Jul 13, 2009, 6:53 GMT
Rayong, Thailand - A Ford-Mazda joint venture on Monday unveiled a 500-million-dollar factory for small passenger cars in Thailand, but stopped short of announcing when production will start.
Auto-Alliance Thailand (AAT), a joint venture since October 2007, said it would expand manufacturing capability at its Rayong plant to produce the Ford Fiesta and Mazda2 models, both small fuel-efficient passenger cars.
'The world has certainly changed since 2007 when we announced our plans to build this new passenger car facility,' David Alden, president for Ford ASEAN, said at the ceremony.
'The fact that this investment was delivered on time, without delay, and that it is fully funded, bears proof of the strength of our business partnership that is AAT, and our ongoing commitment to this region,' Alden said.
Asked whether AAT would have gone ahead with the investment if the decision was made today, Alden said, 'Absolutely.'
AAT has already invested some 1 billion dollars in facilities to manufacture pickup trucks in Rayong, 90 kilometres east of Bangkok, since first coming to Thailand in 1995.
The new facilities will increase its current capacity from 175,000 to 275,000 units per annum, the firm said.
Currently the old facilities are only operating at 60 per cent capacity.
The Ford and Mazda executives refused to say exactly when production of the Fiesta and Mazda2 will start.
'Within this year,' said Kiyotaka Shobuda, president of AAT.
Thailand has long been a hub for assembling and manufacturing of vehicles for both the domestic and export markets.
The new plant will be targeting markets in South-East Asia, Australia, New Zealand and South Africa for its Thailand-made passenger car, Alden said.
Previously, only Ford Ranger pickup trucks and Mazda BT-50 pickups were made in Thailand.
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