Mitsubishi acquires Ford’s Laguna plant

MANILA, Philippines - The local unit of Japanese car maker Mitsubishi Motors Corp. (MMC) has acquired the 21-hectare manufacturing plant of Ford Motor Co. in Sta.Rosa, Laguna.

Mitsubishi Motors Philippines Corp. (MMPC) said in a statement yesterday the acquisition is part of MMC’s strategy to further strengthen MMPC’s role of expanding both sales and production capacity in its mid-term plan until 2016.

“The acquisition of the Sta. Rosa factory will further strengthen our assembly operations, utilizing heavy stamping machines, advanced equipment and facilities engineering that will support MMC’s business objectives for the new mid-term business plan,” MMPC president and chief executive officer Hikosaburo Shibata said.

Asked how much was spent for the acquisition, MMPC vice president for marketing services Froilan Dytianquin declined to give the amount, citing a non-disclosure purchase agreement with Ford.

The newly acquired plant was used by Ford for vehicle assembly until its close of 2012 due to weak local demand and small supply base for automotives.

MMPC intends to relocate at the newly acquired plant and start vehicle production by January 2015.

At present, MMPC assembles the L300, Adventure and Lancer EX at its 18-hectare plant with an annual capacity of 30,000 units, in Cainta, Rizal.

Last year, MMPC’s vehicle output reached around 15,000 units.

“MMPC is looking at the Sta. Rosa plant to produce up to 50,000 (units) per year.  Being in an industrial zone, (the) Sta. Rosa plant can also be further expanded to produce 100,000 (units) per year,” Dytianquin said.

As Cainta and Taytay are growing residential areas, Dytianquin said it is no longer feasible to expand the existing facility.

MMPC is looking forward to the release of the automotive industry road map which would contain strategies aimed at strengthening the country’s vehicle manufacturing operations to make it competitive against other Asian countries.

The new auto policy is expected to eventually provide huge job employment opportunities not only to car assemblers, but also to industry related companies and businesses such as first, second and third tier suppliers.

The country’s motor vehicle sales are projected to rapidly grow in thecoming years given the close to 100 million population.

Last year, total vehicle sales here reached around 212,000 units, the highest level ever attained, but still far behind Thailand and Indonesia which are sold over a million units.

Of the total vehicle sales last year, MMPC sold 43,176 units,representing a 20 percent market share.