News

Toyota continues to produce Vios in PH in spite of higher costs

According to Lexus Manila president Danny Isla, it would actually cost Toyota Motor Philippines less to manufacture the Vios subcompact sedan in Thailand than at its Santa Rosa, Laguna, facility. However, TMP has insisted on assembling the Vios locally together with the Innova MPV, just so more jobs could be created for Filipino workers.

That's an admirable corporate stance, and is probably the biggest reason we shouldn't begrudge the fact that the Vios is the best-selling car in our market.

Incidentally, TMP wants to ensure that the Vios continue to sell well by introducing a revised version of the car, giving it "a more updated and sporty look." Among the added features are new smoked headlamps, a dark chrome grille, and dark alloy wheels. There is now also an auxiliary port for MP3 players on the E variant.

"The enhancements made to the new Vios give the country's best-selling car a more updated and sporty look," said TMP executive vice president Yuji Goto in a statement. "In doing this, we aim to give our customers an even better version of the most favored vehicle in the country, staying true to our promise to listen to our customers and cater to their ever-changing needs. Lastly, the new Vios is still locally manufactured in our world-class plant in Santa Rosa, ensuring its utmost quality and the sure advantage of buying a Toyota.”

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  • carwiki 11 months ago
     
    I hope na mas maganda ito when I see one.
       
  • GBfive 11 months ago
     
    what's next? i hope we don't get the Indian-made Etios.....
       
  • JFLising 11 months ago
     
    Any reason why it is more costly to manufacture here than in Thailand?
       
    • gogogo 11 months ago
       
      taxes? hehe
         
      • gogogo 11 months ago
         
        higher overhead costs(salaries, utilities, etc.)? hehehe
           
    • mts 11 months ago
       
      You may also want to include red tape..
         
    • Feeter Silverster 11 months ago
       
      high salary rates dito, pero sabi ng isa kong friend who works at Santa Rosa plant, ambaba daw ng pasahod sa kanila...
         
      • manongtaxi 11 months ago
         
        Kung mababa ang pasahod siguro naman pasok pa din sa minimum wage requirement
           
    • walphie 11 months ago
       
      Electricity. Lots of Japanese companies in Laguna have this as their foremost concern. Kaya todo sa hanap ng electricity efficiency yang mga yan, to the point of retrofitting.

      Mahal din logistics costs natin. Batangas and Navotas is still quite far from Laguna, compared to Thailand's car manufacturing ports na halos lahat andun na. Tapos puro via trucking pa lahat, not even rail. More costly per km.

      Labor is mostly on par with Thailand, though. It's really the lack of government initiative to create zones where industry like auto manufacturing can prosper. This doesn't end at declaring areas as economic or export zones! Dapat may logistics din, like rail and shipping. It doesn't help the lack of a strategic plan for power generation; nagpapalit lagi kapag palit ng administrasyon, kaya eto, may shortage na naman. :( Shooting our feet every so often. Sigh.
         
    • manongtaxi 11 months ago
       
      Sir Vernon already wrote an article that is related to your question, the title I think if my memory serves me right is "Too much monkey business", in the article sir Vernon also posted a website that ranks all countries. You could check here the ranking of Thailand versus the Philippines, Thailand is ranked 17 all over the world while the Philippines is ranked at 136. Check the links here: http://www.doingbusiness.org/rankings http://www.doingbusiness.org/data/exploreeconomies/thailand/ http://www.doingbusiness.org/data/exploreeconomies/philippines/
         
  • GTi 11 months ago
     
    Probably because our country has one of the most expensive electricity rates in the world...
       
    • neotech93 11 months ago
       
      That's true sir. But it's actually a good thing. The power industry here is consistent in its supply of electricity in the sense that there have been no brown-outs due to power shortages since the power crisis. In a sense, we do get what we pay for. For the factory, they can be assured that their supply of electricity is constant. This is the same reason the Han Jin corporation has a so-to-speak "settlement" here.
         
