Ford Territory export hopes for Thailand

By Jez Spinks | March 27th, 2012

FIND DEALS

The Ford Territory could be sold in Thailand in a rare export deal for Ford Australia.

Ford is showcasing its Australian-built SUV at the Bangkok motor show from late March to gauge consumer reaction.

“There’s a possibility for introducing the Territory to the Thai market,” says Ford Australia spokesman Neil McDonald. “It’s certainly an opportunity we’re looking at. It’s a toe in the water.

“The show car will be a [range-topping Territory] Titanium; they’re looking at high-end models specifically.”

Ford is looking to export the Titanium TDCi diesel model specifically, a model that uses a Land Rover 2.7-litre V6 turbo diesel combined with a six-speed automatic transmission.

Ford Australia says it only expects to ship about 100 Territorys a year to Thailand, though it’s still positive news for a company that has struggled to match the export programs of fellow local car makers Holden and Toyota.

The Broadmeadows-based outfit did introduce about 20 Territory models to Thailand in 2005 – a year after the vehicle’s launch. The export program collapsed, however, when the Thai government made a late change to details of the just-launched free-trade agreement with Australia.

Thailand added a 60 per cent excise on foreign models powered by engines bigger than 3.0 litres in capacity, cruelling the business case for the 4.0-litre six-cylinder petrol Ford Territory.

It’s understood Ford will pitch the Territory as a premium model to help reduce the excise impositions by 10 per cent, a case also helped by the 2.7-litre turbo diesel engine that was added to the SUV’s line-up in April 2011.

If the export program is confirmed, it will make a welcome change of direction for Ford models that are coming to Australia from Thailand in increasing numbers.

Australia’s Ford Fiesta allocation moved from Europe to Thailand in late 2010, the Ford Ranger ute – designed and developed by Ford Australia – is imported from the Asian country, and the Ford Focus will follow later this year.

The Bangkok motor show will also see the debut of that Thai-built Ford Focus, which will replace German-built versions of the small car currently imported to Australia.

The new Focus will include Ford’s Sync system, and the company says the specification and trim will be similar to the German models.

The Ford Fiesta, in contrast, lost two-way adjustable steering wheel and soft-touch dash plastics when it switched to Thailand production for Australia.

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save it for the track

Thailand added a 60 percent duty to vehicles over 3.0 litres. That seems to directly target vehicles made in Australia then doesn’t it? Not much of a trade agreement then. Too late now. Australia should have made a similar ‘late change’ back then. No wonder manufacturing in this country has gone and is continuing to decline with lopsided agreements such as this.
- Non69
  
  Any engine with large capacity will get high tax over there. A Camry or Accord with V6 engine costs about 90k compare to the 4 cylinder model which is about half.
- Captain Nemo
  
  Agreed doesn’t seem too fair does it.
  Maybe Australia could slap a similar tax on Thai cars. Say 60% tariffs on any Thai car that has more than 3 wheels. But i hope Ford do well even if it is only 100 cars.
  - MisterZed
    
    That wouldn’t work – they would just import the cars with 3 wheels and fit a 4th locally?
- Able
  
  Well maybe we should make more cars with engines under 3.0 litres?
  - Springvale Boi
    
    The point is not about how many litres. But about they moving the goal post. Once you’ve hit the target, they may find excuses to move the goal post again to protect their car industry.
Mark

I believe under 3.0l engines have a 50% duty under the “free” trade agreement-what a joke
Andrew M

I have been under the impression Australia doesnt impose any import tariff on vehicles from Thailand what so ever.
Someone correct me if im wrong…..
The free trade agreement has always been a joke and many of the aussie vehicle bashers refuse to believe the auto industry in other countries recieves massive protection.

I reckon CA should do an article dedicated to tariffs around the world to show how silly our borders are. All we ever see is articles bad mouthing how our industry is a slug for wanting a bit of protection.

I actually thought Thailand was up around 70% tariff, but it must have come down since I last knew.
- Richardangliongto
  
  Andrew M, i’d like to see an article like that. I wonder how Australia ranks compared to other countries.
  - ???????????
    
    Seearching for an article about 1>2 months ago (think it might have been in print media ) that gave the figures of taxpayer support to auto industries.. Aust was around $18.72/head, UK around $22.36/head, Germany was $33.something (all AUD figures) and the rest of the world was higher than that….
    - Andrew M
      
      That $ per head ratio is an interesting way to display it.
      When you consider somewhere like Germany has a population 4 times ours, that equates to a heck of a lot of money that germany throws out as support.
      
