Nissan may import CBUs if labor problem persists

Nissan Motor Philippines Inc. (NMPI) may have to import completely built up (CBU) units instead of completely knocked-down packs (CKDs) for its assembly line, if its labor problem remains unresolved.

This was admitted yesterday by NMPI assistant vice president for corporate planning Valentino de Leon who also denied that NMPI is thinking of pulling out of the country because of its labor problem.

"NMPI has invested heavily in a facility located in Sta. Rosa to manufacture the Nissan Cefiro, Sentra Exalta, as well as vehicle parts and body panels. The firm will continue to work on long-term plans for both current and future model lines," de Leon said.

While de Leon decided to clarify his earlier statement regarding the options being reviewed by NMPI as a result of its labor problems, he admitted that "our additional investments for the future will need to be put on hold while we restudy them."

These include, de Leon said, NMPI’s export project and its effort to bring in some major Taiwanese suppliers to build their bases in the Philippines.

According to de Leon, what the NMPI is "studying more intensively is the source of our new model introduction."

While NMPI "would really like to build more models here," de Leon said, "should the situation prove to be unfavorable, we have no recourse but to source them on a CBU basis."

NMPI, de Leon said, is also continuing with its aim to become a production hub for ASEAN export models once the ASEAN Free Trade Agreement (AFTA) is in place by the year 2003.

De Leon said that every local manufacturer would like such an opportunity for their mother companies.

However, he acknowledged, that for the Philippines to be as competitive as other countries such as Thailand, many factors would be considered by a firm’s head office.

These would include costs, proper infrastructure, and most of all industrial peace and labor stability.