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Terra form

PHOTO FROM NISSAN PHILIPPINES

Nissan Philippines refreshes its best-selling midsize SUV

By Kap Maceda Aguila

SINCE ITS introduction in 2018, the Terra has, by all accounts, been an answered prayer for Nissan Philippines, Inc. (NPI). Competing against more established nameplates in the midsize SUV category, the Terra has decisively cracked the top three ranking in the segment.

Now, NPI is doubling down with the launch of an upgraded version. “The new Nissan Terra is a smart and reliable family SUV that gives you and your loved ones confidence, comfort, control, safety, and peace of mind. We took the well-known all-terrain toughness and capabilities from Nissan’s 70 years of SUV heritage, and added the latest technologies, to turn the new Terra into the perfect partner for sharing experiences with your family and loved ones,” said Nissan Philippines President and Managing Director Atsushi Najima in a release.

Replying to a question from “Velocity” during the media launch, done online, Mr. Najima said that the Terra has been ranking either second or third in sales — trading places with the Mitsubishi Montero Sport — as the Toyota Fortuner continues to lead the segment. The Terra’s sales performance translates to 22% to 23% of total category units sold.

While the smart money should be on that share growing with the refreshed version, Mr. Najima is reticent about making projections, describing the market as too “volatile” for predictions. NPI would rather communicate the good things about the Terra, rather than put pen to paper and make forecasts.

On the new Terra’s front end is a V-motion grille with a redesigned front bumper. Its headlamps are outlined by C-shaped LED daytime running lamps. Within the assembly are quad LED projector headlamps, said to be a first in the segment, and with an auto-leveling function. New taillamps mark the changes in the back, as does a restyled rear fascia which “emphasizes the vehicle’s strength and width.” The rear bumper has been recast, and the Terra now boasts an updated spoiler design and sharkfin antenna. New 18-inch wheels are in a two-tone alloy design. The SUV gets a quick steering gear ratio for improved maneuverability, four-wheel disc brakes, and a rear differential lock on the VL 4×4 variant.

Inside, there are plenty of obvious changes as well. The dashboard has been restyled for “a more modern and upscale look,” and the cabin receives a two-tone look. A flat-bottomed steering wheel gives a sportier feel, while a new center console design integrates a wireless charging feature and e-parking brake control.

An intelligent key with push button engine start/stop system and steering wheel controls are standard across all variants, as is a new high-contrast seven-inch Advanced Drive Assist Display. Other toys include a Bose premium sound system with eight speakers (for the VL 4×4) and 11-inch flip-down rear monitor (for VL trims).

Equipped on all variants are vehicle dynamic control and hill start assist, plus Nissan Intelligent Mobility (NIM) with a varying number of features depending on the trim. Speaking of which, new technologies have been added to the suite (i.e., Intelligent Forward Collision Warning, Intelligent Emergency Braking, Intelligent Driver Alertness, Rear Cross Traffic Alert), in addition to the features found in the outgoing model.

“The suite of these NIM features combine into the 360 Safety Shield, a 360-degree safety system which helps protect both the driver and passengers from potential risks approaching the vehicle,” reports Nissan.

VL models get the nine-inch Nissan Advanced Touchscreen Display Audio with wireless Apple CarPlay and Android Auto with navigation; the other two variants receive an eight-inch screen but the same Apple/Android compatibility.

The new Nissan Terra is available in six exterior colors: Nebula Metallic Red, Forged Metallic Copper, Aspen Pearl White, Lunar Metallic Gray, Brilliant Silver, and Galaxy Black. Inside, the Terra receives a two-tone, black/burgundy interior leather trim for the VLs; and black interior for the VE and EL variants.

For more information, visit www.nissan.ph or follow the Nissan Philippines social media accounts.

Driving to 2030

Ford Mach-E — PHOTO FROM FORD, MAZDA, AND VOLVO

Time traveling aboard a trio of futuristic EVs in the here and now

A LONG TIME ago in a galaxy, far, far away…

That’s how I would start if I were to write about a test drive of Luke Skywalker’s X-34 Landspeeder, or a test flight of an old yet stealthily fast Corellian freighter that’s co-piloted by a Wookie.

But I’m writing about vehicles of the future — not of those a long time ago. And the galaxy I’m referring to is our very own — not one far, far away. So, let’s start crystal ball-gazing. Better yet, come join me on a ride of some groundbreaking new cars coming up in this decade. Why gaze when you can drive, right?

LOCATION: MINE, JAPAN YEAR: 2023
I’ve driven in Mazda’s Mine Proving Grounds in Japan before. It was a rainy day in 2018, when Southeast Asian journalists clustered under transparent umbrellas as we waited our turn to take the wheel of the then-new Mazda3. This time, the Land of the Rising Sun lived up to its name as brilliant sunshine greeted us as we walked to the paddock — almost like it was smiling on us as most of us were traveling abroad for the first time after the pandemic. This time, we would be driving Mazda’s landmark model, the head-turning new MX-30.

The MX-30 looks like a crossover, but doesn’t have the “CX” prefix that denotes Mazda’s line of crossovers. Instead, it has the “MX” prefix that’s used in just one other Mazda car, the ageless and delightful MX-5. Hmm.

But what actually makes the MX-30 such an important model for Mazda is the fact that it’s the Hiroshima brand’s first-ever full-electric car — marking Mazda also as one of the very few car makers to jump straight to EVs from internal combustion (IC) engines without going through a hybrid phase.

The MX-30 does not try to go for a mind-boggling driving range or stupendous acceleration figures. As always, this Mazda strives for that hard-to-find balance between functional practicality, dynamic sportiness, and real-world zero-emissions driving.

As such, the MX-30 sports a lightweight 35.5kWh battery — just enough for roughly 160 kilometers of range. For the majority of people who drive 30 to 40 kilometers a day for their home-office-home commute, that’s enough juice to power the MX-30 through four to five days — almost a whole work week. Of course, it also has a 50kW rapid charger that lets you top up the battery from 20% to 80% power in 36 minutes — enough for that coffee break on that out-of-town jaunt.

But if that’s still not enough for you, Mazda is developing a range-extended MX-30 with an ultra-clean-burning Skyactiv-X gasoline-fed rotary engine. Nope, the rotary engine won’t be driving the wheels (it has no transmission or driveshaft that connects it to the wheels); it will just charge the battery or power the electric motor as you drive when the battery is depleted. With that rotary engine, perhaps they should have called it the RX-30, after all.

LOCATION: LOS ANGELES, CA., USA YEAR: 2026
The Angeles Crest Highway never gets old. It’s like driving up to Baguio with all the pine trees and the zigzag roads, although the straight stretches are longer. Each drive is a memorable one — but this one is even more so. It’s a drive of Ford’s much-anticipated Mustang Mach-E. Curiously, my last drive up this beautiful serpentine highway was also in a Mustang — the then-all-new 2014 model.

Even curiouser is how the makers of two timeless sports cars — the Mazda MX-5/Miata and Ford Mustang — are positioning their next-generation electric vehicles to continue the legacies of their sporting stablemates by retaining their legendary “MX” and “Mustang” nomenclatures — even if they have morphed into crossovers or SUVs.

