Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 11974

Bridgestone brings Firestone back to PHL

By Kap Maceda Aguila

IF a veritable slugfest occurs among premium players in the tire market, the lower price points must surely be a free-for-all — if only for the sheer glut of contenders vying for a finite, though considerable, base of buyers.

This is the ring that Firestone now willingly, even eagerly, steps into as it makes a rather calculated reentry into the Philippine market. Purchased in 1988 by Bridgestone, Japan’s largest tire manufacturer, the Nashville, Tennessee, native with over 100 years of history in the industry is undoubtedly coming back stronger through its brand’s own recall and the strength of its affinity with another giant. Both marques are locally marketed by authorized Bridgestone distributor, Philippine Allied Enterprises Corporation (PAEC).

PAEC president and CEO Marc Louie Y. Tagle said in a speech during Firestone’s recent official launch that the company’s tires are “engineered for precision driving, and built for a comfortable and safe drive which most of us do on our daily lives.” He asserted it is about “bringing safety on the road even closer to public reach.”

The return of Firestone in the country is made possible by a couple of crucial factors, according to PAEC assistant vice-president for sales Steven Tagle. Speaking to BusinessWorld, he said that the distributor pulled the trigger because the production cost has gone down following the opening of manufacturing facilities in Thailand and Indonesia. “We see that we can attack China-branded tires now,” the executive continued, and added that there are already some 50 Chinese tire brands here. “If we don’t seize the chance now, in five years there would probably be 80 brands and it would be harder to penetrate.”

However, PAEC is hawking Firestone while being mindful not to encroach on the business of its sibling brand. Steven Tagle reiterated that the game plan is to secure the B and C segments of the market, while leaving Bridgestone to focus on “high-performance, high-class vehicles.” He observed; “We’re missing a lot in those lower segments. [Firestone] is our chance to get into them.”

Firestone’s initial salvo consists of its FS100 Touring tire — keenly envisioned for compact hatches like the Toyota Yaris, Honda Brio, Honda Jazz, Mitsubishi Mirage, Mazda2, and Suzuki Swift, and compact sedans like the Toyota Vios, Toyota Corolla, Honda City, Honda Civic, Nissan Sylphy, and Mazda3. “We want to see first how this is received by the market,” said Steven Tagle. Of course, these volume sellers promise massive potential. The FS100 range will fit 14- and 15-inch wheel, the most common original wheel sizes for the compact vehicles.

Aside from smaller cars, PAEC has simultaneously released Firestone tires for large commercial vehicles. “Six wheelers, buses — they’re segments where Bridgestone is losing out to China brands and smuggled tires,” lamented Steven Tagle, who also shared that at one point, Bridgestone had cornered 70% of that market but eventually lost ground because it was unfairly undercut by competition. PAEC is now also studying the feasibility of releasing SUV tire products in the near future, which the executive considers the “biggest market” in the industry.

In a largely price-sensitive market, Firestone is seeking to get ahead of the competition through its aforementioned name recall and Bridgestone ties — in addition to unique value propositions pertaining to heightened performance and durability. Its price index relative to Bridgestone hovers at around 75%, and PAEC is hoping this affordability will make the brand doubly attractive to car owners looking at replacing their tires.

Authorized Bridgestone dealers nationwide now carry Firestone FS100 touring tires:

METRO MANILA
Alpha Performance (Marikina City), FB Ladao (Quezon City), AutoActive (Quezon City), Tire Wizard (Pasig City), Garage Plus (San Juan City), MBBCI (Muntinlupa City), Gatchalian Tan (Parañaque City)

LUZON
Yormine (Rizal), Jocar (Bulacan), Windtunnel (Pampanga, Clark), GNS (Pangasinan, Dagupan), Motorhub (Nueva Ecija), Transworld (Ilocos), LSIT (Batangas), Towerking/Tirestar (Batangas), Serapio (Bicol), Legazpi Tire Depot (Bicol), Alpha One (Cavite), Bethro (Quezon Province)

VISAYAS
Highway Tire Supply (Bacolod City), Buen Viaje Tire Corp. (Iloilo City)

MINDANAO
Le Tires (Koronadal), Le Tires (General Santos City), Mega Wheels Center (Pagadian City), Lomex Car (Iligan City), Echo Wheels Marketing (Butuan City), Mega Ultra Sales (Surigao City)

Dashboard (03/28/18)

2018 Toyota Vios Cup to start April 28

THE fifth season of the Toyota Vios Cup one-make race series will begin on April 28, organizer Toyota Motor Philippines announced on March 23.