      • Pininfarina 11 months ago
         
        You must be working for the electric company or getting benefits from them somehow. The electric rates is a rip off. It's even more expensive than in the USA and your service is sub-par. No. the people don't get what they pay for!
           
        • neotech93 11 months ago
           
          I'm 18. how could I be working for an electric company? I'm basing this on my thesis paper and the statistical data that supports it. :) For the USA example, their rates are cheaper because the suppliers are public utilities. The US government can support this system because of their efficiency in tax collection and actually using it. Can you imagine if the Philippine government would run the power industry? We would get nowhere like before. Private companies in the power industry are merely compensating for the lack of efforts of the government. If the government subsidizes the industry then our rates would be cheaper. But it's not. Look at the provinces that don't have private suppliers, intermittent electricity are widespread due to the lack of funds for facilities and and the actual operation.

          Long story short, blame the government. The high rates are there to ensure quality service despite the sub-par industry conditions. :)
             
          • vonschnipp 11 months ago
             
            I can only speak for the situation in Negros Oriental. Before, electricity was generated by Napocor (geothermal) and distributed by Noreco (private coop). we had intermittent brown-outs. Now, generation is by FirstGen and distribution is still by Noreco, still some brown-outs but the price of electricity has more than doubled. There is no way you can convince me this is better.
               
            • neotech93 11 months ago
               
              ah yes sir. I tackled this example in my thesis too. The power grid in the visayas region is still built on the remnants of the old inefficient, unreliable power grid. Unlike in Luzon wherein the grid has been modernized etc...Under the law, theoretically, the profits of Noreco should be used to improve their services in conjunction with the national grid. That includes the modernization of the grid in visayas. The lack of development is beyond me. It may be an isolated case as there are places in the Philippines that have very reliable electricity supply it may be not. As I said, that is beyond me :)
                 
      • markdejesus76 11 months ago
         
        Our electric source is not the good thing. So eventually, results to higher cost. So logically, it's not a good thing.
           
        • neotech93 11 months ago
           
          Generally speaking yes. But definitely not a major reason as to why manufacturing in Thailand would be cheaper. I'm guessing that the major reasons that Thai manufacturing would be cheaper are because of: (1) wages in Thailand are among the lowest in the world and (2) the economic principle of by buying bulk - manufacturing in thailand is on a way larger scale. :D
             
      • iskwakalogz 13 months ago
         
        The electricity production and distribution here is controlled by the Oligarch Aquino-Couangco-Lopez family clan so we have the most ridiculously expensive electricity in the region or the WHOLE WORLD!
           
    • iskwakalogz 13 months ago
       
      Sad but true..
         
  • tidus1203 11 months ago
     
    Salaries, red tape, electricity costs among many others. And Thailand has one important advantage. It has ECONOMIES OF SCALE. Its the Detroit of Asia, almost all car makers are there so the suppliers are all there too so logistics wise its really advantageous to build in Thailand.

       
  • rdjl_13 11 months ago
     
    Mahal na pala yun. Compare mo sa ibang brands na overpriced,*ehem* Honda *ehem*, na nagiimport na galing Thailand. Mura pa rin yan. Good job Toyota! BTW, thank you Toyota for giving Filipinos jobs. :)
       
    • Adrian 11 months ago
       
      diba hehehehe
         
    • iskwakalogz 13 months ago
       
      I'm now lost faith sa honda kung ganun lage ang style nila..
         
    • manongtaxi 11 months ago
       
      Haha talagang ganun ang Honda walang magagawa regarding that after all its all about business, thank you din sa TMP for still believing the filipino people. Anyway sabi nga ng majority ng negosyante, di ka yayaman kung honest means lang lahat ang gagamitin mo.
         
  • mindkinetic 11 months ago
     
    how nice to know there are conglomerates with genuine concerns on their rank and file mabuhay ka TOYOTA
       
  • joab565 11 months ago
     
    Ang bait naman ng TMP!
       
