What should the Philippines do to promote its automotive manufacturing industry? Let us know down below!

Why? Short sighted politicians, ridiculous red tape, "Oh, we're losing too much money from corruption? Let's increase the taxes instead", e.t.c

Philippines even failed to make sports shoes some years ago.

Magaling lang tayo mag maritess, mag tiktok, instagram, mag facebook, manood ng k-drama, tumangkilik ng foreigners at hindi locals. We are a nation of consumers, not producers.

Bunch of corrupt and stupid officials

Out of stock Sir. No stock Sir. Brown out Sir. Can't work today Sir. Birthday party. Or tomorrow either. Hangover.

Corruption, corruption, no lagay ! No way !

labor union , hi price Electricity, corrupt Lgu , BIR , poor infra etc.

Corruption is rampant

Filipino workers that are left in the country are sub standard because the quality workers we have are exported.

Reality... The Philippines = a Great Importer Nation 🎉🎉🎉

Setting aside the corruption allegations and poor short-sighted methods of taxation a bit, and yes they do play a factor... I can see three reasons which are interconnected: Lack of Infrastructure and Tooling, Lack of Technical Expertise, and Lack of Innovation. Lack of Infrastructure and Tooling means we haven't got the tools and machinery to manufacture major components of a vehicle. We also cannot manufacture them in a way where we can reduce the overall production cost and more dependent on manual labor on some aspects which manufacturers from other countries use machineries for. That means they can churn out multiple components in the span of time we need to make one of the same. Which leads me to the second... Lack of Technical Expertise where we're limited on the parts and components of the vehicle we can manufacture. I don't mean we don't know how an engine, transmission, axles, or ECU (engine control unit) works, rather we don't know how to manufacture them in mass. Technically speaking, since we've partnered with manufacturers for local production whether be it from the US, Japan, South Korea, Europe, or even China, you'd think by now, at least one of them have trusted us the ability to manufacture major components such as engines, drivetrains, electronics, etc., but no... we always source them outside the country and just "assemble" the components here. And sadly, since we lack this technical expertise especially in the manufacturing of such components, when we do try to manufacture them, they end up expensive and subpar in quality. Say what you want about Chinese products having poor build quality, our Filipino quality is no better and in instances, actually worse and more atrocious. Finally, lack of innovation. For all what Filipinos claim about creativity, realistically we're not a very creative bunch and what we call our "inventions" isn't actually coming from the Philippines, rather it has been developed or discovered in other countries, we just put a bit of "Filipino flare" in it then claim it our own. Sad reality. Anyway, the video mentions Francisco Motors and Sarao Motors. As a collective, jeepney manufacturers (or rather, Jeepney body builders, since that's all what they are) for whatever reason either struggled or refused to evolve for decades. The jeepney of 3 or 4 decades ago is basically the same as the jeepney of today, give or take just different aesthetics and gimmicks (some gimmicks being borderline retarded). The jeepney of today follows the same recipe as the jeepney or the 1970's or 1980's. We take a chassis, engine, axles, and transmission of scrapped vehicles from Japan, and built a jeepney body over it which has some blokes manually beating and hammering a piece of sheet metal and spot-welding them to place. Some claim "craftsmanship" while others call it inefficient manufacturing. Sad thing is these jeepney body builders still are unable (or on instances, refuse to go with the times and evolve). Long-story short, the jeepney has ZERO SIGNIFICANCE to other countries, while manufacturers from other countries make vehicles which are significant, with a demand, market, and at times tailored to other countries, being "homologated" therefore can be sold worldwide. What's kinda depressing is that the country is currently implementing a PUV (public transport) modernization program which basically has only two requirements to be accredited; minimum and maximum dimensions and a Euro 4 emissions compliant engine. These jeepney manufacturers still insist on using pre-Euro emission standard engines, and they cry "foul" that they are being "targeted" by the government ignoring the fact that they're still pushing a vehicle with manufacturing methods from the 1940's. Meanwhile, local bus manufacturers like Almazora Motors (as in the video), Centro Manufacturing, Sta. Rosa Motor Works, Del Monte Motor Works, and the lot have partnered with OEM manufacturers like Hyundai, Hino, Isuzu, Mitsubishi Fuso, Foton, FAW, etc. to produce quite a wide variety of vehicles. I will admit since they are OEM and using brand new components, they are quite more expensive but not exactly apples-to-apples comparison from someone using hand-me-down parts from scrapyards of Japan, is it? Also, if I may add, Elmer Francisco of Francisco motors is just out for Social media clout at this point. I remember how arrogant that guy was bragging about the "quality" of his jeepneys while slamming the "poor quality" of foreign brands especially that from China He proceeds to brag about a supposed "Filipino-made" van called the Francisco Harabas, and then it turned out it was a Chinese manufactured electric van Wanxiang Auto T01. So much for slamming China's quality build, only to find yourself going back to them. The sad thing is way back in the 90's, the Philippines was actually exporting vehicles to other countries, more prominently on the segment of buses. Columbian Motors (through Sta. Rosa Motor Works and the now defunct Nissan Diesel Philippines Corporation) and Pilipinas Hino have exported products as far as Guam, Hong Kong, Japan, and as far as I know, even Arab countries. Manufacturers here even sometimes tailor a model specific to a country's requirement like Hong Kong and Japan. Nissan Diesel actually had a model of Japanese Coach named "Space Arrow Euro Tour" which was manufactured by Nissan Diesel Philippines Corporation in Sta. Rosa Laguna using Japanese model specific components, engines, and dimensions. Japan for their strict quality control and their keen attention to detail have took in something from the Philippines. All of those considered, we have ended up having the highest manufacturing cost while we lack proper quality control on some cases. Just sad, to be honest. It's gotten to a point where a fully-built Chinese commercial vehicle is miles cheaper while offering similar (or even better quality) and even more features than what the local manufacturing has to offer. It's even gotten to the point where high end Vietnamese bus/coach with European spec engines and components from Sweden is market-competitive compared to a locally-manufactured bus/coach. It's that bad.

