Industry Forum reflects positive signs

Despite the pouring rains brought by Typhoon Falcon and the inevitable resulting floods and traffic jams last Thursday evening, June 23rd, the official launch of the Auto Focus People’s Choice Awards, the yearly search for the country’s most preferred and most popular automobiles was held with local auto industry leaders and their associates and members of the media together with the event’s major sponsors in attendance.

One of the highlights of the event, the STV Auto Industry Forum, a venue to discuss timely topics significant to the local auto industry’s well-being, which is now a traditional integral part of the yearly launch, was graced very aptly by no less than the Managing Head of the Board of Investments (BOI), Department of Trade & Industry (DTI) Undersecretary Cristino L. Panlilio as resource speaker.

He was joined in the highly-informative but lively discussion on stage by some of the local automobile sector’s recognized movers and shakers, the top executives of some of the major players. The industry was geographically represented in the forum. Although not by design, all of the speakers in the forum were automobile importers and distributors with those from the manufacturing sectors either unavailable due to previous commitments or some, if I would believe word from the grapevine, “for some unknown reason are apprehensive or uncomfortable having direct dialogues with government representatives”. Of course it was something I could not understand considering that it was a Forum or a friendly exchange of ideas relevant to the well-being of the industry and not a Congressional hearing, which some observers say and swear that more often than not smacks of arrogance and high handedness – not to worry guys, never in our forum and not on my watch.

The auto industry speakers included the gentleman who holds the distinction of being, in modern history as the first and only Filipino, so far, to head and become president of a Japanese-brand automobile company. Fondly called by his friends in the motoring media as “Sir John” for being a self-confessed fanatic Beatles fan, Mr. Danny Isla, as president represented Lexus-Manila, importers of the high-end vehicles that are part of the Toyota marquee.

There was also the industry top executive who was greatly responsible for bringing back the luster that the Chevrolet brand enjoyed for a long time in the Philippines, especially in the 50s and the 60s with his present successful handling of the Chevy Cruze and other Chevrolet brands, the managing director and COO of TCCCI (The Car Covenant Company, Inc.), Atty. Albert Arcilla.

The 3rd speaker that represented the auto industry was known to have successfully put up, managed and headed an array of business interests ranging but not limited to banking, property development and stock market before engaging in the world of automobiles. In the present new administration he succumbed to the call for government service by accepting the appointment of being one of the members of the Board of Trustees of the GSIS if only to be true to his advocacy of doing something “para sa Bayan”. An integral part of the dynamic management tandem with Mr. Felix Ang behind successful handling of the Mercedes-Benz, Dodge, Jeep and Chrysler brands in the Philippines is Mr. Greg Yu, of CATS Motors.

Based on this year’s topic, which is “Give and Take: How can the government and the private sector work hand-in-hand to further develop the local automotive industry and help spur the country’s economic growth?”, Usec. Panlilio methodically mentioned and explained current government initiatives and major programs, though broad in its spectrum, that would indeed support the present auto sector’s momentum of growth that’s being manifested despite continuing, though milder global financial challenges.

Acknowledged in the private sector for his excellence in marketing management with exemplary background in the food and banking (president, Universal Food Corp., assistant vp, Far Eastern Bank, vp and eventually senior vp, PCIBank) sectors, the present BOI head honcho who was once an AGORA Award recipient cited the present administration’s road building program, which has 73 infrastructure projects lined up through its PPP (Private Partnership Program) agenda as one of the major boosts to the local auto industry’s continuing development. Usec. Panlilio added that the road building program is a major priority in President Noy Aquino’s Handbook, the first time a Philippine president ever put together in a handbook a list of what has to be and must be accomplished within his term. Some of the road infrastructure projects specified include Daang Hari – SLEX Link Road; the NAIA Expressway Phase II that will link the Skyway to the Manila – Cavite Coastal Expressway; the 27.5 km. Manila-side extension of the CALA Expressway which will extend the Manila – Cavite Coastal Highway up to Silang, Cavite. Some future projects on tap will include: a C-5/FTI/Skyway Connector; C-6 Expressway (Global City Link) – South Section; the Calamba – Los Baños Expressway; and the Central Luzon Expressway (CLEX) – Phase II to Cabanatuan/San Jose.

Indeed a most welcome priority venture of the government for the automotive industry, which has been clamoring for more road infrastructure projects and the upgrading of the present existing road networks. After all more roads and better roads equate to increased land travel and the inevitable rise in the demand level for land transport vehicles.

As elucidated, by the kind BOI managing head, also considered as a major move in support for the auto industry, which has a 10% contribution to the country’s Gross National Product (GDP), is its inclusion in the government’s 2011-2012 Investment Priority Plan (IPP). “Incremental investments undertaken by industries listed in the IPP will be given appropriate tax incentives. I am personally over-seeing a program to drive export viability and expansion and provide new incentives for local assembly so I urge those still not exporting automobiles to strongly look into local assembly.”

An issue that many decide not to dwell on in many auto industry fora due to its sensitivity and the powerful personalities involved but unquestionably has its negative impact on the industry was bravely discussed – the illegal importation of used vehicles. Usec. Panlilio was candid in acknowledging the unresolved issue especially in so-called “hot” ports where many high-end used vehicles enter the country but firm in stating that it is being seriously looked into by the present administration.

Part of the forum was for the representatives of the auto industry to make a brief update on their individual company’s YTD performance and an appraisal of the effect of the recent disaster in Japan in its supply operations and sales, if any. 

Albert of TCCCI stated, “Early 2010 may have been a volatile period for us, but it turned out to be a good year. We managed to win back the public’s trust in the brand, expand our distribution to 20 dealerships, and grow our business here in the Philippines by 54%.”

Danny of Lexus-Manila assessed, “Our Company’s growth last year may have been modest, but we’ve hit our sales targets over the past 2 years. Our 2010 growth was 75% and as of April 2011, we are up 29% YTD over the same period the year before even with delivery issues arising from the recent calamities in Japan. However, we expect supply to stabilize by November.”

For his part, Greg of CATS exclaimed: “2010 was the best year so far for us. Our Mercedes-Benz business improved by 35%, and Chrysler was up 28%. We attribute these primarily to buoyant economic factors, high confidence in government, as well as an easy bank financing environment. Our 1st quarter 2011 may not have been at the level of 2010, but this is due more to competitive market pressures rather than present economic conditions. Nonetheless we are expecting our growth this year to be at 10-15%.”

Everything came out positive during the discussion, with the good news updates from the industry representatives and gung-ho support from government as assured by its top investment official. It was nothing but first hand straight talk from both parties in a friendly, cordial manner with no hidden agenda but just the sincere quest for anything that would help induce further development of the auto industry and would contribute to its well-being.

The actual launch of the Auto Focus People’s Choice Awards came immediately after the STV Auto Industry Forum while the guests were partaking of their sumptuous dinner. Kind messages came from the supportive sponsors of the yearly search for the country’s most preferred models in every category and the most popular, the ultimate – the “Automobile of the Year – People’s Choice”. Those who were called to the stage for their words of support included Jerry Jara, president of Air21, one of the cooperating sponsors together with Caltex with Techron, whose brand coordinator Veronica Pangilinan failed to make it due to the rains and floods that marked that evening. Then there was the message from Tony Peña, svp and business unit head of presenting sponsor BDO Auto Loan.

Voting for this year’s Auto Focus People’s Choice Awards starts on Friday. You can vote online via our voting website www.autofocus.com.ph or via the ballots that would appear here on the motoring section every Wednesday, starting July 6, which you can drop in any designated Air21 outlets or selected Caltex service stations and win a prize.

Happy Motoring!!!

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