Ford to
Make Asia a Focus:
And Thailand to be Central Pillar of Ford’s Asian Strategy
Ford
Motor CEO, Bill Ford, Jr. announced in Thailand during a visit in late October
2005 that Ford plans to further target Asia for expansion and growth
over the coming years. He further noted that Thailand will become
a central base for Ford’s Asia production Thailand is the second
largest pickup market worldwide after the U.S. Ford is producing
just over 100,000 units of the Ranger pickup at the Auto Alliance plant
in Rayong and expects to export them to 130 countries.
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Mr. Ford also announced that his company has just launched its first
ethanol-compatible sedan - the Focus - on the Thai market after
unveiling its mid-sized Fiesta model in India on Tuesday.
The Focus is assembled at a Ford plant in the Philippines and enters Thailand
with low duties under the ASEAN Free Trade Area (AFTA) scheme, the same
agreement that allows Thai-made pickups to be exported throughout Southeast Asia. Ford has split
its manufacturing bases in Asia by transferring all
its pickup manufacturing to Thailand and its car
production to the Philippines. Ford has invested a total of US$1
billion (Bt41 billion) in Thailand over the last eight years.
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The launch of the
Ethanol compatible Ford Focus was held in Hua Hin, Thailand, on
the Thai seacoast, 130 kilometers south of Bangkok, where CEO Bill Ford
was presiding over the opening of a showroom. The roll out of the
Focus in Thailand had been planned to showcase Ford’s efforts in
alternative fuels but the effort recently received a major blow when
the Thai government postponed the E20 gasohol project to 2009. Ford was
hoping to get a special tax incentive for the Focus, which is the only
vehicle in the market that is compatible with E20. Ford’s
production of hybrid vehicles is about 24,000 worldwide a year at
present. The company is researching hybrids, fuel-cell vehicles and
other flexible fuels. By 2010, Ford plans to increase hybrid production
to about 250,000 units across its brands, including Lincoln, Mercury
and Mazda. Alternate fuel capable vehicles are proving a quicker
sale and a total of 280,000 vehicles that can run on flexible fuel will
be produced by next year.
“Although we are
disappointed that the project was pushed forward, we at Ford are more
focused on long-term commitment to the market. Not to forget that Focus
customers will already have E20-compatible engines when E20 is
commercially sold in Thailand,” Ford said.
Recently Ford expanded
its production lines in India and China. The
next launch of Ford’s new model is expected in China next year.
Ford globally reported
making a $2 billion profit over the last year but is suffering in its
more mature markets in North America and
Europe. Hence the focus on Asia.
According to CEO Ford, “We need to restructure the company in the
US, although our
Asian regions are doing really well. I do not see any need for a change
in higher management but rather more focus on cutting costs,”
More information:
From Ford.com: BILL
FORD: INNOVATION TO STEER FORD INTO ITS NEXT CENTURY; THAILAND IS AN
IMPORTANT ELEMENT OF FORD’S GROWTH STRATEGY FOR ASIA
(http://media.ford.com/article_display.cfm?article_id=21892)
- Ford Motor Company casts its
global vision on Innovation to Asia; leadership through Innovation will
steer Ford into its next century in Asia.
- The all new Ford Focus, the
first E20-compatible sedan in Thailand, underscores Ford’s commitment
to innovation through the latest ethanol technology.
- The Ford Asia Pacific and
Africa regional headquarters is based in Bangkok to spearhead Ford's
growth strategy for Asia.
- Thailand's Ford Volunteer Corp
succeeds in rebuilding lives and homes for tsunami affected families;
turning "Better World" vision into reality.
