Ford Phils eyes 18% growth in exports this year

Ford Group Philippines successfully capped 2003 with an aggressive export program that promises to spur local economic growth and solidify the company’s reputation as the only car manufacturer to export finished vehicles from the Philippines. This year, Ford is targetting a growth of more than 18 percent in its export performance.

Last year, automotive exports totaled $1.574 billion. Of this number, Ford exported over $450 million worth of finished vehicles and automotive parts and components. This represents approximately 30 percent of the country’s total automotive output.

The company exported 13,500 units in 2003 to markets such as Thailand and Indonesia, counting among them car models like the Ford Lynx and Ford Escape. These exports have generated $190 million in revenues. Ford reports that exports drove the growth of its business in 2003, accounting for 70 percent of total production volume and 65 percent of revenues. For 2004, Ford Philippines is targeting some 16,000 units for export, a growth of 18.5 percent over the 2003 figure.

Ford remains to be the only car manufacturer in the Philippines with a positive trade balance. In just over the past five years, Ford Motor Co. has cumulatively exported over $1.2 billion, while imports amounted to only $360 million. Contributing to this positive trade balance is the export of finished vehicles assembled right out of the Ford plant in Sta. Rosa, Laguna. Ford has so far exported over 17,000 finished vehicles following the program’s formal launch in March 2002.

In July of 2003 when the company celebrated the milestone of its 10,000th export vehicle, Ford president Henry Co acknowledged the role the program plays in contributing to the economy.

"For the economy, 10,000 units of export translates to $155 million in export revenues, $70 million in Philippine value added, 50,000 tires and wheels, 10,000 carpets, radiators, wiring harness, 40,000 springs and the list goes on," said Co. "This achievement has created a renewed sense of confidence for Ford in the Philippines, for auto industry, and the country as a competitive economy."