Ford to add 7,000 jobs in US over two years

Ford, the second-largest US car maker, would not be slowing its expansion in Asia, despite slower economic growth in China and India.

hidden September 29, 2011 13:11:15 IST
Ford to add 7,000 jobs in US over two years

Ford Motor Co plans to add 7,000 jobs in the United States over the next two years, its chief executive, Alan Mulally, said on Thursday.

Speaking to a small group of reporters in Bangkok, Mulally, however, declined to comment on progress in negotiations on a new labour contract in the United States with the United Auto Workers. Reports have indicated a deal could be reached this week.

Ford to add 7000 jobs in US over two years

Ford chief executive, Alan Mulally. Reuters

Asked if he was worried about a double-dip recession in the Unites States, Mulally said he expected the economy to continue to expand.

He said Ford, the second-largest US car maker, would not be slowing its expansion in Asia, despite slower economic growth in China and India.

Joe Hinrichs, the head of Ford's operations in Asia, said the company was keeping a close watch on capacity in China but he remained confident in the market there.

He added that he expected to see "tremendous" growth in the Indian market.

Thailand is home to Ford's largest sales operation in ASEAN, which groups 10 Southeast Asian countries.

Strong demand for its Fiesta small cars helped drive Ford's sales in Thailand up 209 percent in August to 2,676 units, boosting overall sales through the first eight months of this year to 20,514 units, according to the company's website.

But Ford is facing a major hurdle after the new government introduced a tax break for first-time car buyers.

This is restricted to cars with engines of up to 1,500 cc, meaning the Thai-built Fiesta with its 1,600 cc engine is not eligible.

Peter Fleet, president of Ford ASEAN, said he remained optimistic that Ford would be able to persuade the government to adjust the rules so the Fiesta could be included.

Reuters

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