Ramcar’s alive and well, thank you!

Some weeks ago, I got a call from an old friend, Manolo Agustines about something I wrote which disappointed him. I implied that Enron and Ramcar were pretty much the same. It just isn't so, he said. For one thing, Ramcar is not a public corporation like Enron. He does not have public stockholders to worry about. Also, he did not cause retirement funds of any of his employees to go up in smoke. They also did not keep anything from their banks, nor did they mislead them.

I first met Mr. Agustines when he was on the board of the Manila Chronicle. We get together now and then to exchange stories but haven't touched base for a while. We agreed to meet so he can explain what happened to Ramcar. Getting our schedules synchronized was easier said than done.

Ramcar's alive and well, he said, when we finally sat down to talk last Wednesday. Domestic sales are on the way up, apparently recovering market share from the smugglers. Export sales are still doing well, and never suffered even through all the fuss created in the business press about Ramcar's corporate debt. In terms of units, Ramcar's exports will more than double between the first quarter of 2000 and fourth quarter of this year (253,950 to 557281).

That's because Ramcar is producing world-class quality car batteries, Mr. Agustines explained, the kind that is able to grab close to 10-percent market share in Australia and holding its own in the United States. In fact, they are manufacturing batteries in Los Angeles, in addition to the exports from their Manila manufacturing plant, reputed to be the most modern in the region.

The court-instituted moratorium on Ramcar's debt repayment was something that had to happen. They got caught in the high interest rate regime of the BSP in the late 90s, when the central bank was desperately defending the peso. They were working for the banks, as were most local entrepreneurs.

But they didn't have much of a choice. Ramcar had to modernize its facilities to be competitive with world class battery manufacturers. They had a good cash flow both from their battery and their food businesses. They were just paying too much in interest for their peso denominated debts.

Unlike many local entrepreneurs, they resisted borrowing in dollars to get lower interest rates. That would have been a problem too anyway, given the sharp depreciation of the peso since 1997. They were saved from the impact of devaluation, only to lose to high interest rates.

"If we were operating in Malaysia," Manolo asserted, "I would not be in the trouble I am now in." He was voicing a sentiment I often hear from local entrepreneurs who pray that we will have national leaders like Malaysia's Mahathir who is able to stand up to the IMF. Though demonized when he decided to impose currency controls during the Asian crisis of '97, PM Mahathir's strategy is now generally conceded to be not only right, but brilliant.

I imagine that many local entrepreneurs can empathize with Ramcar. This is probably why Ronnie Concepcion struck up a joint venture with Carrier. Manolo is not ruling out a tie-up with a large worldwide battery manufacturer too, but he is not actively looking for it. He enjoys his independence and the ability to proudly declare Ramcar is a world class Filipino company that‚s ready for globalization.

They have met with their creditors and have made their proposals. Unlike others in trouble with their bankers, they are not asking for fresh funds because they have a good cash flow anyway. This is why they decided to clean up now, rather than later. A former Citibanker himself, he assured that no one will lose anything, not even the unsecured creditors.

Manolo Agustines is confident about the future. His manufacturing operations are ISO9000 certified, while his recycling operations are ISO14000 certified for environmental quality. He has a growing US market that is not affected by the current economic downturn. In his home turf, he is ready to meet foreign competition that may start being a real threat next year with the lowering of tariff barriers. He only needs breathing space from his creditors, and the right economic policies from government.

He has just about convinced me that Ramcar is still a Filipino brand I can still proudly buy. Their credit rating may be murky now, but that has not affected the quality of their products. That's reassuring thought in these uncertain times.

Code NGO

I attended the first Quill Awards ceremonies of the local chapter of the International Association of Business Communicators (IABC) the other night. One of the top winners is an entry of Campaigns Advocacy, a PR agency, for Code NGO. It is a catchy song called Kasali Ka, Sali Na or something like that. Armida Siguion Reyna's granddaughter, Cris Villonco even sang it that evening.

Based on Cris's rendition, it seemed to me that it is a winner. But there is something wrong with the criteria used by the jury of respected communicators in selecting it a winner. As a professional communicator myself, I think we are only as good as the impact of our communication. In other words, did we move people? We find this out through a post implementation research or we can feel it with the obvious response of our intended public.

The problem with this Kasali Ka jingle is that it is supposed to mobilize the Filipino people to get involved in public affairs, a big and ambitious task. Nothing wrong with aiming high but for heaven's sake, air the bloody jingle extensively first, or at least, before presenting it for an award. How can it be a truly great piece of communication if not too many people heard it? I, for one, media savvy as I am, heard it for the first time the other night. No one in my table, all in the business of communications, heard it before.

That, I think, is the flaw in all these PR awards programs. The judges get so caught up with the art that they forget the impact. I don't think it could have won a Gold Quill on the international level of IABC because from what I know of how they judge internationally, the post implementation evaluation is a very important consideration. I think Campaigns should return the award on their own and claim it back only after they are satisfied that it has done its job.

First order of business is to air it the way Coke convinces us to drink their unhealthy syrup. That's what it would take to drum the message of involvement into the thick skulls of our increasingly cynical population. Otherwise, the award only feeds the ego of the creators in Campaigns and their client, Code NGO. Useless and sayang, because I think it is good and could even work to inspire us at last.

One last thing. Given that the client is Code NGO, the same group of civil society do gooders who made over a billion pesos in the peace bonds, maybe if the Senate balato twins hear that jingle, they will rightfully ask, sali din kami sa mga pakulo nyo na bilyon bilyon. Bakit kasi sinu-solo ninyo! Kasali lahat!

Money

Here's food for thought from reader Fe dela Cruz.

Money can’t buy happiness, but it sure makes misery easier to live with.

(Boo Chanco's e-mail address is [email protected])