MANILA, Philippines - Ford Motor Philippines reported yesterday that its first quarter export figures are up despite the slowdown in the global automotive market.
In an interview, Ford president Rick Baker said that exports for their completely built up (CBU) units were up slightly for the first three months of the year when compared to the same period in 2008.
Major markets for Ford CBUs are Thailand and Indonesia.
Baker explained that exports were weak in January but it picked up in February and March.
With regards to the engine exports in South Africa, Baker said it was slightly down in the first quarter because of weak demand. However, he said they expect a turn around given the introduction of the new model for Ford Focus.
The South Africa plant of Ford caters to the South Africa and Australian demand. He said the demand for these two markets will pick up in the second half of the year because of the new Focus. As such, demand for the locally made engines will also go up.
Meanwhile, local auto sales were down for the first quarter of this year. Baker credited this to slow introduction of new models.
Earlier, Ford asked the government to relax the rules on its export credits as the American firm grapples with the worldwide crisis in automotive which has plagued the industry since last year.
Board of Investments (BOI) managing head Elmer C. Hernandez said Ford has asked the government if it can suspend the rule on minimum export requirements because it will be unable to meet the agreed number of exports for this fiscal year. Ford’s fiscal year will end in May.
According to Hernandez, the request was made several months ago when Ford realized that it will not be able to export the required 5,000 units or $75 million worth of vehicles as agreed upon in the government’s export program.
“Ford would like to earn export credits even if they don’t meet the minimum requirements,” Hernandez said.
Ford is the only member of the export program. Under this, Ford will be able to get tax credits for all the vehicles they will import in the country if they meet the minimum. If not, Ford at the end of their fiscal year, will have to return to the government all the discounts given to them.
Hernandez said they do not know how much exactly Ford was able to export this year but said it is safe to assume that it is below 5,000 units.
When asked if they will grant the request of the American brand, Hernandez said “BOI is looking favorably at their request.”
Hernandez said they are considering approving the request of suspending the minimum requirement until December 2009. This means that Ford will be saved from refunding the credits given by government last year.