MANILA, Philippines -- Ford Philippines, the country's lone volume exporter of completely built-up vehicles assembled at its plant in Sta. Rosa, Laguna, is working with the Board of Investments on how to further improve the existing Automotive Exports Program (AEP), which would be the basis for its future export plan in the country.
Randy Krieger, Ford Philippines president, told reporters during the company briefing on Friday that the company is studying its future product program in the country.
He said the results of the Bol's auto program would be considered in crafting its own plan in the country.
So far, it has exported a total of 75,000 CBU units valued at more than $860 million. Krieger said they have no plan to increase its current 36,000 units of annual production at its Sta. Rosa plant.
Krieger, however, said they are happy with the existing AEP as it enables them to export CBU units to other ASEAN countries including Focus, Escape and other Mazda vehicles.
But Ford is set to produce the next generation Focus in its Thailand hub by 2012 and that could mean phasing out the assembly of Focus in the country in favor of Thailand. Ford said it is still studying of other products that it may produce from its Sta. Rosa, Laguna plant.
Other than Ford, the AEP has not attracted any other participant from the local car assemblers. The AEP requires 10,000 CBU units as mini¬mum export volume to be eligible of government incentives.
Krieger, however, does not want to speculate what would make other car assemblers participate in the program.
For its part, he said, they are looking for stability in policies because investing in a manufacturing facility in a country is a long-term decision.
''Perhaps the Philippines could find more ways to be cost competitive,'' he said noting that studies have shown that doing business in the country is higher than Indonesia and Thailand.
He attributed the high cost of doing business to the high cost of power, and the small market, which is further compounded by the opening of the ASEAN market as a free trade region.
Ford has been enjoying robust business in the country. The company delivered a strong finish with an 8 percent increase over 2009, it is the company's best-ever full-year sales since the start of operations in the country.
In the first quarter of 2011, the company sold a total of 2,387 units, representing a 74 percent increase over the 1,375 units sold in the first quarter of 2010.
''This is the strongest quarter Ford has ever had on record,'' said Krieger who noted of the huge contribution by Ford Fiesta.
Ford Fiesta marked a milestone with 1,000 units sold just four months after start of sales, and was the best-selling hatchback in December 2010 and February 2011.
For this year, Krieger said the company looks forward to maintaining its sales momentum throughout 2011 with the launch of more vehicles.
Krieger has announced that Ford is going to launch all-new Ranger, which debuted in Bangkok last March 24, the all-new Explorer to be marketed in the Philippines late this year and all-new Focus, which will be made available in the ASEAN market in 2012.
Ford is also strengthening its distributorship network with the addition of four more this year.
