I’M sure you have heard of it a thousand and one times already: What happened in the motoring industry in 2011?
It is a question as common, if not as worn-out, as Serafin Cuevas’s “Objection, Your Honor” refrain in the ongoing impeachment trial at the Senate.
Anyone not familiar with those twin disasters of the year past that hit Japan, the world’s No. 1 automaker mainly because of powerhouse Toyota, must be from Jupiter, if not Mars.
For, the earthquake-tsunami tragedy that practically plastered Eastern Japan in March 2011 was what dramatically, if not traumatically, defined more than anything the automotive landscape of the year just ended. Not only was Asia gruesomely pummelled but practically the entire world, as well—the reason being that, if China holds one-fourth of the world’s population, Japan rolls out half of the world’s automobiles yearly—that easily.
And, take this: If you insist you don’t know who Serafin Cuevas is, then I won’t be surprised if you happen to also not know who Renato Corona is. Sadly, that takes the cake, my dear Lord.
In effect, the relevance, materiality and pertinence of the premise being propounded by yours truly becomes, thus, moot and academic.
At any rate, since we are not in an alley of lawyers but in a highway of well-meaning drivers, allow me then, your honors a.k.a. readers, to resume speed for the sake of searching the truth. And so, to reform the question: What really did we all see in 2011? And what to see also this year?
First off, 2011 started well, considering that Hyundai, the Korean motoring phenomenon of the decade, and Ford, the long-established world automobile icon from America, ignited the industry thrust by boldly unleashing new models.
Their breakthrough efforts signaled what was naturally labeled as cannons fired at calculated risks.
It was a gambit, all right, but if only for that, here’s a glass to both Hyundai and Ford.
They won, all right, and for that, they elicited quite a cache of flattering remarks from even their strongest rivals.
Listen to Santos “Sonny” Guerrero, the affable senior vice president for marketing of Toyota Motors Philippines (TMP), in salute to Hyundai and Ford.
“Overall, first-quarter sales in 2011 was quite good because of new models introduced by Hyundai and Ford Group,” Guerrero said.
Coming from some pillar of no less than the country’s—and the world’s for that matter—top automaker, that’s a compliment like no other.
But just as 2011 was barely warming up, thanks again to Hyundai and Ford, when in came the Great Eastern catastrophe of Japan.
So grotesque was the calamity that thousands died, not to mention that thousands more went missing and believed gobbled up by the sea. The deluge was simply almost beyond repair.
As a result, the industry was practically stopped in its tracks as the impact of the twin disasters stalled operations in some of the major automobile manufacturing plants in Japan.
One of the hardest hit was Honda, which continued to reel under the devastation when its woes were aggravated further by the massive flooding that followed in Thailand.
The supply lines virtually cut in Thailand, Honda, isolated, grappled under the weight of orders and demands not being complied with, not to exclude parts that stopped production virtually altogether.
But while Honda and many other automakers in Japan suffered massively, fortunately for Mitsubishi, it was among the very few that was not much affected by the Japan tragedy and, somehow, managed to corner target projections. For one, Mitsubishi’s plants were strategically far from where the tragedy occurred.
To give you much-wider latitude about what happened particularly to both our major and minor players in the industry, and with your indulgence your honors, let me do the manifestations car by car.
Mitsubishi’s fifth straight
Mitsubishi Motors Philippines Corp. (MMPC) ended 2011 by recording its fifth consecutive annual sales growth and fifth consecutive increase in market share. As a result, it kept its position as one of the top automotive brands in the country.
From 2006 to 2011, MMPC’s sales growth has also exceeded what the total automotive industry achieved for the same five-year period.
Throughout 2011, MMPC was also able to keep its industry position and recorded several notable achievements. Last year, MMPC was able to top several segments such as the SUV segment with the combined sales of Montero Sport and Pajero of 12,210 units, and also the Strada as No.1 double cab pickup with sales of 4,216 units or 27.7-percent share of the double cab pickup segment.
