments - pickups, small family cars, and pickup based SUVs.

Marvelous flop that was.

I still want to see the confirmation that they withdrew their investment plan. If it was in eco-cars, they have a chance to get their foot in the door before the Japs who don't have the capacity at the moment.

[hiromj]

Just drive to Eastern Seaboard and count the lots full of trucks that can't be sold.

I'll pass, thank you. Didn't someone mention that Ford sales contracted 18% in Thailand last year? It was the only company that had new products in all key market segments - pickups, small family cars, and pickup based SUVs.

Marvelous flop that was.

I still want to see the confirmation that they withdrew their investment plan. If it was in eco-cars, they have a chance to get their foot in the door before the Japs who don't have the capacity at the moment.

I would like to say more but as I work in Mazda Headquarters in Hiroshima, and my current program is the truck that is built in Thailand, I think I better not. But, Plus, as I said before, you seem well informed.

[Old Man River]

Just drive to Eastern Seaboard and count the lots full of trucks that can't be sold.

I'll pass, thank you. Didn't someone mention that Ford sales contracted 18% in Thailand last year? It was the only company that had new products in all key market segments - pickups, small family cars, and pickup based SUVs.

Marvelous flop that was.

I still want to see the confirmation that they withdrew their investment plan. If it was in eco-cars, they have a chance to get their foot in the door before the Japs who don't have the capacity at the moment.

I would like to say more but as I work in Mazda Headquarters in Hiroshima, and my current program is the truck that is built in Thailand, I think I better not. But, Plus, as I said before, you seem well informed.

Would you be able to say how much of the current production is for export vis a vis local sales? While originally Thailand's attractiveness was stability, government incentives and the potential for sales of the 1 ton PU, exports have been on the increase (although I don't know the %). When you think of an eco-car, the first thing I think of is the economics of the investment would be export driven. If so, this would be very beneficial to Thailand apart from just the 10,000 jobs created.

[Dupont]

Was the OP a hoax? There was a totally different take in The Nation:

Ford Motor mulls eco-car plant here

It is essential for Governments throughout the world to keep lap dogs and poodles. It's nothing new. Try reading round other news agencies, inside and outside the counrty. IMHO

Somebody who pushed and pushed for the coup, could ultimately end up with egg on his face if things go (even more) tits up!

[Plus]

It was a report, with quotes, not an opinion piece.

[toptuan]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

Please tell me you are joking. If not, this is perhaps one of the most idiotic posts I've ever read on TV.

Of course I am joking. I can't believe you needed to ask.

That's why we use emoticons on the internet, Scott, so that it will remove all doubt from tongue-in-cheek posts such as yours. At first, I thought you were a troll (until I noticed your post count!).

[thaigene2]

I'd love to follow the "i told ya so crowd" - really!!

But in this case, given Ford's on-the-ropes probs back in the states, it may be a case of that one-billion dollar project not going anywhere - never mind thailand!

[slimdog]

Ford Motor pays attention to investing in energy-saving car production

BANGKOK, Feb 2 (TNA) – The American giant automaker Ford Motor has expressed interest to invest in the energy-saving car production project, according to Deputy Prime Minister and Industry Minister Kosit Panpiemras.

He revealed the company’s executives met and informed him that the firm had a plan to invest around US$1 billion in the vehicle production and was in a process of selecting three countries where it would invest. Thailand is one of the countries under its consideration.

He said Ford had paid attention to investing in the international standard-certified energy-saving car production project in which the Board of Investment was mapping out details of investment promotion criteria.

It is expected the process would be completed by March.

He added the US giant carmaker would probably opt to invest in the project if investment promotions offered by the BoI are attractive. (TNA)

source: http://etna.mcot.net/query.php?nid=27679

[ChiangMaiAmerican]

Ford Motor pays attention to investing in energy-saving car production

BANGKOK, Feb 2 (TNA) – The American giant automaker Ford Motor has expressed interest to invest in the energy-saving car production project, according to Deputy Prime Minister and Industry Minister Kosit Panpiemras.

He revealed the company's executives met and informed him that the firm had a plan to invest around US$1 billion in the vehicle production and was in a process of selecting three countries where it would invest. Thailand is one of the countries under its consideration.

He said Ford had paid attention to investing in the international standard-certified energy-saving car production project in which the Board of Investment was mapping out details of investment promotion criteria.

It is expected the process would be completed by March.

