Support the Local Auto Industry

[jpdm]

X-Trail pumps up NMPI CKD operations


Malaya Business Insights
June 8, 2010


Nissan Motor Philippines Inc. hikes the production of its new X-Trail crossover sport utility vehicle (SUV) to support its sales target of 200 units per month, according to NMPI president and chief executive officer Allen Chen.


Yukihiko Kamitoh, deputy managing director for Nissan Asia-Pacific, said at the launch of the new X-Trail CVT at the Le Pavilion, Pasay City on Friday, NMPI has one of the strongest assembly operations in the Philippines.
Aside from the new X-Trail CVT which has two variants, NMPI also assemblers on completely knocked down (CKD) Cefiro, Sentra and Grand Livina. It currently imports Teana and Serena models.


The Nissan Sentra 1.3 passenger car remains NMPI’s volume model.
The X-Trail CVT is the second model to be launched by NMPI in a month. The company will introduce a third one, a premium sedan model by the third quarter of the year.


Chen said the company is one with the government in promoting the assembly of completely knock-down vehicles or CKDs as this will generate bigger employment to more Filipinos.


Chen said the continuance of CKD production will likewise contribute to the development of parts and components manufacturing in the Philippines that will enhance its competitive capacity within the ASEAN region.


Kamitoh said more and more companies see the importance of CKD assembly as it generates investments and creates jobs.


[SIZE=3]Chen said what sustains Nissan’s investment in the Philippines is the vision of a better and much improved auto domestic market, and the fact that the government support will have a major economic ramification on the auto industry.[/SIZE]


"We have not lost sight of the potential growth of the automotive industry as evidenced by the more than 30 percent growth in total sales recorded so far during the first four months," Chen said.


He said that in two or three years’ time, the industry will achieve its highest ever sales of 160,000 units recorded in 1996.


"We expect a lot of foreign investments to continue to flow in once the government’s policy framework for the automotive industry is in place. This will make the domestic market more conducive to doing business," Chen said.


The new X-Trail 2.5 liter features the XCVT (or the Xtronic Continuous Variable Transmission) giving a stress-free "no-shift-shock" driving comfort even in tough terrains.


Lighter in weight than the conventional transmission, the CVT aids in making the vehicle more fuel efficient but at the same time provides powerful sensation of acceleration.


The new X-Trail comes in two variants, priced at P1.35 million and P1.55 million.



http://www.malaya.com.ph/06082010/auto1.html#

[basti08]

How the f*ck are we going to support Nissan CKD models?

Yes, build quality may be up to par with CBU models (so long as there is no CBA problems among workers) and yes, we may be giving employment to filipinos by doing so. But we can't deny the fact that most of their products are CRAPPY!

Im a Nissan fan for as long as I can remember. But I just cant defend for Nissan anymore, they themselves seemed to have surrendered the fight over their rivals.

[Horsepower]

Nissan should assemble the Navara and R51 Pathfinder here to be able to destroy their competition. These cars are so much better but prices are a bit prohibitive.

[jpdm]

Nissan should assemble the Navara and R51 Pathfinder here to be able to destroy their competition. These cars are so much better but prices are a bit prohibitive.

Agree. Navara is a CBU from Thailand.

If they will assemble it here. Its price will go down just like what happen to the price of Lancer ex (which is now assembled locally from being a CBU from Japan)

Overall, I hope to see more CKDs sold in the market than CBUs. I hope the Philippine government will slap high taxes on CBUs and prohibit once and for all all second hand CBU imports.

[OyiL]

How the f*ck are we going to support Nissan CKD models?

Yes, build quality may be up to par with CBU models (so long as there is no CBA problems among workers) and yes, we may be giving employment to filipinos by doing so. But we can't deny the fact that most of their products are CRAPPY!

Im a Nissan fan for as long as I can remember. But I just cant defend for Nissan anymore, they themselves seemed to have surrendered the fight over their rivals.

sige lang, gawin nila. tapos iexport na lang kung ayaw.

[roberto_minosa]

Overall, I hope to see more CKDs sold in the market than CBUs. I hope the Philippine government will slap high taxes on CBUs and prohibit once and for all all second hand CBU imports.

-1.

Consumers won't have any other choices other than whatever's locally assembled. Not every car can be assembled here. And not every car assembled here are good. Also, there are some good secondhand imports coming in.

[uls]

mas lalo dadami ang CBU

pati used imports

malakas ang demand for CBUs and used imports

you can't stop market forces

[jpdm]

-1.

Consumers won't have any other choices other than whatever's locally assembled. Not every car can be assembled here. And not every car assembled here are good. Also, there are some good secondhand imports coming in.