It added three legs of the Vios Cup are slated this year, with the first and last races to be held at Clark International Speedway and the second at Filinvest, Alabang.

More than 50 drivers will compete in three race classes: Super Sporting, Sporting and Promotional. Some specification upgrades — lighter hood and trunk lid, plus TRD disc brake rotors — will be allowed on cars in the Super Sporting class, Toyota said.

Like in the first four seasons, the series will feature celebrity drivers. Racing this year are Diego Loyzaga, Sofia Andres, Chie Filomeno and Sam Milby, who will be joining returning competitors Gretchen Ho, Aubrey Miles, Fabio Ide and Troy Montero.

Volkswagen Jetta

Volkswagen to hold Jetta prices until April 30

THE Volkswagen Jetta Comfortline variant will still have a starting price of P1.1 million and the Jetta Highline of P1.2 million until April 30 — or if supplies are still available.

Volkswagen Philippines these are the cars’ same prices before the new automotive tax rates were imposed, indicating the vehicles were imported prior to the implementation of the revised taxes.

The distributor noted that along with the lower taxes levied on the Jetta, other reasons that make it a compelling choice are the model’s “unparalleled heritage and tradition of world-class excellence… premium amenities, remarkable vehicle performance, and safety features. It added the Jetta has been Volkswagen Philippines’ bestselling sedan since the model’s introduction.

The Jetta is powered by a 2.0-liter, turbocharged direct injection diesel engine that, combined to a six-speed DSG transmission, makes 148 hp and 340 Nm of torque. Standard in both the Jetta Comfortline and Highline are a sunroof, smart entry with push-button start, and a 5.8-inch touch screen panel for the audio system. Added to the Highline are a Fender eight-speaker audio setup, dual zone Climatronic air-conditioning, rain sensors, six-way adjustable power driver’s seat and 17-inch wheels.

Trust issues will now hound autonomous cars

If you regularly consume car-related content and you feel like you’ve been reading “autonomous vehicles” and “artificial intelligence” a lot lately, you’re not alone. It’s a legitimate trend. Or at least a very clear direction that proponents of self-driving cars have been promoting to the public. It’s as if a whole new automotive industry can’t wait to disrupt and take over the existing one.

In the minds of regular folk, the reality of fully autonomous vehicles — or cars that can completely navigate traffic on their own sans any driver input — is still decades away. Unbeknown to many, self-driving cars are now being tested in real-world motoring scenarios as I write this. In fact, an autonomous Uber car just hit and killed a pedestrian in the US state of Arizona, which is supposedly the first-ever recorded fatality involving a self-driving car.

For those who aren’t aware, self-driving cars are exactly what the name says: They’re vehicles that transport people and go through traffic without a human driver. Using a high-tech network of cameras and sensors, these vehicles are able to recognize and analyze road markings, detect and avoid road obstacles, and reach set destinations.

Initial fears, naturally, centered on whether these driverless cars can react as instinctively well as humans in an emergency situation — fears that were conveniently sidestepped by developers who went ahead with real-world testing. And when I say real-world testing, it means deploying these vehicles onto actual roads where they will encounter and interact with human-driven cars and (more crucially) pedestrians.

Ride-hailing service company Uber — one of the most eager companies when it comes to fast-tracking the development of autonomy and artificial intelligence in cars — have partnered with several automakers like Volvo in building and fine-tuning self-driving cars. One of the places the firm has designated as a testing ground is Tempe, Arizona. On March 18, an autonomous Volvo XC90 operated by Uber struck and took the life of a 49-year-old female pedestrian in the city.

