As it proceeds with plans to slash jobs and shutter factories in North America, Ford Motor is expanding aggressively in Asia, announcing Tuesday a $500 million investment to build a car plant in Thailand just two weeks after opening a $510 million manufacturing center in Nanjing, China.
Both investments were made with Mazda, the profitable Japanese company that Ford controls through a 33.4 percent stake - a partnership that provides the troubled American carmaker with both cash and manufacturing expertise.
“We’re looking for profitable growth,” said John Parker, Ford’s executive vice president for Asia and Africa. “You have to put some foundations in place.”
Ford’s strategy appears to be to save money by radically slashing operations in North America while making money by expanding in the growth markets in Asia and elsewhere outside the United States.
The company announced staggering worldwide losses of $12.7 billion last year, and said it planned to idle or close 16 North American facilities by 2012, including seven vehicle assembly plants.
Ford’s operations outside the United States give the company a lifeline of liquidity, including $551 million of pre-tax profit in South America in 2006, $469 million in Europe and $168 million through its association with Mazda.
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Tags: Ford, Ford Motor, Ford Motor Company, Mazda, automaker, Trucks, Cars, F150, Ranger
Categories: Ford Motor Company, Mazda
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