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SC to PNB: Show details of debtor firm’s obligations

BW FILE PHOTO

THE SUPREME COURT (SC) ruled as unjust the penalty imposed by Philippine National Bank (PNB) on AIC Construction Corp.’s debt, as it ordered the bank to give a detailed accounting and explanation of the company’s loan obligations.

In its decision promulgated in October 2021, the high court said PNB’s interest penalties charged to the construction company were unjust. It upheld the Court of Appeals’ decision of abiding by the principle of mutuality of contracts.

“Courts may equitably reduce unconscionable interest charges especially if it was determined through subjective and one-sided criteria, thus violating the principle of mutuality of contracts,” it said in the ruling written by SC Associate Justice Marvic M.V.F Leonen.

“Monetary interest is always agreed upon by the parties and they are free to stipulate on the rates that will apply to their loans,” the High Court said citing the principle.

In 1988, the construction company opened an account with the lender and was granted an omnibus credit line of P10 million.

Over the years, the credit line gradually increased until it amounted to P65 million in 1998, with P40 million as the principal amount, and P25 million as interest set by PNB.

AIC Construction negotiated to restructure the loan by offering to pay in full through the exchange of its properties in Pampanga, but this alternative could not be agreed on.

PNB set its final demand to the company in the full payment of P140,836,511.29 in 2001. The mortgaged properties of the company were forced to close the following year.

AIC construction then filed a complaint against the lender for the annulment of interest and penalty increases.

“It (AIC Construction) alleged that Philippine National Bank acted in bad faith by delaying the acceptance of their proposals, and its capricious and arbitrary policies prevented them from paying their loan obligations,” the decision read.

A trial court previously dismissed the company’s complaint citing the plaintiffs could not prove the interest increases were unconscionable or unreasonable.

PNB argued that AIC Construction had no right to compel the bank to accept the alternative mode of payment and that the company voluntarily entered the loan agreement with knowledge of interest charges.

The SC ruling came after a petition filed by PNB to review if the Court of Appeals made an error in its conclusion of the interest penalties being unconscionable or unreasonable. — John Victor D. Ordoñez

LANDBANK net income up 27% in 2021

LAND BANK of the Philippines (LANDBANK) posted a 27% growth in its net income year on year in 2021 on the back of lower cost of funds and loan loss provisions.

The state-run bank’s net profit grew to P21.75 billion in 2021, up from P17.14 billion a year earlier and higher than its P19.68-billion income target.

LANDBANK’s net income translated to a return on equity of 11.75%, while return on assets rose to 0.88% from 0.78%.

The bank’s net income in 2020 dropped by 7.57% amid the economic downturn caused by the coronavirus pandemic.

The earnings growth can be attributed to the lower cost of funds and provisions for losses, the bank said in a statement on Sunday.

LANDBANK President and CEO Cecilia C. Borromeo said the bank’s financial performance in 2021 showed resiliency “amid another challenging year.”

“We will build on this momentum as we continue to take on an expanded role and a more holistic approach in supporting key development sectors and the nation at large,” she said.

The state-run bank’s total assets rose 9.5% to P2.586 trillion from P2.362 trillion a year earlier.

“This was propelled by deposits expanding by 8.39% to P2.269 trillion, mainly from the rise in deposits of government and private accounts,” LANDBANK said.

The bank’s net interest margin was at 2.86%.

LANDBANK’s loans to the agriculture and development sectors last year financed the construction of 303 kilometers of farm-to-market roads, 33 hospital buildings, 1,954 hospital beds, 9 school buildings, and 96 classrooms. The loans also connected 18,303 households to potable water.

LANDBANK’s merger with the United Coconut Planters Bank (UCPB) will take effect on March 1, with the combined entity producing a lender with nearly P3 trillion in assets.

President Rodrigo R. Duterte in June last year signed an executive order approving the merger, in which all assets and liabilities of UCPB will be transferred to LANDBANK. The order noted that the banks both have a compatible development mission. — J.P. Ibañez

7 cars we’d love to see in the PHL

PHOTO FROM FORD

We hope these beauties are coming ‘swoon’

IT’S THE SEASON of love and what better way to celebrate this — at least for car lovers — than to make a list of cars that make our hearts beat faster. In the spirit of Hearts’ Day, I made a wish list of cars that we currently don’t have in the Philippines — but whose local showroom appearance will make it seem like Christmas came early.

