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Dashboard (05/23/18)

3 PHL Chevrolet dealers named ‘GM Grandmasters’

CHEVROLET Philippines said three of its dealers were named among GM Grandmasters for 2017. The company explained “Grandmasters” refer to GM’s best-performing dealers in terms of sales, service and after-sales in Southeast Asia.
The winners from the Philippines were Chevrolet Pasig, Chevrolet Cebu and Chevrolet Ilocos Norte.
Chevrolet said dealers from Indonesia, Thailand and Vietnam were also cited in the awards. It added dealers were selected based on vehicle and parts sales, service, customer satisfaction and facility standards.
“Our dealer partners are critical to our success. Thanks to their outstanding contributions and hard work, we grew our sales in Southeast Asia by 16% in 2017 compared to 2016. In the Philippines, our sales grew by 11% in 2017, thanks to great new vehicle launches,” said GM Southeast Asia President Ian Nicholls.


Ford vehicles with Sync now integrate Waze app

WAZE users worldwide can now project the app’s real-time traffic and navigation service onto the touch screen panels — and can even control the app via voice commands — in Ford vehicles via the car maker’s Sync AppLink feature, Ford said in a news release.
Ford explained users can simply connect their Waze-equipped Apple iPhone to the USB port of their Ford vehicle and view the service as it is projected onto the touch screen.
“Our goal is to make it as easy as possible for people to access the smart phone features, apps and services they care about most in the car, without having to pick up their device,” said Don Butler, executive director, connected vehicle platform and product, at Ford Motor Co.
Ford said Waze can be accessed in its vehicles equipped with Sync 3 software version 3.0 or greater.


Isuzu Mu-X owners’ club completes 1,000-km. trip

MEMBERS of the Isuzu Mu-X Owners Philippines, or muXOP, on May 1 completed a 1,000-kilometer tour of Catanduanes, Isuzu Philippines Corp. (IPC) said.
It added 20 Mu-X SUVs, along with IPC representatives aboard a pair of new Mu-X variants powered by Isuzu’s new BluePower RZ4E engine, took part in the tour that started at the South Luzon Expressway in Calamba, Laguna, on April 27. The group drove to the Tabaco Port in Albay, where it boarded a ferry boat to the San Andres Port in Catanduanes.
IPC said muXOP, headed by Val Estor, is less than a year old and already counts over 2,000 members.
Mr. Estor said the new RZ4E engine will “motivate Mu-X owners to embark on more trips” because of the engine’s “vastly improved fuel efficiency, significantly reduced noise and vibration, and cleaner emissions.”
The RZ4E engine represents Isuzu’s foray into smaller but higher-output engines.

