MANILA, Philippines - Ford Group Philippines said yesterday that exports for the first quarter went up by seven percent to 1,816 units from 1,704 units in the same period last year.
FGP is exporting Focus, Escape and Mazda 3. The Focus and Escape models are being sold in Indonesia, Malaysia and Thailand while the Mazda 3 goes to Thailand.
Last year, FGP was able to export 9,858 units. This is lower than the government imposed quota of 10,000. Under the government’s Auto Export Program, local manufacturers must export 10,000 units per year before they can avail of the incentives under the AEP.
Still the first and only volume exporter of CBU vehicles in the Philippines, Ford has been manufacturing the Ford Focus, Ford Escape and Mazda3 for export to ASEAN markets that include Thailand, Indonesia, and Malaysia since 2002. In December, FMCP celebrated the export of its 75,000 unit, representing a cumulative value of more than $960 million.
In an earlier interview, FGP President Randy Krieger said that Ford will continue to export locally manufactured vehicles. Ford is the lone exporter and the only firm that has taken advantage of the government’s AEP.
The AEP has already expired but the Department of Trade and Industry (DTI) is working on extending the program through a Malacañang issued Executive Order.
Krieger said that both the AEP and the Comprehensive Motor Vehicle Development Plan are crucial legislations that will help auto firms in their future planning here in the country.
Krieger said that there is a need to make the Philippines more cost competitive because manufacturing vehicles are cheaper in Indonesia and Thailand.
He said there are several factors for this like the small domestic market, a higher electricity rate and a shallow supply base which requires a lot of importation for local manufacturers.
“With free trade it becomes more difficult (to manufacture in the Philippines) when it is cheaper to build there,” Krieger noted.