But first, a caveat: Some of these cars aren’t exactly designed for our market — not just for the Philippines, but for the whole of Southeast Asia. So don’t hold your breath waiting for these models to appear in your neighborhood dealer. That said, some inspired (and aggressive) marketing people might just be able to convince their HQ principals to bring these vehicles here.

Here is our dream list, in no particular order:

1. Ford Bronco

Decades before the Expedition and the Explorer hit the road — 1966 to be exact — Ford already had the Bronco. Five generations of Broncos came out in the US market over three decades, but the model took a 25-year hiatus and only reappeared on the international stage last year. And it’s a smash hit, with a design that harkens back to the original, but with the high build quality and cutting-edge technology of this digital age. The midsize Bronco comes in three-door and five-door body styles, and even as a smaller compact Bronco Sport model.

2. Cadillac Escalade

This is one car brand and model that will be an absolute game-changer in the local luxury car scene. It’s amazing that a brand name that has never been sold in this country can still have so much impact and recall. But without a doubt, having a Cadillac Escalade as an option will make every single luxury SUV buyer think long and hard before plunking down money on another German SUV. If the Escalade becomes officially available here, expect it to be a fixture in every golf and country club, as well as the parking lots of Senate and Congress.

3. Mazda CX-50

Often based on sedans, most crossovers are biased more for road comfort than actual heavy-duty off-roading. And rightly so, as most of them spend more time trundling through mall parking lots than traipsing through the woods. The Mazda CX-50 tries to break that mold. One look at the army green paint with bold CX-50 graphics, the raised ride height, the big off-road wheels and tires, and that prominent roof rack (which can accommodate kayaks and tents) and you’ll know that this is one Mazda that’s trying to break free from the exquisitely smooth — and very car-like — styling of the CX series. Even the cabin is designed for ruggedness and resilience. Best of all, it’s got the muscle (as much as 253ps and 434Nm from an available 2.5-liter turbo) and the traction (from the standard i-Activ all-wheel drive) to put its money where its mouth is. The Mazda CX-50 may yet be the crossover that actually crosses over to a more faithful overlanding experience than any other model of its kind.

4. Toyota Sequoia

Filipinos (and the rest of the world) are perennially making a beeline to a Toyota showroom to drive off with the Land Cruiser. Toyota can’t seem to build them fast enough. But there’s one other humongous Toyota SUV that might stop them in their tracks: the Sequoia. It’s entirely appropriate to name Toyota’s North American flagship after that country’s tallest tree. The Sequoia projects an imposing aura, mostly from that bold and compelling front end and the vehicle’s massive bulk. The best part is, the all-new 2023-model Sequoia (it’s an eight-seater with a seven-seat option with middle-row captain chairs) comes as a fuel-efficient hybrid powered by a 3.4-liter twin-turbo V6 that teams up with an electric motor for a combined 437hp and a whopping 790Nm of torque. If there’s an unbeatable tag team, it can only be the Land Cruiser-Sequoia.

5. Peugeot Landtrek

Pickup trucks are the bread and butter of most brands that sell them here. All of them come from the usual suspects. But there’s one truck out there that’s certain to shake up the status quo. It comes from a French brand but is made in China (by Changan) and is sold mainly in Latin America and Africa. It’s the Peugeot Landtrek, a midsize pickup powered by a 1.9-liter turbodiesel engine or a 2.4-liter turbo petrol engine. Pickups are some of the most customized vehicles on the planet; owners simply want to stand out — or at the very least differentiate their truck from countless others. Having a premium French-branded pickup in a sea of Japanese models will certainly appeal to those owners.

6. Mitsubishi Eclipse Cross

Here’s one vehicle that should neatly fill a niche in Mitsubishi’s crossover portfolio. It’s the Eclipse Cross — and it’s the perfect model to elevate the triple-diamond brand to a level of premium in the compact crossover class. The Eclipse Cross may not be new on the global stage (it became available in Japan and the US in 2018) but it should surely make many heads turn with its novel sleekly shaped silhouette if it finds itself in Metro Manila streets. The Eclipse Cross name is also a significant reminder of how the world is turning from sedans and sports cars to SUVs and crossovers. The Mustang muscle car name now graces the electric Mustang Mach-E SUV. The Corolla begat the Corolla Cross. And now, the Eclipse, Mitsubishi’s iconic sports car, has morphed into the Eclipse Cross.

