Ford, Mazda Announce 21 Billion Baht Investment in Thailand

BANGKOK, Thailand, Oct. 13, 2003 -- Chairman and Chief Executive Officer Bill Ford announced today that Ford Motor Company and its affiliate Mazda Motor Corporation would invest an additional 21 billion Baht, or US$500 million, in its joint venture AutoAlliance Thailand (AAT). The additional investments will be made over the next several years to support new vehicle programs and expansion of the plant's capacity.

Ford, on his first visit to the kingdom, met privately with Thailand's Prime Minister Pol. Lt. Col. Dr. Thaksin Shinatwatra to reinforce the commitment from Ford Motor Company to Thailand's burgeoning auto industry. The meeting took place at the Government House and included senior Ford management: David Thursfield, executive vice president and president, International Operations and Global Purchasing, Mark Schulz, group vice president, Ford Asia-Pacific, John Parker, executive vice president of Mazda Motor Corporation and Chatchai Bunnag, president of Ford Operations Thailand.

The announcements mark a new chapter for Ford Motor Company and AAT. Within the next three years, AAT will embark on a growth plan driven by new vehicle programs, with investments in facility upgrades, additional tooling and engineering, as well as an expansion of the plant's capacity to 200,000 units (both CBU and CKD), up from the current 135,000.

"Thailand is an outstanding success story for us in Asia-Pacific," the Ford chairman said, "and I believe one of the reasons for our success here can be attributed to the Thai government's open policy towards foreign investment. These include not only economic incentives and relaxation of foreign ownership restrictions, but also the policies and economic stability that stem from the leadership of P.M. Thaksin Shinatwatra. Thailand also offers the additional advantages of a large domestic market, the biggest pickup market outside of the United States, excellent energy and transportation infrastructure, strong supply base and available pool of skilled labor," Ford said.

"These were reasons that compelled Ford and Mazda to invest an initial US$500 million in establishing AutoAlliance Thailand in 1995, which has since proven to be a sound and rewarding investment for us," Ford continued. "Despite the economic downturn of 1997, AAT had thrived as a global exporter of one-ton pickups. AAT's operations have contributed to increased revenue and a positive trade balance of more than 48 billion Baht (US$1 billion) to Thailand since we started exporting the Ford Ranger and Mazda Fighter in 1998. Today, we are extremely proud that AAT has surpassed 300,000 units production and is exporting the Ranger and Fighter to more than 130 markets worldwide including Europe, South Africa, Australia, New Zealand and Asia," Ford said.

Recognized as a "center of excellence for quality," the Ford Ranger built at AAT has won the J.D. Power Best Pickup Quality Award for 2000 and 2001. Earlier this year, Thailand was the first market to introduce the all-new Ford Everest sport utility vehicle (SUV), the latest 7-seater SUV to join Ford's global sport utility line-up. A clear winner with customers since its debut, Everest is targeted for export from AAT to more than 50 countries worldwide.

"AAT's many achievements should be credited to its strong management team and dedicated employees, which itself speaks volumes of the successful partnership between Ford and Mazda that combines the best of Mazda's engineering expertise with Ford's global truck and SUV heritage," remarked Ford.

AAT's increased production will also benefit the Thai parts and components sector. Within five years, AAT has achieved 80 percent local content. AAT purchases approximately 15 billion Baht (US$346 million) each year from Thai parts suppliers. "We recognize that a strong supply base in Thailand is critical to the long-term growth and sustainability of our business. And within the framework of the ASEAN (Association of Southeast Asian Nations) Free Trade Area, Ford's regional manufacturing needs have created new export opportunities for our Thai parts and components suppliers, allowing them to export an estimated 2 billion Baht (US$47 million)," Ford said.

Ford continued by saying, "Our actions and the investments made by Ford Motor Company strongly demonstrate our commitment and confidence not only to Thailand but also to the potential we see in Asia as one region," he said.

Industry data indicate that the majority of global growth from 2004 - 2010 will be in Asia, and most of that growth will be in ASEAN, China and India. An integrated ASEAN is expected to reach 1.6 million vehicles in 2005 and 2.3 million by 2010. By 2005, ASEAN is forecast to be the sixth largest regional market after North America, Western Europe, Japan, China and South America.

"For us at Ford, Thailand is critical to our success in Asia," Ford said. "In addition to our expansion plans for AAT, I am also pleased to announce that Ford has set up our Regional Operations Headquarters here in Bangkok. This regional headquarters will support our ASEAN Operations, Ford Asia- Pacific Marketing, Sales and Service and Ford Credit Asia-Pacific operations, in spearheading our Asian growth strategy. While we continue to build our business and presence in Asia, Ford is mindful of the important need to develop local talent. People are our company's most valuable assets and core to the success of our business. Ford's people development strategy is aimed at providing equal opportunities, promoting diversity, and developing local nationals for senior leadership roles. We believe in providing the necessary training and development support to all our employees to enable them to realize their full potential," he commented.

"On this note," Ford continued, "I must add how impressed I am with the level of competence, confidence and dynamic enthusiasm evident in the new generation of young employees I have met here in Thailand. With all of the efforts of our people here, I am confident that Ford will go on to achieve our goals and objectives within the near future," said Ford.

The presence of Ford Motor Company in Thailand combines the strengths of Ford, Mazda, AutoAlliance Thailand, the Premier Automotive Group and Ford Credit. Thailand is also home to Ford's ASEAN Operations, which covers vehicle manufacturing and distribution in the five Southeast Asian markets, namely Thailand, Malaysia, Vietnam, the Philippines and Indonesia.

Ford Motor Company is the world's second largest automaker, with approximately 335,000 employees in 200 markets on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive related services include Ford Financial, Quality Care and Hertz. With world headquarters in Dearborn, Michigan, Ford officially observed its 100th anniversary on June 16, 2003.

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