This was formally announced yesterday in the US by Ford Motor Co. (FMC) vice chairman W. Wayne Booker during President Arroyo’s official visit.
"We are very pleased and would like to applaud the strong foresight and leadership demonstrated by the governments of the Philippines and Thailand on approval of the AICO scheme," Booker said.
The approvals, Booker said, "further demonstrate that both governments share Ford’s belief that regional integration and trade liberalization will bring vast benefits to the automotive industries in each nation."
Booker added that the AICO scheme "is clearly a win-win situation for all."
Under the scheme, Ford intends to relocate the assembly of its one-ton pickup truck, the Ford Ranger, from the Philippines to Thailand and move assembly of its passenger car, the Ford Laser, from Thailand to the Philippines starting in 2002.
This would result, Ford said, in intra-ASEAN trade worth over $1.2 billion in the next five years.
Ford would then be able to export and import the said vehicles within the region under a preferential tariff rate of between zero to five percent.
The scheme will eliminate the duplication of manufacturing operations through plant specialization and economies of scale.
At the same time, Ford signed a memorandum of understanding (MOU) allowing Ford Motor Co. Phils. to export completely built-up units, making it the first local car manufacturer to export vehicles in large volume.
Ford Motor Co. Phils. will be the center of production for the Ford Laser and the Ford Escape, exporting more than 65,000 units to Indonesia and Thailand over the next five years...