New Ford Fiestas roll off Rayong line
Bangkok Post: 7 Jul 2010
AUTOMOBILES
New Fiestas roll off Rayong lineRAYONG : Ford Motor Co began producing Fiesta subcompact cars yesterday at its Rayong plant to supply Thai and regional markets.
The move followed an earlier announcement that the US automaker would co-invest US$500 million with Mazda in an automobile plant at the Hemaraj Industrial Estate in the eastern province.
"Today our market share in Thailand is less than 2% because we don't offer a full line of vehicles in this market. Fiesta is intended to change that," said Peter Fleet, president of Ford Motor Asean.
"We are serious about growing in Thailand and Southeast Asia."
Eighty percent of the Fiestas made locally will be exported to Asean region, as well as South Africa, Australia and New Zealand.
"I think it's a great time to be launching [the Fiesta]," said Mr Fleet, referring to the growing competition in the subcompact market as other companies begin making eco-cars.
He said that 20% of the market now consisted of subcompact or B-type cars, as consumers were more interested in saving fuel and being more environmentally responsible.
Meanwhile, Ford continues to study the possibility of local production of vehicles that can run on E85 fuel, a blend of 85% ethanol and 15% petrol, said Raj Nair, vice-president of operations for Asia-Pacific and Africa.
He said the company wanted to see stability in the market before making a commitment.
"We always look at opportunities. Asean is heavily influenced by government subsidies, and once we see a bit more stability we will react to [E85 or CNG vehicles]," he said.
He said the Asian region was expected to account for 40% of the growth in the automobile industry over the next five to seven years, signifying the role Asia will play in Ford's future growth and business.
Toshinori Kusuhashi, president of AutoAlliance (Thailand) Co (AAT), the joint venture between Ford Motor and Mazda Motor Corporation, said the new investment would not cause a switch in production lines.
Mr Kusuhashi said that although AAT did not have any plans in the near term, investment would likely be increased if Fiesta sales are good.
AAT currently has a maximum production capacity of 100,000 units for its B-car assembly line.
The Fiesta will be available at Ford dealerships in Thailand and Asean markets from September, Mr Fleet said, adding that by year-end there would be 100 dealers, with 22 in Bangkok.
In addition to the AAT factory, the new Ford Fiesta is built at Ford plants in China, Germany, Spain and Mexico, and has a local starting price of 520,000 baht.
http://www.bangkokpost.com/business/marketing/185277/new-fiestas-roll-off-rayong-line
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