I am continually reminded of this EV’s identity with a plethora of Mustang design and performance cues. It starts with the galloping horse logo on the closed grille. The side view retains the fastback roofline of the Mustang while the rear, for me, bears the strongest resemblance to its muscle car roots, thanks to the wide flanks that give the rear fenders their muscular shape and the triple vertical taillight strips that bracket that iconic galloping horse in the middle.

Of course, the Mach-E wouldn’t be a Mustang if it didn’t have the performance worthy of the name. The flagship Mach-E GT Performance Edition harnesses 480 horses in its underhood corral and delivers 860Nm of tire-smoking torque for a zero-to-60mph run in 3.5 seconds — all while achieving a driving range of 430 kilometers.

If the Mach-E is the future of SUV-loving America’s iconic pony car, it will have a very bright future indeed.

LOCATION: GOTHENBURG, SWEDEN YEAR: 2030
I’m driving the Volvo C40 Recharge in its home country. The C40 is the first Volvo available only as a pure-electric car. It has no internal combustion variants and is just one of a formidable range of purely electric models that form part of Volvo’s commitment to the world that it announced way back in 2018 — that half of its models will be purely electric by 2025, to be followed by an exclusively all-electric lineup by 2030, and to be climate neutral across its full value chain by 2040 (as part of the 2015 Paris Agreement among 197 countries).

It’s a fairly long, nearly 400-kilometer drive to the Swedish capital of Stockholm from the Volvo headquarters, but the wizards from Scandinavia were confident that the C40’s 400-plus-kilometer driving range would make the journey without a recharge.

It seems that they’re cutting it close, but this sleek yet fun-to-drive (zero-100kph in 4.5 seconds) zero-emissions crossover, traversing light traffic and incredibly clean streets and highways (Sweden has a tiny 10.23 million population — less than that of Metro Manila), is the perfect vehicle to do it with. In any case, our C40 test units came equipped with Volvo’s 150kW DC fast charger, which can charge the battery from zero to 80% power in 40 minutes.

BACK TO THE PRESENT
Three crossovers/SUVs. Three pure electric vehicles. Zero emissions. It’s truly an electrifying sea change that we will be seeing and experiencing this decade. The clear skies of a planet that has hopefully reversed its previously inexorable trend towards the destructive effects of global warming will be much more than just the icing on the cake. And is the happily ever after we all want — fairy tale or otherwise.

Claim it, change

Bratislava, Slovakia. Many of the world’s capital cities will be directly affected by a significant rise in water levels, as they are most often alongside main bodies of water. — PHOTO BY JAKOB KURC

The Earth needs our help to keep us alive

A FEW WEEKS ago, the IPCC or Intergovernmental Panel on Climate Change — the official United Nations body responsible for delivering scientific assessments regarding the Earth’s climate change progression to the world’s policy makers — released its sixth assessment report. Also known as the Climate Change Report of 2021: the Physical Science Basis, it was prepared by 234 scientists from 64 countries and published last Aug. 8.

According to the report, climate change is now “widespread, rapid and intensifying.” It can now be observed in every region of the planet and across the entire climate system. Some of these changes in motion — such as the continuous rise of our sea levels — are, in fact, already irreversible and cannot be back-pedaled for centuries to come. And while I doubt that this is anything that a part of us didn’t already know (but which many of us certainly chose to ignore), the take-home here is that basically, there is still time to limit this climate change. Think damage control.

And if we do things right, maybe in around 20 to 30 years we could at least take control in stabilizing our planet’s already higher temperatures. Again, I’d like to emphasize that the realistic goal at this point in time is not even a complete turnaround, but rather some kind of catastrophe mitigation.

UN Secretary-General Antonio Guterres, in a statement published on Twitter, described this 2021 Climate Change Report as “a code red for humanity.” He said: “The evidence is irrefutable — greenhouse gas emissions are choking our planet and placing billions of people in danger. Global heating is affecting every region on Earth, with many of the changes becoming irreversible. We must act decisively now to avert a climate catastrophe.”

What does this mean for regular citizens such as ourselves? Clearly, we are at the mercy of the decisions made by our world’s policy makers. But sadly, we remain in direct risk of the consequences of the continuous rise of the earth’s temperatures. Has it not been commonplace in the last few months to hear more and more news about extreme and unprecedented weather and environmental events, such as the unanticipated and extreme flooding in southern Germany, the wildfires in Turkey, and last week’s hurricane Ida in the United States, whose stormy outskirts also left New York City drowning in one of its worst floods ever?

Human-accelerated climate change is real. The science has already etched it into stone. Scientists from all over the world have congregated, deliberated, and concluded that “the role of human influence on the climate system is undisputed.”

This congregation of scientists has warned us yet again that, at our current pace, global warming of 2°C will be exceeded during the 21st century. The goal is for us to at least not surpass 1.5°C. And needless to say, it is up to us, collectively, to determine our fate.

Mr. Guterres reminds us that “inclusive and green economies, prosperity, cleaner air and better health are possible for all, if we respond to this crisis with solidarity and courage.”

What does this mean in the motoring world? Well, it’s looking like a more aggressive shift from fossil fuel dependent machinery towards battery electric vehicles and other vehicles powered by more (relatively) sustainable energy sources, such as hydrogen fuel cells.

The use of fuel-cell electric vehicles is quite promising because upon taking compressed hydrogen gas stored on board and combining it with oxygen from the air, the chemical process results in the production of electrical power plus water and nitrogen, which can then be released from the car. No oxides of nitrogen are produced, and because there is no carbon in the fuel in the first place, there are no carbon dioxide, carbon monoxide or hydrocarbon emissions involved. Clearly, this is no silver bullet, but among the massive efforts of the automotive industry to attempt going carbon neutral.

Ultimately, what the IPCC scientists underscore is that we have to more aggressively raise our ambitions to mitigate what is happening. So, let’s see what will come out of this November’s climate conference in Glasgow, UK — and hope that more economies will join the net-zero emissions coalition and their pledges in slowing down global warming.

‘We are basically in survival mode’

Philippine Automotive Dealers Association President Willy Tee Ten — PHOTO FROM AUTOHUB GROUP

Philippine Automotive Dealers Association President Willy Tee Ten says ‘good sales’ don’t mean the same these days

AS THE DAYS dissolve into each other almost imperceptibly, it seems we but blink and find that month or more have passed us by. This is just one of offshoots of a pandemic that has mired us in disbelief, sorrow, and difficulties.

The month of May might as well be yesterday. Certainly, the words that Philippine Automotive Dealers Association (PADA) President Willy Tee Ten uttered in a speech for an online event staged by Melbourne-headquartered Pentana Solutions, a company specializing in “the development and supply of automotive software tailored to the needs of dealerships,” still ring raw and true.

“The only way for us to recover is for everyone to be safe in the streets, and that means being vaccinated,” he said to an international audience then.