Uber is just one of a handful tech-focused companies aggressively developing self-driving vehicles. Another is Waymo, an offshoot of Google’s autonomous car project.

With the casualty, it is reasonable to expect commuters and especially government regulators to be particularly wary of robot cars. This will likely pull down the campaign at least a couple of notches in terms of public acceptance. If misinformed people can be spooked by “self-launching” SUVs that supposedly suffer from sudden unintended acceleration, imagine the horror of having to picture a motor vehicle without a warm body controlling it. Good luck convincing passengers to hop in.

Fair or not, we will now have a harder time entrusting our road safety to a bunch of AI vehicles. According to Reuters, Waymo indicates in a report that its self-driving cars have already chalked up some five million miles in real-world testing. If that’s true, the fatal incident is negligible in comparison. It may sound cruel and insensitive, but that’s the basic math of things.

But people don’t care about the accident-free, five-million-mile test. They care about the one life that was lost (and not even in the test of the same company but in another test by a rival). They will not give a hoot about the countless positives in the evolution of self-driving cars; they will only rail against a single negative.

It’s like getting everything correctly in a 100-page glossy magazine — and unfortunately getting one price figure glaringly wrong. Readers won’t be sending congratulatory messages to the editors; they’ll only call the staff’s attention to the typo.

Again, fair or not, it is what it is.

Has the development of autonomous vehicles hit a wall? No, not really. Uber and the others aren’t abandoning their projects and experiments over one casualty. They’ve come too far to stop or slow down now. They’re charging full speed ahead.

It’s just that they’ll have to start almost all over again in the PR game. They’ll have to assure and convince us that the tragedy won’t happen again. They’ll have to spend big and work hard to achieve that. A distraction, yes.

But self-driving cars are almost upon us. Fair or not.

Quo warranto petition vs Sereno ‘proper path not taken’ — SolGen

Solicitor General Jose C. Calida on Tuesday, March 27, submitted to the Supreme Court (SC) his reply to Chief Justice Maria Lourdes P.A. Sereno’s comment on his quo warranto petition seeking to void her appointment.

“For the first time in the country’s history, the Solicitor General is asking this Honorable Court to remove a Chief Justice from office,” the 64-page reply sternly stated in its first lines. It added:

“The Solicitor General has chosen the path that until now has not been taken, that is to remove the Chief Justice from office.”

Mr. Calida filed his quo warranto petition last March 6, which urged the high court to void Ms. Sereno’s appointment for not fully submitting her Statements of Assets, Liabilities, and Net Worth (SALN) to the Judicial and Bar Council (JBC) as a requirement for the post.

In response, Ms. Sereno, who is also facing impeachment for allegedly not disclosing her complete wealth, on March 19 asked the SC to dismiss Mr. Calida’s petition for lack of merit and for lack of jurisdiction, saying primarily that she can only be removed from her post through impeachment.

The Solicitor General, for his part, argued in his new reply “the Constitution does not exclude quo warranto as a remedy to assail the validity of (Ms. Sereno’s) appointment as Chief Justice and cause her ouster from office.”

“Plainly stated, the 1987 Constitution does not state anywhere that impeachment is the sole means of removing an impeachable officer,” said the reply.

It added, among its many arguments: “her failure to file her SALNs in accordance with the requirements of the Constitution and relevant laws shows that she is not of proven integrity,” which Mr. Calida said was “an indispensable qualification for appointment to the Judiciary.”

He stressed “in view of Respondent’s failure to establish her integrity, declare the office of the Chief Justice of the Republic of the Philippines vacant.”

In addition to the arguments listed on his reply, Mr. Calida also pointed out several instances that “(revealed), that she did, in fact, commit a litany of falsehoods.”

Mr. Calida accused Ms. Sereno of filing her SALNs late, fabricating her 2006 SALN, and not declaring pieces of jewelry valued at P15,000 in her 1993 SALN.

