It is the largest single investment made by Ford in Thailand in its 25-year history with the nation and brings the total investment in the country to $US3.4 billion ($A4.7 billion).

It also makes Thailand the brand’s biggest production base in Asia after it closed operations in India, Russia and Brazil.

Nissan last year made a similar move by increasing production in Thailand and closing its production operations in Spain and Indonesia.

Data and analytics company GlobalData said the expansion in Thailand was in line with Ford’s new business priorities under the ‘Ford+’ strategy that emphasises strengthening its position in the Asia-Pacific (APAC) region.

Ford Ranger

GlobalData senior automotive consulting analyst Bakar Sadik Agwan said the latest investment news showed Ford was “well on track to simplify operations and focus on core products to improve profitability and redirect investments to the more lucrative global EV market.”

“While the initial plan revolves around core SUV products, EVs production may come into play soon due to Thailand’s own strategic priority and Ford focusing on the country’s market presently,” Mr Agwan said in his report.

“The country aims to be an EV production hub by 2035 offering attractive Thailand Board of Investment (BOI) packages for local EV and component manufacturing,” he added.

Mr Agwan said the investments would increase automation to 80 per cent at Ford Thailand (FTM) plant and 69 per cent at its joint-venture AutoAlliance (AAT) plant. 

“With a conducive regulatory environment, strong auto supply chain and quality workforce, Thailand has been able to lure global OEMs to make the country their export base,” Mr Agwan continued.

“The realisation by global automakers to diversify the supply chain and reduce concentration in China has acted in favour of Thailand. 

“With more than 16 OEMs presently having production plants, Thailand is already a key production hub in Asia. 

“Further, with an aim to be a global production hub, the government is offering attractive relocation benefits and policy packages, making Thailand the most eligible production hub in the region after China,” he surmised.

Ford’s investment will support the production of its latest Ranger ute due for launch in mid-2022 and the Everest SUV. Both are top selling products in Australia and key Asian and global markets. 

Ford has two production plants in Thailand – the company-owned FTM that makes the Ranger and the AAT JV with Mazda that makes vehicles including Mazda cars and the Ford Everest – with a total annual capacity of more than 270,000 units. 

The latest investment will also add 1250 workers to bring the total workforce to more than 9000. 

The latest investments are aimed at modernising facilities, strengthening the supply chain, enhancing domestic operations, and increasing capacity to support domestic and export production. 

It includes a doubling of the number of robots at both FTM and AAT, with the addition of 356 state-of-the-art robots at the body shop and paint shop. This brings the level of automation at the body shop at FTM and AAT from 34 per cent to 80 per cent and 69 per cent, respectively.

By Neil Dowling