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Thailand: Ford Focus and Mazda 3 Production May Move Here From Philippines

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Thailand: Ford Focus and Mazda 3 Production May Move Here From Philippines

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    BANGKOK, Thailand — Production of the Ford Focus and Mazda 3 in the ASEAN region may shift from the Philippines to Thailand following a $500 million factory expansion by Auto Alliance Thailand, according to well-placed sources.

    The two compact cars would become the third pair of Ford/Mazda-related products to be made at the Thai plant. The other models made are the Ranger/BT-50 light trucks and the pending Fiesta/2 subcompacts, whose assembly start at the end of this year.

    AAT, a 50/50 joint venture between Ford and Mazda, has more advanced facilities than the factory in the Philippines; one source said that it is only logical to move production of the cars to Thailand now that there is more assembly space.

    Although the current 3 has already expired in most world markets and has been replaced with a second-generation model, sales of it here are likely to continue for another year.

    As soon as Mazda ASEAN is ready to sell the new 3, its assembly could take place in Thailand, according to the source. A year later, in 2011, Ford would be gearing up to launch the third-generation Focus which, like the 3, will be sold in both sedan and hatchback forms.

    In the past two years, passenger cars have suffered a smaller slump in sales than pickup trucks in Thailand, mainly because smaller vehicles have better fuel efficiency. Meanwhile, the country is experiencing a shift in motorization, in which many people are turning to cars instead of pickups or motorcycles.

    The AAT factory's production capacity will increase to 275,000 units per year from 175,000, primarily serving export markets. The total investment of AAT is now worth $1.5 billion.

    Inside Line says: Could be momentous news for Thailand. — Richard Leu, Correspondent

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