      Also add that to tariff protection and the other countries really put a lot of focus on preserving themselves.
      
      Wind the clock back to when we had higher tariffs and the Aus Dollar was only 60 cents.
      Our country was thriving then. Retail was strong, manufacturing jobs were strong, tourism was strong and so on.
      Now those 3 in particular are on the edge of extinction.
      
      Australia has been led onto a growth focused path which has thrown out many thngs that has kept our country sustainable.
      People think its great the Aus dollar is buying $1.10US, but its not really.
      
      Our growth has come at high public and personal debt while at the same time taken away from the industries that have been the back bone of our economy.
      
      If we keep racking up our debt while back pedling on industry whats going to happen when the bank comes knocking on Australias door?
      - Andrew M
        
        Also, sorry if I am boring some people, but what happens if or when the US dollar corrects itself??
        We might look high and mighty now with a strong dollar, but if we have high debt and then our dollar that we repay with becomes worth 40% less we are screwed.
        
        We also wont have much guarantee if our dollar becomes worthless so we wont be worth much to anyone.
        
        Watch out if or when we come down off this economic high.
        Unfortunatly I think we have become too accustomed to this economic high and it will hit hard if or when the economies correct themselves
      - ??????????
        
        Agreed on your debt scenario AM. Just like what happened to Bond Corp, financed to the hilt AUD takes a dive and you are under capitalised and everyone starts calling in their promisory notes.. Throw into that the fact that all local manufacturing has closed up due to these one sided FTA’s and the words of an Italian Suit wearing former treasurer will come true and we will be a banana republic. we will then be paying 40K for vehicles like Great walls & Cherrys.
        If even someone as small a car manufacturing nation like Malaysia can have policies where all government vehicles must be local or have an extremely valid reason against (not just because you want a better car) then Australia should. Buy the vehicles rather than just give the dollars.
- Robert Ryan
  
  That protection is ramping up in many countries. Meanwhile we allow everything in.
  - bb
    
    Australia has always been a leader in free trade. Our successive governments have taken the view that we need to set the example and reduce tariffs on imports and then other countries will follow suit. Unfortunately this hasn’t been the case and we all know where we are now.
    - DWS1
      
      …just like the Carbon Tax, why does the Aussie government want to set standards the rest of the world will not follow.
Andrew M

QUOTE………
“a company that has struggled to match the export programs of fellow local car makers Holden and Toyota.”

Matching loss making programs like Holdens wouldnt be something to brag about.
Ford pulled the pin every time plans came up when they saw our dollar not doing them any favours.

Toyota is also on edge claiming they would have no trouble walking away if Gov subsidies arent there to compensate.
Joe

Even at $24,990 Drive Away Ford weren’t selling enough to make it worthwile. The similarly speced and looking Fiesta CL 5 speed manual Hatch is and has been selling at $16,490 Drive Away and it is rated @ 6.1 l/100 km. In this market segment “Who”, or should we say ” How Many Punters” are going to spend the extra $8500? Obviously. not many!
Joe

Whoops! Wrong article.
Gtrxu1

Only big mouth miners can make a good living in this country these days.Not a supporter of this Federal Government or previous governments like Rudd+Howard.They have signed FTA that sell all our manufactures out bigtime.
Mining companys use there FTA to import the construction components on there mine site construction{CHEVRON}.This has seen unemployment of over 25% in some areas of AU.We are heading for a USA style recession in the next decade.
Abig hole in the ground no locally built cars or anything else.As for you OPEC your days coming.What business can just raise there prices 50% in a few months,because we have no choise but put up with your thieving rip off fuel prices.
I hate everybody,,lol.
440 R/T Charger

The good thing about owning one of them in Thailand is they are just about as rare as Ferrari….100 units?! Gezz….
- Robert Ryan
  
  A Toe in the water is about right. Ford thought the new Ranger would be its salvation ,but it is not selling. The Territory is the best selling vehicle they have. Sad times for Ford.
  - bb
    
    Its a real shame Ford mis-priced the Ranger, they really isolated a lot of potential customers.
    - CAR
      
      $60k for the XLT is about $20k too much
      - Andrew M
        
        then what do you call 65K for an SR5?
        
