US Carmaker Ford To Build New Plant In Thailand

[webfact]

Ford to build new plant in Thailand

BANGKOK (AFP) -- US carmaker Ford Motor Co. said Thursday it would spend 450 million dollars to build a new plant in Thailand, giving a much-needed boost to an economy reeling from deadly political unrest.

Ford said the factory in Rayong, about 150 kilometres (90 miles) southeast of Bangkok, would employ up to 2,200 workers with production scheduled to begin in 2012, starting with the next-generation Ford Focus.

It will have an initial output capacity of 150,000 vehicles a year, mostly for export, boosting Thailand's efforts to be a regional hub for car production.

The move "is another important step in our aggressive expansion in the Asia Pacific region," said Ford chief executive Alan Mulally.

The Thai economy, in particular its vital tourism sector, has seen its growth stunted by two months of anti-government protests in Bangkok that paralysed parts of the capital and scared away foreign visitors.

The mass rally by the "Red Shirt" movement, seeking immediate elections, sparked outbreaks of violence that left 90 people dead, mostly civilians, and nearly 1,900 injured.

-- (c) Copyright AFP 2010-06-24

[rkidlad]

"It will have an initial output capacity of 150,000 vehicles a year, mostly for export, boosting Thailand's efforts to be a regional hub for car production."

If it isn't a crackdown, it's a hub.

[landofthefree]

"It will have an initial output capacity of 150,000 vehicles a year, mostly for export, boosting Thailand's efforts to be a regional hub for car production."

If it isn't a crackdown, it's a hub.

In using the word "hub" they are referring to the manufacture of hub caps on the cars aren't they? Hard to believe it would be anything else

[eggomaniac]

Methinks Thailand is going to be needing some replacement cars, sorry to say.

[jackdawson]

ford rocks !

[tigerbalm]

Good news for the Thai economy, but 150,000 unites per year. (initially), just wonder what the mark up on one unit is?

150,0000 x Profit = .........anyone Know

Edited June 24, 2010 by tigerbalm

[andyww]

One for the doom-mongers on this forum who think Thailand is going down the pan because there are fewer customers in the gogos.

[ronz28]

$450 million Ford plant is a big positive investment in the Thai economy. No fear!

http://www.bloomberg.com/news/2010-06-24/ford-plans-450-million-factory-in-thailand-after-anti-government-riots.html

[gotlost]

FORD.....Fix Or Rpair Daily. Thats FORD

[ronz28]

FORD.....Fix Or Rpair Daily. Thats FORD

Not anymore. JD Power Quality study shows Ford is now in the top 5.

http://businesscenter.jdpower.com/JDPAContent/CorpComm/News/content/Releases/pdf/2010099-uiqs.pdf

Ford workers know quality is job #1 and its quality now beats: Toyota, Honda, Nissan, Cadillac, BMW, Mazda, Chrysler, Volkswagen, etc.

[gemini81]

FORD.....Fix Or Rpair Daily. Thats FORD

Not anymore. JD Power Quality study shows Ford is now in the top 5.

http://businesscente...010099-uiqs.pdf

Ford workers know quality is job #1 and its quality now beats: Toyota, Honda, Nissan, Cadillac, BMW, Mazda, Chrysler, Volkswagen, etc.

true they have stepped up quality after doing soem test drives. After test driving a few new models, I think they are putting more effort into quality these days. They're gettin' better, I guess from the tough competition in Japan!

[tombkk]

Good news for the Thai economy, but 150,000 unites per year. (initially), just wonder what the mark up on one unit is?

150,0000 x Profit = .........anyone Know

Profit for many Thai people in terms of new jobs, money coming into the economy (this amount of US$ 450 million stated in the article is for buying the land and for constructions, I'd assume, so more Thai people have income), foreign currency coming to Thailand when these exports are sold... It's good for Thailand. Ford could have chosen another country. I'm glad they chose Thailand, and I am pretty sure they will have some profit too.

[Colabamumbai]

I guess that they have to keep up with the Indian manufactured car that sells for $2,000 in India.

[mogoso]

Would be nice if they would pay a good wage to Thai workers and keep it a NON union shop.

[selftaopath]

Good news for the Thai economy, but 150,000 unites per year. (initially), just wonder what the mark up on one unit is?

150,0000 x Profit = .........anyone Know

Can anyone explain how these type of situations do not lower the cost? If I'm not mistaken Triumph Motorcycles are made here but the cost is ridiculous; perhaps more expensive than buying in USA/UK. Why are cars so dam_n expensive here????? I have an old clunker that would cost "pennies" in US but here I paid a nice sum. Really don't understand....Hope you can inform me. And while I'm on it .... wouldn't it make sense (hard to find) to make the price lower so more motorcycles/ cars can be sold?????

BTW I love Triumph Motorcycles - cut my "teeth" on em - many years ago.

Cheers,

Keoki

[tombkk]

Can anyone explain how these type of situations do not lower the cost? If I'm not mistaken Triumph Motorcycles are made here but the cost is ridiculous; perhaps more expensive than buying in USA/UK. Why are cars so dam_n expensive here????? I have an old clunker that would cost "pennies" in US but here I paid a nice sum. Really don't understand....Hope you can inform me. And while I'm on it .... wouldn't it make sense (hard to find) to make the price lower so more motorcycles/ cars can be sold?????

BTW I love Triumph Motorcycles - cut my "teeth" on em - many years ago.

Cheers,

Keoki

I don't know about Triumph in particular, but many car makers are located in Customs Free Zones or something similar. The moment the vehicles are then to be sold in Thailand, they have to make an import clearance - and pay excise tax, probably import duties etc. In addition, the Thai market allows the higher prices, compared to US or EU.

