Vol. XXII, No. 129 [ BusinessWorld Online ]
Monday, February 2, 2009 | MANILA, PHILIPPINES
BY J. A. D. HERMOSA, Reporter
THE PHILIPPINE automotive subsidiary of Chinese conglomerate Lifan Industry Co. Ltd. is looking to put up an assembly plant in the province of Laguna within the year, an official said.
In the meantime, the firm will be opening nine more dealerships across the country to sell budget cars imported from China, Lifan Cars Philippines President Nelson Ong said.
"We’re in the process of talking to a car assembler [to put up a plant] within the year in Laguna. It will be a tie-up with Star Motors," Mr. Nelson told reporters at the sidelines of a car launch late last week.
He declined to cite how much the firm would be investing and how many workers would be hired.
"We have submitted applications to the BoI (Board of Investments)," Mr. Nelson said.
BoI Investments Promotions Group Executive Director Celeste B. Ilagan confirmed this in a text message, saying "the application was filed and approved late last year".
Lifan Cars Philippines will also be investing in nine more dealerships within the year, bringing the total to ten, William C. Agcaoili, the firm’s executive vice-president and general manager, said at the same event.
Its first showroom in Quezon City cost the firm P10 million, Mr. Ong said.
Lifan Cars Philippines will be opening three more dealerships in Metro Manila and six in other regions, Mr. Agcaoili said.
The firm expects to sell 800 units of its compact sedan and will launch three more models before the year ends. The starting price of the unit — the LF 520 — is P488,000.
"We believe the timing [of our entry into the market] is perfect while the other brands are experiencing difficulty. It is the best time for us to provide buyers with a highly affordable choice," Mr. Agcaoili said.
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