BOI willing to mediate between FMC and Mazda

Board of Investments (BOI) managing head Vincent Perez said yesterday the BOI is willing to mediate the dispute between Francisco Motor Corp. and Mazda Motors Corp. of Japan.

The BOI, however, has not yet been formally asked by both FMC and Mazda to step in.

Perez said that BOI Governor Antonio Leviste could head the mediation panel if FMC and Mazda decide to ask the BOI’s help.

Earlier, Perez disclosed that the BOI wants to revive the process of arbitration and mediation between local companies locked in corporate dispute.

He pointed out that resorting to arbitration and mediation would be a much cheaper process than going to court.

FMC had earlier indicated its desire to seek the help of the BOI to mediate its dispute with Mazda.

According to Roland C. Francisco, assistant vice president of FMC, the dispute allegedly started from Mazda’s failure and refusal to honor an agreement it had with FMC with regard to the entry of Ford’s Ranger pick-ups and econovan.

Mazda is now 33 percent controlled by Ford Motor Company.

FMC and Mazda had a previous 25-year assembly and distribution agreement.

Under that agreement, Mazda and Ford could bring in and sell any model except for the B25 pick-up and the econovan.

However, Mazda was able to reach a compromise agreement with FMC wherein Mazda would take over the assembly of the B25 pick-up and econovan by the year 2002.

FMC went ahead and spent P250 million to construct a new plant for the assembly of the B25 pick-up and econovan. – Marianne Go