On its website, Reuters reported that new infections in the Philippines is now averaging a high of more than 17,300 daily. We recently breached two million infections, and more than 33,000 have passed on due to COVID-19.

The news organization also revealed the “Philippines has administered at least 34,112,320 doses of COVID vaccines so far. Assuming every person needs two doses, that’s enough to have vaccinated about 15.8% of the country’s population.” Health officials have expressed optimism that the country will realize the 70% inoculation target toward herd immunity by the end of year, although some experts insist that March 2022 is a more realistic projection.

So we keep at it — trying to live each day we’re blessed as best we can, while (hopefully) also looking after our friends and family by being mindful of health protocols and, yes, by getting vaccinated and encouraging them to do the same.

In the meantime, businesses are understandably reeling — some more than others. The automobile industry, which had a 40% freefall in sales last year following multiple years of sustained growth. Auto executives we’ve had a chance to interview are widely expecting 2021 to be a recovery year, and year-to-date reports from the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Association of Vehicle Importers and Distributors (AVID) seem to suggest the same.

But with almost four months still left in 2021, can the sector really sustain the momentum, particularly in light of tighter quarantine restrictions? We catch up with Mr. Tee Ten, who not only heads PADA which represents more than 100 dealerships, but is the president of Autohub Group with more than 20 automotive brands in its care.

TALK BOX: How are PADA members doing at present? What are dealers’ biggest concerns during this pandemic?

WILLY TEE TEN: The biggest concern is the drop in car sales, which results in discounting — affecting the bottom line. During this pandemic, the term “good” means sales are slightly below pre-pandemic levels. Some of the dealers are doing “good,” but a lot of dealers’ sales have declined so much. We are basically in survival mode. A lot of us are looking at how to reduce overhead expenses from each department. Being in the red is the norm. We at PADA have a Viber group where we communicate and compare notes. We hold meetings from time to time to catch up, but mostly have informal meetings.

The lifting of the safeguard duty is surely a welcome move from the government. How else can the government help the industry along?

The lifting of the safeguard duty was definitely a big plus. We hope car sales will recover, but the Delta variant is delaying the recovery even more. The help that we need from the government is to hopefully mandate everyone to get vaccinated (including booster shots) so that the economy can open up again. Push everyone to get vaccinated and give incentives to those who have had two doses.

The other part of the equation is the appetite or willingness of banks to issue loans. Are you satisfied with the loan approval rate? Are we still far off the pre-pandemic rate? Is PADA talking with bank partners toward a more favorable status quo?

We badly need the assistance of banks. More loan approvals would mean more car sales.

With the surge now, we need the banks to lower the interest rates of our wholesale line. But interest rates are not the issue or concern; it’s the number of approvals. Banks are too conservative now. And yes, we’re talking to the banks and requesting them to be more aggressive in approving loans.

Year 2021 is expected by both CAMPI/TMA and AVID to be a recovery year. What’s your projection in terms of sales growth?

With the surge of the Delta variant, not to mention the new variants coming in, it may not happen.

Per CAMPI and AVID reports, seven months into 2021, the numbers so far have been encouraging. However, the rise in new COVID-19 infections has necessitated tighter quarantine controls. How are dealers dealing with this?

The dealers are frustrated that this is happening. In 2020, the lockdown was at the first half of the year while 2021, the lockdown is in the second half.

What kinds of vehicles are registering the biggest growth this year?

Utility vehicles, for the most part, are posting good figures.

What about two-wheelers?

The premium two-wheel segment is doing very well, while the mass-market products are slightly below compared to pre-pandemic numbers.

There’s also an impression that the luxury market is on the upsurge. Are you seeing this also with your related brands or those in higher price points?

Luxury market vehicles are doing okay compared to the mass-market brands, but please note that the discounts are higher, too.

BMW holds ‘9.9’ sale at RSA Motors Libis

PHOTO FROM BMW PHILIPPINES

BMW PHILIPPINES, through RSA Motors Libis, is holding a “9.9” sale from Sept. 9 to 12. With this promo customers can get limited-time deals on automobile accessories, BMW Motorrad riding gear, riding equipment, and lifestyle merchandise. An exclusive lineup of products to enhance ownership is available.

And for the first time, a selection of over 700 items with up to 70% off on car accessories as well as 50% off on riding gear and riding equipment will be available. Guests will also have the opportunity to test-drive BMW cars on site.

The following car models have accessories on special offer: 1 Series (E81, E82, E87, E88, F20), 2 Series (F22, F45, F46), 3 Series (E46, E90, E92, F30, G20), 4 Series (F32), 5 Series (E39, E60, F10, G30), 6 Series (F12, G32), 7 Series (F01, F02, G11), X1 (E84, F48), X2 (F39), X3 (F25, G01), X4 (F25, G02), X5 (E70, F15), X6 (E71, E72, F16), and M2 and M2 Competition (F87). BMW Motorrad accessories and lifestyle gear are also available.

In compliance with IATF guidelines and restrictions, the event will strictly require pre-registration to uphold a limited showroom capacity and ensure safety. Interested participants may book their slot by visiting https://bmwphregistry.simplybook.me/v2/. Visit RSA Motors Libis on Facebook and @rsamotors on Instagram.

The Velocity Q&A: Felipe P. Estrella III (Volkswagen Philippines President)

Interview by Kap Maceda Aguila

FEW BRANDS boast a history as rich as Volkswagen’s, and the Wolfsburg-headquartered automaker founded by a labor party in 1937 has indeed had its share of memorable global models over the decades. Chief among them is the nameplate that put the brand on the map: the Beetle.

Before its production ended in 2019, the Beetle, along with the Kombi and other models, made a deep imprint in the Filipino psyche as well. The marque had its storied run in our streets beginning in the late ‘50s, and says Volkswagen Philippines, “peaked in popularity in 1970 when… a total of 6,100 Volkswagens were sold in that year alone, hoisting the German marque up to become the number-one seller in the Philippine automobile market.”

But from the 1980s to the early 2010s, the brand had been “pretty much absent from the country,” shares Felipe P. Estrella III. This was rectified in 2013 when the Ayala Group of Companies, through Automobile Central Enterprise, Inc. (ACEI) was appointed the sole VW importer for the Philippines. Mr. Estrella now heads Volkswagen Philippines as its president.

Responsible for the overall strategy and operation of VW Philippines for the distribution, sales, and service of VW vehicles to all VW customers in the Philippine market, Mr. Estrella also serves as an executive director of Ayala Corp., and concurrently serves as the Chief Finance Officer of AC Industrial Technology Holdings, Inc. (or AC Industrials) the parent company of ACEI and wholly owned subsidiary of Ayala Corp.

Here are excerpts from our interview.

VELOCITY: How do you see the industry, and how is it shaping up this year? CAMPI (The Chamber of Automotive Manufacturers of the Philippines, Inc.) and AVID (Association of Vehicle Importers and Distributors) expressed hope that this will be a recovery year. How are you seeing it from your end?

