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  1. Join Date
    Nov 2005
    From the article above:
    Finally, to meet their obligations to old depositors, the banks used funds from new depositors.


  2. Join Date
    Jun 2007
    The slow painful deterioration of the moribund manufacturing sector in the Philippines continues due to the global and local crisis ( aggravated by power costs and unfriendly business climate in the Philippines. The curse of the Gloria Arroyo presidency continues also).......

    Manila Stadard
    July 19, 2009

    [SIZE=4]Goodyear shuts down Philippine tire factory
    By Elaine R. Alanguilan
    GOODYEAR Philippines Inc. is closing down its tire manufacturing operations by Sept. 30 following a slump in exports, which account for half of its business in the Philippines.

    President and managing director David Morin told reporters that some 500 employees in the Las Piñas plant would lose their jobs. About 100 workers would be retained to man the company’s marketing, sales, distribution and administrative operations.

    “The closure is primarily due to the issue of eroding cost competitiveness,” especially power, Morin said.

    But the Philippine operations could still be competitive if the Las Piñas plant were running on full capacity, he added.

    “In the fourth quarter, the export business was severely and swiftly impacted by the global economic recession,” Morin said.
    “We then assessed our cost competitiveness and hoped the export business would come back, but it has not and we don’t foresee this happening in the near future.”

    The Philippines exports tires mainly for the replacement markets of North America, South America, Europe, Africa, the Middle East and the Caribbean.
    Morin said that as early as last December, the company already had retrenched 46 people who then represented about 7 percent of its total manpower.

    “To maintain competitiveness and support our distribution, we must make changes to the cost structure and close our manufacturing operations,” Morin said.

    The retrenchment package aside, displaced employees may choose two out of 13 programs that Goodyear Philippines has prepared for them so they can take on new jobs. If an employee chooses to skip retraining, he or she could pass it on to a spouse or any child aged 18 years and above.

    With the plant closure, Goodyear Philippines will now import from sister companies in Thailand, Malaysia and Indonesia, where its manufacturing operations will be retained.

    Morin said the export market was now in a slump, but the domestic market was improving.

    “The high component of export business makes us less cost competitive. It is the total cost structure that would be impacted by the loss of exports. The domestic business is not growing at the pace needed to make up for the loss of [our] export business.”
    Last edited by jpdm; July 19th, 2009 at 10:03 AM.

  3. Join Date
    Feb 2008
    Nothing new, doing business here has always been expensive. China and more recently Vietnam are the wave of manufacturing. These days pabaabaan na ng cost ang labanan...

  4. Join Date
    Jun 2007
    Its sad that long time FDIs like Intel Philippines and now Goodyear are leaving the country...

    The exit of Goodyear leaves Yokohama Philippines I think as the lone tire manufacturer in the country...

  5. Join Date
    Nov 2005
    ano ba yung dati ko pa sinasabi?

    hindi business friendly ang Pinas

  6. Join Date
    Sep 2003
    Its cheaper to import/smuggle than manufacture. They use to rely on the car manufacturers, but most manufacturers import CBUs w/ their own tires nowadays.

  7. Join Date
    Nov 2005
    When companies decide which manufacturing facilities have to be shut down,

    those in countries with the crappiest business environment are always the first to go

    our government should ask itself this question:

    why do multinational companies shut down plants here and import from other ASEAN countries and not the other way around?

    but of course, even if the govt does come up with the answers, they wont do anything about it
    Last edited by uls; July 19th, 2009 at 07:13 PM.

  8. Join Date
    Dec 2005

    We have some good family friends who are still with GoodYear Philippines.

    This is very sad....

    Most sad, because our government is not doing its job to keep these industries in our country....


  9. Join Date
    Jun 2007
    Business Mirror
    July 23, 2009


    Not A Good year

    But businesses have to make realistic decisions when it comes to the viability of their operations.

    That’s what happened to Goodyear Philippines Inc., which decided to shut down its operations here after 53 years in the country because of poor business.

    Goodyear has relied on exports, which accounted for 45 percent to 50 percent of its overall business in the Philippines. But the global recession eroded such markets as early as the fourth quarter of last year, making it difficult to sustain operations.

    Goodyear tried to save the situation by taking measures to stay afloat, including retrenching 46 employees or 7 percent of its work force last December. But the export market did not improve since, prompting a more drastic measure.

    Thus, Goodyear announced on Friday that it was shutting down its manufacturing plant in Las Piñas City on September 30. It will let go of 500 employees, who will be provided severance package, retaining only 100 to handle sales, marketing, distribution and administrative aspects of its business. Business and supply arrangements with customers will continue in the Philippines.

    But instead of producing tires here, it will just import the products from Goodyear plants in Indonesia, Malaysia and Thailand to provide the tire requirements of its replacement- and original-equipment customers.

    Companies around the world have had to reduce costs or lay off people in order to remain competitive. For some, it meant plant shutdowns, as in the case of Goodyear here.

    The government said it wanted to sit down with Goodyear officials to find out what the government can do to persuade them to change their mind, but Goodyear has indicated its decision to shut down is final.
    A reliable source admitted that Goodyear finally gave up because of massive smuggling and importation of tires in the Philippines.

  10. Join Date
    Nov 2005
    Quote Originally Posted by jpdm View Post
    A reliable source admitted that Goodyear finally gave up because of massive smuggling and importation of tires in the Philippines.
    if the reason they shut down is coz they can't compete with cheaper imports, why will they still bring in tires from other ASEAN plants and maintain sales, marketing, distribution and administrative staff here?

    that means they still have a market here

    Goodyear didnt shut down its plant here coz it can't compete with cheaper imports

    cheaper imports have been around for years

    if that's the real reason, they should have shut down years ago

    and the Goodyear plant here didnt rely entirely on the local market

    half of their income came from exports

    from the article:
    Goodyear has relied on exports, which accounted for 45 percent to 50 percent of its overall business in the Philippines
    it's the global recession

    Goodyear had to reduce the number of plants they operate in SEA coz of lower global demand

    They had the right number of plants for boom times, but now, they got too many plants for lean times

    they had to choose which plants to shut down

    they chose the Philippine plant

    coz the Philippine plant isnt exactly Goodyear's crown jewel in SEA

    you don't shut down your best plants right?
    Last edited by uls; July 23rd, 2009 at 10:02 AM.

Financial Crisis: The Philippine Version