Bangkok--Jun 13--Ogilvy Public Relations
Ford Motor Company's International Governmental Affairs Vice President Stephen E. Biegun spoke today before the Asia Society's 15th Asian Corporate Conference and outlined the impact of trade liberalization on the automotive industry.
As a panelist at the plenary session on "Achieving Trade Liberalization and Drawing Investment in Southeast Asia's Key Sectors", Biegun said Thailand's leadership was visionary when the nation first decided not to embark on its own national car policy but instead adopted an open automotive policy to attract foreign investment into the country to develop a sustainable automotive industry.
"Today, Thailand's open automotive policy has proven to be a great success. Thailand is undoubtedly the Detroit of Asia," Biegun said. The Thai government created a liberal investment environment that included relaxation of foreign ownership restrictions and attractive economic incentives.
"This policy has encouraged every major automaker to invest in Thailand, including Ford Motor Company. The progressive vision on regional and international trade has made Thailand a hub for automotive exports to the world. In addition, Thailand's domestic market has grown to an impressive 650,000 units, supported by a well-developed energy and logistics infrastructure, strong parts and components industry and available skilled labor."
The conference theme is "Southeast Asia Rising: A Region Booming Among Asia's Economic Giants". Ford Motor Company is a corporate sponsor.
Ford is committed to the development of Thailand's automotive industry for the long term, which has been demonstrated by its significant investment in the country. In October 2003, Chairman and Chief Executive Officer Bill Ford announced that Ford Motor Company would double its existing investment at AutoAlliance Thailand (AAT) with an additional US$500 million to support new vehicle programs and capacity expansion. In the first quarter of 2005, AAT became the Number 1 vehicle exporter for completely build-up (CBU) vehicles that are exported to more than 130 countries worldwide.
"Ford has also chosen Bangkok as our regional headquarters for our Asia Pacific & Africa operations, which contribute to value creation in human resources," said Biegun.
He continued, "While we believe Thailand today is the Detroit of Asia, there remains great potential for significant automotive growth in the future. Ford's success in Thailand is critical to the overall success of Ford in Asia Pacific. While Ford will not miss the opportunities offered by China's economic growth, we view ASEAN as just as important. It is not a question of 'either-or.' Ford clearly recognizes that we must be equally successful in each of the key growth markets represented by China, ASEAN as well as India.
"As we look to future growth for Thailand's auto industry, Ford is fully supportive of the government's policies in two key areas -- the National Ethanol Policy and EcoCar project — where we believe Thailand has the competitive advantage to become the regional hub for ethanol technology and small-car production. Ford is studying future investment plans for a new facility in the region and Thailand is under strong consideration.
"To achieve sustainable growth, Thailand's auto policies should not allow a single position of dominance to any one company. While not every automaker supports ethanol vehicle development in Thailand, Ford is unequivocal in our support of the Thai government's policy on E20* vehicles. We look forward to making Thailand a leading center for these new alternative fuel technologies in Asia, while reducing its dependency of crude oil imports," he added.
(*Gasohol E20 is a renewable fuel resource comprising a blend of 20 percent ethanol and 80 percent benzene.)
Contact:
Pauline Kee
+66(0)2-686-4319
e-mail: [email protected]
Natee Sastyoungkul
+66(0)2-686-4635
e-mail: [email protected] End.