FORD Motor Company closing 14plants (30,000 workers)

[niky]

and the thai auto industry continues to gain ground ......

the philippines was manufacturing cars way before thailand and could have been the Detroit of SEA but sadly, the ball was dropped

Tenfold problem...

1st: We're an LHD country. The huge quadruple market of Indonesia, Thailand, Singapore and Malaysia are RHD.

2nd: We're an isolated island nation, they're all connected by land.

3rd: The Thai junta was able and willing to give favorable rates and tax breaks to foreigners. Local militants cry foul every time we do that, and some local politicos care for nothing more than lining their pockets with kickbacks from the foreigners.

4th: Those same militants do everything they can to sabotage multinational corporations... not thinking that they're also pawns used by foreigners seeking to cripple our industry to make us uncompetitive with themselves.

5th: Small local market.

6th: Red tape, red tape, red tape, red tape... every time I have to go to the SEC, I get a headache. Dealing with taxes are even worse.

7th: Every time power changes hands, policies, deals and directions change... basta gawa ng predecessor... masama! Baguhin! Tapos na yun! Even if the program was good (this is from talks with those involved in said programs...)

8th: Lack of skilled labor. Too many of our best people go to college for courses they're not suited for and for jobs they would absolutely suck at... say... nursing. Those with the proper training (technical or engineering) and work ethic end up in Dubhai or someplace else...

9th: Poor infrastructure (not as big a problem now)





Distant 10th: High salaries, high electricity prices... they'd put up with this if it was worth building things here... but due to all the other reasons... it's not.

[TholitzReloaded]

How I wish we can be the next Auto Manufacturing hub in Asia, I think it should start by offering cheaper electricity perhaps if we revive Bataan Nuclear Power Plant it would allow us to generate Cheaper electricity thereby incouraging foreign car manufacturers to invest. next is the Tax incentives for Big Companies also to favor foreign investors.

[uls]

Philippines -- auto manufacturing hub of Asia... parang may ganyan thread... thread ni jpdm hehe

Phil auto manufacturing industry?

more like Phil. auto importing industry

go Hyundai importers! hehe

[frequenzy]

Ford: "bye-bye philippines!"

:sad:



http://www.abs-cbnnews.com/business/...-down-ph-plant

although not official, reason is high operational cost mainly because of absurd rates of PH electricity :-)

[ghosthunter]

although not official, reason is high operational cost mainly because of absurd rates of PH electricity :-)

Add to that, low volume for local sales. Not enough to sustain a car plant especially with other countries with ten times the size of the combined philippine auto market.

[Monseratto]

Ford was the only participant in the Philippine government's auto export program, having shipped 80,000 units worth more than $1 billion since 2002. Besides the Escape, the company had shipped the Focus and Mazda3 models to other Asean countries, including Thailand, Indonesia, and Malaysia.

The company ended local assembly of the Ranger in December 2002, followed by the Tribute in November 2009, the Mazda3 in January 2012 and the Focus this month.

Edward Krieger, Ford Philippines chief, had said the cost of building and shipping out a Focus from the Philippines was $1,500 more expensive than in Thailand. This gap was "too big" to justify the export of the model, he said.

The $400-per-unit fiscal incentive the Philippine government gave to the company expired two years ago. The company asked the Aquino administration to reinstate this fiscal perk to keep local production of the Escape to no avail.

Ford was one of the local car assemblers that had lobbied for a new motor vehicle development program, aimed at sustaining domestic manufacturing. The Aquino administration however had opted not to pursue the program.

The aim was to export, since the local market was too small. However, it cost US$ 1,500 more to produce a Focus in the Sta Rosa Plant than in Thailand. All/Most of the components are locally manufactured in Thailand, while the Sta Rosa Plant has to import. The Thais have the infrastucture and gave incentives, the Philippines was busy taking siestas. The Philippine has now a non-existant car manufacture industry, except for mitsubishi and its jurassic L300. Puro assembly na lang. Soon puro import na lang...

[TholitzReloaded]

The aim was to export, since the local market was too small. However, it cost US$ 1,500 more to produce a Focus in the Sta Rosa Plant than in Thailand. All/Most of the components are locally manufactured in Thailand, while the Sta Rosa Plant has to import. The Thais have the infrastucture and gave incentives, the Philippines was busy taking siestas. The Philippine has now a non-existant car manufacture industry, except for mitsubishi and its jurassic L300. Puro assembly na lang. Soon puro import na lang...

Again Noynoy doing what he's best at : Noynoying!
PH kelan ka kaya aasenso?