7. Nissan Z

The current Nissan 370Z was hailed as one of the greatest sports cars ever. It also comes from one of the most illustrious bloodlines in the sports car realm. But it has been too long in the market and is now more than ripe for retirement. Thankfully, Nissan has the all-new Z car waiting in the wings. Like its immediate predecessors, it has a somewhat chunky styling when viewed from the side. But the front end is a beautiful throwback to the original Fairlady Z while the rear end — especially the taillights — hark back to the sensational 300ZX of the ’90s. Together with the Toyota Supra, the new Z signals a renaissance of high-powered Japanese sports cars. Bringing in the new Z to the Philippines is not as much a wish as it is a must.

China soymeal prices hit record highs, deal fresh blow to hog sector

REUTERS

BEIJING/SINGAPORE — China’s soymeal futures soared to record highs last week on concerns about the scale of South America’s drought-hit soybean crop and tightening meal supplies in domestic markets.

Elevated prices of soymeal, the top protein ingredient in animal feed, could lift production costs for Chinese hog farmers who are already struggling with huge losses, and may push some to exit the market, traders and analysts said.

The most actively traded soymeal futures on the Dalian Commodity Exchange rallied to 3,792 yuan ($596.22) per ton this week, the highest price on record, and up 13% from before the week-long Chinese New Year holiday.

Worries about how smaller South American crops will tighten the global soybean balance was the main driver behind the meal rally, although tightness in the domestic meal market was also supportive, analysts and traders said.

“Soybean imports in the second half of last year were low, and importers were waiting for margins to improve,” said Darin Friedrichs, co-founder of agricultural research firm Sitonia Consulting. “But now there are production issues. US futures have rallied a lot, and Dalian meal is playing catch-up,” Friedrichs said.

Chinese importers had been counting on abundant and cheap soybean supplies from Brazil to start arriving this month and fulfil their needs for the first quarter of 2022. But the South American crop issues have now caught some off guard. “Crushing plants aren’t receiving sufficient cargos,” said a manager based in southern China with a top crusher. “We did not make much purchases earlier as margins were low,” said the manager, who declined to be named because of the sensitivity of the issue.

Strong international soybean prices alongside relatively weak domestic soymeal prices since mid-2021 have pressured crushing margins in China, and most crushers faced hefty losses late in the year. Margins have recovered to positive territory this year, but remain well below the long-term average, stifling crusher appetite for soybeans.

“Crush margins are bad and crushers aren’t motivated (to crush),” said a feed ingredient purchase manager in Shandong, a major processing hub in eastern China. Cash prices of soymeal in the district jumped about 10% to more than 4,000 yuan per ton this week because of tightening supplies after a protracted stretch of low crushing activity, according to the manager.

“If hog margins are terrible, (crushers) they don’t want to have huge stocks of soy meal because farmers might leave (the industry) and they could have trouble selling the stocks,” Friedrichs said.

Some have already left, after months of negative margins last year and widening losses in 2022. Farmers in Shandong, a major hog producer, were losing 288 yuan with each pig raised this week. The woes are expected to continue as China entered the traditionally weak consumption season after the Spring Festival holiday while meal prices push higher.

“If soymeal prices remain high, it will increase farming costs, pushing more farmers — big and small — to further cut production capacity,” said Li Ming, analyst with the agriculture section of Mysteel, a China-based commodity consultancy.

China’s sow herd was 43.29 million head at the end of December, down 2.9% from the previous quarter, according to official data.

“It is too much. Soymeal prices rose more than 500 yuan per ton after Spring festival,” said a manager with a feed producer in the northeastern region, declining to be named because of the sensitivity of the issue. “The end users can’t take this. Farmers can’t afford the losses any more, especially the smaller and medium ones, they had been losing since last year,” he said. — Reuters

Frayna on course in sweeping SEAG qualifier

WGM JANELLE MAE FRAYNA — NCFP

WOMAN Grandmaster (WGM) Janelle Mae Frayna drew with Woman International Master (WIM) Antoinette Mae San Diego in 57 moves of a Sicilian Rossolimo to stay on course in sweeping the Southeast Asian Games (SEAG) national team selection at the PACE in Quezon City on Sunday.

