Why the Philippines Automotive Manufacturing Sector Failed

The Philippines is the only major Southeast Asian economy that does not have a blockbuster automotive manufacturing sector.
Narrated by Tom McKay
Video Edited by iyanbriandi
Inquiries: [e-mail]
Brought to you by the Behind Asian Team.

[@BehindAsia]

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

[@jeon0416]

The Philippine ruling class thinks it's more advantageous to keep the status quo. That's why we need to drive out the current ruling class.

[@dcal7301]

dear npa Behind Asia admin, not all foreign Investors are leaving the Philippines, actually their a new Investors are coming , then you always make a negative topic about Philippines... I will unsub now this Behind Npa channel.

[@dcal7301]

Hey China paid vlogger why you always making negative topics about Philippines. How much money is given to these vlogger to make the Philippines shaming.

[@ngfookkwai6096]

Yeah new investment on entertainment to set up more a go go bars, massage & spa, wine, women and songs to welcome the Yankees coming for their R&R​ leaves.Mabuhai@@dcal7301No money 💰 no honey 🍯.

[@YenzikovALCherasLegend]

@@dcal7301 USA the Filipinos Sugar Daddy paid The Ninoy Family handsomely ..will not resist the temptation ..even they will allow The Philippines to turn into a Cemetery.

[@6Mar99]

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

[@oooshafiqooo]

Shoulda follow Malaysian way of working, lowering corporate and income taxes over the years. Well service tax is up...

[@stvdmc2011]

But they are a democracy, government for the people by the people.

[@6Mar99]

@@stvdmc2011 yes, but unfortunately, majority of the people are idiots

[@libertarianPinoy]

​@@stvdmc2011democracy is different from liberty. Our stupid socialist constitution does not provide sufficient property rights.

[@edgarbarraca2885]

​@@libertarianPinoywhat 😅😅😅

[@dwcubatch83]

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.

[@marks4553]

Empleyado culture

[@Mascot3030]

Producer din naman. ng tao nga lang. Anak lang ng anak ng anak.

[@johnchristian4821]

natumbok mo idol

[@xavxavxavxav]

unfortunately this is true

[@cryisfree510]

ganyan world view mo kasi yan nasa palibot mo, ayayayay

[@mickyyam3594]

Bunch of corrupt and stupid officials

[@thewackymonkey920]

yet the Filipinos keep voting for them

[@ngfookkwai6096]

​@@thewackymonkey920Right 👍 still 👢🥾 boots licking.

[@idanirrd3838]

​@@thewackymonkey920 yeah, the thing is most of filipinos didn't really go to school. no wonder they don't really look at the background they vote officials by their popularity some of our politicians here are just celebrities like Senator Robin Padilla.

[@user-bd7pr3eq5d]

Hurt to accept but totoo nmn eh😓

[@Tester69Mapping]

They should elect smart ones just like singapore. Itong mga politicians bobo dapat maaresto sila

[@gjm456]

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

[@MetaView7]

too hot today

[@nelsonc3984]

Philippines even failed to make sports shoes some years ago.

[@harrykumoro4335]

I think USA would not let Philippines became prosper and strong country because Philippines was USA attack dog in SEA. If Philippines stiil undeveloped country USA would easy to steer Philippines in many sectors. From Indonesia 🇲🇨

[@richardunica3542]

Goggle will tell

[@ezmnysnpr]

what shoe?

[@joneslo5572]

Corruption, corruption, no lagay ! No way !

[@harrykumoro4335]

😂 Philippines to USA 🤣 I guess our relationship was so special 😂. Trus me have strong relationship with USA would not became your country became prosper 😂. They only make you poor, suck your national resources, build military base in your country. make your country became cheap holiday destination with less direct investment 😂. If Philippines stiil poor USA easy to steer your country. From your asean neighbors 👍 ex of the Dutch East India

[@slee2695]

IQ

[@ronbelleza5588]

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

[@hypocritehater1673]

Are you kidding us,Filipinos working abroad are low paying jobs,low level seamen,janitors,housemaids,come on,pieple are well informed now

[@ronbelleza5588]

@@hypocritehater1673 means that its better to work low level, low paying jobs abroad than working in Philippines as a professional. Reality hurts.

