Mazda and Ford to Build Passenger Car Plant in Thailand

Mazda Motor Corporation and Ford Motor Company have announced plans to set up a new passenger car plant at AutoAlliance Thailand, their joint venture manufacturing plant, to produce both companies’ b-car segment small passenger cars.

Mazda and Ford’s small car production will commence at the new plant in 2009. The total initial investment of more than $500 million for the new plant construction is to be split evenly between Mazda and Ford.

The new AutoAlliance Thailand (AAT) passenger car plant will be built on the same site as the existing pickup truck plant. The new plant will feature an integrated production line from stamping through to final assembly. In addition, the three layer wet paint system 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.

Hisakazu Imaki, representative director, chairman of the board and president, Mazda Motor Corporation, said: “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. The AAT plant is an outstanding symbol of our deepening synergies with Ford.”

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.