BDO forges joint venture with Mitsubishi, 2 others

Banco de Oro Unibank, the countrys largest lender, has teamed up with three Japanese firms to provide financing services to buyers of Mitsubishi vehicles, as it remains upbeat about growing consumer affluence in the country.

BDO Unibank Inc. entered into a joint venture with car distributor Mitsubishi Motors Philippines Corp. (MMPC), trading firm Sojitz Corp. and credit firm JACCS Co. Ltd. (JACCS) to provide financing services to individual and corporate buyers of Mitsubishi Motors vehicles.

This investment will be made through BDO’s subsidiary, BDO Leasing and Finance Inc. (BDOLF), which will own 40 percent of the joint venture company.
Mitsubishi, Sojitz, JACCS will hold the remaining 60 percent, based on a disclosure to the Philippine Stock Exchange on Friday.

The joint venture, to be named MMPC Auto Financial Services Corp., is seen harnessing the complementary strengths of the joint venture partners “to take advantage of the sustained growth in vehicle sales on the back of increasing consumer affluence and a growing population.”

BDO’s wide distribution network and industry leadership are seen to complement Mitsubishi Motors’ established presence in the automotive industry, while both Sojitz and JACCS are expected to contribute their international perspective and knowledge base on consumer credit to the business.

The Sy family-led local bank has one of the country’s largest distribution networks, with more than 1,000 operating branches and over 3,000 automated teller machines (ATMs) nationwide. It also has a branch in Hong Kong as well as 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

The local unit of Mitsubishi Motors, meanwhile, is the second largest vehicle distribution company in the country while JACCS is a consumer credit services company.

Sojitz, on the other hand, has over 150 years of track record as a general trading company. It is involved in diverse sectors such as automobiles, plants, energy, mineral resources, chemicals, foodstuff resources, agricultural and forestry resources, consumer goods and industrial parks.

Last year, vehicle importers and distributors grew car sales by 65 percent to 58,712 units, based on data from the Association of Vehicle Importers and Distributors Inc. (AVID).

Based on separate data jointly reported by the Chamber of Automotive Manufacturers of the Philippines and the Truck Manufacturers’ Association, sales grew by 23 percent last year to 288,609 units.