Isuzu warns it may follow Ford's lead, shut down PH assembly business

[Bogeyman]

MANILA - Isuzu Philippines Corporation on Friday served notice that it may shut down its local assembly operations amid high costs.

In a briefing, the Japanese carmaker's executives said the company will have to stop production of the DMax pickup truck next year, as local assembly costs $2,000 more than in Thailand.

The company said it would go the way of Ford Motor Philippines, which earlier announced it was shutting down its assembly operations.

Isuzu used to be among the top three motor vehicle manufacturers in the Philippines, particularly when its Asian utility vehicle lineup had enjoyed tax perks. Since the incentive ended, the company's share of the market has gone down.

Established in the 1950s, the Philippine unit of Isuzu made its mark through its lineup of trucks. On August 7, 1995, Isuzu Philippines Corporation was born as a joint venture among two Japanese firms - Isuzu Motors Limited and Mitsubishi Corporation - and two Filipino companies - Ayala Corporation and Rizal Commercial Banking Corporation.

Isuzu Philippines has 13 hectares of industrial land at the Laguna Technopark in Biñan, Laguna, where the company has a plant that could produce 15,000 units a year.

In the first eight months of this year, the company enjoyed a 21 percent growth, selling 1,022 units of its N-Series of light-duty trucks for a 69 percent share of that segment of the local market.

Isuzu warns it may follow Ford's lead, shut down PH assembly business - InterAksyon.com

[timrev]

naku masamang balita yan...

pero yun line up nila napag iwanan na...engine nila di parin upgraded...iVan nila flop din...gawa sila diesel engine sedan magiging mabenta sila

[pop3corn]

They should close it down even Honda and Toyota. In the world of globalization, talo ang industrialization. We're better off at importing even some basic foods

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[Monseratto]

Sinong maysabi na atat mga hapon maglipat dito sa 'pinas from China? Mura daw kasi?

[explorer]

Sinong maysabi na atat mga hapon maglipat dito sa 'pinas from China? Mura daw kasi?

Japanese manufacturers move to Philippines

the move is not from China to PH...but still a good news

[Monseratto]

Japanese manufacturers move to Philippines

the move is not from China to PH...but still a good news

Again, the numbers are smaller compared to our asean neighbors. Kaya sa press release only mention yen and pesos, not dollar. And there is no beeline. ..

[Tj_abs]

If all car manufacturer will transfer to china because of cheap labor, maybe malagkakroon ng problema sa intellectual property rights. For sure my cloning dyan..

[Manilablock]

OFW na lang ang export product ng pinas, at ung mga consumer items imported

[jresperanza]

mahal ang kuryente sa pilipinas bakit ba tayo nag bubulag bulagan???

2012 na! time for a new means/source of electricity

[renzo_d10]

Kung iimport yung D-Max units from Thailand, all-new D-Max na ba makukuha natin or same old design pa rin?

Iba na kasi D-Max sa Thailand diba?

[wowiesy]

Kung iimport yung D-Max units from Thailand, all-new D-Max na ba makukuha natin or same old design pa rin?

Iba na kasi D-Max sa Thailand diba?

and to that.. bababa ba ang price? if it costs 2,000 USD more to assemble here than to import.. pag nagsara ba sila will they bring down the price by around USD 2,000 ? (100,000 din yun sayang din)..

[A121]

mahal ang kuryente sa pilipinas bakit ba tayo nag bubulag bulagan???

2012 na! time for a new means/source of electricity

Malaki utang ng NAPOCOR. Sorry na lang tayo.

[uls]

OFW na lang ang export product ng pinas, at ung mga consumer items imported

yan naman talaga business model ng Pinas eh

OFW dollars pay for imports

[Gerbo]

Maliban ka electric rates, why is it more expensive to manufacture here?

In short, what's the difference between us and the Thais?

[wowiesy]

Maliban ka electric rates, why is it more expensive to manufacture here?

In short, what's the difference between us and the Thais?

downward Auto parts industry...

auto plants basically are assembly lang.. they also have to source the parts... so.. para mas mura.. either tax incentives for the assembler.. or make the materials cheaper so the factory who assembles it, can buy cheaper parts...

but since wala tayong manufacturing base dito, most of the parts are also imported.. not sure on the tax / duty rates on all those parts (libo yan).. so kahit may tax incentives directly yung auto assembler... the parts they buy to assemble the units.. may taxes din sila binabayaran.. napapamahal... unless siguro buong downard autoparts industry may tax incentives...

on the other hand.. kung dito gagawin / assemble yung downward parts ... need factory din... kahit may materials.. hirap na ang mga factories here to hire people... a lot of people want to work abroad thinking na mas malaki ang kikitain nila... possible yes.. mas malaki... converted from the currency.... pero kung iisipin nila na hahatiin din nila yun sa gastusin nila habang andun sila.. plus yung ipapadala nila dito sa pamilya nila..... maraming cases... mas konti pa ang napapadala nila vs nung dati na andito sila nag work...

although naka experience sila ng ganun... mahirap presyuhan yung experience...

[pop3corn]

Maliban ka electric rates, why is it more expensive to manufacture here?

In short, what's the difference between us and the Thais?

They're not English speaking in the manufacturing sector mas mabuti na Hindi English speaking ang factory workers. Kung maintindihan Lang ng Anerican media ang plight ng apple workers at sensationalize it nakow Iphone4 will be 2 times expensive

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[Monseratto]

yan naman talaga business model ng Pinas eh

OFW dollars pay for imports

The number one export ng Pilipinas... And it's recession proof.

Should Isuzu really complain since having a assembly plant doesn't give them any advantage for them.
Unless they haven't profitted from setting it up in the first place...

[uls]

dati ko pa sinasabi importing = less headache

all you need is a warehouse and a small number of people

[ghosthunter]

dati ko pa sinasabi importing = less headache

all you need is a warehouse and a small number of people

Manufacturing is a big headache and is only worth it if the volume is big enough to match the facility's capacity. Otherwise, the overhead costs will just eat up the profits.

And the Philippines is not the easiest place to have a factory with so many regulatory agencies for everything like labor, unions, local and national taxes, water, air, land, animal, chemical, waste, housing, wages, etc. Just getting the proper license and clearance to handle and sell a regulated product/substance is a nightmare of trying to jump through one hoop after another, called government red tape. It is no wonder why there is less and less manufacturers wanting to do business in the country unless they are granted special considerations.

[jave]

High cost of power + government numbskulls + anarchistic labor culture

Not surprising, indeed.