BDO forms jv for Mitsubishi vehicle financing

MANILA, Philippines – BDO Unibank Inc. has partnered with Mitsubishi Motors Philippines Corp. (MMPC) and two Japanese companies to take advantage of soaring vehicle sales in the country.

The country’s largest bank, owned by retail and banking magnate Henry Sy through BDO Leasing and Finance Inc., is forming a joint venture company with MMPC, Sojitz Corp. (SJC), and JACCS Co. Ltd. (JACCS) to provide financing services to individual and corporate buyers of Mitsubishi vehicles.

The BDO leasing and financing arm would own 40 percent of MMPC Auto Financial Services Corp., while the Japanese partners including MMPC would control 60 percent of the joint venture company.

The Sy-led bank is seen harnessing the complementary strengths of the joint venture partners to take advantage of the sustained growth in vehicle sales on the back of increasing consumer affluence and a growing population.

According to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) vehicle sales jumped 23 percent to 288,609 units last year from 234,747 units in 2014.

Sales of passenger cars zoomed 28.9 percent to 116,381, while sales of commercial vehicles rose 19.2 percent to 172,228.

BDO said its wide distribution network and industry leadership are seen to complement MMPC’s established presence in the automotive industry, while both SJC and JACCS would contribute their international perspective and knowledge base on consumer credit to the business.    

BDO has one of the largest distribution networks, with more than 1,000 operating branches and over 3,000 ATMs nationwide.  It also has a branch in Hong Kong as well as 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO Leasing and Finance provides customers direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring. It also provides operating leases through its wholly-owned subsidiary BDO Rental Incorporated.

On the other hand, MMPC cornered the second largest market share last year with 18.74 percent of the total vehicles sold next to the 43.32 percent share of Toyota Motor Philippines Corp.