The Year That Was: Local Auto Industry’s Growth Slows in 2008

A government bailout for the Big Three US automakers, the world’s leading carmaker Toyota suffering its first loss in 70 years, and weak sales in the European market. With big players in mature markets in trouble as a result of the slowdown in the world economy, is the Philippine auto industry not far behind?

For 2008, industry insiders are already predicting auto sales to grow much slower than the 18-percent expansion last year, decelerating further to single-digit rate in 2009.

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), the umbrella group of the country’s leading motor vehicle assemblers, however, says the local industry is better off than the American and European markets because growth, albeit small, is still expected. Read more

Tight Car Financing Seen in 2009

The global financial meltdown is expected to affect significantly the sales of entry-level vehicles, bulk of which are financed by bank loans.

“The impact of the crisis is on the entry-level vehicles because banks are already starting to implement more stringent rules in car financing,” Froilan Dytianquin, assistant vice president for marketing of Mitsubishi Motors Philippines Corp., told reporters.

Entry-level cars are those with price tags of P600,000 or less apiece. Read more

Toyota Tops After-Sales Customer-Satisfaction Study

Toyota Motor Phils. (TMP) ranked number one in customer satisfaction with regards to after-sales service in authorized dealerships, according to the J.D. Power Asia-Pacific 2008 Philippines Customer Satisfaction Index (CSI) study that was conducted in September.

J.D. Power Asia-Pacific General Manager for Philippines Taku Kimoto presented the award to TMP President Hiroshi Ito during the company’s customer service committee meeting held on November 28, TMP revealed in a statement.

TMP scored 843 points, six points above industry average. Read more

Unioil to Put Up More Retail Stations

Unioil Philippines Inc. is investing up to P160 million next year to put up at least eight new retail stations in Metro Manila and nearby provinces.

Chito Medina-Cue Jr. told reporters over the weekend that they have already identified the areas for the new gas networks.

Cue admitted that they will be more aggressive next year despite the financial crunch.

“Unioil constructed only two stations this year. But we will continue to invest more. Our customers want us to set up more stations,” he said. Read more

Mitsubishi Zooms Back to Second Spot as Parent Company Ails

Mitsubishi Motors Philippines Inc. has managed to claw back to the number two spot in the local automotive industry after being relegated to the fourth by the other Japanese carmakers in 2006 and 2007.

Its sales feat becomes more spectacular as its mother company in Tokyo has been battling $1.3 billion in losses and has to lay off 1,100 contractual workers.

Mitsubishi officials said the local outfit remained in the black after cutting its workforce by 76 percent—from 3,000 to 700— since 2003, but declined to release estimates until the official figures were out.

As of Nov. 30, Mitsubishi has sold 15,984 units for a 19.6-percent annual growth, capturing 14 percent of the local market. Toyota remained on top with sales of 41,997 units for an 8-percent growth rate and a 33-percent market share, according to figures from the Car Manufacturers of the Philippines Inc. Read more

British Research Firm Bullish on RP Vehicle Mart

PHILIPPINE auto sales may grow at a rate that is higher than what the local industry expects, according to a new study by the Business Monitor International Ltd.

The study also indicated that the relatively unserved market segments would boost growth prospects for 2009.

The London-based market research firm said sales could grow by 8 percent, to more than 127,000 units. The projected growth rate, however, is lower than the 18.3 percent posted in 2007.

The Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association said they were expecting to sell only 125,000 units this year, or a growth rate of 6 percent. Read more

Kia Carens Bags Auto of the Year Award

In what may turn out to be Kia’s winningest year in the Philippines, the Kia Carens romped to victory with the much-coveted Automobile of the Year award in the Petron 2008 Auto Focus People’s Choice Awards held at the Valle Verde Country Club last Dec. 5.

The Kia Carens, fresh from this year’s pick by the Car Awards Group-Philippines as Compact Van & MPV Car of the Year, also emerged as People’s Choice Mini Van while the Picanto was voted Sedan Subcompact. The Kia Sorento was runner-up in the Midsize SUV and the Carnival was also runner-up in the Fullsize Van category.

The awards were accepted by Felix Mabilog Jr., president and chief operating officer of Columbian Autocar Corp., the official distributor of Kia in the Philippines, at the glittering awards ceremonies attended by the major movers and shakers of the local auto industry as well as the country’s motoring media. Read more

Chrysler, Ford Shut Down Plants; GM Delays Major Factory Project

Chrysler is closing all its North American manufacturing plants for at least a month, the starkest move yet taken by US automakers as they anxiously await word about government loans.

The shutdown comes as The Wall Street Journal reported that Chrysler has restarted talks with General Motors about combining the two ailing automakers.

Chrysler, GM and Ford have been taking dramatic steps as they struggle to survive the recession and US sales have dipped to their slowest rate in 26 years. Chrysler and General Motors fear they might not have enough money to pay their bills in a matter of weeks.

Attempting to cut costs, GM was halting construction of a plant tied to one of its most important projects, the Volt. Ford also said it will shut down 10 plants for an extra week in January because of sluggish sales. Read more

2009 Honda City Rolls Off Production in RP

The much-anticipated 2009 Honda City recently rolled off the assembly line at the manufacturing plant of Honda Cars Philippines, Inc. (HCPI) in Sta. Rosa, Laguna.

The third-generation Honda City will be sold in the local market starting on the first quarter of 2009.

“Proud to be Philippine-made, the production of City is a testament to Honda’s long-term confidence in local manufacturing operations,” said HCPI President and General Manager Hiroshi Shimizu during the roll-off ceremony in December 2008. Read more

Mitsubishi Philippines to Launch 4 Models in 2009

Despite the uncertainties in the local automotive market, the country’s second biggest car assembler Mitsubishi Motors Philippines Corp. will continue to perk up the market with the launch of four net models next year.

Froilan Dytianquin, Mitsubishi Motors Philippines Corp. assistant vice-president for marketing services, revealed this to reporters even as he said that the company is setting a flat growth target in 2009 of only 18,500 units from this year’s expected 18,000 unit sales.

“The company has difficulty coming up with a sales forecast whether it is a growth or a decline because of the uncertainties in the local market as a result of the automotive crisis in the US,” Dytianquin said. Read more

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