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

**niky** · September 23rd, 2012 12:32 PM

Having a 15k unit capacity plant in a country where you're lucky to sell 1000k of anything that is not a Vios is pointless... Especially if you already have plants in Thaikand and Indonesia exporting to Malaysia and Vietnam,

**uls** · September 23rd, 2012 02:06 PM

Originally Posted by Manilablock

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** · September 23rd, 2012 03:11 PM

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

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

**wowiesy** · September 23rd, 2012 03:36 PM

Originally Posted by Gerbo

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...

**niky** · September 23rd, 2012 03:36 PM

Electricity, labor costs. Extraneous labor costs such as SSS, labor claims, unions, etcetera. Red tape... some of the longest and most difficult business permit and environ,ental permit procedures in the world... before you get to the part where you're asked for grease money. Taxes. Etcetera.

**timrev** · September 25th, 2012 10:11 AM

kung lilipat narin ang isuzu...dapat kugn anu yun labas sa thailand labas din sana agad dito pinas...pero i hope di matuloy paglipat nila masamang ipekto yan sa economy natin

**pop3corn** · September 26th, 2012 03:23 PM

Originally Posted by Gerbo

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

Sent from my iPhone using Forum Runner

**Monseratto** · September 26th, 2012 04:00 PM

Originally Posted by uls

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** · September 26th, 2012 04:33 PM

dati ko pa sinasabi importing = less headache

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

**ghosthunter** · September 26th, 2012 04:47 PM

Originally Posted by uls

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.