Mitsubishi Phils sees benefits from financial realignment of parent firm

Mitsubishi Motors Philippines Corp. (MMPC) is hoping to benefit from the current revival plan of its parent firm, Mitsubishi Motors Corp. (MMC), aimed at expanding in Southeast Asia and the Philippine government’s decision to open up its Automotive Export Program (AEP).

Japan’s fourth largest auto maker, mired in huge losses and debt, is under pressure to come up with a restructuring plan after its top shareholder DaimlerChrysler AG pulled out of a multibillion dollar bailout plan last week.

But industry sources said DaimlerChrysler’s decision not to infuse additional funds to bail out MMC is expected to shift the focus of production to Asia.

In fact, as part of its restructuring plan, MMC will invest P10 billion to raise output capacity in the Philippines by more than 10 times to 200,000 units a year.

MMPC senior vice president Melchor Dizon said yesterday that Mitsubishi Philippines is doing much better than its other counterparts in other parts of the world.

MMPC currently ranks number two in overall sales in the Philippines.

Recent moves by the government to open up further its auto export program helped clinched the decision of MMC to make the Philippines the production hub for a small spot utility vehicles for export initially to China and eventually to the Middle East, South America and Africa.

Aside from the Philippines, MMC had been studying Thailand and Indonesia as alternative sites for the production of the new SUV.

With these two developments, according to Dizon, the Philippines now has the chance to become a "major production base of Mitsubishi in the region."

Recently, Trade and Industry Secretary Cesar V. Purisima said the recent amendments in the AEP would boost the government’s initiative in promoting the Philippines as an auto manufacturing hub in Asia and at the same time bolster the jobs opportunities in the automotive sector.