In a press statement, the Chief Justice revealed that the JBC relaxed the SALN requirement for all applicants to the post including Senior Associate Justice Antonio T. Carpio and Associate Justice Teresita L. De Castro.

Mr. Carpio and Ms. De Castro were quick to clarify they submitted their required SALNs to the JBC. — Dane Angelo M. Enerio

Asia stocks gain as trade fears subside; yen falls

Stocks in Asia followed their U.S. counterparts higher on signs that an escalation of trade tensions was beginning to ease. The yen slipped and the South Korean won rallied as news emerged of a surprise visit to China by North Korea’s leader.

Japan’s benchmarks gained at least 2 percent, while U.S. equity futures built on a Monday rally that saw the S&P 500 Index post its biggest one-day jump since August 2015. The won was the best performer among Asian emerging-market currencies as Kim Jong Un was said to be making an unannounced visit to Beijing, his first known trip outside North Korea since taking power in 2011. The yen was lower as risk-on sentiment returned.

The resurgence in risk appetite emerged as the Trump administration was said to be urging China to lower tariffs on cars and open its market to U.S. financial services as part of talks to resolve a rise in trade tensions. U.S. Treasury Secretary Steven Mnuchin and his Chinese counterpart have been discussing the trade deficit between the two countries and were committed to finding a mutually agreeable way to reduce the gap and help China avoid tariffs on $50 billion of exports to the U.S.

While global equities recovered losses sustained on Friday, the MSCI All Country World Index remains about 8 percent lower than its record high reached in January and Japan’s Topix index is still about 10 percent below a January high despite Tuesday’s rally.

“Our base case is that there won’t be an all out trade war,” Craig Macdonald, Aberdeen Standard Investments’ global head of fixed income, said in a phone interview. “It’s a way of applying pressure to get some wins by Trump.” Still, it will lead to more volatility, Macdonald added. “Our sense is that they will get some wins rather than all out war, but it’s not something you can just dismiss. The tail risk is higher.”

Elsewhere, the yield on India’s benchmark 10-year bond fell 24 basis points to 7.38 percent, set for its biggest decline since November 2013, as the government surprised the market by reducing the size of its borrowing. Oil traded above $65 a barrel.

Here’s a list of of the main events coming up this week:

U.S. personal income and spending data for February are due to be released on Thursday. The big four euro-area economies are due to release March CPI readings. The U.S. Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.

And these are the main moves in markets:

Stocks

The MSCI Asia Pacific Index advanced 1.3 percent as of 1:48 p.m. Tokyo time. Topix index climbed 2.3 percent. Hong Kong’s Hang Seng Index rose 0.9 percent. Kospi index rose 0.6 percent. Australia’s S&P/ASX 200 Index increased 0.7 percent. Futures on the S&P 500 Index rose 0.4 percent.

Currencies

The Bloomberg Dollar Spot Index was flat. The Japanese yen fell 0.2 percent to 105.59 per dollar. The euro rose less than 0.1 percent to $1.2451. The won jumped 1 percent to 1,070.15 per dollar.

Bonds

The yield on 10-year Treasuries was unchanged at 2.85 percent. Japan’s 10-year yield climbed four basis points to 0.065 percent. Australia’s 10-year yield held at 2.66 percent.

Commodities

West Texas Intermediate crude rose 0.4 percent to $65.82 a barrel. Gold traded at $1,354.43 an ounce. LME copper gained 1.5 percent to $6,703.00 per metric ton. — Bloomberg

China asks US to offset trade loss due to metal tariffs

China asked the US to provide compensation for lost trade due to President Donald Trump’s proposed tariffs on steel and aluminum, in a preliminary step that could lead to a dispute between the two nations at the World Trade Organization.

In two filings with the WTO on Monday, China dismissed the US assertion that the metal tariffs were instituted on national security grounds, arguing instead that they were safeguard measures — temporary trade restrictions aimed at protecting domestic producers.

China responded to the US action by threatening to impose tariffs on $3 billion of US imports — including agricultural, steel and aluminum products — and its ambassador to the U.S. said all options are on the table, though the Asian nation doesn’t want a trade war. The levies are expected to affect $689 million worth of Chinese steel and aluminum exports to the US, according to data published by the Peterson Institute for International Economics.

