New and Used Car Talk Reviews Hot Cars Comparison Automotive Community

The Largest Car Forum in the Philippines

Page 1 of 4 1234 LastLast
Results 1 to 10 of 34
  1. Join Date
    Jun 2007
    Posts
    2,854
    #1
    Isuzu exec says proposed local automotive roadmap 'completely wrong'




    By: Likha Cuevas-Miel, InterAksyon.com
    December 10, 2013 4:18 PM



    MANILA - A Japanese executive of Isuzu Philippines Corp has openly criticized the Aquino administration's roadmap for the automotive industry, saying the path the government wants car makers to take is "impossible".

    Takashi Tomita, Isuzu Philippines' executive vice president, told reporters on Tuesday that the proposed roadmap for the industry would not encourage growth and jobs generation--something that is sorely needed in a country that has a jobless rate of 6.5 percent as of the third quarter.

    When asked if Trade Secretary Gregory L. Domingo is pushing the auto industry in the wrong direction, Tomita said: "Yes. It's completely wrong."

    He said the target of making 40,000 units per model for each car manufacturer to be able to enjoy incentives from the government is "impossible" to reach given the high cost of building automobiles in the Philippines.

    "It's too high. No one can follow that," the Japanese executive said.

    To make matters worse, the local car market is small, relative to other countries in the region. As of October this year, Thailand has already sold 1.123 million units while the Philippines has only 148,000 units.

    Toyota takes the crown for being the biggest car maker in the Philippines, churning out 15,000 units of Vios model a year. But ASEAN data show that is minuscule compared to other countries.

    Tomita said even though 90 percent of the vehicles they sell in the Philippines are assembled locally, the parts are still imported from Thailand and other manufacturing hubs, adding to the cost of each unit.

    The All-New Isuzu D-Max that the company introduced in the local market in September is now being manufactured here starting December 4. The first batch of the pick-up trucks sold in the country were completely built units (CBU) from abroad.

    The company's trucks and its Asian utility vehicle, Crosswind, are also locally manufactured. Only the Isuzu Alterra model comes in showrooms as CBUs from Thailand, the region's car manufacturing hub.

    Tomita said that despite the higher manufacturing costs--which the company absorbs for the time being--Isuzu Philippines still keeps its factories in the country because "this is the future market. At 100 million population, the potential is big."

    It also pays to spread one's manufacturing hubs around the region and not put everything in one basket--a painful lesson car makers learned after the Thailand flooding in 2011.

    However, Tomita said that they can only bear to continue with the localization of its car manufacturing until October 2014--with the aim of sourcing 20 to 25 percent of all Isuzu vehicle parts from the Philippines. However, without government support, Tomita could not say what would be their next step after October.

    "I'd rather ask the government to protect the local assembly and supply. Otherwise, other manufacturers would be like Ford," he said.

    The American car maker has closed down its only Philippine plant in Sta. Rosa, Laguna in December last year as part of the company's restructuring of regional operations, high manufacturing cost and small market.

    source: Isuzu exec says proposed local automotive roadmap 'completely wrong' - InterAksyon.com

  2. Join Date
    Oct 2002
    Posts
    29,354
    #2
    LOL.... 40,000 cars a month from EACH car maker?

    To what I remember, the total cars all the car makers sell in a year in the Philippines is roughly around 150,000.

    The someone is trying to sell B.S. to the public.

    We have to be honest about our local car industry. It is VERY SMALL when compared to other countries.

  3. Join Date
    Oct 2012
    Posts
    1,736
    #3
    Reality has always been the problem of our government. Our government's goals for manufacturing can be summed up in three words... Delusions Of Grandeur.

  4. Join Date
    Nov 2005
    Posts
    45,927
    #4
    pinost ni jpdm ito yesterday:

    Philippines becoming investment magnet in ASEAN ? Jetro | Manila Bulletin | Latest Breaking News | News Philippines

    Tokyo, Japan – The Philippines is outpacing Southeast Asian neighbors in attracting Japanese investments, with the usual challenges of putting up businesses a thing of the past.

    While other Southeast Asian countries face a number of challenges, two main constraints in the Philippines are “difficulty in local procurement of raw materials and lack of employees,” said Isamu Wakamatsu, director of the overseas research department (Asia and Oceana) of the Japan External Trade Organization (Jetro).

    Other members of the Association of Southeast Asian Nations (ASEAN) face other problems like wage issues and low quality of employees.

    Jetro is a government-related organization that promotes mutual trade and investment between Japan and the rest of the world.

    Wakamatsu said wage issue is the number one concern of Japanese investors planning to put up businesses in Vietnam, Thailand, Indonesia and Malaysia.

    “The new trend is (that) Japanese investment is growing in the ASEAN,” Wakamatsu said.

    In the past, the Philippines lagged behind ASEAN neighbors in attracting Japanese investments but recent robust economic development as well as a strong economic foundation is changing that.

    Based on statistics, there will be a slowdown of Japanese investments in Thailand and Indonesia, Wakamatsu said.

    As for the Philippines, the prospects “will continue in a high level,” he said.

    Wakamatsu’s observation echoed a separate survey conducted last year on Japanese expatriates which rated business challenges in Asia.

    In the Philippines, top two issues were mentioned: difficulty in procuring raw materials and lack of employee performance.

    By comparison, the main challenges in Malaysia are wage increase, operational costs and quality of employees. In Thailand, the challenges are: wage increase, competitors’ market share are growing; lack of employee performance; difficulty in hiring executive staff and high prices.