[@hypocritehater1673]

@@ronbelleza5588 I sympatize with Filipinos,this should not have hsppened,Philippines could become a self reliant if not rich nation,but what's wrong with you ,you still chose that shameful leader,he is the son of mega corruptors both his father and mother that had made Filipinos living below poverty and the loot stashed abroad mostly in US,what he is doing now is to bow to his master to provoke China instead of dedicating his time snd energy for the good of his people,come to your senses Filipinos,this Bom Bom should have been sued to bring back his parents'loot not elected as your leader instead,so sad but true🥲

[@ronbelleza5588]

@@hypocritehater1673 as long as it takes half a billion pesos to run for a mayoral position. I dont really have any hopes for the politics in Philippines. Only the rich and the corrupt have the funds to run for politics.

[@dickmelsonlupot7697]

​@@hypocritehater1673 The Liberals are just as if not far worse than the son of the dictator. Just look at what happened after his father was ousted out of power. All EDSA did was just get rid of a midget dictator and replace him with even worse monsters in power

[@longcimb]

Corruption is rampant

[@keso_de_bola1750]

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.

[@JamesTan-mq4eo]

finally, a filipino not blinded by fake pinoy pride. 1st step to self-improvement is admitting your own shortcomings. no one nationality or race is above the rest, just need to keep on improving and learning from your mistakes.

[@denny.dagger]

I captured the condition of 'assembly only'. I don't know how Phillipines regulating this conditions, but IMO that's the major problem that they won't get a product with competitive price. Here in Indonesia we have regulation for local content. Any foreign brand must comply this regulation. therefore all manufacturers building automotive ecosystem for their product by looking for local partners as the suppliers component parts. It's creating more jobs and more over it will cut the logistic cost from imported spare parts. Well of course there're another things has to comply to make the product's price become competitive. Such as labor cost, taxes, and utilities.

[@naenaegoblin6370]

Thats really insightful can I know where i can read about these?

[@twilight6460]

Original comment too long, tedious . Lost interest.

[@rockprime1136]

To recover all that will require foreign expertise since local experts have forsaken the country. It will be difficult considering the rising xenophobia in the Philippines. Both against the west and China. Chinese bullying in the WPS hasn't endeared them to the masses and many now think that the U.S. has ulterior motives in our traditional alliance with them. Sariling sikap daw hindi naman kaya.

[@amazinggrace3292]

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

[@SmilingCorgiPuppy-ql1jx]

Sus para talagang may alam ka

[@jedumalagan6632]

Tama..plus filipinos are not nationalistic people when it comes to brands.most filipinos would rather buy overexpensive foreign brands dahil gusto maging social

[@kysierkevin]

Agree

[@steveweast475]

@@SmilingCorgiPuppy-ql1jx knows more than you

[@youtuber6610]

Pakyu​@@SmilingCorgiPuppy-ql1jx

[@user-zs9ek1bx5z]

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

[@twilight6460]

Wrong. Philippines = Great Exporter of maids Nation. Philippines = Great eating pagpag Nation. Philippines = Great Slum Dweller Nation. Philippines = fill in the blanks.....

[@arlenerodrigueza]

Also great exporter of filipino domestic workers

[@DudeElite7]

​@@twilight6460 Not to undermine and belittle our domestic workers abroad but TRUE. That's why foreigners especially western people perceive us Filipinos as utusan who would break their backs for a couple of dollars

[@planetkc]

Si Marcos bahala

[@aavalencia2003]

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.

