Sales of local Ford units up 74% in first quarter

MANILA, Philippines - Ford Group Philippines said its sales grew 74 percent in the first three months of the year as demand for the Fiesta and Everest models continued to rise.

At the same time, Ford said it will consider expansion plans or production of new models here after the passage of the implementing rules and regulations (IRR) of the Motor Vehicle Development Plan (MVDP).

In a press conference Friday evening, Ford president Randy Krieger said their first quarter sales reached 2,387 units, representing a 74 percent increase compared to the same period a year ago.

Sales figures for March alone was 881 units, which was 66 percent higher versus March 2010. Krieger said this represents two consecutive months of record-breaking sales for the firm.

 Krieger said that they expect to finish the year with a double-digit sales growth. This means that the firm will grow faster than the industry which only expects a four percent growth.

In terms of exports, he said that they will continue to export locally manufactured vehicles. Ford is the lone exporter and the only firm that has taken advantage of the government’s Auto Export Program (AEP). To date, Ford has exported 75,000 vehicles.

The AEP has already expired but the Department of Trade and Industry is working on extending the program through a Malacañang-issued Executive Order.

Krieger refused to give any of their recommendations for the AEP, saying only that “the AEP has to be a part of a larger direction of manufacturing.”

He said that both the AEP and the MVDP are crucial legislations that will help auto firms in their future planning in the country.

Krieger said there is a need to make the Philippines more cost competitive because manufacturing vehicles are cheaper in Indonesia and Thailand.

He said there are several factors for this, like the small domestic market, a higher electricity rate, and a shallow supply base which requires a lot of importation for local manufacturers.

“With free trade it becomes more difficult (to manufacture in the Philippines) when it is cheaper to build there,” Krieger noted.

For Ford, Krieger said that they are thinking of producing eight new product lines for the ASEAN market in the next five years. The Philippines is a candidate manufacturing site but they are still studying if local conditions are appropriate.