Ford sees 9% growth in RP sales

Ford Group Philippines expects a nine-percent sales growth for this year.

Ford Philippines President Henry Co, however, said that in terms of exports, Ford is expecting a sales growth of only three percent.

According to Co, Ford expects to export only about 14,000 units this year due to an expected drop in demand in the region.

Ford, thus, expects to just match last year’s export of about 13,500 units.

In 2004, Ford had exported 10,500 units.

"Last year was good for us. But this year, we are a bit conservative in our target," Co said.

Ford’s conservative projection, Co explained, is due to the domestic problems in their export markets like Thailand, Malaysia, Indonesia and Vietnam.

Thailand, Co pointed out, is currently experiencing some political turmoil, while Indonesia is encountering a slowdown in its domestic growth.

In Malaysia, Co said, the automotive industry is suffering from defaults in auto loans, thus, resulting in a tightening of credit facilities.

In Vietnam, Co said, a new law in auto taxation would adversely affect Ford and other vehicle companies. "All these are putting brakes on our growth," Co admitted.

Ford Philippines exports the Escape, Focus, Tribute and Mazda3.

Domestically, Co said, they are looking at a nine percent growth from their 2005 sales volume of 8,300.

Similar to the perception of other local manufacturers, the expected growth this year is from the resolution of the used car imports.

Ford, Co said, plans to focus on the high-end segment.

Ford is leaving other car makers to fight for the larger market of lower value vehicles like the 1.3-liter sedans and Asian utility vehicles.

By the second half of the year, Co said, Ford would introduce two or three new models which he declined to identify at present.