Ford Gets Thai Bank Loans To Relocate To Kingdom

[Donnyboy]

By Achara Deboonme,

Vijo Vargese

The Nation

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Ford Motor has secured a loan from Thai banks to relocate its passenger car plant from the Philippines to Thailand, a banking source said yesterday.

The US company's local arm, Ford Motor Thailand, is expected to unveil the move at a press conference today on its expansion plan for Thailand.

The source said Bangkok Bank would lead the loan syndicate, which will include Tisco Bank, but declined to specify the loan amount.

"The deal has been agreed on for some time, but the signing has been delayed due to the political turbulence," the source said.

Earlier this year, Bangkok Bank, Siam Commercial Bank and Tisco Bank joined in the syndication of a Bt13.5-billion credit facility for General Motors (Thailand) to finance two vehicle programmes and the construction of a diesel-engine plant in Rayong.

The new factory, which will require an investment of US$450 million or about Bt15 billion, is believed to manufacture the Focus.

Joseph Hinrichs, Ford group vice president and president for the Asia-Pacific and Africa, yesterday met Prime Minister Abhisit Vejjajiva, as the carmaker has decided to grow its footprint in the Kingdom.

While thanking the government support for the company's operations in Thailand, Hinrichs said the automobile market in Asia shows bright prospects with rising demand for small but efficient cars.

He has witnessed encouraging progress in Thailand, besides China, India, Australia and South Africa. Ford is prepared to launch two new models in Thailand - the Fiesta and Ford Ranger.

The new plant, together with the Rayong plant run by its joint venture Auto Alliance (Thailand), will allow Ford to use a more advanced facility, and will be in line with Ford's plans of turning Thailand into a central base for the company in the region.

"The production of the Mazda3 will continue in the Philippines. Since the new factory belongs to Ford, we won't be shifting the Mazda3 production to Thailand. We'll continue to import it from the Philippines," said a source at Mazda Sales Thailand.

The Nation

good news for the Thai car industry

[gotlost]

In these times added employment can only help and be a positive influence.

[BSJ]

As I have said before I am not a Ford fan but I ask this question without bias. Does Ford have enough street cred in LOS to take on Nissan, Honda and Toyota?

[VocalNeal]

Would be nice to see the plant built in Korat or somewhere up north but...

[MoonRiverOasis]

"The production of the Mazda3 will continue in the Philippines. Since the new factory belongs to Ford, we won't be shifting the Mazda3 production to Thailand. We'll continue to import it from the Philippines," said a source at Mazda Sales Thailand.

I'm curious as to the "source" of this Mazda 3 news, seeing as it's incorrect The next generation Mazda 3 (already available in most markets - we'll get a minor change of the new shape) will be manufactured in Thailand.

Still the Ford news is good news, so long at they spend at least some of the $450M into improving their Thai dealer network... The last 500M Baht they "invested" in it did nothing.

[katabeachbum]

"The production of the Mazda3 will continue in the Philippines. Since the new factory belongs to Ford, we won't be shifting the Mazda3 production to Thailand. We'll continue to import it from the Philippines," said a source at Mazda Sales Thailand.

I'm curious as to the "source" of this Mazda 3 news, seeing as it's incorrect The next generation Mazda 3 (already available in most markets - we'll get a minor change of the new shape) will be manufactured in Thailand.

Still the Ford news is good news, so long at they spend at least some of the $450M into improving their Thai dealer network... The last 500M Baht they "invested" in it did nothing.

Best "investment" Ford could do in LOS would be to handle warranty claims more favourable for customers. There is a reason why Mazda is having a success while Ford still has a bad reputation and slow turn over

Hopefully this investment is to introduce a new platform for Ranger, BT50 and Everest. They v got engine, auto and design, but 25 year old platforms with new shells are hard to sell.