Provincial dealerships sprout

Business is very good in the local automotive industry, which has seen continuous growth sales-wise in the last six years. In 2017, our market sold a total of 470,000 brand-new passenger vehicles, up some 17% from 2016’s 400,000-unit tally.
Around 35-40% of these new cars wind up in Metro Manila alone, which explains the horrendous traffic jams we now experience on a daily basis. Now, there is only so much metal you can cram into any megalopolis. At some point, its residents will realize there are already too many cars around them, and that it’s time to unclog the roads if they are to preserve their decent living situation.
If you’re in the auto business and you’re among those with the unenviable task of having to hit monthly sales quotas, the prospect has to worry you. Just when exactly will your most crucial market — Metro Manila in this case — reach such saturation levels that further growth is simply no longer sustainable? Has the National Capital Region indeed irrevocably crossed over to that critical side where its inhabitants need to now seriously consider going carless for the benefit of all?
If you ask President Duterte, the answer is yes. Recall that he has predicted Metro Manila to be dead in 25 years if we don’t drastically change our ways — which, I’m guessing, involves letting go of our motoring addiction.
Elsewhere, there are calls from both government and private sectors to limit car use. Pasig City, for one, already observes “carless weekends” on F. Ortigas, Jr. road. It’s only a matter of time before such efforts become more intense and more consistent, eventually convincing more city dwellers to take public transportation instead of acquiring a garage-less vehicle and paying for its amortization every month.
How does the industry prepare for this eventuality, which is almost sure to happen from all indications? Simple: Bring the cars outside of Metro Manila. It’s a form of decentralization, if you think about it. Focus on sales and marketing initiatives in the provinces — particularly those on the fringes of NCR — and then develop a solid customer base in those areas.
That’s exactly what’s happening these days, as a matter of fact. In the two decades I’ve been covering the car industry, I have never received as many invitations to faraway dealership events as I do this year. As I write this, there are at least a couple such invites sitting in my mailbox, waiting for my reply. One is for the grand opening of Subaru Cainta, and the other is for the inauguration of Honda Baliuag. Where I once got used to fancy dinners in Makati City hotels, I’m now getting the hang of waking up early in the morning to ride a shuttle bus that will take me to a provincial showroom — as I did when I attended the formal opening of Nissan Batangas City more than a month ago.
And that’s only for dealerships that are conveniently accessed by short road trips. This year has also seen the appearance (or groundbreaking) of new showrooms in places that are truly remote from the country’s business capital. These include Ford Isabela, Isuzu Cebu South, Mazda Butuan and Suzuki Ozamiz. Of course, it’s no coincidence that the brands erecting these new stores are also the same ones that are currently surging in sales performance.
The multi-brand Lica Auto Group, which owns the above-mentioned Nissan Batangas City, is the most aggressive of all dealer companies. Chief Operating Officer Doroteo R. Sornet gave me a list of the new showrooms his team is inaugurating in the coming months: Nissan in Calamba; Hyundai in Cainta, Batangas, Molino and Marikina; Suzuki in Batangas City and San Pablo; Chevrolet in Cainta; Foton in Cainta and Calamba; and Volkswagen in Santa Rosa.
See the common thread here? These are car-selling locations away from the bowels of Metro Manila. The industry refers to them as “key growth areas.” In the coming years, these will be the most important battlegrounds for automakers. Local emerging markets, if you will. The car distributors that go to these places the soonest stand to reap the spoils of an imminent war.
All of this could also be a clear sign of the industry’s faith in the present government’s direction, which is to make Metro Manila unload many of its vital components to neighboring provinces. Obviously, people in these provinces will need cars to go around, and they will likely buy the first vehicles they encounter up close and personal.
This is a long time coming. Metro Manila is dying. It can’t accommodate more new cars at this rate. The provinces, thankfully, will gladly take them.

DoJ’s Guevarra backs JBC overhaul

Justice Secretary Menardo I. Guevarra on Tuesday, May 22, expressed his support for the consultive committee on charter change’s (Concom) proposal to reorganize the Judicial and Bar Council (JBC), describing to reporters the reforms as “a good idea.”
As the head of the Department of Justice (DoJ), Guevarra is an ex-officio member of the constitutional body tasked with screening nominees to appointed posts in the judiciary and the Office of the Ombudsman.
“A pro-active search will improve the quality of the men and women who will join our judiciary,” Mr. Guevarra said.
He added: “That would mean more work for the JBC, but with an expanded membership the council can do it.” — Dane Angelo M. Enerio

