Ford’s export initiative, which falls under the ASEAN Industrial Cooperation (AICO) program, supports a multilateral policy allowing the trading of vehicles at preferential tariffs of zero to five percent. By allowing the rationalization of manufacturing activities, the AICO has enabled Ford to relocate the assembly of brands such as the Lynx and Escape to the Philippines.
At the same time, the AICO has also allowed Ford to move the manufacturing of its compact pick-up, the Ranger to its Thailand facility. Such plant specialization is expected to result in more than $1.2 billion in trade over the next five years.
Henry Co, president of FMCP, gave a short speech in front of guests which included United States Ambassador Francis Ricciardone and Department of Trade and Industry Undersecretary Gregory Domingo.
According to Co, "the achievement we celebrate today is significant because this day is proof that the Philippine auto industry will not die out, but instead, with enough determination, could prosper under the AFTA (ASEAN Free Trade Area)."
"In 2001, we produced 2,500 vehicles, all for the domestic market. This year we will be producing 15,000 vehicles. This experience clearly demonstrates the potential of a common ASEAN automotive market," Co added.
The FMCP chief also stressed the importance of the local automotive industry’s cooperation with government agencies in efforts to strengthen such an export program.
"We need to get the Value-based Excises Bill passed. We also need to insure that it provides the policy environment that will create a healthy domestic business and one that supports exports growth. We also need to take advantage of the Philippines’ unique opportunity to use export incentives not only to stop the migration of auto manufacturing to our neighbors, but also to grow export volumes and establish a role for the Philippines in the ASEAN auto market. Finally, we need to implement the ban on used car imports and stop smuggling as the formal auto industry needs a healthy domestic environment to compete in ASEAN," he said.
Both Ricciardone and Domingo expressed confidence and optimism in Ford’s initiatives.
To date, FMCP’s export program has generated $155 million from Philippine-made Ford vehicles.