BOI stands pat on Ford Ranger issue

The Board of Investments (BOI) is standing pat on its decision to allow Ford Motor Philippines Co. Inc (FMCPI) to assemble the Ranger model in the country despite Francisco Motor Corp.’s (FMC) strong opposition.

BOI managing head Gregory Domingo, said the decision made in October last year "will stand," he said.

However, on the still unresolved dispute between FMC and Mazda Motor of Japan, Domingo said "the BOI would like to maintain an arms length policy."

Domingo said the dispute between FMC and Mazda is a contractual issue.

FMC originally had the authority to assemble the B25 pick-up model of Ford which, according to FMC, is basically the same platform as the Ranger pick-up model.

The authority was granted by Mazda which is 33-percent owned by Ford Motor Co. of the US. FMC’s authorization is valid until October 2002.

But Mazda and FMC got into a misunderstanding over the assembly of the B25 model as well as the Econovan.

Ford Motor Philippines eventually came into the picture and decided to assemble the Ranger model itself.

FMC initially did not oppose Ford but later changed its mind when it could not resolve its dispute with Mazda.

FMC initially sought $66 million in damages, but Mazda was willing to compensate it with only $4 million.

FMC is again raising its complaint against Ford which is entering into an ASEAN Industrial Cooperation (AICO) agreement with Thailand for the Ranger model.