Stocks continue slide on lack of leads

Shares stayed on negative territory on Tuesday, May 22, as trading remained slim due to lack of fresh leads.
The 30-member Philippine Stock Exchange index (PSEi) fell 0.16% or 11.85 points to 7,646.20, remaining in the red for the third consecutive day.
The broader all-shares index also dropped 0.22% or 10.27 points to finish at 4,652.46.
“All important data have been released, and we are at the start of the lean trading months until August. Earnings are just so-so, so I think PSEi will be in a consolidation phase and possible downside over this lean season until ghost month. Investors are looking for catalyst to move forward and they can’t have any at the moment,” IB Gimenez Securities, Inc. Research Head Joylin F. Telagen said via text.
The positive sentiment from Wall Street’s close on Monday also failed to lift the market. The Dow Jones Industrial Average gained 1.21% or 298.20 points to 25,013.29. The S&P 500 index climbed 0.74% or 20.04 points to 2,733.01, while the Nasdaq Composite index firmed up 0.54% or 39.7 points to 7,394.04, as investors welcomed the easing of trade relations between the United States and China.
The US and China have reportedly put threats of tariffs on hold as they deliberate on trade issues.
Industrial was the lone sectoral counter that gained on Tuesday, rising 0.46% or 49.97 points to 10,946.98.
Mining and oil plunged 1.59% or 161.26 points to 9,986.28, while financials shed 0.8% or 15.24 points to 1,880.51. Property slipped 0.41% or 15.80 points to 3,804.78; services edged 0.21% or 3.25 points lower to 1,523.39; while holding firms ended relatively flat with a 0.01% or 0.94-point decline to 7,513.22.
Turnover was valued at P4.78 billion after some 1.07 billion issues switched hands, slightly up from Monday’s P4.19-billion. Decliners outpaced advancers, 110 to 78, while 45 issues were flat.
Foreign investors continued their selling mode, with net outflows amounting to P628.52 million, higher than the previous session’s P568.47 million.
Twelve of the 20 most actively traded stocks for the day went down, with Bloomberry Resorts Corp. losing 3.59% to P11.80 each and Melco Resorts and Entertainment Philippines Corp. dropping 3.11% to P6.23 each.
Among the day’s gainers were International Container Terminal Services, Inc. (Up 1.46% to P83.20), Jollibee Foods Corp. (Up 1.43% to P284), and Manila Electric Co. (Up 2.31% to P328.40). — Arra B. Francia

Peso rebounds on profit taking

The peso bounced back against the dollar on Tuesday, May 22, due to profit-taking following the local currency’s closing in its near 12-year low.
The local currency closed at P52.195 versus the greenback Tuesday, up 27 centavos from the P52.465-per-dollar finish on Monday.
The peso traded stronger the whole day, opening the trading session at P52.33 per greenback. It slipped to a P52.38 intraday, while its intraday high stood at its P52.195-per-dollar close.
Dollars traded climbed to $750.65 million from the $705.25 million that switched hands during the previous session.
Traders interviewed on Tuesday said the peso strengthened against the dollar due to profit taking after it dipped to its near 12-year low on Monday.
“The local currency appreciated as profit-taking ensued after the peso dropped to record lows,” a foreign exchange trader said through e-mail.
On Monday, the local currency closed at its near 12-year low since it ended the session at P52.745-per-greenback finish on July 19, 2006. — Karl Angelo N. Vidal

House shelves bill on recoverable system loss

Lawmakers on Tuesday, May 22, shelved the draft bill on recoverable system loss for further review after noting its provisions are similar to a resolution already being implemented by the Energy Regulatory Commission (ERC).
AKO BIKOL party-list Rep. Rodel M. Batocabe suggested that the energy committee, chaired by Marinduque Rep. Lord Allan Jay Q. Velasco, provide instead “a bill promoting efficiency among distribution utilities (DUs) rather than have a negative bill… for reducing system loss.”
The consolidated House bills (HBs) 942, 2297, and 6341, prepared by the technical working group chaired by 1-CARE party-list Rep. Carlos Roman Uybarreta, sought the gradual reduction of system losses of electric cooperatives (ECs) and private distribution utilities (PDUs).
“Instead, we provide for a policy to promote ‘yung efficiency ng mga distribution utilities and incidental lang ‘yung pag-fix ng rate ng system losses,” Mr. Batocabe added.
The unnumbered draft substitute bill gradually reduces the distribution feeder loss cap for large PDUs from as much as 9.5% previously to 6.5% in 2019 to 5.5% in 2022 or 7% in 2019 to 6% in 2022, depending on which cluster they belong. Meanwhile, the loss cap for ECs will be lowered from 14% to 12% in 2019 to 10.25% or 8.5% in 2023.
Last May 7, the ERC has published Resolution No. 10 series of 2018 which also outlined the reduced distribution feeder loss cap, segregated per categories. Similarly, distribution feeder loss cap for PDUs will be decreased to 6.5% in 2018 to 5.5% in 2021 and ECs to 12% in 2018 to 10.25% or 8.25% in 2022 onwards. The resolution is currently in effect but new rates will apply in the next billing cycle (May 8 to June 8) this year.
PBA party-list Rep. Mark Aeron H. Sambar, for his part, said ERC should be allowed to do its job as the government body tasked to implement regulations involving the electricity industry.
“So if we allow the ERC to do [its] job… and see if the anybody’s complying, then we can also review the bill but if we see that there is no compliance, then we will push for this bill so that the DUs will comply based on the law,” Mr. Sambar said. — Minde Nyl R. Dela Cruz