FELIPE ESTRELLA III: It continues to be a challenging environment for our country and for the world, not just from a business perspective but from a personal one. The domestic automotive industry is one of the more exposed industries to the current environment. At the beginning of the year, there was the added element of the safeguard measure being introduced, and there of course, there had to be a process that the government had to undertake to properly vet and study the issue presented.

Of course, we’re happy to note the decision of the government not to continue with the safeguard duties. It will certainly be a positive, primarily I think for the consumers. Secondly, we as an industry will benefit from that, because it reduces the cost to own and that should help. Overall, compared to last year, we are seeing a bit of a recovery in terms of sales volume in general.

Last year, being the first year of the pandemic and (with) so much unknown at the time, was really a difficult year for many industries. I think, having a year of experience under our belt, we’ll be able to adjust. I guess it’s partly a recognition that we have to find a way to cope to with the current realities, and I think the industry has shown that it has adopted. We’re seeing improvement compared to last year. Having said that, we have had two ECQs happening this year because of the (infection) spikes. Whenever this happens, our dealers of course are not able to operate. That obviously also has a material impact on customers’ abilities to transact with us during that particular point in time.

So, we adjust, we adopt, and fortunately the measures that we’ve taken the past 18 months or so seem to be helping cushion the effects, and have set us up for some recovery.

How is Volkswagen Philippines doing overall in terms of sales? What’s your projection for the year, and are you on course?

Last year was definitely a low point, but we are seeing an improvement this year. I think we’re close to already approaching our full-year number of last year. We anticipate that we will overtake that number before the end of the year. That means we will be able to show a growth over last year as a brand.

A lot of our optimism for the second half of this year is because we are rolling into it with the recently launched T-Cross, and then a few months later we launched the Multivan Kombi. Now that we’re in MECQ, people will have more ability to move around and, on the assumption that the balance of the year will be year around that set of parameters or constraints, then we think the second half will help us get to our goal of doing much better than last year. The trend seems to be pointing in that direction also. We’re encouraged and we’re trying to move and capitalize on this momentum.

Speaking of momentum, a lot of attention is focused on VW because of the significant releases that you’ve had for the year — namely the aforementioned T-Cross and the Multivan Kombi. How has the reception been?

Very positive. The two products are in very different segments with very different sizes as well. Before the ECQ, certainly there were a lot of people coming into the showroom, checking out the cars, making reservations, and preparing to take delivery of their vehicles. We anticipate that once we’re able to get back to some level of activity on the sales side in our dealerships, that momentum will come back.

The T-Cross has been very well received by customers who’ve managed to take delivery of the vehicle. It’s a product that’s in a very fast-growing segment, and it looks like the customers who are shopping in that segment and in that price point (see) that this product ticks a lot of boxes for them — so, it’s in their consideration basket, and we’re very happy about that. I think we put forward a pretty decent and good value proposition for the T-Cross. Hopefully, it makes their buying decision a little harder, because it adds another choice.

The Multivan Kombi is in a much smaller segment — the premium executive and family van segment. But nonetheless, I think we’ve been able to identify this particular product that will have a distinct appeal to customers shopping there.

There were some questions regarding the fact the company brought in the most expensive version of the Multivan Kombi.

You’re right; there are other variants of the Kombi available. There’s the Transporter that’s a utility van for the most part, the California which is a specific-use type of van with camping features and all that, and there’s of course the Caravelle which is more of a people mover. We think the Multivan Kombi is one of those products that has the right set of features, characteristics, and qualities — plus it has a diesel engine which is very popular in the Philippines — for this identified segment. I think bringing in the other variants of the Kombi is certainly part of the assessment we’re making, and if we think that these will have a place in our local market, then we will consider bringing them in. But if you take the Transporter, for example, as a utility van you know there are a lot of utility vans out there that would compete very aggressively with it because of a variety of things, including the accompanying friction costs that would inherently be part of the equation. If in our assessment a particular product would not be able to afford our customers something attractive and compelling, we tend to shy away from bringing those products in because it’s a tougher sell, and we understand that our customers are knowledgeable and are of course looking for something where they get their money’s worth. It’s all these things that play into that sort of a decision.

As you mentioned, a lot of industry performance this year will hinge on the quarantine restrictions that we have. Many companies not just in automotive have pivoted to digital not just to get ahead of the virus but because it’s something that is seen to be inevitable. What has VW Philippines done in this regard?

You’re absolutely correct. I’ll use the word “adapt.” Around the world, things were already changing even before the pandemic hit: Megatrends that people had been talking about in the mobility space in terms of alternative drivetrains and connectivity, for example. The pandemic obviously affected those megatrends and will somehow cause those megatrends to also adjust. But I think the world has already been evolving, and the pandemic just adds another piece to the equation to evolve around. In our case as Volkswagen Philippines, we’ve actually embraced the resultant constraints that emerged over the past 18 months, and part of this, as you correctly mentioned, is more focused on developing the digital aspect of our business.

We’ve worked very hard on developing our digital presence in order to be able to reach out and communicate with our customers the different things we’re doing and different products that we have. In partnership with our dealers, because they’re the primary touchpoints with our customers, we’ve also tried to establish more digital channels where customers can interact with our dealers through websites, traditional voice. And our dealers have adapted.

This is all part of the broadening of the engagement of customers moving forward. Even in terms of purchases, in the olden days, you would go to the dealership to pick up your brand-new car. Now, because more and more people are concerned about safety and moving around, they request us to make deliveries of their new vehicles. Our dealers do that.

Even in the service side, we continue to study ways to make service more accessible to our customers, including on-site service in the customer’s office or home. We’re already doing it to some degree, but we’d like to do more of it and establish the concept of mobile service as well.

You have eight dealerships. What has the pandemic done in terms of how the company views dealerships? Traditionally, it’s always been more dealerships mean more business. In view of the transition to digital in more ways, does this new normal still have room for brick-and-mortar facilities?

While Zoom and e-communication are great, there is this element of interaction that is necessary and healthy and is part of our being human. The brick-and-mortar dealerships will still be there, but they need to evolve. My sense is that, especially with how populations and urban centers are evolving, dealerships need to evolve accordingly, maybe into smaller spaces that will have a lot of digital elements to them so that information — obviously increasingly important in the modern day — is more readily available. The migration into this model will also help on the business side. Obviously, the more efficient use of capital is also a more productive use of capital. If we’re able to achieve productivity, this will fuel growth and development. Even as the physical space might evolve and change into smaller but more efficient types and uses, we will (meet) within these spaces the need for information.

Will traditional dealerships become irrelevant?

They will continue to be relevant, but they will adapt, and they will change. Even for us at Volkswagen, we’re not going to stop at eight dealerships. We will try to have some presence and representation in certain key geographical areas. It’s just a little more difficult to do that with the pandemic as a backdrop. We’re being more thoughtful about that, and we’re working with our dealer partners as well. But we haven’t stopped in terms of planning and strategizing for the future and identifying the certain geographical areas that we think we need to eventually be in in order to bring our products closer to our customers. But when we do enter those markets, we will probably show up with a different look and a slightly different format than what’s been typically seen in the past.