Ms. Frayna, who topped the blitz event on Thursday, was currently tied with Ms. San Diego after the first three of the six-game title showdown, 1.5-1.5, of this event where the winner will represent the country in the rapid section of the Hanoi SEA Games.

Ms. Frayna won the first game in 63 moves of another Siciluan duel while Ms. San Diego struck back in the second game with a 44-move triumph of a Queen’s Pawn London System.

Three more games were being played at press time and Ms. Frayna hopes she ends up the winner again.

If she accomplishes the feat, Ms. Frayna will complete a chess grand slam after topping the National Championships — a standard event — in December last year and the blitz section Thursday.

In the men’s side, IM Jan Emmanuel Garcia was leading GM Darwin Laylo, 2-1.

Mr. Garcia pounced on a time-starved Mr. Laylo in the first game in escaping with a 53-move victory of a King’s Indian Defense and the former repeated over the latter in the second game via a 42-move win of an English Opening.

Mr. Laylo, who eliminated the country’s national standard champion and blitz king IM Daniel Quizon in the semis, bounced back strong by seizing the third game in just 23 moves of a Gruenfeld Defense. — Joey Villar

The art of black

BAUME & Mercier is exploring vision through the color black, as seen through the work of artist Pierre Soulages.

Pierre Soulage is known for his various works in exploring light and shade through the color black, but especially in a 1989 series called Outrenoir. In a statement, he said, “When the light is more intensely reflected, the black appears less black, and its surface effects become more noticeable, more active.” In an article from auction house Christie’s (https://www.christies.com/features/Beyond-Black-Pierre-Soulages-10009-3.aspx), he said, “I saw that it was no longer black that gave meaning to the painting but the reflection of light on dark surfaces. Where it was layered the light danced, and where it was flat it lay still. A new space had come into being.”

The watch created in his honor is therefore a stark, pure black.

The Hommage à Pierre Soulages transposes the properties of his Peinture 390 x 130cm 17 mars 2019, along with works in the Outrenoir series onto the brand’s Hampton model. The art deco-inspired rectangular piece, according to the company, evokes the proportions of a canvas. The watch was made with the collaboration of Musée Soulages and the Association des Amis du Musée.

“For Baume & Mercier, collaborating with Musée Soulages is a way to acknowledge how important art really is to the brand. This is more than a polite acknowledgment: it is a way of showing thanks for fulfilling our souls and the passage of time, inspiring us and thrilling us,” the brand said in a statement.

The watch case is in stainless steel — black of course — with a DLC coating case, mounted on a nubucked alligator strap — black again. It has a power reserve of 42 hours, with a sapphire crystal case back, running on the Swiss-made ETA 2892-A2 movement. The case measures 9.88 mm in its thickness, and is 31 mm by 28.10966 mm in its width and length. The black hands are tipped with gilt, and the dial itself is brushed, sculptural black, and gazing at the watch feels like gazing at a Soulages work in person, every day.

Why Soulages? According to the brand, “Because his work continues to captivate as much as ever, even when it is not in view. His black galaxy asks questions, enchants, and baffles; shiny, matte, dusty, streaked, flat, smooth, polished or salient.”

Of course, the privilege of owning a Soulages on your own wrist comes at a price: $5,850, and reflecting the artist’s age (he was born in 1919) there will only be 102 pieces, each numbered, in the whole world. —  J.L. Garcia

Peso may rise ahead of remittance data

BW FILE PHOTO

THE PESO may appreciate versus the greenback this week on expectations of strong remittances, although upbeat US data may support the dollar.

The local unit finished trading at P51.34 per dollar on Friday, shedding 10.5 centavos from its P51.235 close on Thursday, based on data from the Bankers Association of the Philippines. It also weakened by 20 centavos from its P51.14-a-dollar finish on Feb. 4.

The peso weakened after hawkish signals from a US Federal Reserve official, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

St. Louis Federal Reserve Bank President James Bullard said on Thursday that he would like to see a full percentage point increase in interest rates by July, Reuters reported. His statement came after the release of inflation data.

Fed officials have been providing forward guidance about a possible rate hike by March, and quicker inflation bolsters the case for policy tightening.

The US consumer price index increased 7.5% year on year in January, the quickest in four decades. It was faster than the 7.3% median estimate in a Reuters poll and the 7% in December.