Senate asks Duterte to certify as urgent its proposed Bangsamoro bill

The Senate on Tuesday, May 22, asked President Rodrigo R. Duterte to certify the Senate bill on the proposed Bangsamoro Basic Law (BBL) as an urgent measure.
The request was coursed through a letter dated May 21, which was signed by Senate President Vicente C. Sotto III and Senate Majority Leader Juan Miguel F. Zubiri.
“May we once again respectfully request that Senate Bill No. 1717 under Committee Report No. 255 entitled ‘An Act Providing for the Basic Law for the Bangsamoro and Abolishing the Autonomous Region in Muslim Mindanao…’ be certified as urgent by your Administration,” the letter stated.
The letter also indicated that the Senate aims to pass the proposed BBL on third and final reading before the Congress sine die adjournment on June 2.
The proposed BBL remained pending on second reading in the Senate while the status of its version in the House of Representatives remained in the committee level.
Last April, Mr. Duterte also directed Congress to pass the proposed BBL before it adjourns in June through separate letters sent by the Presidential Legislative Liaison Office (PLLO) to then Senate President Aquilino L. Pimentel III and House Speaker Pantaleon D. Alvarez. — Camille A. Aguinaldo

Revolution Precrafted bags deal to supply prefab villas in Puerto Rico

Revolution Precrafted Properties Philippines, Inc has been tapped by Puerto Rico’s Grupo Cacho, Inc. to deliver more than 2,000 residential villas on the island of Vieques and Boqueron Bay Cabo Rojo, bagging its fifth international deal in the last six months.
The company said in a statement that it has recently signed an agreement with the Puerto Rican real estate firm for the project.
Grupo Cacho has residential, resort, hotel, and commercial developments under its portfolio, known for its Martineau Bay Resort in Vieques which was later renamed to Caribbean W. Hotel.
The agreement will be executed in two phases, with the initial phase to cost $13.5 million. This includes 27 mid-range and luxury residential units standing on a 4.2-hectare property in Vieques. Each house will cover 200 to 250 square meters of floor area on 1,000-sq.m lots.
For the second phase, Revolution Precrafted will construct around 2,000 houses on a 212-hectare area near Boqueron Bay. The two- to three-bedroom villas are sized 150 sq.m., with a lot area of around 600 sq.m. — Arra B. Francia

AUB’s Q1 consolidated net income grows 21%

Asia United Bank (AUB) reported its consolidated net income went up in the first quarter on the back of double-digit growth in its core lending businesses.
In a disclosure to the local bourse Tuesday, May 22, the Ng-led bank and its subsidiaries, namely Cavite United Rural Bank and Rural Bank of Angeles in Pampanga, logged a consolidated net income of P797.7 million in the January to March period, up 21.3% than a year ago.
AUB said its net income last quarter was boosted by growth in interest income from loans and receivables as well as growth in other operating income, which rose 29.4% and 42.6%, respectively, in a comparable year-ago period.
Loans and receivables grew to P129.6 billion by 29.2% as of end-March compared with the P100.3 billion logged in the same period last year.
According to AUB, this was supported by double-digit growth in commercial loans as well as other loan segments such as auto, housing and salary loans.
As a result, AUB’s net interest income rose 9.1% P1.681 billion in the first quarter from P1.542 billion last year. — Karl Angelo N. Vidal

How a government employee began to weave dreams

Akaba’s 24yearold chief operating officer Daniel Lumain was immersed in implementing policies for government-run companies before the country changed leadership in 2016 and put an end to his two-year career.