The philippines had the resources to make steel to make cars but instead of making it we too lazy to make it. Its profitable to import steel and sell it locally.

with a fragile energy grid system and high corruption, manufacturing in the Philippines is not advisable.

Philipines have to iron out cumbersome abstruse red tape to entice foreign car makers to build factories in their own nation. What a missed opportunity!

the philippines doesn't even have a toothpick factory, what more with automobiles.

The Philippine Managers and Lawmakers mismanaged and short plans its future outlook on the economy. Everything in Philippines are importation. FDI are leaving because high cost of electricity, too many red tapes and policy.

Philippines should build their own transport that suit their geographic area ( sea and land combine ).

the Philippine manufacturing failures are only applied to U.S., Japanese and Korean cars but not with Chinese cars

if philippines would seriously wants to stand up against the bully, you have to better yourself, stand on your own feet and develop, help own blood manufacturing sectors and startups inventors, otherwise you will always be dependent to stronger nations around you, politicians, local oligarchs, please wake up. we now live in a global village of the internet, communications and transportations, if you cannot evolve sooner or later, you and your local businesses will collapse....love from 12 million overseas filipino workers.

Unstable Political climate in my country is the reason why Investor is afraid to take the risk ,When DU30 take office HONDA PHIL.quickly get out of Philppine and INTEL when Marcos take office. It is only during the Late PRES PNOY that the INVESTOR came .

The BRI would have been finished in 12 months... there would have been proper roads for Cars. China certainly isn't going to Invest where it is not wanted. Why should it? Japan is screwed, Toyota is getting out and going to China.

During the time of pfem, Toyota had a manufacturing plant. I think it was in sukat. And he started to build a cocodiesel engine. Wch his govt would used it. Example 50 coco diesel to deped ,50 to military so on and so forth. That idea died when new govt was established in 86

The sound effect at is way too loud! 1:28

what manufacturing are we talking about . maybe importer of whole units with tires and batteries . they classified these as semi knockdown

tropical island and manufacturing simply don't mix well together. unless they go to baguio city, that place is simply a different place from the rest of the country.

The Philippines is a "Service Oriented" economy in the world. Thats not where our money comes from.

How did it failed?? Tell me.

We used to see a lot of products made from Philippines. We don't see much anymore. Why?

0:44 what about Francisco motors and aurelio

Phinos go own ways, different military direction from ASEAN mainland -6 members (Railways) + Pancasila Indonesian。 Vietnam (Russia) 100mil pax; Thai-Msia (BRICS framework) 104mil pax; Indonesian-OCED 280 mil pax neutral. Welcome to invest at Malaysia has supply chain EVs / Micro-chips , Msian are speaking Melayu, Mandarin, English.

Philippines thrive because of OFW. Without the OFW Philippines is in bad shape.

1. No powerful vision. 2. Lact of Skil labour. 3. Corruption.

One factor should be the lawmakers who didn't even study law

Business will only go to a country if there is profit. Many factors are against Philippines for manufacturers, high electricity costs, corrupt government, underdeveloped infrastructure and red tape among others.

The sad part was that young Filipino, tend to think or assume that if it was "local" it was not a good quality product😢

the Philippines has the best export in the world. it's people. it's a bottomless supply of people because even with so many people exported all around the world, we are still over populated

1:29 audio problem

1:28 dude wtf?

