Ford Plans New FlexFuel Engine Plant in Philippines
20 December 2005
Ford Motor plans to invest P1.1 billion (US$20 million) to add a flexible fuel engine plant in the Philippines. The engine plant will be Ford’s first flexible fuel facility in the region. Flexible fuel engines run on gasoline or ethanol blends of up to 85% (E85).
The facility will produce 100,000 engines over the next five years valued at about US$100 million. Start-up activities will be undertaken in the first quarter next year, with full production to begin before the end of 2006.
We expect that this new investment by Ford will take the Philippine automotive industry to its next level of development by establishing its leadership in the Flexible Fuel technology in the region. Flexible Fuel technology is part of Ford’s global vision on innovation, and with this investment Ford intends to build the Philippines as its ASEAN Center of Excellence in Flexible Fuel Technology.
—Peter Daniel, President of Ford Asia Pacific and Africa
The Ford Philippines Santa Rosa plant is a regional hub for the manufacture of compact cars and SUVs. Ford Philippines is also one of only four production hubs for the Ford Focus in Asia Pacific, with China, Taiwan and South Africa as the other bases.
Ford is the first and only volume exporter of vehicles from the Philippines. Currently, Ford Philippines exports the Focus and Escape, and the Mazda3 and Tribute to several ASEAN countries—bringing cumulative exports from the start of the program to end 2005 to some 40,000 vehicles valued at approximately US$500 million.
The building of the first Flexible Fuel engine facility in the Philippines is aligned with the Philippine government’s alternative fuel program that seeks to reduce dependence on imported conventional fuel and promote a cleaner environment while potentially spurring agro-industrial investment in the rural areas through the production of ethanol.
The engines from the Philippine plant will be used in the production of Flexible Fuel vehicles (FFVs).
Last week, Ford President and Chief Operating Officer Jim Padilla announced the acceleration of Ford’s second phase of investment at its Ford/Mazda (AAT) manufacturing facility in Thailand. The second phase investment will be made over three years (2005 to 2008) and reflects Thailand’s importance as a major international production hub for Ford’s one-tonne pickup truck.
The US$500-million investment will upgrade and expand plant capacity from its current 155,000 units per year to 200,000 units by 2008.
Cool! Good for Ford, Good for the rapidly improving region and specially to the Philippines which desperately needs more investment.
Posted by: charlz | 20 December 2005 at 08:55 PM
this could be a strategic move by Ford company. Moving into the Philippines is economical in terms of labor. It is also a strategic location for asian market. Cheaper labor, cheaper production, better price.
The Philippines also benifit from this development which help improve the economy when the facility will be fully operational. More investment more jobs, better econoy.
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Posted by: Victor Martinez | 21 June 2007 at 04:11 PM
Ford Philippines'initiative in the production of Biofuels like ethanol and biodiezel is the best contribution any company can give to the prevention of planet earth's early demise due to global warming that is clearly the result of fossil fuel use.
The company needs the support of all civic minded motorists who can preserve their vehicles and sell them when biofueled vehicles by Ford will be in the market. The fossil fuel producing countries will give Ford a tough time but a bigger portion of the world has very little or no fossil fuel at all. More of the earth's surface is arrable, and the people in these places are needlessly suffering from continually rising fuel costs.
When Ford's biofuel plants will be in place, agriculture and farmers worldwide will definitely be benefitted. Farmers will finally have a growing and stable middle income group that eventually will be able to industrialize.
Brazil did it. So can the Philippines with the help of Ford.
BEST OF LUCK TO FORD PHILIPPINES, AND MORE POWER!!!
Posted by: FERNANDO R. SAZON | 02 January 2008 at 03:10 AM
hello. my name is michael mcginnis.. i was wanting to know about a job opportunity there at your plant. iam at this time at chrysler in kokomo indiana . i work at plant 5305 building transmissions. i have been here for 10 yearn now, i am planning on working and living in the philippines with my wife. could you send me some info please. thank you for your time. salamat
Posted by: michael mcginnis | 19 April 2008 at 08:01 AM
I am a Ford lover and enthusiast. I own a 2002 Ford Explorer Sport Trac and its Manual says it is a FFV and E85 ready engine. When do we expect Ethanol, E85 to be in the Philippine market? More power to Ford, a "green engine" advocate!
Posted by: Roselito Nulud | 01 June 2008 at 02:47 AM
I am a Ford lover and enthusiast. I own a 2002 Ford Explorer Sport Trac and its Manual says it is a FFV and E85 ready engine. When do we expect Ethanol, E85 to be in the Philippine market? More power to Ford, a "green engine" advocate!
Posted by: Roselito Nulud | 01 June 2008 at 02:48 AM