Thai plant starts producing top-dog Focus

[jpd80]

Ford Oz’s new sales leader – Focus – set to roll out of $450 million Thai factory

3 May 2012

By RON HAMMERTON

FORD Motor Company today officially opened a new $450 million factory in Thailand that is set to supply Ford’s top-selling car in Australia in 2012, the Focus, as well as related vehicles such as the new-generation Kuga.

Supplies of Focus bound for Australian showrooms are set to switch from Saarlouis, in Germany, to Thailand by September, although the car is expected to be fundamentally the same as the current five-door hatch and sedan range that was introduced last August.

The move allows Ford to take advantage of Australia’s free trade agreement with Thailand, which will slice five per cent from the landed cost of the vehicle, while also shorting the supply line.

The new Ford Thai Manufacturing plant will have a production capacity of 150,000 vehicles a year, boosting annual Thai Ford production to 445,000 vehicles.

Ford Australia already sources its Australian-developed Ranger ute from Thailand, where it is produced for global markets alongside the related Mazda BT-50 in a Ford-Mazda joint-venture AutoAlliance plant that is also set to get a $27 million expansion to lift production by 20,000 units a year.

The AutoAlliance operation also produces the Ford Fiesta for Australia, alongside the similar Mazda2 light car that initially was shipped to Australia before Mazda Australia switched its sourcing back to Japan due to supply constraints in Thailand.


The new Thai Ford plant at Rayong is capable of producing up to six models, with the Blue Oval company planning to expand its range of offerings in South-East Asia and, potentially, Australia and New Zealand.

GoAuto understands that the latest Kuga compact SUV – based on the same small-car platform as the Focus – will enter production there alongside the Focus from 2013.

Ford Australia recently introduced the superseded Kuga into local showrooms as an interim measure until the new-generation vehicle that was unveiled in March at the Geneva motor show can go into production at the new Thai plant.

Like all manufacturers dependent on Thailand, Ford lost considerable production in last year’s Thai floods, mainly due to the impact on parts suppliers devastated by the deluge.

However, Ford Asia, Pacific and Africa president Joe Hinrichs said Ford remained committed to Thailand as a production hub.

Mr Hinrichs recently announced a major expansion of Ford’s Chinese manufacturing operations, with a plan to double production there from the current 600,000 units a year to 1.2 million by 2015.

So far this year, the Focus has been a winner for Ford Australia, with sales up 42 per cent.

Focus is now Ford’s biggest-selling vehicle in Australia, outselling the locally made Falcon and Territory.

Now, finally decent production numbers and less delays on delivering Focus

The new Thai Ford plant at Rayong is capable of producing up to six models, with the Blue Oval company planning to expand its range of offerings in South-East Asia and, potentially, Australia and New Zealand.

Hmm, I wonder what other models Ford is considering for Thailand, maybe more vehicles for Ford Australia?

FORD Motor Company today officially opened a new $450 million factory in Thailand that is set to supply Ford’s top-selling car in Australia in 2012, the Focus, as well as related vehicles such as the new-generation Kuga.

From what I recall, Holden spent around $450 million establishing Cruze production in Australia...

[DJM83]

If it were me buying one id be buying before they shifted. That said im pretty sure the ST will remain at Saarloius.

[jpd80]

Originally Posted by DJM83

If it were me buying one id be buying before they shifted. That said im pretty sure the ST will remain at Saarloius.

That's right ST will stay a German product...

I wonder if Thailand will build diesel versions there with imported engines or will they be sourced fro Europe as well?
Diesel kugas and Mondeos from Thailand are a must for Ford Australia going forward, Ford just can't keep on
disappointing buyers with lack of supply..

[Road_Warrior]

Originally Posted by jpd80

Hmm, I wonder what other models Ford is considering for Thailand, maybe more vehicles for Ford Australia?

Well, the pattern I''m seeing is that this new plant will be making only C3 based cars. Focus hatch, Focus sedan, Kuga, S-Max (or is it C-Max??) and maybe one or two others.

Originally Posted by jpd80

I wonder if Thailand will build diesel versions there with imported engines or will they be sourced fro Europe as well?
Diesel kugas and Mondeos from Thailand are a must for Ford Australia going forward, Ford just can't keep on disappointing buyers with lack of supply..

This is what worries me about the Ecoboost engines for the Falcon.

[2011G6E]

I'm surprised it isn't India...
There was a list on the ABC radio some time back at the beginning of the year of major manufacturers who are either going to be, are actively planning, or are considering moving or setting up production in India, and it included every big Japanese maker, Ford, Chrysler, GM, and even, surprisingly, Harley Davidson.
Our sons little Suzuki Alto has a sticker inside the door saying it was built by some manufacturing mob in India.

[Jim Goose]

Isnt there a move to sell Territories to thailand ?

[jpd80]

Originally Posted by Road_Warrior

Well, the pattern I''m seeing is that this new plant will be making only C3 based cars. Focus hatch, Focus sedan, Kuga, S-Max (or is it C-Max??) and maybe one or two others.

Focus and variants is still considered C1 inside Ford, the big difference now is that it
shares the newer EUCD wiring harness which was also an evolution of early C1 anyway...
Short story is that it allows more high series features in Focus, just like Fusion/mondeo ect.

So basically, building Focus/Kuga/C-Max/ next gen Transit Connect alongside
Mondeo/S-Max/next gen Edge is much more feasible and part of Ford's overall
global strategy for plant flexibility goals going forward..that doesn't mean it
will happen but if Braodmeadows is faltering, witching production to global
vehicles out of Thailand if that was necessary...

This is what worries me about the Ecoboost engines for the Falcon.

Toe in the water stuff, if Ecoboost takes off, then Ford can order more but what if it chews into I-6 sales, what then?
IMO, the sales numbers at the moment are so low that any additions would be welcome to Ford.

Imagine preparing a business plan for a car currently selling such low numbers what a dilema...

[Brazen]

This is sad news, Focus and Kuga are the exact cars they should be building here. They would of taken pressure of Falcon to be a major volume seller - which has failed spectacularly. They also would of saved half a billion on a new factory, could of squeezed 150 mill out of Gillard and save in shipping by building the vehicle in Australia which is the largest market for Focus in the region. Australia is the third largest market for Cruze in the world.

So now what happens? Falcon has to continue to be built cheap enough to appeal to fleets and keep margins, and in the process drifts further and further away from what consumers want. Meanwhile Holden is laughing, Cruze costs them 10 bucks to make and top of line SRIVs are pouring out the door at 32 grand on road. As for Commodore? Pressure is off to keep it a fleet queen to keep the factory producing enough to remain viable.

[Gobes32]

Originally Posted by Brazen

This is sad news, Focus and Kuga are the exact cars they should be building here.

I never understood why they never chased Ranger production to be built in Australia?

[Luke Plaizier]

Ditto

[Mad_Pom]

Originally Posted by Gobes32

I never understood why they never chased Ranger production to be built in Australia?

Plant layout differs so much when you are building body on frame, that the manufacturing plant costs would have been enormous, when compared to a pre-existing plant in Thailand

[Gobes32]

Ah, makes sense. Still, how many rangers do they sell worldwide? I bet it is in the hundreds of thousands.

[Brazen]

Originally Posted by Gobes32

Ah, makes sense. Still, how many rangers do they sell worldwide? I bet it is in the hundreds of thousands.

Australia is one of the top markets, with Thailand being the biggest market. I'm ignoring the North American Ranger as its being discontinued.

[Road_Warrior]

Yes I don't think it would have been possible to reconfigure Broadmeadows to build a BOF Ranger alongside unitary vehicles, the cost would have been enormous and the shutdown required to reconfigure the plant would have killed it.

Far better to have the Ranger built in its own plant, which could still have been done here using a certain defunct car making plant in South Australia that is wanting for a tenant...

[Bossxr8]

Originally Posted by Brazen

This is sad news, Focus and Kuga are the exact cars they should be building here. They would of taken pressure of Falcon to be a major volume seller - which has failed spectacularly. They also would of saved half a billion on a new factory, could of squeezed 150 mill out of Gillard and save in shipping by building the vehicle in Australia which is the largest market for Focus in the region. Australia is the third largest market for Cruze in the world.

One of the plant managers bought a Kuga in for us to have a look at today. Many comments along the lines of we could be building this.

I'll bet if Ford re-did the Focus build plan cost projection today they could get it to work, when they did the costings they based it on mostly base model Focus's, because thats what was selling back then, and probably minimal Kuga because the small SUV market was a lot smaller than what it is now. Those two things have changed a lot now, Focus mostly sells in the top spec models and the small SUV class is booming. They really got it wrong and its seriously cost them, now its gone to Thailand they can never get it back.

If they had based the figures on what is selling now, mostly top spec Focus and the potential to shift much higher volumes of Kuga and the numbers could have stacked up. Such a missed opportunity.

[Bossxr8]

Originally Posted by Road_Warrior

Yes I don't think it would have been possible to reconfigure Broadmeadows to build a BOF Ranger alongside unitary vehicles, the cost would have been enormous and the shutdown required to reconfigure the plant would have killed it.

Far better to have the Ranger built in its own plant, which could still have been done here using a certain defunct car making plant in South Australia that is wanting for a tenant...

I don't think they would have had the volume either, they said during the Ranger launch that it will be sold in over 180 countries.

[jpd80]

Originally Posted by Bossxr8

One of the plant managers bought a Kuga in for us to have a look at today. Many comments along the lines of we could be building this.

I'll bet if Ford re-did the Focus build plan cost projection today they could get it to work, when they did the costings they based it on mostly base model Focus's, because thats what was selling back then, and probably minimal Kuga because the small SUV market was a lot smaller than what it is now. Those two things have changed a lot now, Focus mostly sells in the top spec models and the small SUV class is booming. They really got it wrong and its seriously cost them, now its gone to Thailand they can never get it back.

If they had based the figures on what is selling now, mostly top spec Focus and the potential to shift much higher volumes of Kuga and the numbers could have stacked up. Such a missed opportunity.

Now you get it.
Since the launch of LV Focus a few years back Ford has been getting the product mix all wrong,
ordering wa too many base models and way too few of the desirable Zetecs and Ghias and
that's why you see so big a discount on Ambiente and much long waits for specific orders in Titanium..

[JPFS1]

Originally Posted by Gobes32

Ah, makes sense. Still, how many rangers do they sell worldwide? I bet it is in the hundreds of thousands.

The Thai plant will have a T6 capacity of ~200K units per year.

The South African Pretoria plant, ~100K Units. Some political risk happening around 2015 that can have significant adverse affect on exporting from S.A to Europe if it doesn't fall Ford's way.

[jpd80]

Originally Posted by JPFS1

The Thai plant will have a T6 capacity of ~200K units per year.

The South African Pretoria plant, ~100K Units. Some political risk happening around 2015 that can have significant adverse affect on exporting from S.A to Europe if it doesn't fall Ford's way.

Thailand being a JV plant, is that production capacity split between Ford and Mazda?

Where are they all going?

[Road_Warrior]

Originally Posted by Bossxr8

One of the plant managers bought a Kuga in for us to have a look at today. Many comments along the lines of we could be building this.

I'll bet if Ford re-did the Focus build plan cost projection today they could get it to work, when they did the costings they based it on mostly base model Focus's, because thats what was selling back then, and probably minimal Kuga because the small SUV market was a lot smaller than what it is now. Those two things have changed a lot now, Focus mostly sells in the top spec models and the small SUV class is booming. They really got it wrong and its seriously cost them, now its gone to Thailand they can never get it back.

If they had based the figures on what is selling now, mostly top spec Focus and the potential to shift much higher volumes of Kuga and the numbers could have stacked up. Such a missed opportunity.

Pretty damning isnt it. Someone stuffed up their market forecasting and strategic planning on that one.

[Bossxr8]

Originally Posted by Road_Warrior

Pretty damning isnt it. Someone stuffed up their market forecasting and strategic planning on that one.

You can say that in hindsight, but at the time it was probably what they were expecting, and the market has changed so dramatically over the past couple of years there's no way they could have seen it happening at the rate that it has.

At the end of the day its just educated guessing really.

[Road_Warrior]

Originally Posted by Bossxr8

You can say that in hindsight, but at the time it was probably what they were expecting, and the market has changed so dramatically over the past couple of years there's no way they could have seen it happening at the rate that it has.

At the end of the day its just educated guessing really.

Not really, circa 2005-6 the market was already trending towards smaller vehicles, look at the way the Mazda 3 took off, the decline of the large car segment hasnt just happened overnight, it is a sustained change over 10+ years. I wouldnt say the market has "changed" so dramatically over the past couple of years, I would suggest to you that in the past 2-3 years there has been a rapid accelleration of an already significant shift in the market.

[Bossxr8]

Originally Posted by Road_Warrior

Not really, circa 2005-6 the market was already trending towards smaller vehicles, look at the way the Mazda 3 took off, the decline of the large car segment hasnt just happened overnight, it is a sustained change over 10+ years. I wouldnt say the market has "changed" so dramatically over the past couple of years, I would suggest to you that in the past 2-3 years there has been a rapid accelleration of an already significant shift in the market.

It wasn't specifically referring to small vehicles, moreso the shift from base models to the top spec versions, and also the rapid rise of small SUV's.

They would have been aware of the shift towards smaller cars back then.