Everyone’s rough idea of what a Free Trade Agreement (FTA) means, is that two countries can export/import to each other without duty, keeping the costs down for both countries. Unfortunately, it doesn’t quite work that way.
Despite the supposed FTA, Thailand imposes a 60 percent “registration” penalty on foreign cars with petrol engines over 3.0 liters in capacity, but this is reduced to 50 percent for diesel engines over 2.0 liters. A ‘rose’ by any other name, it would seem.
Ford Territory from Down-Under.
However, Ford Australia has sent 100 of its locally built and designed Ford Territory SUV to Thailand. These were all top of the line AWD ‘Titanium’ diesel variants with which FoMoCo is gauging public interest with an eye towards more substantial export deals down the track. Apparently, Ford were very pleased with the reception the Territory SUV received at the Bangkok International Motor Show this year.
The Thai export deal is a slight reversal of a familiar flow for Ford Australia, with a growing number of vehicles including the Fiesta, Focus and Ranger – plus the forthcoming EcoSport and Escape SUVs – all sourced from Thailand, the third-largest source of vehicles for the Australian new vehicle market surpassing locally manufactured vehicles.
To the end of July, 84,508 Thai-made vehicles were sold in Australia, only beaten by Japan (234,429) and Korea (84,724), but ahead of Australia’s own domestic production (79,433).
Ford Australia president and CEO Bob Graziano said, “Building on the success of the Territory in Australia and New Zealand, we expect the Territory Titanium model to do well in Thailand. It’s clear Thai customers want the roominess of a seven-seater and the features available in the Territory Titanium.”
