Ford Motor Co has agreed to purchase Suzuki Motor’s assembly plant in Rayong, which will allow the American automaker to expand production for both domestic and export markets.
Falling sales during the past several years had forced Suzuki to close its Thai factory, which is adjacent to the Ford Thailand Manufacturing (FTM) plant.
Ford currently has two auto assembly plants in Thailand – the other being the Auto alliance Thailand (AAT) plant, a joint venture with Mazda.
The American automaker produces the Ranger pickup truck and Everest SUV for sale in Thailand and overseas, making Thailand one of its most important production bases globally. According to Ford, total investment in Thailand by the company during the last three decades has reached US$3.9 billion.
The Suzuki facility was built in 2012 and is located in a tax-free zone, which will help boost the efficiency and streamline Ford’s operations in Thailand.
Ford says that the move will enhance its flexibility and serve regional demand for various segments, in addition to boosting Thailand’s auto production in the long term.
Once the transaction is complete (within the next few months), Ford will systematically evaluate plans to integrate the new facility into its existing operations structure, as well as analyze its potential to support future production plans.