One of the significant things about your new releases this year is that these are both global models. How are you evolving the portfolio here? While you are welcoming new models, we are not seeing some of the other nameplates. How are you approaching this evolution of the lineup?

The first and foremost consideration for us is the customer. What is the customer looking for? What does the customer want or need? How much is the customer willing to invest to meet what he or she is looking for? In the specific example of the T-Cross, we saw a segment of the automotive market that is developing. At a certain price, customers are opting to transition from perhaps the traditional sedan format or even the large SUV format and move toward a more compact/subcompact SUV format.

A lot of the pre-pandemic talk was about shared mobility — taking advantage of one asset to serve multiple users. Obviously, the pandemic produced a consideration about safety, and related to that are things like contact tracing. So, people are opting to forego the shared mobility concept and instead make an investment on a car. Obviously, if they’re going to make that investment, it’s for a need, and therefore they have very practical considerations. They’re shopping at price points which as we noted are slightly above one million or sub-one million range. There’s a lot of growth in those segments. We were able to identify that the T-Cross in particular would be an ideal product to offer to customers.

We’ve also recognized and noted that there are nameplates that are more known among customers. Obviously, a known nameplate is easier to identify with than something that’s unknown because then you’ll have to make the effort to introduce the latter. This year, we’ve chosen to introduce more known nameplates as you mentioned, and we think this will also help. I think this is from a marketing and awareness standpoint, because from a product standpoint, Volkswagen being the global company that it is, there’s no material difference (regardless where it’s made). From a logistical standpoint, it does make sense to produce closer to your customers. Therefore, we have manufacturing plants all over the place.

In our case, there are benefits to sourcing depending on their availability because not every product is built in every plant. We source products from plants that make sense from a distance standpoint, international trade standpoint if there are certain benefits in that regard. If I source from South America, it’s going to take a long time before that car gets here.

All of these things come together in terms of the specific products that we bring into our market. In the case of the T-Cross, we have a supply point that’s nearby and allows us to bring the vehicle to our customers at very attractive prices.

In the case of the Kombi, it’s not as widely produced in multiple sites, and therefore we necessarily have to take it from manufacturing plants in Europe, and obviously there are implications associated with that. The good thing is that the type of product it is and the characteristics that it offers at the price that it will land here it have a certain appeal to the segment we’re trying to reach. The Kombi, if you compare it with peer-group premium vans, is actually very, very competitively priced, so you get a lot of these premium features. When you take a look at the SRP, I dare say that its SRP is lower than most of the options available in that segment.

You’ve said that Volkswagen Philippines will take a look at what its customers want. While you certainly have newer fans perhaps without awareness of the older nameplates, you do have more seasoned fans who remember the brand and its heritage. They remember the Jetta, Polo, and Golf.

You’re absolutely right. Volkswagen is one of those unique, longstanding brands that really have a very interesting following among Filipino auto enthusiasts in particular. Between the 1980s to 2010s our brand had been pretty much absent from the country. Yes, people remember Volkswagen, which I think is a testament to the brand itself. I love that we have such passionate fans and owners — current and past owners. The process, I guess, of determining what products make it to our shores is a product of a lot of collaboration. It’s not something that we as Volkswagen Philippines can unilaterally decide on.

We have to work very closely with Volkswagen Global and any other groups that may be involved in the whole process of bringing a product into the market. I can say that even globally, Volkswagen itself is evolving, and it has had a set of success, challenges, and strategy shifts, and I think we’ve already mentioned to expect Volkswagen globally to evolve even more moving forward.

What does this mean? We do recognize that a lot of customers do mention that they want to see some of the other nameplates come back into the market. Obviously, on a practical basis, we would welcome customers reaching out to us and letting us know because with that information we could go back to our partners and say, hey, look we have customers here looking for this particular type of vehicle. Can we bring it in? If our partner says yes, then by all means we would certainly like to make those customers happy.

In terms of other products that may come into the market, that’s a continuing discussion that we have with our partners. While I cannot make any disclosures at this point in time, certainly, we will continue to look at specific nameplates we can bring in moving forward — whether they are newer nameplates or they are the old familiar nameplates.

As a last food for thought, especially for our fans out there, as I said, Volkswagen is evolving and you’re already seeing it. If you think Volkswagen, the Beetle is one of those names that immediately pops up. Yes, globally, Volkswagen has decided to sunset the Beetle. They have their reasons for it. I’m sure in the years to come it will become clearer as to why that decision was made. I think that’s part of the development journey of Volkswagen that we here in the Philippines should not be surprised when it happens and when certain products stop or are not available to our market.

That also signals a certain type of future ahead. The Beetle not being available is not the end of it, because it opens the door for a range of electric vehicles to find their way here in the Philippines. We know that this is a trend that’s going to happen in the future. It’s an exciting portfolio of electric vehicles that Volkswagen is developing, and we can expect that at some point in the future we will make that transition.

While we may not be thrilled about the Beetle not being there, we can also look forward to the ID.3 or ID.4 or ID.Buzz eventually making it here in the Philippines.

Is there something we can disclose? What’s next for the year? Are you done for the year?

We were looking to potentially launch one more product this year. But there are externalities that we are unfortunately dealing with — in particular, Volkswagen Global is dealing with. There’s the pandemic of course, but there’s the chip shortage that’s going on globally that’s not only affecting cars but all sorts of electronic devices, and this has had an impact on production and delivery lead times.

I can say that we’re still working on that plan. The timelines are not yet firm at this point. I’m hopeful that in a best-case scenario we may be able to bring in another model into the market by the end of the year. If that doesn’t happen then we’re looking at something next year.

Shell to open up to 80 ‘mobility stations’ a year

Shell mobility stations combine a myriad of offerings for anyone in transit (especially bikers) from essentials, food, digital solutions and sustainable innovations, to create better customer experiences. — PHOTO FROM PILIPINAS SHELL

PILIPINAS SHELL Petroleum Corp. will target to open facilities in 60 to 80 locations a year to “create better customer experiences for everyone on the move with an expanded range of products, community spaces, and environmentally sustainable innovations alongside full vehicle servicing in mobility stations.”

Shell VP and General Manager for Mobility Randy Del Valle said that the move is part of the company’s commitment to cater to the Filipino’s changing needs on the road — from pedestrians to motorists and riders.

“Mobility is for everyone. Shell is here to keep you safe on the road and make any journey meaningful. The way to keep the Philippines moving forward is to translate trends and customer needs into services that are fit for your specific needs, accessible, and readily available all in one destination while being the country’s sustainability partner,” he said.

For example, Shell Acienda Silang is said to represent the best of Shell mobility. Dubbed as the first “site of the future” in the country, it features an inviting and open modern design to make customers feel welcome, and an inviting shop front and al fresco dining area where customers can enjoy the fresh air of Silang.

As with other Shell mobility stations, the site features an integrated air-conditioned lounge with internet access where customers can relax, hang out, or work while waiting for their vehicles to be serviced or as a stopover to and from their destination. The station also has specialized biker areas, and a bike utility service shed to promote cycling.