    In Indonesia, wage issues, competition, difficulty in hiring qualified staff and quality of employees are the main concerns. In Vietnam, wage increase, lack of raw materials, red tape, legal problems, tax procedures and lack of quality bug potential investments.

    The survey also showed the Philippines beating China and India in all departments, with wage increase, high operational costs, and quality of employees among the many concerns.

    Available data from select countries show that labor restiveness remains high but this has gone down in the Philippines.
    in that article Jetro didnt mention high manufacturing cost in the Phils. and the small market

    In the Philippines, top two issues were mentioned: difficulty in procuring raw materials and lack of employee performance.
    but the Isuzu executive cited 2 problems with the Phils. -- high manufacturing and a small market

    He said the target of making 40,000 units per model for each car manufacturer to be able to enjoy incentives from the government is "impossible" to reach given the high cost of building automobiles in the Philippines.
    To make matters worse, the local car market is small, relative to other countries in the region. As of October this year, Thailand has already sold 1.123 million units while the Philippines has only 148,000 units.

    Toyota takes the crown for being the biggest car maker in the Philippines, churning out 15,000 units of Vios model a year. But ASEAN data show that is minuscule compared to other countries.

  5. Join Date
    Nov 2005
    Posts
    45,927
    #5
    Tomita said that despite the higher manufacturing costs--which the company absorbs for the time being--Isuzu Philippines still keeps its factories in the country because "this is the future market. At 100 million population, the potential is big."
    a 100 million people population doesnt guarantee a big market

    China has 1.35 billion people. India has almost 1.3 billion people. the US has a liittle over 300 million people

    but the US is the world's biggest consumer

    how can a country of 300 million people consume more than countries with over a billion people? ACCESS TO CREDIT

    how many out of the 100 million Filipinos can get a car loan?

  6. Join Date
    Aug 2004
    Posts
    22,705
    #6
    Let's be realistic.

    Tax incentives should be there for anyone building at least 1,000 units a year.

    Hell... incentives should be there for anyone building anything, even in the dozens. Setting the bar at 40k per month is like asking a local carinderia to do 500,000 a day in sales.

    Ang pagbalik ng comeback...

  7. Join Date
    Jan 2005
    Posts
    6,059
    #7
    Quote Originally Posted by K.I.L.L. View Post
    Reality has always been the problem of our government. Our government's goals for manufacturing can be summed up in three words... Delusions Of Grandeur.
    Our gov't comes up with their decisions by guessing. Research is not an option.

    Sent from my Nexus 7 using Tapatalk 2

  8. Join Date
    Nov 2005
    Posts
    45,927
    #8
    Quote Originally Posted by niky View Post
    Let's be realistic.

    Tax incentives should be there for anyone building at least 1,000 units a year.

    Hell... incentives should be there for anyone building anything, even in the dozens. Setting the bar at 40k per month is like asking a local carinderia to do 500,000 a day in sales.
    yeah incentives should to be given to any who creates jobs

  9. Join Date
    Jun 2007
    Posts
    2,854
    #9
    Car makers seek release of industry road map



    By Louella D. Desiderio
    (The Philippine Star)
    Updated December 18, 2013


    (edited)


    MANILA, Philippines - With the road map for the automotive industry not likely to be released this year, local vehicle assemblers are urging the government to come up with the plan by the first quarter of next year as having the road map would be crucial in making investment decisions in the country for local carmakers.

    “Major decisions are expected to be made and roll out of the road map by the first quarter of next year will be very crucial,” Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) president Rommel Gutierrez said in a text message yesterday.

    He said that while the group understands the government needs more time to come up with a realistic and meaningful road map for the industry, the plan has to be released soon.

    “Time is of the essence though and industry players have been eagerly waiting for the government to announce the road map,” he said.

    The CAMPI has said earlier the government needs to release the road map within this year for firms to determine whether to make additional investments for assembly operations here and prepare for the Association of Southeast Asian Nations (ASEAN) Economic Community to be established in December 2015.

    Trade Secretary Gregory Domingo said earlier this month it is unlikely for the government to release the road map for the automotive industry this year as the National Economic and Development Authority (NEDA) Board wants more information on the local industry’s performance.

    “The NEDA Board requested for more comparative info among our ASEAN neighbors,” he said.

    Under the proposed road map, the Department of Trade and Industry wants to provide incentives to automotive firms which meet the minimum volume of production of 40,000 units per model per year.

    This, as it wants the automotive firms to become competitive and be able to export to other countries.

    Local vehicle assemblers have said the proposed minimum volume of production, however, is not realistic and would not support the growth of the industry.

    Latest data from the ASEAN Automotive Federation showed that the Philippines remained Southeast Asia’s laggard in terms of motor vehicle production in the January to October period as it manufactured only 66,566 units.

    In the same period, Thailand assembled a total of 2.115 million vehicles, while Indonesia produced 1.002 million vehicles, Malaysia manufactured 494,417 vehicles and Vietnam made 73,653 vehicles.

    Car makers seek release of industry road map | Business, News, The Philippine Star | philstar.com

  10. Join Date
    Sep 2003
    Posts
    25,039
    #10
    A minimum volume of production of 40,000 units per model per year???

    First they killed off the mining industry...and now...

    Another reason why there's no advantage in putting up investment in the wishy-washy Banana Republic..

    Last edited by Monseratto; December 18th, 2013 at 02:37 PM.

Page 1 of 4 1234 LastLast

Tags for this Thread

Pnoy's Auto Road Map