“Less than 3 percent of the US imports of steel came from China, so it really baffles us how such a low rate of imports constitutes a threat to US national security,” Chinese Ministry of Foreign Affairs spokeswoman Hua Chunying said Tuesday at a briefing in Beijing. “We have good reasons to question the legality and legitimacy of many actions taken by the US on the grounds of national security.”

If the US rejects China’s argument that the measures are safeguards, China may have recourse to ask the WTO to mediate the disagreement in a formal dispute proceeding. China said it reserved the right to file a dispute at a later date, according to the filings.

Separately, the European Union took the first step toward protecting EU-based steel manufacturers on Monday when the European Commission opened a “safeguard” probe into whether the 25 percent levy on foreign steel imposed last week by Trump is diverting worldwide shipments to the EU market.

The probe marks the defensive part of a three-pronged strategy that the EU has drawn up to respond to the U.S. steel tariff and to a 10 percent levy on foreign aluminum. — Bloomberg

OPMC shareholders approve venture into natural gas

Listed oil exploration company Oriental Petroleum and Minerals Corp. (OPMC) has secured the approval of its stockholders to venture into the upstream and downstream natural gas projects of the government while also obtaining their nod for the extension of its corporate life by another 50 years.

OPMC, which is marking its 50th year in December next year, told the stock exchange on Tuesday, March 27, that it might also consider venturing into renewable energy (RE) projects “of all kinds,” being one of the active industry players in the upstream petroleum energy exploration and production.

“Also, to include venture in upstream and downstream natural gas projects of the government through Department of Energy (DoE),” the company said, adding that it has the legal, technical and financial qualifications to branch out into other energy sectors.

OPMC will be amending its articles of incorporation, specifically its secondary business purpose, to allow it to invest or engage in the business of power generation “in all its aspects.”

The amendment will also allow the company to invest or engage in the the exploration, development, utilization and commercialization of renewable energy resources, such as biomass, solar, wind, hydropower, geothermal and ocean energy resources. — Victor V. Saulon

Oil advances as easing trade tensions counter oversupply fears

Oil traded above $65 a barrel as global trade tensions showed signs of easing, countering concerns that U.S. crude stockpiles may have resumed their expansion last week.

Futures in New York rose 0.3 percent, remaining near the year’s highest close set in January at $66.14. A resurgence in risk appetite has helped lift markets from equities to commodities after a report that the Trump administration is urging China to lower tariffs on cars during talks to calm trade tensions. Yet a small estimated increase in U.S. inventories is keeping a lid on oil-price gains.

Oil has recovered near January highs after President Donald Trump last week appointed John Bolton as his national security adviser, signaling the U.S. may pursue a more hard-line approach against Iran and disrupt outflows from the OPEC member. While global stockpiles are tightening in a sign that the Organization of Petroleum Exporting Countries’ production cuts are working, fears still remain that surging U.S. production could thwart those efforts.

“Oil prices gained and now they’re testing this key resistance level” of the January high, said Hans Van Cleef, senior energy economist at ABN Amro. “We’re waiting for the inventory data to see if it can push prices higher. Markets expect them to remain little changed, so any surprise drop could do the trick.”

West Texas Intermediate crude for May delivery traded at $65.76 a barrel on the New York Mercantile Exchange, up 21 cents, at 11:05 a.m. London time, after falling 33 cents on Monday. Total volume traded was about 28 percent below the 100-day average.

Brent for May settlement rose 27 cents to $70.39 a barrel on the London-based ICE Futures Europe exchange, after dropping 33 cents on Monday. The global benchmark traded at a $4.60 premium to WTI.

Equity Rally

European stocks rallied, tracking gains across Asia as investors began to recalibrate the chances of an all-out trade war. U.S. Treasury Secretary Steven Mnuchin said on Fox News that he’s optimistic his country can reach a truce with China on trade.

