Ford is considering adding vehicle production in Indonesia to help meet strong demand for cars in Southeast Asia but said Thailand would remain its regional hub for the foreseeable future.
Over 90% of production for the 10 country ASEAN region is in Thailand where Ford opened a new US$450m plant last week. The company also has small operations in Vietnam and the Philippines.
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Ford ASEAN President Peter Fleet said: “Everyone in Thailand is trying to operate at maximum capacity and beyond now because the demand across ASEAN is very high. All of the markets are running strong.”
A number of carmakers are eyeing Indonesia as an alternative production centre but the lack of an established supply base means the focus will remain on Thailand for now.
Joe Hinrichs, president of Ford Asia Pacific and Africa, said: “”The Thai market is still slightly larger than Indonesia although we expect the Indonesian market to overtake Thailand shortly. Indonesia has great potential and is an important market for us with the strong growth last year with the Fiesta.”
Ford’s Asia-Pacific region lost US$83m in Q4 2011 due mainly to flooding that devastated Thailand. Although Ford’s joint venture with Mazda in the eastern Thai province of Rayong suffered no damage, it was forced to suspend production in October due to component supply disruption.
Hinrichs said the factory was now close to its pre-flood production level for the Fiesta while Ranger truck output was in line with plans. Neither the flooding nor political unrest in recent years has dented Ford’s commitment to Thailand.
The new plant has an initial capacity of 150,000 vehicles per year, taking its total capacity in Thailand, including an existing plant in the same area, to 445,000 vehicles. It will build Focus and EcoSport models.
