Ford Group Philippines Inc., clobbered by regional
developments that saw exports contracting by half last year, hopes to
post higher sales this year by continuing to focus on regional
integration and at the same time strengthening its domestic base.
At the formal media introduction of FGPI president
Richard Baker the other day, newly-designated chairman Henry Co said
2006 was a bad year for Ford exports. Sales to Indonesia dropped by 47
percent. Thailand suffered political debacle and instituted foreign
exchange controls while Malaysia tightened credits and erected
non-tariff barriers.
Ford’s completely built-up exports (combined Ford
Escape, Ford Focus and Mazda3 and Mazda tribute) to Thailand, Indonesia
and Malaysia plunged 50 percent to 6,677 in 2006 from 13,352 the
previous year.
FGPI has exported 46,000 completely built-up vehicles
since it started this business in 2002 with a value of $600 million. In
2004, it began exporting completely knocked down kits.
Co said demand for Ford vehicles was dampened by
higher oil prices. Local sales suffered a 17 percent drop in sales to
6,907 from 8336 in 2005.
Co said models available locally have aged and need
to be replaced with new variants. FGPI eyes the introduction of smaller
engine, fuel-efficient vehicles to improve sales.
"We plan to compete in every segment of the market.
We are very serious about Asean and to do that, we have to sell small
fuel efficient cars or we will be marginalized." Co said.
But Co said he expects FGPI to do better this year
due to a stronger peso and stable oil prices.
"2006 was a bad year for exports but we expect to do
better this year. Our long term strategy is to remain as an exporter of
quality Philippine-made vehicles because as markets open, you do not
have any choice,. Asean markets are very connected," Co said. Both
officials did not divulge any figures.
Baker said the region’s markets have gone through
radical economic challenges and we have to recover the volumes. Co said
as the Philippines opens up its economy with the rest of Asean and with
Japan with the Japan economic partnership agreement, the market becomes
even more challenging.