In Mindanao we have also donsals..

The Philippines government need to open Foreign Direct Investment/FDI, support through incentives/subsidizing the auto industry, acquire technology transfers to locally design and build cars, create and develop foundation for supporting industries and gain mass public support for local brands over foreign brands. VinFast from Vietnam, my mother land country just started selling electric cars like VFe34, VF5, VF7, VF9 in the Philippines. Thaco Auto from Vietnam also exports locally made buses to the Philippines too. If the Philippines, Indonesia and Thailand can't have a national car brand they can at least support other South East Asian brands like VinFast which is the only country from SEA to sell electric vehicles around the world.

There's actually more to it than the blatant issue which is corruption. Because the Philippines has been taken over by three countries In it's history and it has developed a thinking that Local produce sucks and imported products are ten times better. This mindset has proven to be ineffective when it comes to Filipinos trying new things like Automotive or manufacturing stuff, their first bashers will be fellow Filipinos patronizing imported products. Also, local brands tend to be more expensive than imported products because of tax that's why a normal Filipino would just prefer imported products because it's cheaper and less taxed. that's why it's so hard to innovate here for this reason, Local products are hated on until it becomes an international hit where them haters become "Proud Filipinos". that's why we're so vulnerable to scams because we're that easy to predict and manipulate

Two things for me, one electricity which is the major component of all large manufacturing. Electricity in the Philippines other than being expensive it is also limited. How many times did the energy providers had announce that the grid is in danger of shutting down due to inability to cope with high demand and this is even without the large manufacturing plants like what other countries has. Second is low demand locally, if you notice the 2 large remaining manufacturing car brands are also the top brands in the country. If Toyota and Mitsubishi started having less sales here I'm guessing they will also close shop just like Mazda and Ford. The only way I can see that happening is when Filipinos will start liking Chinese cars. Knowing Filipinos love for more cheaper products over quality that is a big possibility in the future regardless of the current problems of the country with China.

So few people in the Philippines can afford a car, that's why scooters/motorcycles are more popular - they are cheaper. If more cars are purchased, there will be a need for more suitable roads to handle the increased volume. Spend an afternoon driving through Manila or Cebu City and will see roads and traffic management are a total afterthought in the Philippines. It takes hours to go a modest distance. The large and more populous islands (Luzon, Cebu, and Mindanao) should each build their own railroad to move people/goods from one end of the island to the other. Initial investment will be costly (similar to roads) but trains are more efficient when it comes to moving goods and passengers.

Their leaders are busy printing money for themselves 😅

Not properly trained technicians or maybe techs failed to learn for whatever reason.

3:39 wtf is "downzied"

High cost of power is prohibitive! One of the highest in ASEAN!

Aurelio?

2:18 you sa OFW but its spelled WFO. whats with this, no final review?

Rampant corruption in the Philippines, is reason why down the deficit

simple. the car market in the Philippines is smaller than wealthier countries. Toyota also has greater marketshare in the country where it made the other brands leave. However, there is a lot of untapped potential in the Philippines since the salaries in neighboring countries (thailand, malaysia, indo, etc) are higher. If the Philippines, manages improve manufacturing costs like energy, supplies, etc.....the country might make an automotive comeback and export cars to wealthier countries.

Phillipine đang có tốc độ tăng trưởng kinh tế cao nhất Asean. Tương lai đầy hứa hẹn với Phillipine

My comment has been deleted.

Couldn't finish the video cause its so stressful. We all know the story

Laws pertaining to oil importation, energy regulation, and rice importation, among others, that prohibit government control over prices create an environment conducive to corruption.

High Cost and Unstable supply of Electricity & Water.

1:31 i had headphones on full volume my ears hurt

It’s the high cost of electricity.

High cost of electricity, No metal industry, no chemical industry.

Philippines will never be an export oriented goods manufacturing country because its government could care less. For them, labor export, BPO and Chinese offshore gaming businesses revenues are adequat enough to make it appear the economy is thriving on the surface by having local retailers build malls on every place they could and promoting more and more imports of foreign goods.

not only in the Philippines. Also in Thailand.. Suzuki in Rayong Thailand will close next year. also Honda Assembly plant in Ayutthaya Thailand.

Theres public transport in the PH and cars are expensive relative to the salary. Cars are luxury.