[@DeanMonio]

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

[@karaoketubebox8880]

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

[@zukenn3681]

😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 🎉👍

[@hungo7720]

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!

[@ramonnaguita8596]

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.

[@alma09876]

Blame the policies created ny YELLOWS. These have become institutionalized and will take years to correct their mistakes.

[@callebchuan5813]

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

[@oceanwave4502]

It is a delusion that when one country gets democracy + be friend with the US/West, it is automatically successful. This is the assumption that the West often preaches about. They often refer to Japan/Taiwan/SK as example, but conveniently ignore cases like Philipines. I argue: the success comes from nationalism + unity + collectivism, which are embraced by Chinese mentality for thousand of years. Countries like Japan/SK inherited Chinese culture, thus, leading to their success.

[@realnlyp]

To be an enemy of America is dangerous; to be a friend of America is fatal.

[@triadwarfare]

It's delusion to think that adapting China's authoritarianism would make the Philippines successful. Our democracy isn't perfect, but at least it's manageable. Unlike China, since you're not allowed to criticize the government, economic bubbles form and don't get addressed until it's too late.

[@markmywords3817]

Its just as much a delusion to think China was the factor that helped Japan and SK. In the examples you just stated, much of the technological advancement is from the US. Taiwan inherited and eventually monopolized semiconductors tech from the US In the same vein, car manufacturing was outsourced to Japan and they ran with it. And SoKor is literally the worst example you could cherry pick against favoring democracy. SoKor, imperfect as it can be, is more globally recognized and more advanced than its socialist/communist counterpart NoKor.

[@jasonjamesnabor8492]

​@@markmywords3817don't waste your word to CCP bot

[@JamesTan-mq4eo]

@@markmywords3817 you can be given all the technology or skillset but utimately its up to the people of that country to embrace and improve upon it. so i do agree with op that its the culture. singapore is another good example with chinese majority.

[@daveh5947]

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.

[@keianpena9635]

Loans from BRI for railways in mindanao were pulled out by them not us. We are now in talks with traditional partners like JICA for taking over the projects.

[@directxxxx71]

​@@keianpena9635 Japanese infrastructure projects will take forever

[@keianpena9635]

@@directxxxx71 theyre on schedule. The only delays that are present are due to right of way issues and govt bureaucracy. Japan,like china, is also known for fast and efficient infra projects.

[@vidivici0075]

​@keianpena9635 you may use "fast" production for china, but the word "efficient" is not suitable

[@Koeching-se6sk]

Well , it is inevitable, back before philliphines elected Marcos, in election campaign he is already using fake accusation on doctored images and articles slandering chinese, China aware of this

[@CryptoInvest-LunaticCapital]

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.

[@mastertrend4685]

Why not come back to build your homeland? Much better than the talk….

[@harrykumoro4335]

​@@mastertrend4685 😮 it's impossible. As soon as Philippines still became vassal state of USA they would not be prosperity country. USA just like twin head snake 🐍. I am indonesian actually 🇲🇨

[@timothypaul446]

@@mastertrend4685 its easier said than done. Too much corruption and individualism of Filipinos thinking only themselves

[@codename_laksamaka2876]

​@@mastertrend4685 Because Filipinos follows those who are in Power not those who have Good Intentions. This is true whether you look in the Government Sectors and Private Sectors. Trust me. I tried. Good intentions without power will lead you nowhere in the Philippines. Crab mentality, corruption and the lack of discipline are the major factors for the failure of leadership in our country which is based on my experience while working in Private Companies and volunteering in Government Organizations. That is why I have decided to make myself stronger first by working in overseas where they will appreciate your ideas and talents. However, even if working abroad, my goal is to be the best version of myself that I could become an asset to our country someday and have the competency and POWER to implement. Good Intentions without POWER can be considered dead in our country. Paraphrasing what Jose Rizal once said, if you wish to learn the future of a nation, one must read its history. You want historical proof, just look who killed some of our Heroes. Diego Silang, Heneral Luna, Andres Bonifacio. All have the best intentions for the country but were killed not by foreign invaders, rather they were killed and betrayed by a fellow Filipino who is jealous undiscipline and corrupt. However, under the right faith and leadership, we Filipinos can be unstoppable. Just like what Mc Arthur have said, give me 10,000 Filipinos and I will conquer the world. We have demonstrated our prowess such as the battle of Yultong in Korea where 900 Filipinos have defeated 40,000 Chinese attackers. Hence, my best advice to common Filipinos who wish to change our country, transform yourself first even if it means going overseas. Only in that way you can influence and lead other Filipinos towards the truth, justice, freedom and prosperity.

