A U T O     B U Z Z

Ford Motor Group Philippines gave the local car industry a much-needed shot in the arm when it launched its Vehicle Export Program.  Under the program, the Philippines will begin supplying completely built-up (CBU) vehicles to at least two ASEAN countries. 

The launch took place at the Ford manufacturing plant at Sta. Rosa, Laguna on 19 March 2002.  Ford Philippines president Terry Emrick said that the initial markets of the program will be Thailand beginning this month, and Indonesia later in the year. 

"We are extremely proud of the fact that Ford is the first automotive company in the Philippines to be a volume export of CBU vehicles.  This is a concrete show of our commitment to assist in the Philippine government's efforts to improve the country's trade balance," Emrick said. 

This is particularly important as our neighbors like Thailand and Indonesia are already exporting vehicles by the tens of thousands.  The Philippines managed all of 94 vehicles (Yes, 94 with no zeros) in the year 2000.  In 2002, the Ford program is expected to manufacture and ship 5476 vehicles to Thailand and 1196 vehicles to Indonesia.  The export volumes are expected to be more than eight-fold within the next five years.  Beginning now, the production of these vehicles in the Philippines will be geared for the export market, with close to three-fourths of the total production within the next five years going to Thailand and Indonesia. 

The first vehicle to be produced under the export program is the 2002 Ford Lynx.  Badging, equipment and of course driving side will be changed for the exported cars.  Accompanying the Lynx to our ASEAN neighbors will be its sportier sister car the Mazda Protegé.  Quality will be assured under Ford's ISO 14001 and QS9000 certifications. 

Ford Group Philippines' Director for Marketing & Sales Henry Co said that the integrated ASEAN market under the ASEAN Free Trade Area (AFTA) will drive domestic and export growth.  Each of the individual markets in ASEAN may be tiny but when combined makes for a market that will be the 8^th largest in the world.  According to Co, Ford is striving to avoid duplication of facilities.  For example, Auto Alliance Thailand (a Mazda-Ford joint venture) will stop producing the Lynx and instead import it, while exporting the Ranger.  The reverse will be true for Ford Philippines.  Co said that Ford is the largest buyer of automotive parts in the Philippines, and the only carmaker to have a positive trade balance.   

Also at the launch were the mayor of Sta. Rosa, Laguna and the pride of Ford, its 400-strong assembly-line "partners."  With its program, the company will be helping to fulfill one of the goals of its founder Henry Ford: giving the people who assemble the cars a good enough wage that they can also purchase the vehicles.  Of course, this doesn't mean that all of these 400 workers will be picking up the keys to a Lynx, but it's an encouraging start that they have a steady source of income and opportunity for advancement.  Ditto for all the parts suppliers working on the program, as the Lynx is required to have a minimum of 40% local content. 

The good news for car enthusiasts is that moving Ranger production to Thailand will free up assembly capacity for another vehicle, the CR-V and RAV-4 competitor Ford Escape.  The Escape will probably make its debut later this year.

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