Ford may transfer big manufacturing unit to RP

Ford Motor Co. is reassessing its investment strategy in the region, and there appears to be a strong possibility that the Philippines will end up getting the bulk of the company’s future expansion plans.

As an initial step, Ford sources revealed, there are plans to transfer a big portion of the company’s production line from Thailand to the Philippines.

Thailand is currently the global manufacturer for the Ford Ranger models. Local Ford officials reportedly told a visiting US trade mission that Filipino workers assembling the Ford passenger car called Lynx have shown a higher quality of work compared to Japanese Ford assembly workers.

Ford's 21.4-hectare assembly plant in Santa Rosa, Laguna has a capacity of 25,000 units a year. Right now, the P4-billion plant only assembles 6,000 to 7,000 units per year of the Lynx and Ranger.

The Santa Rosa plant also assembles Ford’s 1.6-liter engine which is exported to Thailand. Last year, the Santa Rosa plant exported 3,000 engine units to Thailand.

There had been plans for the Santa Rosa plant to assemble the Ford van, but it did not push through because of depressed car sales.

Last Friday, Ford Motor Co. Philippines introduced its two latest variants to the Ranger – the 2.9 liter XLT 4 x 2 and the Ranger Trekker XLT 4 x 2.

Ford Ranger Trekker manager Colin Thom said they hope to sell 2,001 units of the Ranger this year, representing 20 percent of the local pick-up market which is currently dominated by the Nissan Frontier and the Isuzu Fuego.

The Ford Ranger, Thom admitted, only ranks fourth after the Mitsubishi Strada.

Last year, Thom said, the pick-up segment sold 8,280 units with Ford grabbing a share of only 14 percent with sales of 1,105 units.

Thom expressed confidence that since the 4 x 2 Ford Ranger Trekker is priced cheaper, it may be able to increase its market share. The new Ford Ranger variants are priced at P719,000 for the 2.9 liter and the 2.5 liter turbo diesel Trekker is priced at P795,000.