-1

I disagree.You forgot that there are lots of CBUs now sold in the market.

Thus, consumers have alot of choices. There are many brand new legit imports (CBUs) from local importers paying the right taxes.

Anyway, second hand imports should be totally banned.

[tidus1203]

Your intentions are good, BUT....

The problem is businesses don't like to set shop here. Wages are high, electricity costs are high, red tape costs are high! Let's face it! Some countries are not meant to be auto makers... We are not meant to be!

[jpdm]

Your intentions are good, BUT....

The problem is businesses don't like to set shop here. Wages are high, electricity costs are high, red tape costs are high! Let's face it! Some countries are not meant to be auto makers... We are not meant to be!

My reaction to your opinion.......

[SIZE=4]2 major China auto firms eye RP assembly[/SIZE]

By BERNIE CAHILES-MAGKILAT
June 16, 2010, 3:58pm
Manila Bulletin


China’s biggest carmakers – Chana and First Auto Works (FAW) – plan to invest in an assembly facility in the country once their sales volume hit at least 100 units a month, which is expected to be attained in a year or two, and once the proliferation of chop-chop cars has lessened.


Stephen D. Sy, president of local Focus Ventures Inc., the local distributor of Chana and FAW automobiles in the country, told reporters at the launch of the 3rd Philippine International Motor Show that his Chinese principals have been prodding them to put up an assembly plant in the country.


Investments in an automotive assembly facility may cost $8 million and they will concentrate in the niche small cars, small and mid-sized vans, Sy said.


“But we have to have the volume first before we can go into assembly,” Sy said.


Since it started local distribution of small cars, mini vans and mid-sized vans two years ago, Sy said the company is now selling an average of 30 units a month.



“The trigger point is to sell 100 units of vehicles a month to be feasible,” Sy added.



An assembly facility may cost $8 million with an assembly capacity of 200 to 300 units a month.


At the rate they are going, Sy said they may attain the 100 unit sales a month trigger volume in a year or two. According to Sy, its number one problem is the proliferation of chop-chop vehicles that are directly competing their small cars and vans.


He said that chop-chop cars, which are assembled through backyard assemblers, is selling at P150 per unit or almost half the price of its P280,000 brand new best selling model 1016 Multi Carry One.



Sy said that its markets are small business entrepreneurs and companies engaged in goods delivery business.


“This is a very niche market and if we will do local assembly it should be in this niche models,” he said. The company has already 6 dealers nationwide and plans to increase this to 10 in the next two years.

http://www.mb.com.ph/articles/262271...ye-rp-assembly

[tidus1203]

Good for them but they are small fry... But can you force the giants like Toyota to completely make their cars CKD and get out of Thailand completely and make RP their SEA base?? NO! Cause Thailand is a better place to do business! Lower wages, lower electricity!

[jpdm]

Good for them but they are small fry... But can you force the giants like Toyota to completely make their cars CKD and get out of Thailand completely and make RP their SEA base?? NO! Cause Thailand is a better place to do business! Lower wages, lower electricity!

Relax...


Who said that Toyota should be forced to completely make their CKD cars here and get out of Thailand completely and make RP their SEA base?

Not me.

Im referring only to those Chinese car companies who want to put assembly plants here.

Definitely nothing about Toyota.

[April Boy]

Well, Im also hoping for local CKDs because it will mean reduce prices of vehicles sold in the Philippines...

..Type na type ko pa naman ang Space Gear...

[ghosthunter]

Well, Im also hoping for local CKDs because it will mean reduce prices of vehicles sold in the Philippines...

..Type na type ko pa naman ang Space Gear...

It might reduce the prices of vehicles sold in the Philippines or just increase the "discount" rate for them.

But one thing for sure, it will surely reduce the number of choices the Filipinos would have in buying their preferred cars.

One major advantage of importing complete cars (instead of assembling them locally) is the greater variety of choice of trim levels for each car model

[April Boy]

It might reduce the prices of vehicles sold in the Philippines or just increase the "discount" rate for them.

But one thing for sure, it will surely reduce the number of choices the Filipinos would have in buying their preferred cars.

One major advantage of importing complete cars (instead of assembling them locally) is the greater variety of choice of trim levels for each car model

Not really sir.

Because increasing the number of CKDs in the Philippines does not mean reduce numbers of imported CBUs and reduce number of choices.

The importers can still bring in more CBUs.

It will be a choice then between buying more expensive CBUs like my fave Space Gear (hay...) and a cheaper CKD like the Mit.Adventure.

[ghosthunter]

It will be a choice then between buying more expensive CBUs like my fave Space Gear (hay...) and a cheaper CKD like the Mit.Adventure.

So it's a choice of being an industry advocate or being a hypocrite?