[hideki]

"It will have an initial output capacity of 150,000 vehicles a year, mostly for export, boosting Thailand's efforts to be a regional hub for car production."

In using the word "hub" they are referring to the manufacture of hub caps on the cars aren't they? Hard to believe it would be anything else

In 2009, Thailand produced 968,305 vehicles, more so than any other country by far in SE Asia.

[tombkk]

"It will have an initial output capacity of 150,000 vehicles a year, mostly for export, boosting Thailand's efforts to be a regional hub for car production."

In using the word "hub" they are referring to the manufacture of hub caps on the cars aren't they? Hard to believe it would be anything else

In 2009, Thailand produced 968,305 vehicles, more so than any other country by far in SE Asia.

Don't confuse us with facts when we have already made up our minds!

I also hear that Thailand is the biggest producer of 1-ton pick-up trucks in the world, but I don't have the figures.

[geriatrickid]

I wouldn't get too excited over the announcement.Ford was supposed to undertake this investment a few years ago, wasn't it? First a bit of history;

Ford had been in Thailand since 1960 but the company ceased operations in 1976. Ford re-entered the Thai market in 1995 with the formation of the Auto Alliance Co., Ltd. located in Rayong province. Auto Alliance is owned jointly by Ford (48 percent) Mazda (45 percent), KPN (2 percent) and SMC (5 percent).

Ford played hardball with Thailand and it will be interesting to see the incemtives and concessions Thailand gave to Ford. In case anyone forgets, Ford is investing $1 billion in expanding its production in China and last year moved its regional headquarters from Bangkok to Shanghai to focus on the Chinese market. Ford executives say the new plant will be built in Rayong, southeast of Bangkok, by 2012.

Yes, it is good news, but how much is this costing Thailand? Will Ford respect environmental concerns? What will the impact be on the water table, how will the resulting heavy metal and chemical pollution be addressed? Is Thailand going to give Ford a pass on compliance? Investments like this come with a price tag and until that is made public, I wouldn't start doing the happy dance just yet. Besides,anything can happen between now and the time construction is really underway.. It's happened before.

[chaoyang]

Good news for the Thai economy, but 150,000 unites per year. (initially), just wonder what the mark up on one unit is?

150,0000 x Profit = .........anyone Know

I cover the auto industry in China -- which is now the world's largest car market -- and I know 150,000 units a year is quite significant. The general rule of thumb is: above 80 percent of capacity is profit -- ie, the final 20 percent. In this case that means the retail value of 30,000 cars should be profit. Of course that also means the plant has to make and sell more than 80 percent of its installed capacity to have a profit.

[cmsally]

I read an article stating that Ford received loans from Thai banks to open the auto plant here.

Did anyone else see that article; I will see if I can retrieve it. The loan was in order to lure them from other possible locations. Tisco was mentioned.

[elliss]

One for the doom-mongers on this forum who think Thailand is going down the pan because there are fewer customers in the gogos.

there are no jobs in the U.K.

maybe, thailand will import cheap labour from europe.

[overhaul38]

I admire their efforts but I can only assume that their vehicles will be for export only.

J.D. Powers just rated Ford #6 in quality with Honda at #8 and Toyota at #22 but Toyota has Thailand bought and paid for

and no other manufacturer will have more than a token market share.

[overhaul38]

Would be nice if they would pay a good wage to Thai workers and keep it a NON union shop.

The wife has a nephew that works for Toyota as a mechanic at B300 per day.

[nikster]

Well it's not going to make their cars any prettier.Drab is the word to describe it.

As an aside I am surprised Toyota slipped so far in the quality ratings, they used to be #2 behind Lexus for a very long time...?! Getting too big, perhaps? Not had any issues with my Fortuner in 4 years of ownership, which I think is really pretty good. Only 1 defect, fixed under warranty, a hydraulic arm on the rear door had to be replaced.

[TAWP]

I'm not sure why so many are negative...or, I think I can guess why.

Any investment that brings good jobs is a good thing.

[tombkk]

I'm not sure why so many are negative...or, I think I can guess why.

I cannot guess why. Please let me know.

Any investment that brings good jobs is a good thing.

It will not surprise you that I agree with this.

[lonewolf99]

Would be nice if they would pay a good wage to Thai workers and keep it a NON union shop.

The wife has a nephew that works for Toyota as a mechanic at B300 per day.

SICK.......6 Pounds 25 Pence a day. .....and how much does a Ford/Toyota truck sell for......???

Edited June 27, 2010 by lonewolf99

[way2muchcoffee]

Would be nice if they would pay a good wage to Thai workers and keep it a NON union shop.

The wife has a nephew that works for Toyota as a mechanic at B300 per day.

SICK.......6 Pounds 25 Pence a day. .....and how much does a Ford/Toyota truck sell for......???

And what would it sell for if labor costs doubled or tripled?

[lonewolf99]

Would be nice if they would pay a good wage to Thai workers and keep it a NON union shop.

The wife has a nephew that works for Toyota as a mechanic at B300 per day.

SICK.......6 Pounds 25 Pence a day. .....and how much does a Ford/Toyota truck sell for......???

And what would it sell for if labor costs doubled or tripled?

Good question...it would be nice to know how much does a car / truck cost to make. A complete and honest breakdown along with Govt taxes etc...then we would know if people are being exploited and we can make up our own minds up who to buy from ....including running shoes, footballs carpets and 'T' shirts etc etc...but I am sure NIKE NEXT ADDIDAS FORD TOYOTA will never let us know...