Overall, MMPC had a modest growth of 1 percent, achieving total sales of 32,603 units for 2011. It translated to MMPC capturing a 20-percent market share, making it as the second bestselling automotive brand in the country after Toyota.
For 2012 MMPC is optimistic that it will further improve its sales volume and market share as it is projecting a growth of 12 percent compared to its 2011 sales performance or 36,500 units. The increase, its officials said, will eventually come from year model enhancements and new variant introduction of its existing vehicle lineup which will further excite the market.
MMPC also said it expects to improve its passenger car sales with the introduction of its Global Small car or the Mitsubishi Mirage, which made its debut in last year’s Tokyo Motorshow.
The Mirage is expected to easily gain market acceptance considering its outstanding fuel economy and top of its class features.
In addition, MMPC is also looking at further expanding its sales network, targeting three more outlets this year to bring its total number of outlets to 49.
“This year MMPC is geared not only on working at its best to achieve its projected sales volume but is also dedicated in improving its after-sales and customer service,” said Hikosaburo Shibata, MMPC president and CEO. “For 2012 MMPC will continue to bring in more vehicles that will respond to the need for a quality vehicle for every lifestyle and at the same time environment-friendly, this integrates our commitment of providing utmost driving pleasure and safety to our valued customers and our community.”
Honda battered but not bewildered
Despite being practically beaten black and blue, Honda still managed to come out alive—and kicking—from the stigma of the 2011 trauma.
“We faced challenges in supplying vehicles to our customers last year due to the impact of the natural calamities in Japan and Thailand to our supply chain,” said Tatsuya Natsume, the president and general manager of Honda Cars Philippines Inc. “But we survived despite the hardships. Honda sincerely apologizes for the inconvenience that this has caused our customers in the Philippines.”
Natsume wanted it known that during this most difficult period for the company, Honda had worked diligently “in cooperation with our global parts supply network to recover our parts supply and resume production soon.”
He said that for 2012, “we are focusing on resuming our production and supply of automobiles.”
Natsume said: “Starting with the introduction of the new and enhanced City this January, we plan to introduce more new models this year that will bring joy again to our customers in the Philippines.”
Brave words, indeed, from one so battered but never bewildered.
Land Rover King
Always faithful to the Kiss (Keep It Short & Sweet) slogan as a benchmark for success, Wellington “Willy” Soong, the country’s Chief Jaguar as well as Land Rover King himself, said, “2011 was a year of major transitions for the major brands, and 2012 will see major realignments of brand loyalties in the market.”
Go figure.
Hyundai huge jump
Remarkable is the word for Hyundai’s 2011 performance as it grew faster than the industry in the year just ended.
Said Maria Fe Perez-Agudo, president and CEO of Hyundai Asia Resources Inc. (Hari), “With positive economic outlook and favorable business and consumer sentiments, we are welcoming 2012 with an eye for opportunities to deliver better growth in our business operations and overall market position.”
The industry notes with pride that Hyundai broke existing standards in its inexorable march to the top of the charts.
Hyundai sold 20,297 units as against its 2010 record sales of 20,172. This 1-percent increase defied a total industry 2-percent drop in sales for the year.
Naturally, this was seen as a strong brand preference for Hyundai by the discriminating market, according to Perez-Agudo.
Instantly cited were the game-changing new comers Accent and Elantra, not to mention the Sonata and the sports category leader Genesis Coupe.
Perez-Agudo cited Hari’s optimism in the ability of the Philippine economy to navigate through the period of global uncertainty, “as we look forward to better sales outlook this year.”
She said that consensus forecasts from the World Bank, ADB and IMF predict the economy to grow by
4.2 percent in the new year, based on a) OFW remittance stable growth; b) International reserves at all-time highs; c) Inflation within the 3- to 5-percent target range; and d) Increase in government spending.
Perez-Agudo, who was recently voted as the Entrepreneur of The Year, is also the present president of Avid, the country’s distinguished association of vehicle importers.
