Thailand in pole position to win race for Focus and Mazda

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 to Thailand, as there is more assembly space.

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

As soon as the Mazda ASEAN was 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, would 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, and many drivers 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.