Ford Motor Co and Mazda Motor Corp are set to announce plans for a new Thai car factory with an investment of about $500 million, the Reuters news agency reported on Tuesday, quoting a source familiar with the project.
The factory, to be built next to their existing pick-up truck plant in the southeastern province of Rayong, will produce sub-compact cars, the source said.
Mazda, held one-third by Ford, said earlier that its president, Hisakazu Imaki, would hold a news conference this afternoon Thailand time in Hiroshima regarding the company's 50-50 Thai joint venture with Ford. A separate briefing will take place in Bangkok.
A Mazda spokesman declined to provide further details.
The two automakers had been expected to announce plans to boost production in Thailand after Mazda executive vice president Robert Graziano said in March that they had entered discussions with the Thai government over the issue. A separate Mazda executive said then that some of the added capacity would be used to supply demand in Europe.
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