Ford invests $ 900 million to modernize Thai auto factories

The Ford logo is seen at the North American International Auto Show in Detroit, Michigan, United States, January 15, 2019. REUTERS / Brendan McDermid / File Photo

BANGKOK, Dec. 8 (Reuters) – Ford Motor Co (FN) is investing $ 900 million to upgrade factories in Thailand that build its Ranger pickup truck and Everest SUV, its biggest ever investment in the country.

The plan includes a near doubling of the number of robots at its Thai manufacturing plant and at AutoAlliance Thailand, a company with Mazda Motor Corp (7261.T), while $ 400 million of the investment will go to its chain network. supply.

It will also add a second shift at the Ford plant, creating up to 1,250 new jobs, bringing its workforce in Thailand to over 9,000.

The move contrasts with the closures of three of its factories in Brazil this year, as part of an $ 11 billion global restructuring and its strategy to achieve global operating margins of 8%. It is also withdrawing from production in India where it has long struggled to make a profit.

Thailand is Asia’s fourth largest auto assembly and export hub, accounting for around 10% of the country’s GDP and manufacturing jobs.

Last year, General Motors (GM.N) sold its factories in Thailand to Chinese company Great Wall Motor, which has started producing SUVs and plans to build electric vehicles in the country.

Thai state-owned energy company PTT Pcl (PTT.BK) has announced it will invest between $ 1 billion and $ 2 billion in an electric vehicle plant with Taiwanese Foxconn .

Report by Chayut Setboonsarng in Bangkok; Additional reporting by Sayantani Ghosh in Singapore; Editing by Stephen Coates and Edwina Gibbs

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