FMC opposes complementation deal between Ford Phils, Thailand

The plan of Ford Motor Co. Philippines, Inc. (FMCPI) to import Ford Rangers into the country under the ASEAN Industrial Cooperation (AICO) program may encounter an unexpected hitch.

Francisco Motor Corp. (FMC) is threatening to oppose FMCPI’s AICO arrangement with Automotive Alliance of Thailand.

FMC used to have an agreement with Mazda Motor Corp., of Japan to assemble B-series Mazda pick-ups.

FMC claims the Mazda B-series pick-ups have the same platform as the Ford Ranger. FMC and Mazda have been locked in dispute since 1999 and no resolution has been reached up to now.

FMC is thus threatening to block FMCPI’s AICO arrangement with AAT.

According to Roland Francisco, senior assistant vice president of FMC, the Board of Investments (BOI) should also consider the pending petition of FMC against Mazda before allowing FMCPI to proceed with its plans.

Under the AICO scheme between FMCPI and AAT, the exchange of completely built-up units would involve the C206 Laser/J39 Protege passenger car, U204 Escape/J14 Tribute SUV from FMPI and CBU J97 Ranger pick-up truck and parts and components for U204 Espcape/J14 Tribute SUV, and C206 Laser/J39 Protege car from AAT.

The vehicles would be subject to a preferential tariff rate of zero to five percent and would result in an estimated trade amounting to $550.89 million.