Shell mobility facilities now offer more non-fuel retail (NFR) products with a wider range of essentials and refreshments from Shell Select and Deli2Go. The company has partnered with popular local brands to satisfy customers’ food cravings at mobility stations. Staples like Chatime, Turk’s, Potato Corner, and other unique finds are available in different locales. This is powered by programs like the Department of Trade and Industry’s (DTI) One Town One Product (OTOP) and Go Lokal!, which all help mobilize the products of community entrepreneurs.

Digital services like TouchPay allow customers to pay their bills or top up their RFID accounts or GCash and PayMaya wallets with a tap of a finger. The newly launched Shell Go+ app makes going to Shell more rewarding. Customers can earn points with any purchases at Shell, get discounts and perks from partner brands and stores, and active members can avail of free roadside assistance. Customers staying at home or office can order their favorites from Shell Select and partner stores, using food delivery services like Grab and Foodpanda.

Mobility stations are also designed to give customers the experience of sustainable living through technology to reduce waste and carbon emissions in operations. Solar panels are integrated in the roofing of canopies and stores, which can power up to 30% of the station’s operations. New stations are also equipped with rain catchers to recycle rainwater for non-potable use. Shell Mango in Cebu has optimized this feature for its self-irrigating plant wall.

Sustainable choices include the use of LED and inverter technology in the station’s lighting and cooling systems, as well as eco-bricks made from upcycled plastic for the construction of walls at Shell Select and firewalls. Shell Plaridel in Bulacan has a commercial building made of eco-bricks manufactured from 1,200 kilograms upcycled plastic waste, which is the equivalent of 80,000 lubricant bottles.

Another station in Bulacan, Shell Marilao, pioneered the use of Shell Bitumen FreshAir during the layout of its pavements. During the time of the site’s construction, Shell Bitumen FreshAir reduced the emissions of nitrogen oxide (NO2) and other chemicals normally released in road construction. Shell Bitumen FreshAir’s environmental impact during that process is equal to planting 16 trees and removing NO2 emissions of 40 cars per kilometer laid compared to conventional asphalt mixtures.

Safety remains a priority while considering comfort and convenience. Roadworthiness, to avoid road incidents, is assured with basic vehicle checks done by forecourt service champions and high-performance fuels and lubricants available at all Shell stations.

The Signature Shell Helix Oilchange+ Vehicle Checks go beyond oil changes and includes maintenance checks, tune-ups, transmission works, and mechanical repairs. These are done by highly trained staff including specialized mechanics from the Don Bosco Technological Institute, whom the Technical Education and Skills Development Authority (TESDA) regards as experts in this field. Shell uses modern tools for its Signature 14-point check to avoid human error while making accurate yet efficient vehicle health assessments in less than ten minutes with On Board Diagnostic 2 (OBD 2) tools.

Shell Helix Oilchange+ services are accessible in over 400 locations nationwide with the newly-opened Shell C5 Southlink as the landmark 400th site, making vehicle servicing easily available to Filipinos in the metro.

“At Shell, everyone is treated like a guest. It will be the ‘third place’ to be when you leave home, school, or work to create a community,” Mr. Del Valle says.

The rise of mobility features and mobility stations as one-stop community destinations are just the beginning of Shell’s forward-looking transformation towards improving customer experiences and optimizing operations for sustainability and use of cleaner energy.

Shell promises the public that, in the coming months, the company will roll out more innovations and discussions on how to “Keep the Philippines Moving Forward,” participating in Shell’s Future Festival, a series of public virtual conferences led by industry leaders and the nation’s stakeholders who will tackle best practices in mobility, energy, STEM, the arts, and youth, communities, and livelihood.

Audi Sport takes its e-talents to Dakar

In Berlin, Audi Sport’s Formula E car, the e-tron FE07, makes its final appearance in the e-motorsports series. — PHOTO FROM AUDI

FOLLOWING its official retirement from the Formula E World Championship series with a win in the Berlin season finale. Audi Sport, the high-performance division of Audi AG, is now looking to bring its expertise in electrified vehicles to the Dakar Rally. In a release, the brand said it is set to make its debut in the race series in January 2022.

“Audi was the first German car manufacturer to make a factory commitment to Formula E,” said Audi Sport GmbH Managing Director Julius Seebach, who’s responsible for motorsports programs at Audi. “Audi Sport ABT Schaeffler is the most successful team in Formula E and was a pioneer in this racing series. Now, one of the biggest challenges there is in motorsports awaits us — the Dakar Rally.”

The company said that “important elements of the successful Formula E project live on in the Audi RS Q e-tron, the company’s contender in the legendary cross-country rally.” The 250kW motor-generator unit (MGU) found in Audi’s Formula E car (the e-tron FE07) will make an appearance in the Dakar entry — with one MGU mounted on the front axle and another on the rear axle. These MGUs, each weighing less than 35 kilograms, will provide a Quattro performance while achieving an efficiency rating of 97%. A third MGU will be paired with a highly efficient Audi TFSI internal-combustion engine, and functions as an energy converter that recharges the car’s high-voltage battery on the go.

At Dakar, Audi Sport will feature the pairings of Stephane Peterhansel and Edouard Boulanger, Carlos Sainz and Lucas Cruz, and Mattias Ekstrom and Emil Bergkvist. The brand’s return to rallying with an electric vehicle comes around full circle as the Audi Quattro revolutionized the sport with all-wheel drive. Today, Audi’s permanent all-wheel drive quattro is standard in many of its production models, and even comes in electric form in the all-electric e-tron vehicles. The experience gained in Dakar will be incorporated into the development of Audi’s electric-powered production models.

Audi Sport bids farewell to Formula E with an impressive record as the Audi Sport ABT Schaeffler team emerges as most successful in the series. In 84 races, the team amassed 1,380 points, 14 victories, and 47 podium finishes while works driver Lucas di Grassi won the drivers’ title in the 2016/2017 season. In its first season as a factory team, Audi Sport ABT Schaeffler clinched the teams’ title during the 2017/2018 season.

During the team’s Formula E 2021 season finale in Berlin, written on the halo system of the two Audi e-tron FE07 cars driven by Mr. Di Grassi and Rene Rast was: “Thank you Formula E, it’s been electrifying!” The first world championship for electric racing cars started on Sept. 13, 2014 in Beijing, China, with a victory from Mr. Di Grassi.

Caltex ‘Biyaheng Bakunado’ gives fuel discounts for the vaccinated until Sept. 21

Caltex, marketed by Chevron Philippines, Inc. (CPI), is again helping promote getting the COVID-19 vaccine. It once more offers fuel discounts to Filipino motorists already inoculated. “Caltex Biyaheng Bakunado,” which runs until Sept. 21, 2021 at participating Caltex stations, extends a discount of P3 per liter for Platinum and Silver with Techron, and P2 per liter for diesel with Techron D. Customers need to log in their details, present a COVID-19 vaccination card with at least one vaccine dose done, and a valid ID. Customers vaccinated on or before the promo duration are qualified for the discount.

