AUTOMOBILES

Ford eco-car plan awaits tax policy

PHUSADEE ARUNMAS

Ford Motor Company plans to invest US$1 billion in a Thailand eco-car production base for worldwide export, if the government offers competitive excise tax benefits for the project. Ziad Ojakli, Ford's group vice-president for corporate affairs, was part of a Ford management team from the United States that met with Commerce Minister Krirk-krai Jirapaet yesterday to discuss the issue.

Following the meeting, Mr Krirk-krai said that Ford had expressed its interest in further investment in Thailand of around $1 billion for eco-car production.

Annual export volume would be 20,000 cars and the project would generate 10,000 jobs in Thailand.

For now, the government's definition of an eco-car is one that consumes five litres of gasoline per 100 kilometres.

The reduction of excise tax for eco-cars was a crucial issue for Ford, which was waiting for news from the government, said Mr Krirk-krai.

''Ford will make a decision whether to invest in eco-car production in Thailand once a tax incentive is announced by the government, expected to be made in May,'' said Mr Krirk-krai.

Ford executives said the company was also considering other countries in South America and Eastern Europe for a production base, said Mr Krirk-krai.

Ford did not submit an application for the eco-car project to the Board of Investment in December, the deadline for submissions. Six manufacturers met the deadline: Honda, Toyota, Nissan, Mitsubishi, Suzuki and Yontrakit Co.

Bangkok Post
Wednesday January 31, 2007