[@lelouchlamperouge8560]

Daming mafia sa gubyerno.

[@SprakanaKerum]

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

[@justotorres742]

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 .

[@icedmocha9734]

Do not blame the closure of Honda Phils to then President Duterte. The main reason of the closure was mainly triggered by the global slowdown caused by the US-China conflict trade war, followed by the Covid-19 pandemic. Blame it on the warmongers US! And for your info, the Pnoy and Marcos Administration FAILED TO ATTRACK FOREIGN INVESTORS! Do not fool yourself and do your research well!

[@darkwatcher01]

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

[@macolet9711]

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.

[@mcbchannel7173]

the second excuse where being an archipelago logistic cost is high is a brutal nonsense, indonesia is also an archipelago nation which also a transcontinental state but has major car brands manufactured, electronics, and even train, airplane, and military (equipment and vehicle). don’t blame your geography but blame your government.

[@macolet9711]

@@mcbchannel7173 indonesia has the market advantage. Car produce by indonesia primarily for domestic market. Philippines has also good semiconductor export industry. Semiconductor products logistics are mostly airfreight. Thailand and Vietnam have better manufacturing industry because they are landlock boarders and connected China by land. Where movement of goods are easier and cheaper.

[@ozymandiaz7859]

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.

[@lextan7844]

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

[@petebngyn]

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.

[@thomaschristopherwhite9043]

People wanna blame politicians. Honestly the biggest problem with anything in the Philippines are the Filipinos themselves. It's a cultural problem. Producing anything noteworthy is just not in our culture.

[@slee2695]

Thank you...people act like politicians appear out of nowhere...they come from the culture

[@thomaschristopherwhite9043]

@@slee2695 EXACTLY! Politicians don't just magically turn greedy when they enter office. They were already greedy from our greedy society.

[@jonyao76]

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

[@pedronewtonpascal]

Don't forget corruption

[@m1chaeron483]

I agree, so much permits and restrictions after we finish our papers & franchising for just 1 month we declared bankruptcy... negative profit everyday, permits renewal every 6months we have 5 permits to renew....kainis ang mahal pa maka yawa legal sana lahat!!!

[@plpa8250]

Just to paint a picture, the president, VP, and their whole party has a very long list of plunder controversies. And if that's not bad enough, the president is literally a drop out that failed ECON101 and has never been employed his whole life so one can imagine how out of touch he is with reality. So he addresses most food shortages with increasing importation and price freezes. A tactic that has been a no no to even novice economists.

[@dreelvideos521]

This closure ALMOST happened during the Duterte administration, which signifies of being in enept as president.

[@delareiflaventitus5966]

Wow, as if the President's the Entrepreneur responsible for creating a brand. I'm going to quote from the Pres. of Argentina "The state does not create money." It's up to the initiative of the people to make these economic development possible. Filipinos themselves have to be the Entrepreneur themselves, not the government. It all must start with the people lest we want foreign company to take over and monopolize our economy. Stop blaming he government and instead encourage other Filipinos to engage in entrepreneurship by engaging first ourselves.

[@sepg5084]

​@@delareiflaventitus5966 a President shouldn't be dumb about economics, since he is basically the CEO of the country. Well, Duterte kicked the US out of the country then sold the Philippines out to China 🤷 Guo is his scapegoat.

[@Justice-Zcjh]

Most manufacturing sectors need China support as a buyer or supplier or both to succeed or to do well. Underestimate or downplay China at your own peril.

[@inamorta47-playertwist]

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

[@lubnacool277]

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

[@dinbee4611]

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.

[@nickdumlao314]

Militant Unions anak bayan, KMU, Gabriela, Anak Pawis etc. If you invest in the Philippines they will form union then ask for ridiculous demands such as paid birthday leave, high wages, idiot employees that ask for so much and give little

[@zackfair711]

A Toyota car plant exists in the Philippines. Honda is also there if I remember correctly. May I ask where you got the info that there isn't a major car brand operating in the country?

[@jac0007]

Simply put…average workers cannot afford to buy cars so demand is low

[@planetkc]

The same people who answer "Corruption" in the comments are the same people who would vote for Marcos and Duterte

[@user-on2nw3tr8u]

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

[@vavin0]

Exactly! scared the hell out of me!

[@malexcordan4812]

My thing was at low volume and it still scared the hell out of me 🤣

[@williamzabiski7653]

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

[@DumpTheDollar]

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

[@RR52517]

From a DDS.

[@triadwarfare]

Nah, the Philippines have rotted under Duterte.

[@basque888]

What can BongBong do? he still has $400M frozen by the US from Daddy's corruption. Evrybody in his shoes would side with US. The problem isn't him, the problem is why Philipines people vote for him?

[@richardunica3542]

China made modern jeep out .pasok tulfo

[@anhlam7131]

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.

[@alma09876]

The Liberals in the Philippines since 1986 have had made it a political policy NOT TO PROVIDE GOVERNMENT SUBSIDIES TO PRIVATE CORPORATIONS. They made it a political policy not to engage in competition with businesses. One example is the power sector, the government in 1986 had prohibited the state power company from competing with private businesses and prohibited building power plants which resulted the electricity crisis. Vietnam's advantage is being all critical industries are controlled by the state.

[@roneeysole2905]

Sorry we are indonesian never support your vietnam motherland, better we support your philipines fatherland, and other asean not for vietnam, if we need car we will buy from japan, korean and china, we are indonesian really hates vietnam coz their bad attitude on social media about my country we will make sure vietnam's brand will be collapse in indonesian like proton malaysia, you said we have to support each other but vietnam people not looks like they hate other asean member when they lose..

[@acctsys]

No to cronyism. No to subsidies. Tax breaks, sure. But no subsidies.

[@Gregory-Masovutch]

Given the levels of pollution, they don't need to. Plus the cost of electricity and logistics may not make this attractive as well.

[@ghblues1970]

If the Philippines exploited it's propensity for geothermal power to be able to offer green power in huge amounts AND managed to be able to issue RECs for that power, they would have a unique selling point. Most countries will need green produced parts by 2030/35. This would be very welcome by energy dense industries like steel, semicon and so on. In addition, surplus RECs (from domestic and retail power usage) could be sold on the open market to bring valuable dollars into the coffers. However, this has little traction. In addition, there is also a massive union problem in the country, hence global players avoid. It's sad, because there are skilled professional workers, despite what people may think. Returning overseas Pinoys, they have been taught and given experience all over the world. They can also be used to train the young guys. So much potential, so badly strategised.

[@nobnobnobnob]

One thing not mentioned here is the absence of Steel Mill. PH have one before, but been closed.

[@OneJuanWon]

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.

[@DedMan28]

Correction: the purported FMC Harabas is actually derived from a Chinese EV, not a local model

[@Felinegudguj]

1:29 audio problem

[@famnor_abdulrahman1997]

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

[@keurikeuri7851]

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.

[@freddyso5466]

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

[@twilight6460]

True. Maids, nurses, blue collar workers, unskilled labourers, etc......

[@howardrewald9817]

Filipino worker only earn enough so they don't die

[@Doflaminguard]

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

[@peterphan3524]

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

[@aldreneopena]

because our gov is BS. plus the its people were mostly uneducated so stupid politician will always be in power!

[@twilight6460]

​@@aldreneopena That's why I always say democracy sucks

[@ordinarydude2237]

Politics and cultural differences that lead to groups and political groups with their own interest. **Which leads to political conflict of interest This in turn paralyzes the lower levels such as manufacturing and even local industries. **As each group and their own political agendas fight among each other. The locals, people under the administration, learn from those groups and start thinking of establishing their own to naturally do the same **As they feel or see nothing will change with the administration This in turn creates a more divisive situation than ever. It will eventually explode, just not soon. Maybe in the decades to come, the groups will have to compete fiercely to establish the same old practice. To generalize what is happening in the Philippines Things that were building up broke down and have started building up again.

[@shotsfiredandmissed9068]

Its because of that country's stupid politicians

[@jadentetzlaff1108]

1:28 loudest woosh i've ever heard. I mean jeez it threw me outta my seat!!

[@rd12th]

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.

[@zodiacfml]

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.

[@bb89670]

How did it failed?? Tell me.

[@totzinfo]

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

[@Edibugalbugal]

You are owned by chinoys and china spies, and on the other hand you discriminating foreigners with racist laws and anti ownership rules. Hidden communist system .

[@giancarloalberto9080]

Philippines doesnt even have any chinese vehicle production plant hahaha what are you saying? BYD invested a plant in Thailand recently

[@rexteo8062]

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.

[@RR52517]

You wanted war in another video. Another trying hard Malaysian.

[@RR52517]

Busted. You're a Malingsian. You challenged a war against the Philippines in another video.

[@RR52517]

Typical Malingsia.

[@ronnienestor]

Insecure Malaysian..... malingsia.

[@kalye54]

Is it true that malaysian have unbalanced testicles?

[@pablorosario5232]

1:28 dude wtf?

[@MegaWatcher35]

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

[@twilight6460]

Absolutely agree

[@user-bx3op7nl4c]

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

[@FloofyTanker]

Local products tend to be more expensive than imported products 😂

[@ferdinandtugano]

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.

[@gloriacatubig370]

0:44 what about Francisco motors and aurelio

[@TsunaXZ]

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

[@icedmocha9734]

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

[@sayidafzal7534]

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

[@kalye54]

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

[@laurenceroberttampushalpin183]

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

[@JAKE-r3u]

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

[@mystic-mt4xm]

Their leaders are busy printing money for themselves 😅

[@abeltibayan527]

High energy cost, slow and inefficient rules and regulations designed to be their cash cow and corrupt officials.

[@JoshuaJEnriquez]

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

[@larrydequiroz5262]

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

[@yotototab4922]

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.

[@ericvalencia161]

Sarao is a junk shop, not a car manufacturer.

[@denis4072]

I don't think these manufactures are shutting down their plants due to production rate. Demographic is the key here. It likely these are for Asia and or Europe so location and transportation cost would make more sense to move their plants. The govt of Phillipines is part of the role as well. Any investors would first look at is the stablization of a govt.

[@rogueagent0191]

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

[@kentroventhebest1668]

In Mindanao we have also donsals..

[@silvestercabading6128]

It's not the corruption of the Philippines it's the constitution per se, we limited foreign direct investment hence hindering investors putting up business in our country so our constitution is a down side

[@jeon0416]

My comment has been deleted.

[@oooshafiqooo]

KZbin censorship

[@mrmateph729]

That's free speech murikan style. Never criticize murika. You're on a murikan media platform.

[@oooshafiqooo]

@@mrmateph729 *gay speech

[@rwksasc]

Ask the U.S. to unfreeze the Marcos family wealth and give it to the Filipinos to develop their economy.

[@twilight6460]

Good comment 👍🏻 Absolutely agree 💯

[@tedfromyt6523]

Which until now still not prooven

[@DArchangel8888]

High Cost and Unstable supply of Electricity & Water.

[@cityhue517]

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

[@darkseer7027]

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

[@TinyBlitz8]

It’s not that simple as you’ve said, the automotive industry has a very complex supply chain for the parts, these American, European, Chinese, Japanese & Koreans have a very deep rooted suppliers that they already buy from since they had started manufacturing vehicles. Without those parts manufacturers investing plants in the Philippines then there wouldn’t be any expertise in parts production, you can just keep on dreaming about the Philippines developing the automotive sector as almost every car manufacturer had already given up on the Philippines and only Toyota and Mitsubishi have remained.

[@potatopizzacar3318]

Behind Asia: in philippines, we have only one car manufacturer which is sarao *Aurelio, and Francisco Motors left the chat*

[@tedfromyt6523]

Di naman registered yun eh

[@KALIMONINGRAD]

1:27 Jumpscare Warning for Earphone Users

[@ThickBanana]

Disruptions in Chinese supply chains, such as those caused by the COVID-19 pandemic, price volatility, and geopolitical tensions, have negatively impacted the Philippine automotive manufacturing industry by causing delays, increased costs, and uncertainty. It is noteworthy that the geopolitical tensions come from China because the Philippines stands up for its sovereign rights without Rodrigo Duterte in office.

[@Michaelfranks6969]

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

[@isleofmann1088]

Because of corruption. Sweet and simple

[@tedfromyt6523]

No

[@Magdamit]

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

[@ordinarydude2237]

Most local brands have very little scope of demographic, aka the rich and well-off. This in turn, turns off many, even among the middle income families to stick with cheaper imports with standard/sub-standard quality but good quantity. The Philippines need to develop cheap, practical, reproducible products and services too if they even want to compete. What about bench? You can buy a bench Tshirt for 250 or less. But you have to spend more for that local design.

[@ailabyuhphage08]

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

[@g639]

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

[@mcbchannel7173]

the major companies are going to move to indonesia. their president vision (mr jokowi and the latest elected one mr prabowo) has the same vision for indonesia to be a manufacture hub and digital hub like china. they even starts producing their own high speed train brand after the transfer of technology with chinese crrc and german staedler. it feels like a wet dream when they’re literally the one of the poorest and stagnant nation 2 decades ago, the philippines need a leader like that.

[@g639]

@@mcbchannel7173 so not only in the Philippines. right?

[@mcbchannel7173]

@@g639 yes, major companies are shifting their production lines to vietnam and indonesia. their government are still corrupt like the rest of southeast asian countries but their formula of management are insane

[@emypena]

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

[@DantejrJimenezjr]

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

[@kiethzpequit7951]

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

[@monke278]

What about Francisco Motors? They manufacture modern jeepneys and cars

[@DanksterPaws]

3:53

[@NguyenNguyen-rk1qx]

Đầu tư vào xe chạy điện rất tốn kém cho nên chính phủ các bạn phải có chính sách hỗ trợ các công ty này !

[@arenaren3077]

😂

[@alma09876]

They still producing the antique jeepneys. No R&D, No innovation.

[@k-studio8112]

​@@alma09876because they got no support from the government

[@kickass7104]

Philippines is the worse place to own a car 😐😐😐😐

[@hahhsshs]

I am Indonesian and in my opinion the economic problem in the Philippines and Indonesia cannot develop well because there is a lot of corruption in these countries. If corruption can be eradicated then the Philippines and Indonesia will most likely become developed countries, just imagine in Indonesia one corrupt person can reach $18 billion dollars and $20 billion dollars, if there are Europeans who feel the richest because their countries are developed. Maybe corruptors in Indonesia are richer. compared to European people who feel like they are the richest or people in developed countries.