“We continue to encourage more Filipinos to get vaccinated when they have the opportunity to do so in order to protect themselves and their loved ones from the disease,” said CPI Country Chairman Billy Liu. “We also remain committed to promoting health and safety among our employees and customers. This is why we are bringing back the Biyaheng Bakunado fuel discount promo for our motorists.”

Caltex Biyaheng Bakunado applies to fuel pumped into the customer’s vehicle fuel tank only. A maximum of 60 liters and two transactions will only be allowed per day. The promo cannot be availed of in conjunction with any of Caltex’s ongoing discount promos. Caltex previously rolled out the Biyaheng Bakunado promo from June 28 to July 18, 2021. For the list of participating stations, visit www.caltex.com/ph/BiyahengBakunado2.

PAL revival seen hinged on pandemic response

REUTERS

Analysts: Chapter 11 is ‘best option’ but airline’s finances, gov’t handling of virus are crucial

By Arjay L. Balinbin, Senior Reporter

THE recovery of Philippine Airlines, Inc. (PAL), which has filed for bankruptcy protection in the United States, depends heavily on the government’s management of the pandemic situation, analysts said.

“The nature of the airline industry malaise today is the same in the global community. Airlines have no alternatives but to comply with health protocols, quarantine requirements, and government regulations,” Avelino D.L. Zapanta, former PAL president and chief operating officer, said in an e-mail interview on Saturday.

His response came after PAL said in an e-mailed statement on Saturday that its bankruptcy protection filing in the US would allow it to “successfully restructure and reorganize its finances to navigate the COVID-19 (coronavirus disease 2019) crisis and emerge as a leaner and better-capitalized airline.”

In a telephone interview, transport expert Rene S. Santiago said: “If there is something drastic that will change in the coronavirus situation and the way we manage it, there is hope for the carriers.”

“Our management of the pandemic is very bad,” he said, noting the controversy surrounding the government’s purchase of medical supplies.

To help PAL and the entire aviation industry recover from the crisis, Mr. Santiago said the government should start listening to the private sector.

“They’ve been talking about involving the private sector, but this government believes only in itself,” he said, referring to the “attitude” of President Rodrigo R. Duterte. “They just pretend to listen.”

Filing for Chapter 11 bankruptcy protection is the best option for PAL at this time, said Diversified Securities, Inc. Equity Trader Aniceto K. Pangan.

“This is the best option that the management could take for now so as to survive and continue to operate in this crisis,” he said in a phone message.

Investors undoubtedly “feel negatively” on PAL’s move as it manifests the difficulty of running the company, especially in this pandemic, he added.

Terry L. Ridon, a lawyer and convenor of think tank InfraWatchPH, said in an e-mailed reply to questions: “While this bankruptcy filing should help PAL get out of the red, management, investors and creditors should come to terms on why it has reached this point, and determine whether previous problems will be resolved by this restructuring plan.”

Mr. Santiago said some “carry-over costs” may have contributed to PAL’s current situation. He said these costs from the past have not been paid off “and at the same time, it could not get into the low-cost environment.”

For Mr. Ridon, “if the problems were due to failures in strategy or leadership, merely lengthening creditor payment terms, debt forgiveness or capital infusion will not resolve PAL’s ongoing concerns.”

Mr. Zapanta said the uncertainty of the virus mutations may frustrate the recovery plans of airlines, including PAL.

The Chapter 11 filing “will help if they have unlimited resources to outlast the onslaught of the pandemic,” he noted.

“Those with limited resources may not be able to sustain their recovery plans. I know LTan (Lucio C. Tan, PAL chairman and chief executive officer) has a wide sphere of influence that might help in the infusion of needed capital. The volatility of pandemic though put that in uncertainty also,” Mr. Zapanta added.

In its market analysis released on Sept. 3, the International Air Transport Association (IATA) said that while global passenger demand in July this year was still 53.1% lower compared with the pre-pandemic level, global cargo remained robust, hovering above the pre-crisis level for the eighth consecutive month.

Markets are expected to recover at “different paces,” depending on restrictions, vaccination, and risk aversion, IATA said in an analysis in May.

PAL said on Saturday: “The restructuring plan, which is subject to court approval, provides over $2.0 billion in permanent balance sheet reductions from existing creditors and allows the airline to consensually contract fleet capacity by 25% and includes $505 million in long-term equity and debt financing from PAL’s majority shareholder and $150 million of additional debt financing from new investors.”

The company said its employees will not be affected by the restructuring.

For Mr. Santiago, slashing the fleet size by 25% may result in work force reduction.

Based on a case summary posted on public bankruptcy information website BK Data, PAL’s case was assigned case no. 21-11569 in the US Bankruptcy Court New York Southern District, Manhattan division office. PAL is being represented by international law firm Debevoise & Plimpton LLP.

PAL Holdings, Inc., the listed holding company of PAL, and Air Philippines Corp., or PAL Express, are not included in the Chapter 11 filing, according to general information on the case posted on the website of legal services provider Kurtzman Carson Consultants LLC, PAL’s claims agent.

A document on PAL’s claims agent’s website listed the airline’s top five creditors with the largest “secured claims” (excluding claims of insiders) totaling to $866.09 million. These creditors are Philippine National Bank ($156.51 million), Banco De Oro Unibank, Inc. ($80.42 million), China Banking Corp. ($54.83 million), EXIM Guaranteed Loans ($240.1 million), and PK Airfinance S.A.R.L. ($334.23 million).

It also listed creditors who have the 40 largest “unsecured claims and are not insiders” totaling to more than $1.4 billion.

Aside from Debevoise & Plimpton LLP, PAL said Norton Rose Fulbright US LLP and Angara Abello Concepcion Regala & Cruz (ACCRA) are also acting as its legal advisors. Seabury Securities LLC is acting as financial advisor and investment banker to the company.

PAL Holdings had been incurring losses even prior to the pandemic crisis. Its attributable net loss widened to P71.91 billion in 2020 from P10.31 billion in 2019 due to the “extraordinary impact” of the global health crisis on its operations, its latest annual report showed.

Ovialand sets eyes on 2022 stock market debut

By Keren Concepcion G. Valmonte, Reporter

PROPERTY developer Ovialand, Inc. is keen on raising funds for its expansion plans through an initial public offering (IPO) by the second or third quarter of next year.

“We are doing everything we can do to be IPO-ready by next year. I guess it will just depend on market conditions and everything, but we’re pretty optimistic that we will be ready by next year,” Ovialand President Marie Leonore Fatima Olivares-Vital told BusinessWorld in a video call on Friday.

Ovialand is targeting to raise around P1.5 billion from its public offering, which will be used to develop its 45-hectare land bank and to increase its landbanking portfolio.

The company has two completed developments, Terrazza de Sto. Tomas in Batangas and Sannera San Pablo in Laguna.

It has three ongoing projects, both its Savana and Santevi projects are also in San Pablo, Laguna, while its Caliya Candelaria development is in Quezon.

The property developer said it has completed some 350 units so far this year, with a goal of building around 550 housing units valued at P1 billion by yearend. With the 45 hectares of land in its portfolio, the company said it can build up to 3,000 more units.