As the comments said so below, one reason is corruption. No one will invest in a Philippine-made car manufacturing plant here as politicians will bleed them dry. There's no vehicle protectionism for local manufacturers here like they do in some countries like Malaysia. Philippines doesn't have an engine manufacturing plant, just assembly of car bodies but the engine is the heart of a car. Even as Philippines have vehicle assembly plants by big foreign brands, some have moved away as its more profitable to build a plant in other countries than to make vehicles here and export them. Even when there is a demand for new cars here, their availability will be limited as car manufacturers would rather export them out than sell them locally and so the wait time was longer and eventually customers gave up and decided to buy another brand. Car manufacturing must be vertically integrated in such that most materials, raw or finished, should be locally available to produce a whole car and not source many parts from abroad thereby making it more expensive. In general major car brands here will not survive if their sales are low and low sales will mean poorer income, high operating capital and so they will just close shop and resort to imports. Lastly the business climate in the Philippines may not be conducive such as expensive electricity, cost of labor or maybe unfavorable taxes, which is a turn off for investors.

Isuzu Philippines Corporation anyone? Or was it the manufacturing operations of this Isuzu Motors subsidiary aint big enough it's not worth mentioning?

1:28 Level off the sfx volume next time 💀

Corrupt Government Employees plus undisciplined citizens is equals to Bahala na kayo jan

The rot always start from the head. The Filipino government has rotted under bongbong marcos Jr. Everything else rots from thereon.

The real culprit is the 60/40 restriction embedded in our constitution. If we only let foreign direct investment flow and had foreign entities own 100 percent of their company here in the Philippines, these auto manufacturing plants' closures would have been prevented.

Nang hihinayang Ako sa mga classmate ko sa highschool na nakapag trabaho sa Toyota Motor Philippines after Ng aming graduation, pero nawala Sila Kasi na impluwensyahan Sila Ng Union. Sayang Ang mga magagandang benefits na natatamasa nila sa kompanya pero nawala dahil sa union na sinalihan nila.

our main industry??? labor exports!!! no f.d.i.??? simple, we have one of the highest power rates!!!!

One good reason is that we put the wrong officials in govt

Energy is to expensive in the Philippines 😰

Philippines can never compete to low cost manufacturing Industry because of the following reasons: 1. Electricity cost is high 2. Being an archipelago logistic cost is high 3. High Labor Cost But Philippines has significant advantage in Service Industry such as BPO.

SARAO should have evolved other than jeepneys!

Kuryente palang tagilid na masisira machine kada brown out, at saka mahal ng bill sa kuryente sa pinas.

Why? Because they're island country not enough space.

tf with the sound effect 1:29

Lagay , lagay , lagay sa mga corrupt na politico ... ano pa ... thats the answer my freind

Many People in the Philippines do not support they local brand, example if you buy clothes like bench they think of you as a Bisaya pumorma, they prepare imported brands

Poor country ..😢 because of the corrupt government officials😢

0:51 it's because Filipino's don't like/support local products. We like imported not local😅

It failed because We use to have All of them together .....Ford GM TOYOTA

Government should subsidize and infuse money to the local automotive industry. it should help industrialize the production of automobiles. Help create the research and development and stimulate production engines and parts. The government should partner with the local manufacturers and hire people with knowledge in production plant. It should create an environment where local manufacturers would partner with big car manufacturers so they may learn the indurstry. Product engineers for the research department

Too many holidays, paternity leave, maternity leave, labor union, too many permits to do business. High tax and electricity cost..

Autos arent the big money makers they used to be - thats why thetes so much worldwide consolidation and brand deaths

that is the saddest reality for ph coz corrupt and crocodiles are everywhere and greedy for power only rich people become more rich and poor people become poorest and our govt not cared about its people ph is behind so many decade to upgrade its society and infrastracture and economy business

Philippines not being an economic power can be trace down to the very poor decisions if our government leaders.

I'm disappointed you failed to mention 2 of the biggest hurdles to manufacturing in the Philippines: high cost of electricity (highest in Asia actually, even more than Japan) and lack of skilled labor. Throw in uneven implementation of local tax policies, militant labor unions, and basically no protection against smuggled goods, and you have the perfect toxic brew that'd kill any manufacturers naive enough to believe in the Philippines government promises

Filipino dont care about this , they care about Beauty Peagent 😅

I was listening to this while driving, not looking at the viddo. i have to stop to check this philippine brand is that i don't know - "sarayo" 😅. It's pronounced sah-raaw

Mabuhay ang pilipinas,,,!!!@@

Because of corruption. Sweet and simple

To open a business there, ii not easy too much red tape, corruption, that’s why the Philippines is not attracting foreign investment

Thailand Happened

Too long.

Why have a hub here if your electric bill is considered gold in the philippines? 😂

labor union, corrupt officials and huge taxes.

Filipinos,don't dream too high and too far,making all Filipinos living decently is already good👏

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