Mazda/Ford to build new plant in Thailand

The new passenger car plant will be alongside the existing plant which makes pick-ups and SUVs

New Mazda2 is likely to be first model to be made in 2009

AutoAlliance Thailand (AAT) – the joint-venture manufacturing operation of Mazda and Ford – will build an additional plant to produce passenger cars. At this time, the new plant is said to be for B-segment models such as the Mazda2 but can also handle midsize CD-segment models such as Mazda3 and Ford Focus (presently being produced in the Ford plant in the Philippines).

The two companies are contributing equal shares of the more than US$500 million investment to build the plant next to the existing one which has been producing pick-ups (Ford Ranger/Mazda Fighter) since May 1998 and SUVs (Ford Everest) since April 2003. Production is to commence in 2009 and to maximize manufacturing efficiency and flexibility, the plant will feature an integrated production line from stamping through to final assembly.

In addition, the Three-Layer Wet Paint system – invented by Mazda – will be introduced as a space-saving measure and the completely refurbished paint shop facility will be used for painting both pickups and passenger cars. The system dramatically reduces undesirable emissions and waste, and improves paint quality.

The annual capacity is projected to be 100,000 units and combined with the annual output from the pick-up plant, AAT’s production capacity, including complete knocked-down (CKD) units, will increase to 275,000 units from its current 175,000 units annually. As with the current pick-ups and SUVs, AAT-produced cars will be exported to other ASEAN countries, enjoying the preferential 5% import duty provided for under the AFTA agreement. At least 80% of production will be exported and besides ASEAN, countries such as Australia and New Zealand will also get their cars from the Thai plant.

“The construction of the new passenger car plant at AAT is one of the major strategic moves we are making to raise global retail sales to 1.6 million units under our mid-term Mazda Advancement Plan,” said Hisakazu Imaki, Representative Director, Chairman of the Board and President, Mazda Motor Corporation. “The AAT plant is an outstanding symbol of our deepening synergies with Ford. Mazda will make maximum use of the new passenger car plant to enhance our product line-up in Thailand and for other export markets.”

AAT currently purchases roughly 90% of its components from Thai-based suppliers as part of its contributions to the local economy, and the new plant construction will create an increase in local parts sourcing. AAT anticipates the hiring of an additional 2,000 employees by the time the new plant’s production commences which will result in the creation of approximately 8,000 total jobs, including indirect jobs at suppliers and related enterprises.

The plant will also be able to produce models such as the Ford Focus and Mazda3