Pnoy's Auto Road Map

[jpdm]

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

[ghosthunter]

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.

[K.I.L.L.]

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.

[uls]

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.

[uls]

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?

[niky]

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.

[falken]

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

[uls]

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

[jpdm]

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

[Monseratto]

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..

[ocanursjr]

Yeah... PigNoy is unrealistic. Purpose kasi minecraft nasa mind nya...

[jpdm]

Hi oca!


Auto parts makers mull expansion


by Bernie Magkilat
December 23, 2013

Domestic motor vehicle parts makers are now contemplating of expanding their operations in the country if the government will give them the right clear cut directions, incentives, and favorable business environment.

This developed as the 125-member Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) also called for the immediate approval of the auto industry roadmap.

The auto industry roadmap is expected to provide clearer short, medium and long-term directions for the local auto industry. This includes the local auto parts sub-industry and the alternative fuel vehicle (AFV) sub-industry such as the emerging electric vehicles segment.

In a statement, MVPMAP president Ferdinand Raquelsantos said the associations hopes to participate more strongly in the growing Philippine auto market.

“Given the right clear-cut directions, incentives and business environment, some car manufacturers who have local manufacturing in the country are now contemplating on expanding their operations here,” Raquelsantos said.

“This is a tremendous opportunity for the Philippines auto industry which employs some 70,000 highly skilled workers, including those in upstream and downstream sectors. And this has a multiplier effect of 3.6 per employee, one of the highest in the manufacturing sector”, he adds.

According to Raquelsantos, in many developing countries, the automotive industry is one of the backbones of their manufacturing industry, but stressed this is not the case in the Philippines.

MVPMAP said that car manufacturers have now reached a tipping point. These firms need to make concrete and firm decisions now as the year 2013 draws to a close.

The domestic auto industry has already missed the boat several times already in the past and this has resulted in the local auto industry being left behind by our Asian neighbours.

Vietnam, the new kid on the block, is even poised to overtake the Philippines in the auto industry where the Philippines used to be a forerunner in the region.

If only the government will play its card right, MVPMAP believes the country can get the much-needed foreign investments which will help expand local production of vehicles in country.

This is turn will give the local auto parts making and AFV industries a much-needed shot in the arm.

The association said it expects to double the jobs generated by the auto industry to about 140,000 people. These investments will also be more tangible as it will entail hard investments in real estate, capital equipment and raw materials that will be needed when factories are expanded.

“The regional automotive industry ‘boat’ is about to sail again and this time, it is about to decide where to dock. Let us not miss the boat this time around. It may take years again before the boat ever decides to make its next voyage. By then, it may be too late for our ailing auto industry,” Raquelsantos said.

Auto parts makers mull expansion | Manila Bulletin | Latest Breaking News | News Philippines

[Walter]

That's a big IF.

[uls]

jpdm has been posting press releases for more than 5 years

[ocanursjr]

Hi jpdm... How's everything? Happy New Year!!!

Good news for auto parts maker means good for economy.

[jpdm]

Happy New year oca!

Admittedly, uls is correct. Ive been posting press releases coming from DTI, parts makers and other auto players and yet nothing has happened so far. Its already 2014 and the auto program called MVDP of Arroyo is now known as auto road map under Aquino is still on the drawing board.

Puro planning na lang..

Anyway, I will just hope na lang.:old:

[ocanursjr]

Happy New year oca!

Admittedly, uls is correct. Ive been posting press releases coming from DTI, parts makers and other auto players and yet nothing has happened so far. Its already 2014 and the auto program called MVDP of Arroyo is now known as auto road map under Aquino is still on the drawing board.

Puro planning na lang..

Anyway, I will just hope na lang.:old:

In fact, wala talagang aasahan sa Gobiernong PigNOY at puro drawing lang.

[jpdm]

Auto roadmap should encourage local assembly – Nissan



by Bernie Magkilat
March 9, 2014

Toshiyuki Shiga, the second highest ranking official in Nissan Motor Co. Ltd., has urged the Philippine government to craft a comprehensive automotive industry roadmap that will encourage local assembly as he cited the worrisome widening share of imported completely built-up (CBU) cars in the local market.

Shiga said during a roundtable media discussion following the introduction of the newly consolidated Nissan operations in the country under Nissan Philippines Inc.(NPI) on Friday that he proposed to the Department of Trade and Industry to include the Department of Foreign Affairs and the Department of Finance in the crafting of the automotive industry roadmap to make this automotive industry strategy comprehensive.


The DTI is largely involved in the industrial strategy, but the Department of Foreign Affairs should also be included to take care of government treaties that may be affected in the auto roadmap. The DOF is also necessary to address tax incentive issues.

Shiga, who met with the DTI officials at the Philippines-Japan Economic Cooperation Committee recently held here, was informed that the “the roadmap was already agreed upon and the DTI is ready to execute the roadmap, but there are still some internal government discussions.”

NPI’s future plans in the country, along with other car companies, will also depend on the outcome of the industry roadmap, he said.

Shiga, who spearheads Nissan’s overall ASEAN operation, was alarmed that the share of imported CBU packs now dominates the domestic market with 60 percent share while the share of locally assembled cars is going down to 40 percent.

The Philippine situation runs counter to the trend in the region where locally assembled cars are at a high of 90 percent than imported CBUs. Indonesia and Thailand alone, their share of imported CBU packs is less than 10 percent of the market. Locally- assembled cars also account for 87 percent of the Malaysian car market.

Shiga further noted the highly underutilized production capacity of the domestic industry. At present, the industry has a total production capacity of 200,000 units, but there are only 70,000 to 80,000 cars being produced by local assemblers.

He, however, hopes that once that the motorization stage finally catches up on the Philippines, there will be more demand for locally assembled motor vehicles.

When that time comes, Shiga said NPI will have to maximize the existing capacities of the assembly facilities of its two partners Universal Motors Corp. and Nissan Motor Philippines Inc., which account for 24.5 percent share each in NPI.

He added that the ASEAN integration by 2015 presents a big opportunity for companies to maximize their potentials in this huge consumer-driven market.

He also expects companies to increase local content in their products to offset cost of foreign exchange.

“The Philippines has a strong potential and Nissan, too, under the ASEAN single market,” he added.

For now, NPI will have three major models in the country. These are Selphy, Altima and Almera.

Manila Bulletin | Latest Breaking News | News Philippines | Archive | Trade

[Monseratto]

Hintayin na lang ang next president and his road map. With two years left, no use wishing this administration will be coming out with a win-win policy...

[niky]

Auto roadmap should encourage local assembly – Nissan


by Bernie Magkilat
March 9, 2014

The Philippine situation runs counter to the trend in the region where locally assembled cars are at a high of 90 percent than imported CBUs. Indonesia and Thailand alone, their share of imported CBU packs is less than 10 percent of the market. Locally- assembled cars also account for 87 percent of the Malaysian car market.

Manila Bulletin | Latest Breaking News | News Philippines | Archive | Trade

Well... it's not hard to imagine why the Philippine situation is reversed. Tell Nissan and everyone else to stop building cars in Thailand, Indonesia and Malaysia... tapos!

-

That's what happens with free trade agreements. Wherever it's cheapest to build cars, that's where they'll build cars. And it's not cheap here, so they don't build them here.