He added the US giant carmaker would probably opt to invest in the project if investment promotions offered by the BoI are attractive. (TNA)

source: http://etna.mcot.net/query.php?nid=27679

No new information here. Bloomberg already reported the same materal. The only difference is the Thai government's spin. So far no retraction or change in Ford's previous comments.

From Bloomberg:

"Ford will decide where to invest the earmarked $1 billion in ``the first half of this year,'' Biegun said, citing China and India as alternative investment destinations. Ford wants to make sure that Thailand will remain ``a stable place to do business.''

Lets see, Thailand plus China and India I believe that makes three countries.

Now what did Ford tell Bloomberg beside having three countries n the list.

"Ford Motor Co., the world's third- largest carmaker, may scrap as much as $1 billion of planned investment in Thai factories after the nation's military-backed government imposed currency and foreign-investment curbs. ``These things make it extremely difficult to do business in a globally competitive environment,'' Steve Biegun, Ford's Washington-based vice president for international government affairs, said yesterday in an interview in Bangkok, where he met leaders including the Prime Minister. ``What we need in our business is predictability.''

AND

``One government can give you what you need to develop a successful business plan,'' said Biegun. ``Another coup, another government and you could lose it all.''

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Edited February 2, 2007 by ChiangMaiAmerican

[ThaiGoon]

Ford mulls $1-bn investment in Thailand

Ford mulls $1-bn investment in Thailand

Ford Motor Co is still considering Thailand as its location to establish a US$1-billion (Bt35.8 billion) small-car production facility in Asia, a spokesman for a regional unit based in the country said yesterday.

The company said in its statement that Thailand was one of the top prospects, even though Ford executives said earlier that it might scrap the decision to come to Thailand due to capital-control measures imposed on foreign investment in December.

Ford yesterday issued a statement saying that "Ford is committed to building its business in the region, and we have been investigating the possible establishment of an additional manufacturing facility in Thailand".

The global auto-maker said Thailand had the potential to become a base for small-car production while maintaining its position as a leading producer of pickup trucks, but the company was still talking to the government about its investment plans and possible incentives.

It is important for any small-car investment to be included in the Thai government's final criteria for fuel-efficient cars and given any incentives and privileges, the statement said.

The company's statement came after reports that Ford might reconsider its investment plan in the country. Steve Biegun, Ford's Washington-based vice president for international government affairs, was quoted as saying that the company might scrap the planned investment due to the capital-control measures.

In response, Commerce Minister Krirk-krai Jirapaet said on Thursday said that he was perplexed. "But it's up to their decision. They might have other information to consider," he said.

Krirk-krai said that Ford's executives told him that the company would decide on the location of the new facility in April.

Ford said in its statement yesterday that the planned facilities would have a capacity of 150,000 vehicles a year, of which 120,000 would be for export.

Dow Jones Newswires,

The Nation

[thaimat]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

Please tell me you are joking. If not, this is perhaps one of the most idiotic posts I've ever read on TV.

They will only be labeled a "non-quality investor" by the govt after they pull out. But a stiff left jab nonetheless, nice one!

[thaimat]

``The measures that they've taken are going to result in foreign direct investment outflows, not inflows, in 2007,'' said Tim Condon, an economist at ING Bank NV in Singapore. ``The government seems to be trying to sort out the regulatory framework and the outcome is one that looks investor unfriendly.''

Total foreign investment in Thailand last year dropped 18 percent from 2005, according to Board of Investment data. Investment fell amid a political standoff that ended in the coup ousting the government of Prime Minister Thaksin Shinawatra.

Ford's vehicle sales rose by more than 80 percent in both China and India last year. Ford has invested more than $1.5 billion in China since 2001 and more than $500 million in India since 2005. In Thailand sales fell 18 percent last year.

Consumer confidence in Southeast Asia's second-largest economy fell to a five-month low after Dec. 31 bomb blasts killed three. Prime Minister Surayud Chulanont, a retired army chief installed by coup leaders, blamed them on ``people who lost their political power'' following the military coup.

``One government can give you what you need to develop a successful business plan,'' said Biegun. ``Another coup, another government and you could lose it all.''

From:

http://www.bloomberg.com/apps/news?pid=206...&refer=home

The huge losses of Ford will 'force' them to think twice or three times before they decide where to invest the 1 Billion $....

LaoPo

Well done, thank you LaoPo.

