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  1. Join Date
    Sep 2003
    Posts
    25,038
    #1
    It Sucks Doing Business in the Philippines!

    (UPDATE) MANILA, Philippines – Ford Motors on Tuesday said it has shut down local assembly of the Mazda 3 car, with production of the Focus model scheduled next for transfer to Thailand.

    Officials said the company was moving production of the two models out of the Philippines because of high manufacturing costs in the country and its small market.

    Edward Krieger, Ford Motor Co. Philippines chief, said the cost of building and shipping out a Focus from the Philippines was $1,500 more expensive than in Thailand.

    He said the manufacturing cost gap was “too big” for the company to justify the continued export of the car model.

    On top of higher production costs, the Philippines has a smaller car market and parts supply base than Thailand to warrant an investment of $450 million for a new state-of-the-art plant to churn out Focus units late this year.

    The Thai investment pales in comparison to the $270 million that Ford plunked in the Philippines for the assembly of flexi-fuel engines of the car model.

    Ford’s move comes as Thailand, considered Southeast Asia's Detroit, has yet to fully recover from floods that disrupted supply chains of motor vehicle assemblers and electronics makers across the region. The break in the region's supply chain led to a four percent contraction in Philippine auto sales.

    Ford was the Philippines' only auto exporter, and in 2010 shipped out 9,858 units, including the Focus, to sister companies in Indonesia, Malaysia and Thailand.

    The Aquino administration is no longer pursuing the Comprehensive Motor Vehicle Development Program drafted by the previous government. This as the Philippine auto industry has failed to expand its volume of CBU exports, with shipments abroad limited to parts such as wiring harness and transmissions.

    Krieger said the $400-per-unit incentive the Philippine government gave already expired in 2010. The company is still negotiating with the Aquino administration for the reinstatement of this fiscal perk to keep local production of the Ford Escape, which is the only model assembled in the country.

    Assembly of the Mazda 3 ceased last month, with production transferred to Thailand and Japan.
    Ford shifts Mazda 3, Focus production to Thailand after loss of tax perk - InterAksyon.com

  2. Join Date
    Nov 2005
    Posts
    45,927
    #2
    hahaha

    paano yan local-auto-industry cheerleaders?

    the Phils. is so freaking business-unfriendly that even the huge losses caused by the flood in Thailand is NOT discouraging enough to make auto companies transfer to the Phils. the flood isnt destructive enough to make Thailand less attractive than the Phils.

    NOT ONLY THAT, Ford now wants to move its Phil. operations to Thailand. Ford would rather take risk in Thailand than stay here. ganyan ka-unfriendly and unattractive ang Pinas.

    amazing

  3. Join Date
    Oct 2011
    Posts
    13
    #3
    So magtataas kaya presyo ng 2012 Focus since hindi na sa Pinas gagawin?

    Offtopic, saan ba ginagawa ang Fiesta? dito rin ba sa Pinas? E yung parts?

  4. #4
    Quote Originally Posted by porkchops View Post
    Offtopic, saan ba ginagawa ang Fiesta? dito rin ba sa Pinas? E yung parts?
    OT Answer - Sa Thailand po assembly line nang Fiesta.

  5. Join Date
    Sep 2003
    Posts
    25,038
    #5
    Quote Originally Posted by porkchops View Post
    So magtataas kaya presyo ng 2012 Focus since hindi na sa Pinas gagawin?
    Malamang mas mura...

    From article:

    Edward Krieger, Ford Motor Co. Philippines chief, said the cost of building and shipping out a Focus from the Philippines was US$1,500 more expensive than in Thailand.

(NEWS)Ford shifts Mazda 3, Focus production to Thailand after loss of tax perk