    • iskwakalogz 13 months ago
       
      bait tlaga nila pero still the story is depressing
         
  • JDMLoveK 11 months ago
     
    Probably sporty, redesign?
       
  • nicologarcia 11 months ago
     
    sa wakas may Aux port na sa E variant.
       
  • Adrian 11 months ago
     
    Kaya mahal pa rin ang vios kasi nandito pa rin ag QUALITY, DURABILITY, FUEL EFFICIENT kaya maganda pa rin. Pero nag woworry na ako sa sales nyan in the next 4 months, dapat maparating na dito ang all new 2013 vios.
       
  • iskwakalogz 11 months ago
     
    Both good and sad news.. Good kasi may nagtityaga parin na magpasweldo at magbigay ng work satin.. Bad kasi walang ginagawa ang gobyerno para maging business friendly ang pilipinas sa investors.. puro CORONA, GLORIA, PSP, 2013/2016 elections, Oligarchism, tulo laway sa pagtulog, insensible na pagbili ng benz at porsche, Daang Matuwid deretso sa kangkungan, expensive electricity, toll and less effort sa oil exploration, unwise government spending, pabaon system, tax dito tax doon na diretso sa bulsa ang inatupag.. puro jurassic cars nlang nasa production natin at kulang nlang pati malinis na tubig at hangin iimport na natin sa Thailand at China..
       
    • manongtaxi 11 months ago
       
      Pre kahit wala kang sinasabing pangalan, ang tinutumbok mo ay si PNOY. Di naman ako die hard supporter ni PNOY pero i always believe na kailangan mo palagi tignan ang POSITIVE AND NEGATIVE sa isang administration, katulad na lang ni GLORIA, kahit siya pa naman ang presidente dati may ginawa na ba talaga siya para maging business friendly ang Pilipinas? Saka kahit siya presidente mahal na ang kuryente talaga diba? Pero di mo rin naman kayang kalimutan at idisregard ang ibang bagay na ginawa ni Gloria na nakagawa ng kabutihan para sa bansa natin. Saka kung INSENSIBLE lang din ang pagbili ng benz at porsche ni PNOY, ibig sabihin insensible din yung pagbenta ni GLORIA sa PNP ng 2ND HAND na HELICOPTER na PINALABAS NA BRAND NEW? ANYWAY PRE I'M sorry kung pinatulan pa kita pero para maging FAIR lang din sa comment mo, and please di na rin sana kita papatulan kung walang relation sa PULITIKA ang comment mo kasi ang TOPGEAR naman ay para sa mga car enthusiast at ibang bagay na may relasyon sa automobile, and alam ko wala ako sa posisyon para sabihin ito pero PLEASE WAG KA NA MAGPOST ULIT NG GANITONG COMMENT OO MAY FREEDOM OF SPEECH KA PERO SANA WAG NA LANG KASI KUNG TITIGNAN MO NAMAN YUNG ARTICLE WALA NAMAN DIRECT AND EXPLICIT POLITICAL INPUT, KUNG GUSTO MO MAGSHARE NG POLITICAL OPINION MO SA IBANG SITE OR FORUM NA LANG KASI STRESSED NA NGA TAYONG LAHAT SA PULITIKA MADADAGDAGAN PA, KAYA NGA TAYO NAG EENGAGE SA HOBBIES AND PAST TIME KATULAD NG PAG RELATE SA SARILI TUNGKOL SA MGA KOTSE EH PARA MABAWASAN ANG STRESS.
         
  • Allain 11 months ago
     
    Para sa akin maganda ito. They give jobs to the Filipino people. Yup mas mahal sya sa mga korean made cars pero may maraming Filipino naman ang natutulungan or kumikita sa mga ginawa dito. Sana sa mga may balak bumili ng kotse should consider those brand that was manufacture here, hindi puro ganda lang ang nasa isip although it was a hard earn money pero isa na rin itong paraan para makatulong sa bansang Filipinas.
       
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