But that backdrop gave him “not just the connections,” but also the fuel to continue being of service to his countrymen. He then returned to his undergraduate thesis at the Ateneo de Manila University and grew it into what Akaba is today: a social enterprise selling bags and accessories made of handwoven textiles by over 100 weavers from Ilocos Norte, Isabela, Abra, Oriental Mindoro, Zamboanga, Sulu, Basilan, Iloilo and South Cotabato.

“It’s our mission to help these weavers promote their artistry and craftsmanship, but at the same time create a sustainable business that is relevant to the supply chain,” he said. “When we went to Ilocos Norte, we found out that a lot of weavers create handwoven textiles for around a month or so, but only sell them for around P20 per yard, and when we went to the market we actually saw middle men selling them for P150 to P200.”

Unlike many handwoven crafts, however, Akaba didn’t target the so-called “tita market.” “We chose a younger market and lowered our price points. What we always say is if you buy a high-end product worth P10,000, sure you’ve helped a community, but when is the next time you’ll help them? We can sell a product for around P1,500, sell a hundred pieces, and basically continuously support the communities.”

Akaba currently sells its wares across major malls, but because it aims to become an established “Southeast Asian brand,” it is also expecting to enter e-commerce platform Amazon to tap the American market this year, on top of its plan to expand its ties with Cambio Market to further introduce the brand in Canada. Lumain added that the team is also considering to widen its Asian market by selling its products in Hong Kong and Japan.

“I always believe that poverty is not just an economic situation, it’s a mindset problem,” he said. “These people changing their views, believing that there’s a chance for them to have a better life, that in itself is the biggest achievement that we’ve had.”


INCIDENTAL INTELLIGENCE:
Shop at akaba.co.

PSBank plans to raise up to P15 billion through LTNCDs

Philippine Savings Bank (PSBank) is planning to raise up to P15 billion by selling peso-denominated long-term negotiable certificates of time deposits (LTNCD).
In a disclosure to the Philippine Stock Exchange Tuesday, May 22, the thrift banking arm of Ty-led Metropolitan Bank & Trust Co. said its board of directors approved to issue up to P15 billion in LTNCDs in two or more tranches.
The issuance program will be conducted over a one-year period and with a tenor of five-and-a-half years.
The offering will still require approval from the Bangko Sentral ng Pilipinas. Its final terms, including the offer period as well as the interest rate, will depend on market conditions.
“The issuance of LTNCTDs will give PSBank an opportunity to access long-term funding as the Bank further expands its consumer banking business,” PSBank said in the disclosure. — Karl Angelo N. Vidal

Carpio: Philippines must formally protest China militarization

In response to the sighting of Chinese long-range bombers in the Paracel Islands, Acting Chief Justice Antonio T. Carpio on Tuesday, May 22, insisted that, “the Philippine Government must formally protest the increasing militarization of the (West Philippine Sea) by China.”
Mr. Carpio, in a press statement released to media on Tuesday, said, “failure to formally protest means the Philippines is acquiescing or consenting to the militarization, and worse, to the claim of China that all the islands, waters, and resources within the nine-dashed line form part of Chinese territory.”
“A formal protest is necessary to preserve our sovereignty over Fiery Cross Reef… A formal protest is also necessary to preserve our sovereignty over Subi Reef… Moreover, a formal protest is also necessary to preserve our exclusive sovereign rights over Mischief Reef which the arbitral tribunal ruled forms part of the Exclusive Economic Zone of the Philippines,” read Mr. Carpio’s statement. — Dane Angelo M. Enerio