Some regional news from the Philippines, where things aren’t all that rosy and there are lots of familiar issues, by the sound of it.
According to reports, rumours abound that there is the possibility that Isuzu Philippines might shut down its 13-hectare Laguna Technopark manufacturing facility in Binan, Laguna if business conditions don’t improve, going down the same path taken by Ford Philippines with its Santa Rosa plant.
The company, which began in 1995, has responded by issuing a statement on the matter. It says that there are no plans in shutting down its plant operations in Laguna, which is capable of producing 15,000 units annually, but if the current situation persists, there’s a possibility that the brand might scale down its assembly operations and look for another ASEAN country, where it is relatively cheaper to operate.
The statement adds that the Philippine automotive industry is facing multitudes of challenges in sustaining manufacturing, primarily in terms of production costs, and that the cost of operating its assembly plant in the Philippines is significantly higher compared with other ASEAN countries.
It is hoping that the government will extend assistance in the form of granting incentives, fiscal and non-fiscal, in order for locally-assembled vehicles to be more competitive compared with imported CBU units, in the process allow existing players to maintain assembly firms and not leave the country.
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The Philippines produces LHD cars. So redundant to maintain the republic alongside China since their volume were low.
Bye bye Isuzu…
Doing business in Philippines is the most difficult because they’re always too proud of themselves. Protest and fighting for their rights are very common. They think like an American but doesn’t work like one. Only singers and maids comes out from that country.
Basing from what you’re saying, you’re the one who is too proud of yourself. What’s the connection of your comment to this news article? Isuzu Plant’s hardships have really nothing to do with all you just said.
Think before you speak. And please, check your grammar.
Philippines is not really an attractive market for the automotive industry. The volumes are just too small. Isuzu which is a pickup truck manufacturer is doing very well in Thailand. Maybe they could not export easily from Phillippines to other countries. Sadly this Isuzu suffer the same fate as Ford Focus whose production had been relocated to Thailand.
We would rather get Isuzu CBUs from Thailand because they are built better. Filipinos always make mistakes, they produce poorer quality vehicles compared to Thailand. Isuzu always get complaints from Philippine-assembled units, very poor quality control checks at their Philippines plant.