Ford cries foul, seeks change

The Ford Motor Company is seeking an urgent amendment to the 1500cc engine-size limit in the government's newly announced first-car buyer scheme because it excludes the 1,600cc Ford Fiesta.

The United States-based auto-maker said that it welcomed the government's tax incentive for first-time car buyers in Thailand, but argued that government tax incentives should not act in a way that distorted fair market competition.

The incentives should apply on an impartial basis, so Thai consumers can make informed purchase decisions, the company said.

"The current first-time car buyer programme sets an arbitrary limit on engine size of 1,500cc for vehicles eligible for the excise-tax deduction. We are highlighting to government that an unintentional consequence of this restriction is the exclusion of vehicles that lead their class in fuel efficiency and low emissions, such as the Thai-built Ford Fiesta 1,600cc," it said.

According to figures from Ford (Thailand), the 1,600cc Fiesta with PowerShift automatic transmission leads the field for fuel efficiency and CO2 emissions, beating all rival 1,500cc models that qualify for the government's programme. Prices for the Fiesta 1600cc also start from Bt644,000 - less than the cost of some 1500cc subcompacts.

With the inclusion of an arbitrary 1500cc engine size, the incentive programme has the unintended consequence of encouraging first-time car buyers in Thailand to drive less fuel-efficient vehicles that, in some cases, are also more expensive.

"In the spirit of fairness to Thai consumers and to be consistent with the government's promotion of fuel-efficient technologies, we ask for the removal of the policy's 1,500cc engine-displacement criterion," Ford (Thailand) said.

The government's scheme gives tax rebates of up to Bt100,000 to first-time auto buyers up to the end of next year. The rebates will be paid by the Excise Department after the buyer has owned the car for one year. Payment is subject to obligatory ownership of the car for five years.

Eligible vehicles include passenger cars with an engine capacity of no more than 1,500cc and pickups costing Bt1 million or less. The vehicles must be locally assembled.

Carbon Dioxide Emissions and Fuel Economy

 Ford Honda Toyota Mazda 2

 Fiesta City/Jazz Vios/Yaris

Engine size (cc) 1596 1497 1497 1498

Max horsepower (at 6,000rpm) 121 120 109 103

Max torque (Nm/rpm) 151/4050  146/4800 141/4200 35/4000

Transmission ratios (all auto) 6 5 4 4

Fuel consumption* (km/L) 16.39 14.93 14.93 14.71

CO2 emissions (g/km)  146 159 160 162

*Combined city/highway fuel consumption

Source:   http://www.greenvehicleguide.gov.au

Price Comparison

Ford Fiesta 1,600cc 4dr/5dr Trend AT Bt644,000/654,000 Excluded

Toyota Vios 1,500cc G Limited Bt715,000 Qualifies

Toyota Yaris 1,500cc S Limited Bt714,000 Qualifies

Honda Jazz 1,500cc SV AT Bt715,000 Qualifies

Honda City 1,500cc SV AT (SRS) Bt694,000 Qualifies

Mazda2 1,500cc  4dr/5dr Maxx AT Bt695,000 Qualifies

Overview of Ford's operations in Thailand:

_Investments totalling nearly US$2.5 billion (Bt76.23 billion) in Thailand as a key

   global manufacturing and export hub;

_AutoAlliance Thailand/Ford Thailand Manufacturing - combined annual production

   capacity of 425,000 units;

_Local production of Ford Fiesta, Ford Ranger, Ford Everest and Ford Focus

   (in mid-2012);

_Commitment to building and launching eight all new "One Ford" global vehicles

   in the next five years, with Thailand as a production base;

_Direct employment of more than 8,500 workers and indirect employment of 25,000

   more through dealer and supplier networks by mid-2012;

_Ford's Driving Skills for Life driver-safety programme has trained more than 4,000

   participants free of charge since 2008.