Ford weighs $1 bln investment in new Thai plant http://today.reuters.com/news/articleinvesting.aspx?type=companyNews&storyid=139467+31-Jan-2007+RTRS&WTmodLoc=BizArt-L1-CompanyNews-2
Wed Jan 31, 2007
BANGKOK, Jan 31 (Reuters) - Ford Motor (F.N: Quote, Profile , Research) is looking at investing $1 billion in a new car plant in Thailand to produce up to 150,000 vehicles a year, 80 percent of which would be for export, the U.S. auto company said on Wednesday.
Ford said the potential investment was contingent on Thailand's post-coup administration, which has recently proposed tighter restrictions on some foreign businesses, implementing policies conducive to foreign investment. "Like all major automotive manufacturers in Thailand, we are very interested in ensuring that appropriate policies are implemented to maximize Thailand's potential to be a major global auto manufacturing base," Ford said, without elaboration.
Ford is following many Japanese carmakers who have expressed interest in participating in Thailand's push to become a global production base for small passenger cars as well the one-tonne pickup trucks it now makes.
A project to boost production of small sedans was started by Prime Minister Thaksin Shinawatra before he was ousted in a military coup last year. The second biggest U.S. auto maker, Ford said there was still room for Thailand to offer incentives to attract foreign investors.
"We also recognize that there is still work to do so that Thailand can fulfil its potential as a base for small-car production, as well as maintaining its position as a leading producer of pickup trucks," the statement said.
Ford's statement suggested the coup in September had not disrupted its investment plans.
"We are continuing to work with the government on a possible investment plan and we believe that a small car investment in Thailand would be compatible with the government's sufficiency economy objectives," it said, referring to an economic approach espoused by King Bhumibol Adulyadej.
The "sufficiency economy", touted by Thaksin's army-appointed successor, Surayud Chulanont, encourages saving, frugality and household debt reduction.
Ford has been one of Thailand's major pickup truck exporters for nearly 10 years. It has teamed up with Mazda Motor Corp (7261.T: Quote, NEWS , Research) to produce passenger cars and trucks in Thailand.
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