Ford Phils posts 3.5% sales hike

Ford Group Philippines (FGP) posted a 3.5-percent increase in sales last year and expects the Philippines and the ASEAN region as well to continue performing better than the rest of the world.

But like most foreign investors, FGP remains “cautiously optimistic” about how the Philippine market will perform in the coming years.

“We built our plants on the assumption that there will be minimal or nominal growth this year compared to last year. While the Philippine macroeconomic indicators are fairly positive, with interest rates down, the Philippines remains a little insulated at this point from what is happening in the rest of the world because of its good fundamentals. It is difficult to predict what will happen, but we are more cautious,” FGP president Rick Baker said in an interview.

A net exporter of vehicles, FGP sold 7,208 units in the export market last year while its local sales was pegged at 3,844 units. “We export more than we produce. And exports remain a big part of our strategy,” he said.

Company officials said that last year’s growth was driven by strong performances of its Ford Escape, Ranger and Everest nameplates. The new Ford Escape recorded a 46-percent increase in sales, rising to the number two spot in the sports utility vehicle (SUV) segment. Sales of Ford Ranger were up 27 percent while the Fort Everest SUV enjoyed its second best-ever sales in 2008.

Sales would have been better last year if not for the fact that banks have taken a more cautious approach in their car financing schemes. Since total loans approved last year went down, and around 80 percent of Philippine buyers purchase vehicles via financing, this has affected car sales in the country.

Baker noted that while low downpayments were the trend before, now, only preferred clients can avail of the 15 percent or less downpayment schemes. “And the banks are more stringent in screening the borrowers, as well as requiring higher downpayments. It would be good if financing could loosen up,” he added.

“There is no question that 2008 was a very challenging year for our industry, but FGP remained focused on delivering new products and services that not only kept us competitive, in a number of cases it represented best in class in the market,” Baker said. “We are very proud of what we accomplished last year, and we are committed to continually improving our business and customer experience in 2009.”