U.S. stockpiles may have added 450,000 barrels last week, rising for the fourth time in five weeks, according to a Bloomberg survey before Energy Information Administration data due Wednesday. A week earlier, U.S. production increased for a fourth week to a fresh record. — Bloomberg

DENR calls for more investments in ‘green infrastructure’

The Department of Environment and Natural Resources called for both the public and private sectors to invest in “green infrastructure”.

In a statement on Tuesday, March 27, Environment Secretary Roy A. Cimatu said the protection of ecosystems likewise can provide the security to the surrounding communities.

“Countries highly vulnerable to natural disasters, like the Philippines, need to invest more in green infrastructure,” he added.

“Integrating green with grey or traditional infrastructure creates cost-effective, climate resilient communities.”

Mr. Cimatu also highlighted the need to implement nature-based solutions such as planting trees to combat both solid and water waste management.

“Nature-based solutions have the potential to solve many water challenges. Nature can heal itself if abuses are mitigated before they become irreversible,” he added.

The DENR last week awarded individuals, group and programs that have developed nature-based solutions to address pollution.

Mr. Cimatu said that the ceremony was “timely”, given the ongoing crisis in Boracay where a number of establishments have violated environmental laws and a number of the wetlands has been inhabited by informal settlers.

During the awarding ceremony, various government officials and private sector representatives also pledged to commit to the United Nations resolution on the International Decade for Action: Water for Sustainable Development 2018-2028. — Anna Gabriela A. Mogato

Peso weakens ahead of trading break

The peso weakened against the dollar on Tuesday, March 27, in preparation of the market inflow on Wednesday.

The local currency ended Tuesday’s session at P52.32 versus the greenback, 11.5 centavos weaker than the P52.215-per-dollar finish on Monday.

The peso opened the session stronger at P52.15 against the dollar, while its best showing stood at P52.135. Its intraday low was at P52.33-per-greenback.

Dollars traded increased to $712.9 million from the $688.9 million traded on Monday.

A trader told BusinessWorld yesterday that he saw strong dollar demand late afternoon, dampening the local currency near its intraday low.

“I think the upsurge was due mostly on covering of sell flow tomorrow,” the trader said. “We are expecting large amount of inflow come tomorrow that’s why there’s short covering today.”

Meanwhile, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, attributed the weak peso to the higher oil prices in the world market.

“Although the US dollar value dropped, it seems the downward pressure today came from the lingering tension in the Middle East, pushing the Brent higher,” he said in a text message.

According to a report from Reuters, the oil price rose on Monday, with the Brent crude futures opening above $70 per barrel for the first time since January.

The higher crude prices was due to the expectations that Saudi Arabia may continue the supply cut until 2019, and was also due to the concerns that the US may re-introduce sanctions against Iran. — Karl Angelo N. Vidal with Reuters

 

SEC approves San Miguel Pure Food’s name change

San Miguel Pure Foods Company, Inc. (SMPF) said it has secured the Securities and Exchange Commission (SEC)’s approval to amend its name and primary purpose, among others, to reflect the consolidation of the San Miguel group’s traditional businesses.

In a disclosure to the stock exchange on Tuesday, March 27, SMPF said the SEC has approved the change of its corporate name to San Miguel Food and Beverage, Inc. on Mar. 23. This followed the approval of SMPF’s shareholders to change the company’s name and primary purpose to include its engagement in the alcoholic and non-alcoholic beverage business. — Arra B. Francia

PCCI calls for government to reconsider plan to shut down Boracay

The Philippine Chamber of Commerce and Industry (PCCI) has called on the government to hear out stakeholders before finalizing its shutdown on Boracay establishments.

In a Tuesday statement, the largest umbrella group of businesses with about 35,000 members, said the total closure will be “detrimental to the local economy of Boracay and the entire Philippine tourism industry.”

“PCCI appeals that those who are compliant should not be punished and suffer the same fate as those who have short-circuited the environmental laws,” the group added. — Janina C. Lim

1...11,97311,97411,975...13,378Page 11,974 of 13,378
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube