Ford in Indonesia

Published on  8/12/2010

Ford: Indonesian demand will take spotlight Market is quadruple that of No. 1 Thailand

Despite its supporting industry network, Thailand's position as the largest Asean vehicle market will eventually be surpassed by Indonesia based on the latter's consumer market, which is four times larger than Thailand's, says Ford.

The new Focus will be made at the US$450-million Ford Motor Co (Thailand) facility in Rayong province when it is completed two years from now.

Thailand is currently the strongest market in Asean, but "in the long run, Indonesia will grow faster", said John Fleming, Ford Motor Co executive vice-president for global manufacturing and labour affairs.

"Thailand and Indonesia represent the two largest volume opportunities in Asean," said Mr Fleming. "This year, Thailand could sell about 800,000 units, while Indonesia will sell about 750,000, so it will take a few years before Indonesia overtakes Thailand."

Mr Fleming made the comments during a recent visit to the site of the new US$450million Ford Motor Co (Thailand) facility that will begin making Ford Focus cars in two years.

Published on  8/12/2010

The plant is located on 750,000 square metres of land and will have an initial annual capacity of 150,000 units.

Fleming: Indonesia market to grow faster

A total of 177 component suppliers, including 165 Thai firms, will supply 800 billion baht worth of products to Ford for eventual export to Asia-Pacific markets. Expected job generation of 11,000 is based on 150,000-unit annual capacity.

Sustainability initiatives will include: the Three-Wet-On technology paint process for less waste, on-site waste treatment, energy-efficient lighting systems, natural ventilation, day lighting and a pilot project to incorporate photovoltaic, stationary power storage and next generation LED lighting.

Mr Fleming said Thailand fits well with the company's One Ford policy (one team, one plan and one goal) of restructuring for profit at current demand and working as a lean global enterprise.

"It's about engineering and manufacturing processes with less platforms, taking waste out of the system and focusing our efforts as a global team," he said.

The One Ford policy is meant to include all business units: purchasing, public relations, human resources and manufacturing.

"The advantage [from a manufacturing perspective] is that we can define the most efficient and safest environmentally friendly process, and this can be replicated anywhere in the world. Our AutoAlliance (Thailand) plant in Rayong has a Ford

Published on  8/12/2010

production system that can be used in all our plants around the world, which means that we can be more effective and reduce costs," said Mr Fleming.

"Marketing and sales are obviously regional, but process-wise it will be managed and co-ordinated globally."

Raj Nair, vice-president of operations for the Asia-Pacific and Africa, said the China facility will focus on China only, Thailand will supply Asean with the Ranger pickup plus Fiesta and Focus products, and India will supply the Indian market but may expand export destinations with its engine facility.

Mr Fleming added Ford has the technology and capability to lead in alternative fuel technology.

"Our new Eco-boost gasoline engines, hybrids, electric vehicles and plug-ins are evidence of Ford's capability and confirm our intent to lower CO2 levels. But as an industry, we need government support and the necessary incentives," he said.