Support the Local Auto Industry

**jpdm** · June 8th, 2010 09:32 AM

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** · June 8th, 2010 09:41 AM

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** · June 8th, 2010 10:07 AM

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** · June 8th, 2010 10:19 AM

Originally Posted by 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.

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** · June 8th, 2010 10:40 AM

Originally Posted by 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.

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

**roberto_minosa** · June 8th, 2010 12:35 PM

Originally Posted by jpdm

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** · June 8th, 2010 12:52 PM

mas lalo dadami ang CBU

pati used imports

malakas ang demand for CBUs and used imports

you can't stop market forces

**jpdm** · June 16th, 2010 06:57 PM

Originally Posted by roberto_minosa

-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** · June 16th, 2010 07:05 PM

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** · June 16th, 2010 07:17 PM

Originally Posted by 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!

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