MMPC Pursues Plan to Export RP-Assembled MPV to ASEAN
July 28, 2008 by Tsikot
Mitsubishi Motor Philippines Corp. (MMPC) has not given up on its plan to export a locally assembled multi-purpose vehicle (MPV) for the ASEAN market as it sees an opportunity in the production of diesel-fed Fuzion, the planned entry level model, in light of the high fuel prices.
MMPC senior vice president Melchor Dizon told reporters the plan to transform the Philippines as a production for an Asian Utility Vehicle has remained under serious study.
“MMPC’s objective is to be an exporter, that remains to be our aspirational objective,” Dizon said.The all-gasoline Fuzion model, imported as completely built-up unit from Taiwan, was launched in the country last year to test the market. MMPC now sells an average of 100 units a month of Fuzion.
Originally, MMPC was part of a plan by the Japanese carmaker along with China and Taiwan to produce an AUV model.
Fuzion, which is an entry-level sports utility vehicle produced in Zinger in Taiwan, was chosen as the possible entry model. It is called Zinger in Taiwan. Under the plan, the MMPC would serve the ASEAN market.
As part of the original plan, Dizon said MMPC has an investment during the research and development stage of the Fuzion or Zinger, which is now produced in Taiwan and China.
The plan, however, had been moved back several times because there were “several plans by auto companies that we have to realign a lot of things”, Dizon said.
With the high prices of gasoline compared to diesel, Dizon said this have opened doors for the assembly of Fuzion using diesel-fed engines. So far, 80 percent of MMPC’s vehicle line up are diesel-engines.
Mitsubishi locally assembles L-300, Adventure, Canter trucks and Pajero Field Master. The companies imports as CBU packs the following models, Lancer, Galant, Estrada, Eclipse, Outland, Grandis, Space Gear and Montero.
MMPC has remained a consistent second best player in the market for the past three consecutive months.
Dizon has remained confident of hitting its target this year of between 18,000 to 20,000 units from last year’s 15,000 units.
This is because 80 percent of its vehicle line-up are diesel-fed, which customers prefer because of the high cost of gasoline.
“We’re running on the higher end of our target. The impact of high fuel prices have not affected our sales,” he said. MMPC has maintained its ranking for the third consecutive month as the second biggest player in the market.
“What would really affect our sales is the foreign exchange rate,” Dizon said.
In fact, Dizon said the local automotive players are raising prices of motor vehicles effective next month, August, following the weakening of the peso against the U.S. greenback as most of the industry players have pegged their foreign exchange rate at P42 to P43 to the dollar.
Dizon said that industry players have pegged their foreign exchange rate below the P45 level to the dollar.
“At P44 level, there is already pressure to raise prices,” Dizon said. The peso already breached the P45 level last week before appreciating to the P44 level again.
MMPC is the country’s second biggest player and has the most number of completely built-up sports utility vehicle models.
Toyota Motor Philippines Corp., the country’s biggest car maker, is also poised to raise prices in August for its completely built-up units imported from Japan. These models include Prado, Land Cruiser, Previa and Hi-Ace.
Acording to Dizon, for every P1 depreciation of the local currency against the U.S. dollar, the cost impact is P5,000 to P10,000 to every unit depending on the cost structure of the vehicle.
For vehicles in the price range of P600,000, the estimated impact is P10,000 per unit while the high-end vehicles at P10,000.
Aside from the foreign exchange factor, Dizon said that the automotive industry is affected by the high cost of metals, a raw material used in the automotive sector.
Already, its local suppliers have raised prices by 20 percent. If a vehicle’s local content is 50 percent of the vehicle’s cost, then the cost impact of the increase is equivalent to 10 percent of a vehicle’s retail price.
“But we want to cushion, where we can absorb, we will absorb, where we cannot, we have to pass on,” he said.(BCM)
Bernie Cahiles-Magkilat, Manila Bulletin
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when will this happen???