AUTOMOTIVE MILESTONE FOR THAILAND: AUTOALLIANCE THAILAND CELEBRATES 500,000TH UNIT PRODUCTION

AutoAlliance Thailand (AAT) achieves 500,000th unit production marking a major milestone for Thailand’s automotive industry. In the first Quarter 2005, AAT became the No.1 vehicle exporter for completely built-up (CBU) vehicles. AAT is a global success story for Ford worldwide. AAT is recognized as a "Center of Excellence for Quality" exporting to more than 130 countries worldwide. AAT is a net contributor to the growth of the domestic auto industry strengthening Thailand’s leadership position as the “Detroit of Asia”. AutoAlliance Thailand (AAT), Ford’s largest regional manufacturing facility celebrated a major milestone reaching its 500,000th unit production. This is a significant landmark for both AAT and the auto industry of Thailand, as it continues to grow and achieve international recognition as a hub for automotive exports to the world. Mr. Yuji Nakamine, President of AutoAlliance Thailand said, “We have now reached half a million production units at AAT -- this is a major achievement and great source of pride for all those involved. We are committed to play our part to drive both automotive and economic growth, to achieve Thailand's vision to become the 'Detroit of Asia', and our 500,000th unit reinforces this." He continued, “AAT is a world-class facility. The secret of AAT's success lies on the foundation built by Ford and Mazda's strong partnership, our commitment to quality, cost-effective and efficient manufacturing processes, dedicated and skilled employees, as well a strong parts and components supplier network.” AAT contributes to Thailand’s economy as a direct provider of more than 2,700 jobs, and indirectly it supports thousands of jobs through its strong base of more than 100 components suppliers. AAT is a net contributor to Thailand's positive automotive trade balance with total export value exceeding 59 billion Baht to date. The 500,000th unit production milestone marks the beginning of a new chapter in the history of AAT. Presently, the plant is running at optimum capacity. Given the increased global market demand for its products, AAT is implementing a phase-by-phase capacity expansion plan. AAT’s current production capacity has increased to 155,000 units (CBU and CKD) per annum up from previous 135,000 units. The capacity expansion plans, as announced in October 2003, will see AAT achieve 200,000 units capacity both CBU and CKD (completely knocked-down) when completed. The 500,000th unit production is AAT's second major milestone this year. In the first quarter, AAT achieved top ranking as the Number 1 Vehicle Exporter of CBU vehicles in Thailand -- exports from January to March reached 19,388 units representing a 22.29% share of Thailand's total CBU exports valued at 8.05 billion Baht. "AAT's continued growth and investments demonstrate our firm commitment to Thailand's automotive industry for the long-term. When we first began our operations in 1997, our goal was to be the leading vehicle manufacturer and exporter not only in Thailand but the ASEAN region – we can proudly say that AAT has accomplished this, however we realize we are just only embarking on a long road that will lead to greater success and glory,” added Nakamine-san. Established in November 1995 with an initial investment of US$500 million, AAT is a joint venture company between the Ford Motor Company and the Mazda Motor Corporation. In October 2003, Chairman and CEO Bill Ford announced an additional investment of US$500 million to support new vehicle programs and capacity expansion, which will bring total investments up to US$1.0 billion upon completion of the plan. AAT is a state-of-the-art integrated vehicle manufacturing plant, located in Rayong province, Thailand. Strategically, AAT is the regional production hub for Ford and Mazda and is recognized as a “Center of Excellence for Quality” around the world. AAT exports the Ford Ranger and Mazda Fighter pickup trucks to more than 130 countries worldwide including Europe, South America, Middle East, Australia, New Zealand, South Africa and Southeast Asia. In addition, the Ford Everest 7-seater SUV is exported to more than 50 countries such as South East Asia, Middle East, Africa and South Pacific nations. John Felice, president of Ford Thailand said, “AAT has been a phenomenal success story for Ford worldwide. It contributes significantly to our global production capability and puts us in a market leading position within the Asia Pacific region. Thailand is the ideal hub for us, and AAT's success is a fantastic demonstration. AAT helps us realize our commitment to the growth of Thailand’s domestic and export market while promoting increased intra-ASEAN trade exchange. "As we look to future automotive growth opportunities, Ford is considering Thailand for additional investment as the center for ethanol-technology and small car production, in support of the Thai government's policy to develop these two core areas of expertise," Felice said. Contact: Natee Sastyoungkul Tel. 02 686-4000 ext 4635 Fax. 02 264 1006 e-mail: [email protected] End.

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