Philippines woos Volkswagen to build manufacturing facility

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U6BB6RBDUUThe Philippine government is trying to convince Volkswagen to set up its manufacturing plant in the country.

Trade Secretary Gregory L. Domingo said the government is in discussions with executives of the German company, which is keen on putting up another factory in Asia.

“It is still premature because they are still looking at different countries in Asia,” Domingo said.

Volkswagen assembles vehicles in 106 factories spread across Europe, the US, Asia and Africa. In the Philippines, the German company distributes its cars through Automobile Central Enterprise Inc, a unit of Ayala Corp, which in turn is a partner of Japanese carmakers Isuzu and Honda in the Philippines.

The Philippines is one of the fastest-growing vehicle markets in ASEAN, with sales in the country outpacing nearly all its neighbors in the region. The local organisation of car assemblers has revised upwards its sales target this year as the industry sets a fresh record each month.

The government is crafting a road map that would lay down its policies for the industry, with a proposal to set aside $600 million of the national budget to revive the country’s auto manufacturing sector.

The local assembly scene is dominated by Japanese carmakers Toyota, Mitsubishi, Isuzu and Honda. The lone American assembler, Ford, had stopped Philippine production amid high costs.

 

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Reading Time: 1 minute

The Philippine government is trying to convince Volkswagen to set up its manufacturing plant in the country.

Reading Time: 1 minute

U6BB6RBDUUThe Philippine government is trying to convince Volkswagen to set up its manufacturing plant in the country.

Trade Secretary Gregory L. Domingo said the government is in discussions with executives of the German company, which is keen on putting up another factory in Asia.

“It is still premature because they are still looking at different countries in Asia,” Domingo said.

Volkswagen assembles vehicles in 106 factories spread across Europe, the US, Asia and Africa. In the Philippines, the German company distributes its cars through Automobile Central Enterprise Inc, a unit of Ayala Corp, which in turn is a partner of Japanese carmakers Isuzu and Honda in the Philippines.

The Philippines is one of the fastest-growing vehicle markets in ASEAN, with sales in the country outpacing nearly all its neighbors in the region. The local organisation of car assemblers has revised upwards its sales target this year as the industry sets a fresh record each month.

The government is crafting a road map that would lay down its policies for the industry, with a proposal to set aside $600 million of the national budget to revive the country’s auto manufacturing sector.

The local assembly scene is dominated by Japanese carmakers Toyota, Mitsubishi, Isuzu and Honda. The lone American assembler, Ford, had stopped Philippine production amid high costs.

 

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