The decline in global oil prices for consecutive days also guided exchange rate movements last week, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

Brent crude hit 94 a barrel during Monday’s session, but closed lower at $92.69, Reuters reported.

Oil prices declined in the next sessions. However, it closed the week 3% higher by Friday. Brent crude futures rose by 3.3% or $3.03 to $94.44 per barrel on Friday, while US West Texas Intermediate crude rose by $3.22 or 3.6% to $93.10 a barrel.

Mr. Ricafort said the market will monitor the release of remittance data this week. The Bangko Sentral ng Pilipinas (BSP) is set to release December remittances data on Feb. 15.

Cash remittances in November rose by 5.1% year on year to $2.502 billion. This caused inflows in the 11 months to November to increase by 5.2% to $28.43 billion.

The central bank had forecast cash remittances to have grown by 6% in 2021. It expects a 4% rise this year.

Meanwhile, Mr. Asuncion said US retail sales may also affect market sentiment this week as this could also influence the Fed’s policy decision.

He said the BSP’s policy review on Thursday may not necessarily boost the peso as the market expects the central bank to continue to keep benchmark interest rates steady.

All 16 analysts in a BusinessWorld poll believe the Monetary Board to keep the key policy rate at a record low of 2%. They said the BSP is likely to continue supporting economic recovery, but said rate hike may come as soon as the second quarter if data warrant.

For this week, both Mr. Asuncion and Mr. Ricafort gave a forecast range of P51 to P51.50 per dollar. — Luz Wendy T. Noble with Reuters

Stocks may move sideways before BSP meeting

BW FILE PHOTO

PHILIPPINE SHARES are seen to move sideways this week due to rate hike fears ahead of the central bank’s policy review and the government’s retail Treasury bond (RTB) offer.

The 30-member Philippine Stock Exchange index (PSEi) sank by 162.26 points or 2.18% to end at 7,270.36 on Friday, while the broader all shares index also fell 52.61 points or 1.34% to finish at 3,872.13.

Week on week, the bellwether declined 185.99 points from its 7,456.35 finish on Feb. 4.

For the coming trading week, analysts said the market will monitor the Bangko Sentral ng Pilipinas’ (BSP) policy meeting for leads this week as well as the government’s RTB offer.

First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message over the weekend that lingering rate hike concerns following the release of US inflation data, which caused bets of aggressive tightening by the Federal Reserve in March, and ahead of the BSP’s review on Thursday could result in the PSEi continuing to trade within the 7,100 to 7,400 range.

Ms. Ulang added that the rate-setting auction for the five-year RTBs on Tuesday will also be a lead for the market.

“Worries over the hawkish outlook of the Federal Reserve’s policies this year may continue to weigh on sentiment. Adding to this is the ongoing tension between Russia and Ukraine and its consequences including the rise in global oil prices. These are seen to make it challenging for the market to do substantial rallies,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

US consumer prices rose solidly in January, leading to the biggest annual increase in inflation in 40 years, fueling financial markets’ speculation for a hefty 50 basis points interest rate hike from the Fed next month, Reuters reported.

In the 12 months through January, the consumer price index jumped 7.5%, the biggest year-on-year increase since February 1982. That followed a 7.0% advance in December and marked the fourth straight month of annual increases in excess of 6%.

Meanwhile, all 16 analysts in a BusinessWorld poll expect the BSP’s policy-setting Monetary Board to keep borrowing costs steady at its meeting this week to support economic recovery.

“The government’s decision on the alert level restrictions in the country for the second half of February is seen to play as an important factor in [this] week’s trading,” Mr. Tantiangco added.

“Last week, the local bourse fell back below the 7,300 level. [This] week, the market is expected to test the validity of the said breach. If the market is able to regain its ground at 7,300, then this will remain as its support while 7,500 will be its resistance,” he said.

Otherwise, the market could go back to its former trading range, with support at the 7,000 to 7,100 levels and resistance at 7,300, Mr. Tantiangco said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the next important resistance is at the 7,400 to 7,500 levels. — MCL with Reuters

Strong Q4 earnings, 2022 capex draw investors to Jollibee

By Bernadette Therese M. Gadon, Researcher

INVESTORS were upbeat on Jollibee Foods Corp. (JFC) last week after its strong fourth-quarter earnings report and bullish expansion plan this year.

A total of 3.33 million JFC shares worth P800.87 million were traded from Feb. 7 to 11, data from the Philippine Stock Exchange (PSE) showed.

