Ford eyes $57-M from export of 2 models

Ford Motor Co. Philippines expects to generate foreign exchange earnings of around $57 million this year from the export of Escape and Lynx models to other countries in Asia.

This was disclosed yesterday by Ford Philippines President Henry Co during the formal launching of Escape which is intended for domestic sale and export to Thailand and Indonesia.

Co said Ford invested an additional P700 million to support the export production of the Escape and Lynx models.

Ford Philippines is eyeing shipments of 6,000 vehicles to Thailand and Indonesia this year.

For 2003, Ford plans to export another 12,000 vehicles for a total of 65,000 vehicles within the next five years.

However, Co urged the government to address four areas of concern for the local automotive industry.

He said the government should develop a strong and vibrant domestic market. "Export can only be strong and competitive if there is a healthy domestic market base."

Co also said there is a need to improve parts supply base capability as well as the infrastructure and logistics capability both within the Philippines and intra-ASEAN.

He also said there is a need to foster an environment that would further encourage finished vehicle and parts exports.

The export of Escape and Lynx models to Indonesia and Thailand is under the ASEAN Industrial Cooperation or AICO program where the participants are able to enjoy preferential tariff of zero to five percent.

Even with the implementation of the AFTA next year, AICO participants are still hoping to continue with the program by dropping the preferential tariff to zero compared to AFTA effective rates of between zero and five percent.

Ford is the first to export completely built-up units although rivals Toyota Motor Philippines Inc. and Honda Cars Philippines Inc. are exporting parts and transmission assembly under the AICO scheme.