Ford to invest $900 million to modernize Thai auto plants

It brings Ford’s investments in Thailand to more than $3.4 billion, according to the company

Ford Motor Co. this week announced it will spend $900 million to modernize its Thailand manufacturing operations, marking the automaker’s largest-ever investment in the Southeast Asian country where it has two assembly plants.

The investment will support production of the next-generation Ranger pickup truck and Everest SUV and add up to 1,250 jobs. It brings Ford’s investments in Thailand to more than $3.4 billion over its 25-year history in the country, according to the company.

This is an important milestone to build on our quarter-century of commitment to producing vehicles in Thailand, enabling us to further modernize and upgrade our local operations, and support production for the exciting upcoming launch of the next-gen Ranger, one of Ford’s highest volume and most successful vehicles anywhere in the world, and the next-gen Everest SUV, Yukontorn “Vickie” Wisadkosin, president of Ford ASEAN and Asia Pacific Distributors Markets, said in a statement.

In Thailand, Ford is able to produce around 270,000 vehicles annually, Director of Communications Thailand and ASEAN Markets, Kamolchanok Prasertsom, said.

If demand increases in the future, the proportion is adjusted on a monthly basis, she said, adding that its export market is robust.

Ford executives said the investment is part of the company’s turnaround plan, under which the automaker has realigned its manufacturing operations in several regions. In September, for example, Ford announced it would cease manufacturing operations in India. Earlier this year, it said it would stop producing cars in Brazil. Meanwhile, it has bolstered its operations in South Africa.

Ford sells vehicles locally in Thailand, and also uses its manufacturing operations there as an export base for global markets. It operates the wholly-owned Ford Thailand Manufacturing Plant, which opened in 2012, as well as the joint-venture AutoAlliance Thailand truck plant that opened in 1995.

The investment will support the addition of a second shift at Ford Thailand Manufacturing, bringing Ford’s workforce in Thailand to more than 9,000 employees, the company said.

The plan includes a near doubling of the number of robots at its Thai manufacturing plant and at AutoAlliance Thailand, while $400 million of the investment will go towards its supply chain network.

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