Jollibee’s shares were up by 1% week on week to P240 apiece on Friday from its P237.60 finish on Feb. 4. For the year, the stock has gained 11.6%.

Mercantile Securities Corp. Analyst Jeff Radley C. See said that investors were bullish with JFC as the number of new infections from the coronavirus disease 2019 (COVID-19) continued to drop.

In an e-mail, he also attributed the bullish outlook to the company’s higher capital expenditures (capex)this year, which came after it “had a pretty good income last year.”

JFC has alloted P17.8 billion in capital expenditures for this year, higher than the P7.8 billion earmarked in 2020, as it plans to open 500 more stores.

RCBC Securities, Inc. Equity Research Analyst John Renz S. Alvarado said via e-mail: “The increase in capital expenditure is timely as newly opened stores would immediately benefit from declining COVID-19 cases and the global economic reopening.”

In a separate e-mail, First Metro Investment Corp. Head of Research Cristina S. Ulang said in a separate e-mail interview that investors bought further on the news because “JFC is a play on both the election year’s spending spree and reopening of the economy.”

The election campaign in the Philippines officially began on Feb. 8, with 10 presidential candidates, giving them three months to campaign and present their platforms before the voting on May 9. Also vying for votes are nine vice-presidential and 64 senatorial bets, and 177 party-lists.

“New stores are more geared abroad given the increasingly global orientation of the store network strategy as JFC takes advantage of the greater mobility in offshore markets compared to local,” Ms. Ulang said.

In a disclosure last Thursday, JFC’s attributable net income in the final three months of 2021 rose by 59.6% year on year to P3.24 billion.

This brought its full-year attributable bottom line to P5.94 billion, a turnaround from P10.45-billion net loss in 2020. However, the year’s profit was still below the P7.3 billion earned in 2019.

System-wide sales, which includes sales to consumers, both from company-owned and franchised stores, climbed by 25.2% annually to P62.03 billion in the fourth quarter of 2021. For full-year 2021, it went up by a fifth to P211.72 billion.

Fourth-quarter revenues likewise jumped by 22.8% to P44.93 billion year on year. For 2021, revenues rose by 18.7% to P153.51 billion.

For 2022, the bulk of JFC’s spending plan is earmarked for new stores and the renovation of existing ones.

Funds will be used for supply chain and business technology investments as the company plans to build a new commissary facility in Cebu to support its expansion in the Visayas and Mindanao.

This year’s capex will be funded by cash generated from operations, bank loans, and remaining proceeds from previous bond issuances.

As the recent earnings report “broadens the income runway” this year, Ms. Ulang expects JFC’s earnings to grow by 20% year on year in the first quarter and by 50% for the entire 2022.

JFC’s topline recovery will be sustained as movement restrictions further eased, Mr. Alvarado said. He also noted that international store expansion plans would further drive JFC’s growth this year.

JFC “would be more profitable assuming [it] can maintain or further expand Q4 operating margins,” Mr. Alvarado said.

However, Mr. See said the bearish sentiment globally might affect JFC’s performance locally. He foresees the company to trade sideways “for now.” He gave his support levels at P230 and P222, and resistance levels at P245 and P260.

While Ms. Ulang noted that increased market volatility might trim JFC’s recent gains, she placed the resistance and support levels at P250 and P210, respectively.

The lion won’t sleep tonight

Peugeot Philippines lands a one-two punch in the SUV segment as it now brings out the latest version of the 3008 five-seater, closely following the launch of the new 5008. — PHOTO FROM PEUGEOT PHILIPPINES

A ‘revitalized’ Peugeot PHL continues to keep busy, trots out new 3008 SUV

BARELY a month since officially debuting as the “new and sole” country distributor of the French automaker, Astara (formerly known as Bergé Auto) has bad-man intentions. It has clearly hit the ground running. Already, two vehicle launches have been tucked under its belt as it trotted out the newest iteration of the 3008 SUV last Friday via an online launch.

Established in 1979, Astara is among the largest auto distributors in Europe and Latin America. Peugeot Philippines said in a release that “the company carved out a successful path as a leading group in distribution and mobility services. Astara is instrumental in the selling of over three million cars as strategic partner of the world’s leading automotive groups.”

