The local unit of Japanese car maker Isuzu does not plan to expand next year, as it expects slowing sales due to a slowing global economy.

Isuzu Philippines Corp. which, like other manufacturers has enforced cost-cutting measures to cope with the crisis, may also hike car prices next year due to a weakening peso, which makes imported parts more expensive.

Still, the company expects to maintain sales figures next year. Isuzu expects to sell around 10,000 cars this year.“We feel we won’t get much affected since our products are commercial vehicles,” Arthur A. Balmadrid, Isuzu Philippines corporate business division vice-president, said in an interview on Tuesday night.

He added that the company’s products, which range from Asian utility vehicles to trucks, are mainly used for business.

Mr. Balmadrid noted that with the crisis, consumers might prefer Isuzu’s cars, which are light commercial vehicles that can be used in the transport business. Entrepreneurs, he said, could use the utility vehicles as 10-seater taxis, while Isuzu’s pick-up trucks may be used for deliveries.

A report by the Chamber of Auto Manufacturers in the Philippines, Inc. showed that almost two-thirds of cars sold in November were light commercial vehicles. The rest were smaller passenger cars.

Mr. Balmadrid noted that as of end-November, the company had sold around 9,200 cars. They expect to meet this year’s sales target since Isuzu sells 800 to 900 units a month.

Isuzu launched its 2009 model of the Alterra sports utility vehicle. It will also introduce new models of the D-Max and Crosswind next year. — Paolo Luis G. Montecillo

Meanwhile, he said to cope with the crisis, the company has put a cap on the amount of over-time employees may take. The company said it also had no plans to expand next year in the face of slowing sales.

Other local auto makers in the country have been implementing similar cost-reduction efforts to try to avert job cuts.

Last September, Ford Motor Co. Philippines offered 28 officials, including 18 assistant vice-presidents, early retirement packages to help the company cut expenses in light of the global economic downturn.

Ford officials said the job cuts were done to “cement the company’s financial position.”

Meanwhile, industry leader Toyota said while it had no job cuts planned as of yet, worsening financial conditions may force the company to consider the option.

The CAMPI report showed a 0.7% decline in Toyota sales in November to 4,137 units, from 4,168 in November last year.

Total car sales went up by 8.3% to 114,365 units in January to November from a year earlier.

The industry hopes to sell 125,500 cars by the end of the year. Next year, however, CAMPI is projecting flat sales growth due to sluggish demand.

Paolo Luis G. Montecillo, Business World

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