Meanwhile, for its expansion plans, Ovialand said it wants to focus on the cities “where there’s potential.”

“We’re trying to move together with the government, where they are trying to really decongest Metro Manila and they’re trying to really open up new areas around the Philippines and that’s where we want to really be present,” Ms. Olivares-Vital said.

Ovialand is targeting to expand its housing portfolio nationwide by 2030. In May, the company said it wanted to build at least 3,000 houses yearly by 2025 and eventually up to 5,000 houses every year beginning 2030.

It also announced the appointment of China Bank Capital Corp. as its financial advisor for its “dynamic growth strategy.”

Ovialand said it experienced an uptick in sales even amid the pandemic, recording a peak of 160% to a 170% increase in reservation sales. The company is now said to be performing 1.5 times better than it did pre-pandemic.

“[Around] 95% of our clients are end-user homebuyers. Our market is really young, starting families, 28 to 35-year-olds, double-income earners, and they’re really very aspirational,” Ms. Olivares-Vital said.

With a larger market demand and a six-month timeline to develop its properties, the company looks forward to debuting at the country’s stock market.

“It’s really because we are [on] such a cusp of so much growth for Ovialand and it would be a great time for investors to come in before all of the growth that happens,” Ms. Olivares-Vital said.

Maintaining the pillars of journalistic excellence and integrity

By Bjorn Biel M. Beltran, Special Features Writer

THOUGH THE WORLD continues to grapple with the social and economic impacts of the coronavirus disease 2019 (COVID-19) pandemic, much has changed since the virus’s outbreak. As vaccines reach more and more people by the day and society adapts to the pandemic’s more lasting effects, some semblance of normalcy is beginning to take root.

The Asian Development Outlook 2021, Asian Development Bank’s (ADB) flagship economic publication, projected the Philippine economy to grow by 4.5% in 2021 and 5.5% in 2022, saying that substantial progress in the country’s vaccination rollout would help restore consumer and business confidence. This, of course, is predicated on how the pandemic will unfold globally and domestically.

“Our 4.5% growth forecast is at the lower end of economists’ estimates, so there are upsides to this projection,” said ADB Philippines Country Director Kelly Bird.

“Priority should be given to addressing the scarring effects of the pandemic on private sector employment. Programs supporting workers and firms impacted by labor market adjustments and reforms to boost productivity growth and investment will help counter the negative effects of the pandemic on employment over the medium term.”

This signals good news for the country, which has been hit by the worst economic recession since it began releasing growth data just after World War II in 1947. A new world is thus seen dawning on the Philippines, with new opportunities for a future of growth and financial inclusion.

More than ever, BusinessWorld, the country’s oldest and most respected business newspaper, has a role to play in contributing towards that future. The Filipino business community needs reliable, accurate journalism to keep them updated on the latest news and issues so that they can better maneuver themselves in a changing world; and for the 34th year in a row, BusinessWorld aims to deliver.

A TIME-TESTED REPUTATION
Over the years, BusinessWorld has continually adapted its content to cater to the needs of the Filipino business community, building a reputation of journalistic integrity unlike any other in the industry.

For instance, as the world was forced to move towards digital platforms as a result of the COVID-19 pandemic, the newspaper began holding virtual forums and platforms such as BusinessWorld Insights and the Virtual Economic Forum to provide a platform for business leaders and decision-makers to discuss the most pressing issues of the changing world.

“In its 34-year journey, BusinessWorld has gone through ups and downs, but when we took over the paper in 2015, we knew exactly what we needed to do to bring it to its former glory: Bring its content closer to the evolved business community,” Lucien C. Dy Tioco, executive vice-president of BusinessWorld and Philstar Media Group, said in an interview.

“Apart from its in-depth business-savvy intelligence, we developed new content resources to its fold: digital transformation and technology, entrepreneurship, leadership and management, even championing the local startup scene via Spark Up. We identified two key strategies to reignite its hold to the business community: organizing insight-driven events and upgrading its website. All of a sudden, BusinessWorld became easily accessible, current and relevant.”

Miguel G. Belmonte, the company’s chief executive officer, said that much of the paper’s success can be attributed to its strong Editorial department, which has built a tradition of excellence stemming from the teachings of the company’s founder, Raul L. Locsin.

“The area where we didn’t have to make many conscious changes was in the Editorial department because that’s where the strength of the established Locsin management. We didn’t want to tinker with it too much. It’s already a winning formula,” he said in an interview.

“This pandemic is a major game-changer. It really forced us to make adjustments and adapt to this new environment. Up to now it’s still a learning experience for us, although we’ve managed to understand it better, unlike last year when we were caught off-guard,” he continued. “We’ve learned to live with it from the past year and a half as a business enterprise, we’ve made changes, and now it seems like we’ve found a balance, a formula for the company to be profitable despite the ongoing situation. Not just that, we’ve identified areas where we can still continue to grow, to an extent that might even be better than pre-pandemic years. We’ve been quite successful in that so far.”

For his part, Wilfredo G. Reyes, BusinessWorld editor-in-chief, said that the Editorial department remained vigilant in maintaining the ideals of the paper’s founder throughout the years, and this has led to the development of the paper’s strong track record.

“I think it was important that we kept our eye on safeguarding and improving quality through the major changes our publication has gone through. To this day, we try to make sure that is done at every step of content production, from start to finish. Many times we succeeded, but there were also some failures. What is important is that this effort is constant because there can never be enough quality,” he said.

Making the leap to digital platforms was not easy, however. Mr. Reyes admitted that it had been a years-long process of figuring out how to translate the established traditions of BusinessWorld’s print side to the digital sphere.

“It was heartening to find people who were there to take that leap almost overnight. We had been racking our brains for decades over how and when to make a substantial shift to digital space. This to me is one of the very few good things that happened in this crisis,” he said.

“We cleared a big hurdle with our shift to digital space. This will definitely open doors for more innovations in the near future. The biggest challenge now is finding and keeping the right talent because this is no ordinary 9-to-5 job. And that means understanding what motivates new generations and matching that expectation with the publication’s mission. That, in turn, can sometimes mean changing the way we do things.”

Mr. Belmonte added that due to the current situation, the future of the company is still unclear. However, he is confident that the strength of BusinessWorld’s journalism and its reputation as one of the most trusted providers of business news in the country can carry it through.

“Because of the current circumstances, we don’t really plan too far ahead anymore. There was a time when things were easy to predict five years from now, three years from now. But now everything is so uncertain that it is very hard to forecast what will be happening in the short and medium term,” he said.

“As long as we continue to grow our print side and develop our digital side, I think it’s the simplest solution to existing. We have a very positive attitude. We’re looking forward to the coming months and we hope that next year things will be better than they are right now.”

“[The situation] has inspired us to go into a direction where BusinessWorld will deepen our role in the business community, which is to inspire them back to make their business and our economy grow even more,” Mr. Dy Tioco added. “You will be seeing these into 2022, when BusinessWorld will celebrate its milestone 35th year in what we see as an unfolding of a new changed era. And we are excited to face this with a huge amount of hope and excitement.”

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