Against a 3-percent decline in total auto industry sales, Avid sales ended 2011 with a 4-percent growth to 24,880 units from 23,986 in the prior year. This was driven by sales of passenger cars which rose by 16 percent.
She said: “As the Philippine economy continues to be resilient against global economic pressures and with our sustained commitment toward delighting our customers even more, Avid is confident that 2012 will yet mark another year of innovation and game-changing initiatives that will keep our brands alive and our customers happier.”
If anyone would put that into motion, I move that the motion be carried.
Kia carries big weight
Ginia Domingo, the gentle lady president of Kia’s Columbian Autocar Corp. (CAC), said she was only too happy to see the industry pull it out of 2011 barely unscathed despite the calamities in Japan and Thailand.
“We emerged well from the impact of 2011, absorbing some blows, but we resolve to bounce back with a vengeance in 2012,” Domingo said, chin up as usual.
She said that for her company to score big in 2012, she will endeavor to “lean on existing systems and procedures to rise to the challenge of delivering a new and improved Kia.”
Domingo said 2011 was a year of many changes within CAC.
“We bade farewell to our former president, the indefatigable Felix Mabilog, a pillar in the automotive industry,” she said. “My replacing Mr. Mabilog was an honor and I knew I had big shoes to fill. I thank the CAC family who warmly welcomed me despite the knowledge that I was bringing in changes into the organization.”
On the marketing front, Domingo took pride in her achievements.
“We launched the all-new Picanto and an improved Sportage in 2011,” she said. “We went into digital and social marketing and aggressively embarked in sports marketing with our partnership with the Azkals. While the industry struggled because of the natural disasters that hit Japan and Thailand, we continued to build on the Kia brand. It had been quite a challenge but overall, it was a productive and fruitful year for Kia.”
Domingo sounded optimistic that 2012 would be “another banner year” in the industry.
“We welcome 2012, the year of the dragon with our hearts full of fire in facing the new challenges this year will bring,” she said. “With our multi-awarded products and energetic dealer network and employees, we are upbeat and believe that this is the year for Kia.”
No further questions, your honor.
UMC’S Nissan upbeat
I was with Honeymae A. Limjap this week and she said, “Carlos Ghosn [Nissan’s top gun globally] will surely make things happen again in 2012. He has always been the man to look up to when it comes to Nissan’s affairs, whether in the region or in worldwide battles. We trust him that much.”
Nissan was “just there” in 2011 but if there’s one thing that the company takes pride in, it is that in the year past, it retained its usual strong position as No. 2 in Japan—behind, of course, Toyota.
“We have some surprises this year,” said Limjap, at the head of a radical overhaul at the Universal Motor Corp. top echelon of which she is now assistant vice president for marketing sales of UMC. “Give us a little more time and we assure you, we’d again rejoin the shakers and movers gang in the business.”
Upon hearing this, I saw Justine Marie Santos-Sugay, the assistant manager for corporation communications, nodding—rather approvingly.
Umm.
Isuzu tops as ever
Isuzu is not one to blow its own horn but when it comes to the hard facts, though, it won’t budge if only to put things in their proper perspective.
“We’ve been No. 1 all this time in diesel engine and that’s one bragging right we will always uphold,” said Arthur “Art” Balmadrid, the golfing senior vice president of Isuzu Philippines Corp.
Listen to him: “2011 was indeed challenging for the global automotive industry due to twin calamities that hit Japan and Thailand. However, the local industry still achieved moderate success.
“For Isuzu in the Philippines, our N-series light-duty trucks captured anew the top spot in the category segment three. We can’t ask for more even as we promise to continue selling to the Filipino people only the best vehicles ever the whole year round.”
I submit, your honor.
Ford forges ahead
It was a record finish for Ford, recording sales that rose 24 percent from a year ago of 973 units sold in December. That was the company’s best-ever monthly performance.
The outstanding end to the year helped drive Ford’s full-year sales in the Philippines up 48 percent to an all-time high of 9,778 units, making Ford the fastest growing auto brand in the country for 2011.
