Favila, who is in New York with President Arroyo, said that during a meeting with Ford Motor officials led by Ford executive vice president Mark A. Schulz, the car firm informed President Arroyo of their expansion plan.
Favila said that Ford is planning to increase its manufacturing operations as it is doubling its exports from the Philippines to the ASEAN (Association of Southeast Asian Nations) region.
According to Favila, Ford’s expansion plan is part of William Ford’s commitment to make the Philippines its export hub in the region. Ford had visited the Philippines in October 2003.
It was during that visit where Ford Motor committed to invest an additional $50 million for its Philippine operations.
Ford’s total investment in the Philippines now stands at $250 million. Just recently, Ford Philippines started shipping to Taiwan its latest model, the Ford Focus.
Ford Philippines also exports to Thailand, Indonesia, Malaysia and Singapore as well as completely knocked-down (CKD) kits to Vietnam.
During the meeting with President Arroyo and Favila, Schulz expressed his appreciation to the Philippine government for its continued support. Favila reported that the President, in return, thanked Ford for its continuing investments in the Philippines and its role in making the country a vehicle export hub in the ASEAN region.
President Arroyo, Favila said, assured Ford that the government, in consultation with the industry, is working on the improving the Automotive Export Program.
Ford Philippines is the first and continues to be the only local automotive manufacturer which exports locally assembled vehicles.
As of August this year, its cumulative exports reached 32,000 units valued at $420 million.
Aside from Ford’s expansion plan, Favila also reported success in attracting American investors to the power and mining sectors.
Favila said there were several expressions of interest in the privatization of the National Power Corp (Napocor) and a few mining corporations in the Philippines.
"They feel that the Philippines still makes a lot of good economic sense to go to and do business," Favila said. Proof of American business interest in the Philippines was the grant of a financing facility by the Department of Energy from the United States National Bank Association worth $1 billion.
The money is earmarked for the downstream natural gas industry.
The covering Memorandum of Understanding (MOU) for the facility was signed by Energy Undersecretary Peter Anthony Abaya in behalf of the Philippine Government. Details of the MOU will be announced in Manila.
"It will no doubt be a great boost to the effort of Napocor to improve its financial conditions," Favila quoted the President as saying.