[uls]

asenso naman ang Pinas ah... dami casino itatayo diba?

dami natin malls, restos, bars, resorts

buhay na buhay ang nightlife

people are travelling

sabi ko nga... leisure-oriented ang pinoy, consumption-oriented

hot ang leisure-related businesses dito

hot din ang retailing

di talaga pang manufacturing ang Pinas

di natin linya yan

[TholitzReloaded]

asenso naman ang Pinas... dami casino itatayo dito

sabi ko nga... leisure-oriented ang pinoy

pang leisure mga hot industries dito

di talaga pang manufacturing ang Pinas

Dami ng umalis, i think first was FEDEX, then Intel, now Ford naman who's next?

[uls]

face it, malabo maging manufacturing powerhouse ang Pinas

di tayo competitive

[rollyic]

iba kasi ang focus ng pinas....

no.1 sa call center :D

[TholitzReloaded]

iba kasi ang focus ng pinas....

no.1 sa call center :D

Goal is to beat India.

[niky]

Again Noynoy doing what he's best at : Noynoying!
PH kelan ka kaya aasenso?

So what did PGMA do to counter this? The output and product lines of the Ford plant have been going downhill since the Lynx and Ranger were discontinued... way back at the start of the last decade. Even the introduction of an engine assembly line didn't stop this trend, despite PGMA approving tax breaks for hybrid and EV parts... she should have also included flex-fuel vehicle parts.

Measures that Noynoy is instituting now won't have any effect on whether Ford stays or not. The market has to grow, first. And that will take another few years. Infrastructure has to improve, too... and whatever is built now will be finished in three to five years. And the new power projects that are being considered won't be finished anywhere near that soon.

Even Australia and Japan are losing out to Thailand... so we're not alone. In this case, yes, we are weak, but the total loss to Thailand is simply because they're incredibly strong.

If Ford is open to leasing out the plant, I have no doubt some Chinese company will be looking to snap it up for SKD assembly.

[basti08]

Is there by any chance that Ford Sales might leave the country as well? If they seem to tag as a very small market, what's the reason for staying and now just importing to (from then exporting from) RP?

[asb75]

Dami ng umalis, i think first was FEDEX, then Intel, now Ford naman who's next?

Alam ko Goodyear Philippines nagsara na din sa pinas.

[Altis6453]

So what did PGMA do to counter this? The output and product lines of the Ford plant have been going downhill since the Lynx and Ranger were discontinued... way back at the start of the last decade. Even the introduction of an engine assembly line didn't stop this trend, despite PGMA approving tax breaks for hybrid and EV parts... she should have also included flex-fuel vehicle parts.

Measures that Noynoy is instituting now won't have any effect on whether Ford stays or not. The market has to grow, first. And that will take another few years. Infrastructure has to improve, too... and whatever is built now will be finished in three to five years. And the new power projects that are being considered won't be finished anywhere near that soon.

Even Australia and Japan are losing out to Thailand... so we're not alone. In this case, yes, we are weak, but the total loss to Thailand is simply because they're incredibly strong.

If Ford is open to leasing out the plant, I have no doubt some Chinese company will be looking to snap it up for SKD assembly.

Luxgen anyone?

Sayang talaga re: Ford. I remember when they resumed operations in the PH they stated that they won't disappear again. I hope they come out with some assurances for their loyal customers regarding continuity of service and not just their sales operations.

[Altis6453]

Alam ko Goodyear Philippines nagsara na din sa pinas.

AFAIK, for manufacturers:

Sime Darby
Colgate Palmolive
Johnson & Johnson
Abbott Philippines
Acer (in Subic)



Dami na.

[timrev]

tama un sabi ni niky di talaga pang motor manufacturing ang pinas...at di ganun kalakas ang sales nila compared sa toyota at hyundai ngayon...

si naman daw mawawalan ng work yun employee sa factory ng ford if willing silang magpalipat sa thailand...my dagdag pa nga ata..
di naman libo yun mawawalan ng work pero negative parin affect sa pinas yun closing nila ng plant

madami magbubukas ng investment jan lagi kayo magbasa ng news mga noynoying jan!

sa batangas yun canon printer magpapatayo sila ng plant, sa laguna naman LED factory magbubukas, 1B$ crown casino sa pagcor city by next 4yrs my work sa pagcor city na 40thou ang dami...
yun lang mabagal ang development

[Monseratto]

madami magbubukas ng investment jan lagi kayo magbasa ng news mga noynoying jan!

Small change compared to our Asean neighbours...hehehe. And mas maraming "good" news are usually press releases. Marami din di natutuloy.

[niky]

Is there by any chance that Ford Sales might leave the country as well? If they seem to tag as a very small market, what's the reason for staying and now just importing to (from then exporting from) RP?

They still need a sales arm... Ford Group Philippines handles both Ford and Mazda sales locally, and their combined sales make them a major player. There's little chance the retail arm will fold. The amount of investment is more proportional to the return.