FMC disclosed yesterday that it had formally relayed to FMCPI its objection as far back as July this year, before FMCPI secured approval for its Asean Industrial Cooperation (AICO) tie-up with Automotive Alliance of Thailand.
FMC is insisting that under its previous agreement with Mazda, of which 33-percent is now owned by the US Ford Motor Co., it has a 25 year agreement to import and assemble the Ford B25 pick-up and Econovan models. That agreement was supposed to last up to 2002.
FMC claims Mazda failed to live up to its end of the deal after FMC had already spent millions to retool its assembly plant in preparation for the assembly of the B25 pick-up and Econovan models.
Instead, FMCPI directly imported and assembled the Ford Ranger models. FMCPI insists that the Ford Ranger model is different from the B25 pick-up models.
FMC has been seeking $66 million in damages from Mazda, but Mazda is willing to offer only $4 million.
FMC is now bent on preventing FMCPI from entering into an AICO arrangement with AAI.