        I reckon you will find the ranger cheaper than 60K if you walk in ready to buy
  - Des
    
    Sorry Robert but you are a little out of touch. Ford have “sold” plenty of Rangers. Unfortunately ther has been NO supply to fill those orders, due to the Thailand floods. Thousands of back orders are about to flow through.
    Remember a sale isn’t a sale until the vehicle is registered.
  - MisterZed
    
    You do realize that last year was Ranger’s best ever sales year?
JHP

i don’t think this will sell as well as they might think they will.
thirsty ‘FORD’ beast that can’t even do offroading properly.
i think even those in thailand who can afford this will probably walk past this for more sensible options.
and also, 100 units per year? why even bother exporting them?
i know they are desperate, but really? wow…
- Andrew
  
  Every second car in Thailand seems to be a Toyota Fortrunner. They love this type of vehicle and the Ford will be a stand out because it is not the ‘norm’.
  - Andrew M
    
    True, and at 100 units per year I dont think its intended to be anything else but a niche vehicle.
    at 100 units and only high spec I imagine they wont be cutting their throats to get volume.
    
    Its all about a foot in the door and curbing the strong strubborn mentality that asian countries hold against foreign products.
    
    They also have plenty of 4wd utes on the road too in Thailand, the Terry diesel would be like a hybrid rolls royce compared to what they are used to based on economy and luxury.
Dave S

They need to step in and deal with this ‘free trade’. If they want to stop our imports, maybe we should equal the tax on imports from Thailand. What is the point of free trade if there is no intension to follow it?
- Birty
  
  Straight from the Dept Foreign Affairs website.
  
  AutomotiveThailand immediately eliminated tariffs on large passenger motor vehicles (engine capacity of over 3000cc) and goods vehicles, previously at 80% and 60% respectively. For other passenger motor vehicles, Thailand immediately reduced the previous 80% tariff to 30%, before phasing this down by 6% each year to zero in 2010.The intention was there, they just changed their minds obviously.
- Ezz
  
  It is naive to think free trade only suits our competitors. Cars aren’t the only thing traded between the 2 countries.
  - Dave S
    
    Then show us a) something we get from Thailand that we put 60% on or b) Something that Thailand buys from us at ‘free trade prices’.
    
    Except OJ, orange juice seems to come from Thailand (‘made from local and imported products, imported from Thailand’) and that must get taxed a lot.
- Aurion
  
  Spare a thought for Thai people. Do you realise that most imported Thai made cars are cheaper to get here than Thailand and they often arrive with higher specifications.
Springvale Boi

Why the Thai made Hondas don’t seem to be cheaper?
Max Power

I don’t think there is one free trade agreement which actually benefits Australia, FTA, should stand for, Fleece the Aussies.
But then again, why should we expect any different, our governments just continue to sell Australia off to the highest bidder.
Leanne5

If a country wants to sell its crap here it should be taxed the same way as if we want to sell our cars in their country……..isnt that fair? No wonder there will be no more cars made in this country in ten years beause the government do evrything it can to stop it!! a few handouts here and there only prolong the inevitable. Its a disgrce that we ahve the most brands of car of ANY country available here, look how many more pieces of Chinese crap are coming here in the near future……its a disgrace!! But given the 2 dollar shop mentality of people here they will buy them.
I hope all the people who work at FORD Australia and drive a Japanese or Chinese or Korean car to work all lose their jobs because they do not support the local cars…….
myford touch

heres hoping when production switches to Thai for the focus we get sync and MYFORD touch
- PoisonEagle
  
  We’re getting SYNC, I don’t know about MFT but I sure hope so, the Titanium needs it (aswell as maybe a bit of a price reduction?).
  - myford touch
    
    Hope so too, knowing my luck I’ll buy a ST and 2 months later they will have MFT as an option. Just like how they screwed over the first focus Titanium owners did. 2 months later they get nav and a bigger screen too.
Leighh

our government is so so so weak………..just let the world dump their crap cars on us. Why do ford have to pay 50-60% tax on a great car like the new Territory when Thailand can bring theirs for for nothing?? Oh I forgot….they are protecting there car industry ………..like every other country EXCEPT Australia…….
Go AU industry!

The 100 figure is bull dust. Ford’s way of saving face if it falls through. Open the door by all means and jar it open!
Send the Territory and why not the Ecoboost Falcon.
We have grown up with these vehicles, but to foreign markets these are a novelty vehicle.
I have always thought that Falcon & Commodore high end models should and could be exported and sat in between BMW and Mercedes globally.
Thank goodness they now have the engines the rest of the world is looking for.
Go AU industry!

That should read below BMW & Mercedes and above Japanese offerings. So long as they are spruking advanced technology.

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