Leading the charge was the All-New Ford Fiesta, which delivered December sales of 291 units and finished its first full-year of availability in 2011 with overall retail sales that reached 3,401 units—the best-ever performance of any Ford nameplate.
“The All New Ford Fiesta has reshaped what class-leading means in the small car segment, and customers clearly appreciate the incredible value this car represents and delivers,” said Randy Krieger, president, Ford Group Philippines.
Also doing well at Ford was the Ford Everest with December sales that rose 26 percent year-over-year to 234 units, and finished the full year with overall retail sales that jumped 36 percent to 3,003 units, its best-ever full-year performance.
The All-New Ford Explorer has redefined the SUV segment in the Philippines, with the highly-anticipated vehicle selling 181 units since its launch in October including 93 units during the record month of December.
BMW buzzes ‘kiss’
BECAUSE the president of BMW’s Asian Carmakers Corp. (ACC) also believes in “Kiss” (Keep It Short & Sweet), here’s Maricar Parco’s manifestation: “2011 was a banner year for BMW, both globally and in the Philippines as well. For us at ACC, it’s been BMW’s ninth consecutive year dominating the premium luxury segment and we look forward to 2012 especially with the introduction of our best-selling sedan, the All-New BMW 3 Series in the second quarter.”
Anybody moving for a long one-minute recess?
Toyota runaway leader
OK, let’s just hear it straight from the horse’s mouth, so to speak. Without further ado, here’s Sonny Guerrero once again. Verbatim:
“Coming from a strong 2010 [industry sales reached 170k], 2011 started well with an initial forecast of 177k units sold. However, in March the calamity [earthquake/tsunami] in Japan adversely affected global supply of parts for production of new vehicles. Consequently, industry sales in the second quarter declined drastically. Industry sales forecast was revised to 170k. Japan quickly recovered and supply begun to normalize in the third quarter. Sales during this period increased and the shortfall in the second quarter was recovered. Industry was gearing for a strong fourth quarter when floods on vehicle supply were worse than the Japan calamity. Sales in November and December 2011 declined compared to the same period in 2010. Final industry sales in 2011 was only 165.1k.
“To describe 2011 briefly, it was a roller coaster year for the automotive industry, with lots of challenges to overcome.
“Anyway, Toyota, as expected, once again captured the coveted Triple Crown award. This is a 10-year-in-a-row feat and the honor underlines Toyota’s undisputed leadership position.
“My thoughts on 2012? TMP is forecasting a 7.0-percent growth in the automotive market compared to 2011. Sales volume forecast for 2012 is 177k and the rationale is: Positive economic indicators such as: increase in GDP/GNP, stable government, sustained OFW remittances, robust BPO industry. Toyota is gearing up for expansion because of these indicators.”
Noted, your honors.
Lexus flexes muscles
Amazingly, according to Daniel I. Isla, the president of Lexus Manila Inc. and who is popularly known in the industry as “Sir John,” the earthquake-tsunami tragedy didn’t totally crumble the auto business in Japan, neither in the region nor in the whole wide world.
“Overall, business wasn’t hurt that much,” Sir John said. “Give it to our Japanese brothers. Their resilience when it comes to any crisis has been demonstrated to the hilt again. The nonscrapping of the Tokyo Motorshow last November was one strong proof to that.”
He cited records to prove the industry was above its neck.
“Mathematically, we did well,” he said. “A 1-percent drop in overall sales was practically a slap in the wrist against the industry.”
“Even the yen remains strong as ever,” Sir John said. “Even the experts themselves couldn’t explain this phenomenon.”
He said that while the dollar seems to continue to slide, the yen “and even the euro,” remain unaffected in the world market.
Because of this, Sir John said he sees a huge rebound in 2012.
“Mark my word,” he said. “We will see a bouncing automotive business in the next 12 months in this year of the water dragon.”
Your Honor, I want that marked as “Exhibit A,” please?
I have no further questions.
In Photo: Tatsuya Natsume, Honda Cars Philippines, Inc. president and general manager. (Jude Morte)