[thaimat]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

Please tell me you are joking. If not, this is perhaps one of the most idiotic posts I've ever read on TV.

They will only be labeled a "non-quality investor" by the govt after they pull out. But a stiff left jab nonetheless, nice one Scott!

[NamKAheng]

The news that Ford was pulling out is future investement out of Thailand is no more than bargaining power to negociate with the Thai government.

In the future more and more investement like that may go out of Thailand because the Thai goverment can't give them slave labor on a silver platter like China is doing and don't forget that Vietnam and Laos are learning fast by looking at the Chinese way of doing business.

Ford is facing big problems in a near future because they don't make quality vehicles, period. I work for the same compagny for 21 years and we have a big fleet of Ford vehicles and the maintenance fee are huge. Ford rely on tea money at all level of the compagny to make sure our fleet is only Ford but now the maintenace fee are so high that even with tea money they will not be able to hold the fleet anymore. I will not shed a tear if they are going down the drain because of their own bad business practice.

[NamKAheng]

By the way we break our own record recently with a ford van who had a engine rebuild after 4000 kilometres and the cost was on Ford because of the warranty.

Great way to do money Ford!

Edited February 3, 2007 by NamKAheng

[nick2k]

By the way we break our own record recently with a ford van who had a engine rebuild after 4000 kilometres and the cost was on Ford because of the warranty.

Great way to do money Ford!

ford needs to return to america. they shouldn't be building factories in foreign countries. they should be providing jobs in america for americans. ford needs to realize they don't have to compete with foreign countries. all they need to do is lobby congress to make sure that foreign cars cannot compete with them.

that is exactly what foreign countries are doing to america.

foreign countries suck your blood and then leave you to die. all our jobs are leaving for overseas. our technology is being given to them. they are improving their military might. what do you think the next step is?

what do you think foreign countries are thinking about? ..our welfare?

[PeaceBlondie]

I've read economic reports that say that the American manufacturing industry, overall, is doing better than most folks realize. But Ford and GM are bleeding badly in their domestic products, and it's due to two main factors: quality that has been consistently lower than the Japanese brands for over 30 years; and an inability to produce models that the American buyers actually want. Also, the corporations are bloated and overstaffed in their domestic organizations.

Here in Thailand, Ford and Chevrolet have to compete against the same Japanese giants, and the results may be the same. If the Ford executive wasn't just bluffing, they may be quite spooked by the uncertainties of manufacturing in Thailand. Especially since you build a new manufacturing plant on a thirty year plan. Thailand does thirty day plans.

[Martin]

In post #10, 'singa-traz' posted an article about the continuing losses that Ford is making.

In the middle, it says: "Analysts said Ford's recently raised $23.5 billion gives it two years to turn itself around, barring a steep decline in the U.S. economy."

That is one very, very big 'barring'.

Ford are a dying duck.

[jdinasia]

By the way we break our own record recently with a ford van who had a engine rebuild after 4000 kilometres and the cost was on Ford because of the warranty.

Great way to do money Ford!

ford needs to return to america. they shouldn't be building factories in foreign countries. they should be providing jobs in america for americans. ford needs to realize they don't have to compete with foreign countries. all they need to do is lobby congress to make sure that foreign cars cannot compete with them.

that is exactly what foreign countries are doing to america.

foreign countries suck your blood and then leave you to die. all our jobs are leaving for overseas. our technology is being given to them. they are improving their military might. what do you think the next step is?

what do you think foreign countries are thinking about? ..our welfare?

You don't travel much do you?

[nick2k]

In post #10, 'singa-traz' posted an article about the continuing losses that Ford is making.

In the middle, it says: "Analysts said Ford's recently raised $23.5 billion gives it two years to turn itself around, barring a steep decline in the U.S. economy."

That is one very, very big 'barring'.

Ford are a dying duck.

america will never let ford die. but ford needs to reallize they should go back home where they belong. they are not wanted in foreign countries. america will protect ford because if not? who will be there to build the military machines to protect america?

[thedivezone]

But companies should just be happy that Thailand lets them be here! After all, some of them are just after money.

Anyway, Ford probably isn't really a "quality" investor.

edited

Edited February 4, 2007 by thedivezone

[thedivezone]

Don't tell me the Finance Ministry couldn't see this one coming.

The Finance Ministry couldn't see this one coming.

Please someone award PeaceBlondie a prize for the best post of the year !

Mike