[April Boy]

So it's a choice of being an industry advocate or being a hypocrite?

hypocrite, me?No way.Industry advocate? I like it.

And, to put you back to the topic, its still a choice between an expensive CBU and a cheaper CKD.

Get my point sir?

Want me to repeat?

my opinion only.

[April Boy]

http://www.manilastandardtoday.com/i...2010/august/16

Govt, auto makers eye revival, export of AUVs

by Julito G. Rada
Manila Standard
August 16, 2010

The government and local car companies are looking at the possibility of reviving the Tamaraw, Fiera and Harabas vehicles as part of efforts to strengthen the parts and components industry in the country.
Trade Undersecretary and Board of Investments managing head Cristino Panlilio said over the weekend that the revival of the Asian Utility Vehicles, or AUVs, could develop potential export markets such as Papua New Guinea, East Timor, Vietnam, Indonesia and the African continent.
The Toyota Tamaraw, Ford Fiera and General Motors’ Harabas became popular in the 70’s and ‘80s in the local market.
“The local parts industry has dwindled because the number of locally-made vehicles shrunk, worsened by smuggling of vehicles from other countries,” Panlilio said.
Recent data from Philippine Automotive Competitive Council Inc. showed that just 49 percent of the vehicles sold in the country last year were locally assembled compared with 90 percent in 1996.
The decline in sales of locally-assembled vehicles reduced the industry capacity utilization to about a quarter of the combined 250,000-unit installed capacity of assemblers. This has resulted in job losses to about 70,000 in the last 10 years.
Panlilio said at the sidelines of a meeting last week with the car industry that the proposal to draw up another executive order for the motor vehicle development program received a favorable feedback.
“We are working with them [industry players] to develop another EO [granting additional incentives to car makers that will increase their production and eventually export]. The creation of MVDP 2 had a favorable reaction,” he said.
He earlier said the Board of Investments had been studying how to improve the export volume and the additional incentives to lure car companies to ship out their products.

[tidus1203]

Here is something that might agitate jpdm

THE FUTURE of the manufacturing operations of Ford Group Philippines, the country’s only car exporter, is on shaky ground, as neighbors such as Thailand continue to aggressively provide more perks to vehicle assemblers and exporters than the Philippines.


FGP president Randy Krieger told reporters that the firm’s Sta. Rosa, Laguna, factory was now running at a robust capacity, churning out a combined 15,000 units of the Focus, Escape, and Mazda 3. Of the total, 10,000 units went to the export market.


By 2012, however, the production of the Focus, FGP’s best-selling model in the Philippines, would be transferred to Thailand, he said.

http://business.inquirer.net/money/t...emed-uncertain

[JackFlash]

And here's a damper on those looking for the good old days of the Fiera, Tamaraw and Harabas: Ford won't revive the Fiera. http://www.philstar.com/Article.aspx...bCategoryId=66

[SIZE=2]Ford won't revive Fiera [/SIZE]
[SIZE=2]By Ma. Elisa P. Osorio[/SIZE][SIZE=2] (The Philippine Star) Updated August 18, 2010 12:00 AM[/SIZE]
MANILA, Philippines - Ford Group Philippines (FGP) said they will not be reviving the Fiera because it is not part of their business plan to re-launch antiquated models.
The reaction was made in light of the statement made by the Board of Investments (BOI) urging local automobile manufacturers to reissue the Fiera, Harabas and the Tamaraw models for possible export.
“Here in the Philippines we introduce world class products. We do not want to introduce products from 12 years ago,” FGP president Randy Krieger told reporters during the launch of the Ford Fiesta Monday night.
Krieger said that if there is a demand for that type of vehicle in other countries then they will study the matter.
Ford is the only auto manufacturer that exports completely built up (CBU) units to other countries. “Export incentives are very helpful for us,” Krieger said.
“There is a need to make a new export plan,” Krieger said. The BOI has been proposing the creation of the Motor Vehicle Development Plan II (MVDPII) which is specifically for exporters.
FGP produces Focus, Escape and the Mazda III. The local production this year will be 40 percent higher than last year’s.
“We’ve hired additional workers and maximum over time. We are running at full capacity,” Krieger said. Production is at 15,000 units, 10,000 of which are for exports.

I agree that car companies should not re-introduce antiquated models. The Fiera's been phased out, the Tamaraw evolved into the FX, then the Revo until replaced by the Innova. As for the Harabas, I can't even remember which car co. made this, if it still exists at all. If these nameplates were made under the defunct Progressive Car Manufacturing Program of the Philippines, then the companies that made them are just living up to the name. They have progressed from the old utility boxes to more stylish, more advanced models than their predecessors.