Before we get into the 3008, let’s also make mention of the fact that Peugeot Philippines is moving forward across multiple fronts. Its managing director, Raoul Picello, revealed that the dealership network will continue to grow this year. “Construction of our new dealership in Alabang is under way and we are on track to open in March. I can also confirm that Peugeot Cebu and Peugeot Davao will begin construction of their new facilities very soon,” he said. “Customer response to our brand has been positive since we re-launched the company last Jan. 17, and we look forward to continue this momentum with each new Peugeot vehicle and showroom that we will introduce to the Philippine market.” The target is to reach 12 dealerships before 2022 is done and dusted.

Peugeot Philippines Brand Head Maricar Parco described the 3008 as the “next step” in the marque’s “revitalization” in the Philippines, a “leader in the compact SUV market with an outstanding commercial performance in Europe and internationally. We are confident that its success will carry on in the Philippines.”

She stated confidently, “We are ambitious and we’re looking at improving our sales this year. As announced last month, we have two more products to introduce within the year.” Of course, the executives are, for now, keeping their cards close to the chest.

Replying to a question from “Velocity,” Mr. Picello said there are “three key areas of strategy over the short term.” These are brand awareness, network coverage, and processes and dealerships.

On brand awareness: “We have to be present. We have to be back on the Filipino’s shopping menu,” he declared, and continued that the dealership network needs to grow quickly while improving processes in pursuit of an excellent customer experience.

Over the mid to long term, Mr. Picello stated that Peugeot Philippines is looking at the digitalization of its processes to be in lockstep with what today’s customers want and need, and what the executive called an “alternative mobility business.”

For her part, Ms. Parco shared that the company will continue to “study other options and opportunities” for the brand.

Like the 5008, the 3008 is manufactured at the Stellantis factory in Gurun, Malaysia. “All vehicles built in this plant undergo specific endurance and quality testing to deliver best-in-class performance to meet the needs of customers in Southeast Asia,” reported the company. “The new Peugeot 3008, together with the… 5008 successfully endured a combined 300,000 kilometers of testing in the diverse local climate and environmental landscape.”

Priced at P2.09 million, the five-seater sport utility vehicle boasts an updated front fascia, highlighted by a new frameless grille to underscore its modernity “while maintaining a fluid design, (extending) with fins under the headlamps to connect all of the elements. To emphasize the sportiness, shiny black side scoops and a painted tread plate have been included into the new bumper.” Full LED headlamps are featured behind a redesigned assembly with “fang-like” DRLs with a chrome tip. This is said to update the 3008 in line with the current design ethos across the brand. LEDs also make their appearance in the rear, accentuated by a “3D claws” look – and the SUV receives “scrolling” turn indicators lighting up sequentially. Peugeot visually stretches the width of the rear through smoked glass for the lights, extending the black boot lid on both sides of the vehicle. The 3008 rolls on 18-inch Los Angeles alloy wheels, and features roof rails.

The driver and passengers will be welcomed into a refreshed cabin. The brand’s trademark i-Cockpit is seen to heighten the experience for the driver. The suite of tech has been enhanced “with bigger screens, configurable displays and a compact multifunction steering wheel for heightened response and improved agility.” A 12.3-inch digital head-up display is customizable and configurable, according to Peugeot, even as it promises better readability and contrast. A central infotainment high-definition touchscreen measures 10 inches. Meanwhile, toggle switches provide controls for the radio, air-conditioning, 3D connected navigation with voice command, vehicle settings, telephone, mobile applications, and hazard lights.

Powering the vehicle is a 1.6-liter twin-scroll turbo high-pressure (THP) engine mated with a six-speed automatic transmission. The system outputs 165hp and 240Nm.

Advanced driver assistance systems include: active blind spot detection, active lane keep assistance, and advanced driver attention warning. The 3008 is fitted with an anti-theft alarm, front parking sensors and power lift gate with foot control for added security, safety, and convenience. Customers can choose from Metallic Copper, Nera Black, Pearl White and Amazonite Grey exterior hues.

Peugeot Philippines is inviting customers to book a test drive at any of its dealerships. The two vehicles will also be on display at the Corte de las Palmas of Alabang Town Center until Feb. 28. For more details, check out https://www.peugeot.ph.

By Mr. Picello’s reckoning, there are now some 2,600 Peugeot owners in the Philippines. It’s no stretch to say that the new management is looking to multiply that number many times over in as short a time as possible.

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