SKD, CKD or CBU?

[BlueBimmer]

this thread reminds me of Psylocke's honda city

[niky]

Our labor problems aren't as bad as the US... but then the US is getting a little better, with the slow removal of unions from the automotive workforce...

As to whether CBU, SKD or CKD, I will say:

It's the company, not JUST the workers.

Ford/Mazda and Nissan have received JD Powers initial quality citations for products built here. Initial quality is not very indicative of reliability, like the three year quality mark JD usually gives, but it is more indicative of tightness of assembly.

It's too hard to generalize the general workmanship of a country based on one company's products, because that company's quality practice will always reflect on its products, no matter where they're made.

For me? CKD, all the way. Of course, realistically, that's far off.

----

BTW, I was going to post this article, too, but focusing on the "People's Car". Would it be too hard to ask Ford for the manufacturing equipment for say, the Lynx and produce stripper-version (with an LPG ready engine) for the taxi market? Or to ask Toyota for the equipment for the old Revo, to continue on as Tamaraw?

[Blackraven]

evo8/9, previa, murano, etc...

These are better off as CBU from Japan

The ones that would most likely be recommended for local production (CKD, SKD or ground-up) are those that are more mainstream (Corolla Altis, Sentra, Mazda 3, Ford Focus).

But then again, it's not that simple though (depende sa country of origin, quality of manufacturing, etc.)

IMO I wouldn't mind if the upcoming Camry would be built here locally and this is because Toyota Phils. has spent more than 20 million pesos to upgrade its facilities thus meaning much better quality control. Same goes with Ford if they ever release a Mondeo for us, then they can produce it here (since Ford Group Phils. factory is very high quality). Same goes for the already-efficient Nissan factory of NMPI and they even announce to spend 10 million pesos to upgrade again as they will produce a Minivan/MPV by next year.

Yet however, I still don't want a locally-assembled Honda Accord. HCPI is still known for producing lemon units and despite this, they didn't announce any plan to upgrade and improve thinking that they can sell a great model by hiding their quality and flawed manufacturing. HCPI thinks they can fool us with sub-par build quality/reliability but I won't be fooled by such antics.

As stated in the other thread, if HCPI doesn't shape up ASAP, then I'd rather buy Honda vehicles that are made in Malaysia, Thailand or better yet....from Suzuka, Japan (top-class Honda factory in Japan)

Based on the current situation, imported Honda CBU vehicles are generally better than what HCPI makes locally.

[Blackraven]

I don't want to see this vehicle made locally.



If they don't shape up, then why the hell would I buy a locally-made Honda Elysion that has crappy build quality/reliability???

Thinking that they can just make it here and say that it was built good because it is luxurious and has lots of premium features yet, present with lots of vehicle problems.

Sure, the vehicle is premium but the factory that makes it IS NOT premium. Heck, doesn't even come close to decent.

Seriously, if ever this comes to our shores, we'd all hope that this would be in the form of a CBU import from Japan.

I guess in the end, my verdict is, a premium vehicle may be possibly manufactured here...........except for Honda.

I hope that by next year, Honda Philippines would start bringing a few more CBU vehicles from Japan

[romski123]

I think this is worth looking at:



November 8, 2006

[SIZE=5]Local parts makers push for PhUV incentives[/SIZE]

[SIZE=4]Local parts makers are pushing for the government to grant incentives to all the participants in their proposed Philippine Utility Vehicle (PhUV) Program. The PhUV Program proposes the production from completely-knocked down (CKD) kits of brand-new vehicles at the price of a used vehicle but with a high level of value-added local parts.[/SIZE]

[SIZE=4]They cite as an example Malaysia, which imposes zero percent import duty on vehicles produced from CKD kits but charges a higher 5% for vehicles imported as completely-built units (CBU). CKD kits have value-added local parts while there is none in a CBU kit. Local parts makers believe this could also be done as a PhUV Program incentive to help the ailing local parts industry.[/SIZE]

[SIZE=4]Thailand on the other hand, which is the biggest auto industry in the Asean region, decided to focus on a niche market: the one-ton pickup and its various variants, some of them SUVs. While they imposed a 30% excise tax for passenger cars, they charged only a very low 3% for the pickup. [/SIZE]

[SIZE=4]It also imposed a very stiff 80% tariff for passenger cars imported CBU outside of the Asean region while only a lower 30% is charged for the same vehicle imported in CKD form from outside of the Asean region. Even its future MFN rates under AFTA/CEPT are 40% to 80% for CBU and only 30% for CKD.[/SIZE]

[SIZE=4]These incentives made Thailand the biggest pickup market in the world outside of the USA. The local parts makers think that the same could also be done for the PhUV Program to reduce its price and make it affordable.[/SIZE]

[SIZE=4]Furthermore, Thailand also offers excise tax incentives for vehicles with energy saving devices (10% instead of 30%) and those running on alternative fuel (20% instead of 30%). Again, the local parts makers say this could be an incentive for users to decide to buy a PhUV. Other incentives they have in mind would be lower LTO registration fees and lower interest rates from banks for car financing so as to spur PhUV sales.[/SIZE]

[SIZE=4]Next door neighbor Indonesia has a Taxes & Tariff Liberalization Program that charges CKD kits taxes and tariff over 50% lower than CBU importations. Examples are for sedan type cars, it is only 25% for CKD but 60% for CBU; for SUV and pickup, it is only 20% for CKD but 45% for CBU and for buses, it is only 20% for CKD but 40% for CBU. This large disparity in taxes and tariff could be applied locally so that assemblers can be encouraged to import and manufacture vehicles in CKD form and thus help revive the moribund local parts industry.[/SIZE]

[SIZE=4]Local parts makers are pinning their hopes on the government adopting some of these incentives granted by the Philippines’ Asean neighbors to its auto industry. For a start, they are proposing that in the meantime, BOI incentives be given to local parts makers participating in the PhUV Program similar to those extended to BOI-registered enterprises under the Investment Priorities Plan (IPP) of 2004. The incentive package includes income tax holiday for up to six years, duty-free or duty reduced importation of capital equipment, tax and duty-free importation of spare parts and supplies and tax credit on raw materials and supplies. [/SIZE]

[SIZE=4]For the last few successive years, Philippine vehicle industry sales are not expected to grow or even surpass the 100,000-unit sales level, and with the expected increase in assemblers’ CBU importations, local parts makers and some 28,000 workers dependent on them are hoping that the PhUV Program can finally take off with a package of incentives and ease their burden.[/SIZE]

[rey_rya]

CBU ako. mahirap ung matyempuhan ka ng labor problems dto then magkaproblema unit mo..

Yan ang problema sa Phils, hindi stable ang governing policy nila (sa lahat ng bagay siguro sa govt. di ba?)