Philippines eyes becoming region’s auto hub
By Ronnel Domingo
Philippine Daily Inquirer
First Posted 05:32:00 08/22/2008
MANILA, Philippines—The Philippine automotive industry is anticipating an expansion driven by economic integration in Southeast Asia that will allow it to become the regional production hub of certain vehicle models, an industry official said.
Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines, said the world has taken notice of assemblers in the region because of their worldwide production strategies.
Nissan Motor Co. Ltd. was in talks “about CKD [completely knocked-down units] assembly of a number of commercial vehicle models,” said Lee, who is executive vice president of Nissan’s Philippine affiliate, Universal Motors Corp. “Models that would be introduced in Southeast Asia by 2013 are already being talked about now because such projects take some five years.”
Lee said she could not disclose details but “the plans of other automotive giants would not be so different.”
Lee said the Philippines would benefit from “efforts of the Association of Southeast Asian Nations to put up an ASEAN Economic Community by 2015.” She said that even if vehicles were to be “assembled in a different ASEAN country, some parts would still be sourced from the Philippines.”
“Any expansion in ASEAN may mean more business for local firms,” she said.
Lee also said prices of Philippine-assembled vehicles had not risen despite high global oil prices.
“While rising oil prices affect logistics and the cost of raw materials, prices of our products remain at present levels,” she said. “This may change, but not yet, so this is the best time to buy.”
She said the sustained inflow of money from overseas Filipino workers was expected to drive the domestic industry’s continued growth.
Lee’s association and its allied group, the Truck Manufacturers Association, are targeting sales of 125,000 passenger cars and commercial vehicles this year. This means a growth of about seven percent from an estimated 117,000 units sold in 2007. Edited by INQUIRER.net
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