Ford Philippines to shutdown plant in Sta. Rosa, Laguna this DecemberBy Angel Cuala on Jun 27, 2012 in Asia, Automobile, Business •
Manila, Philippines – Ford Philippines, a unit of US automaker Ford Motor Company, announced on Wednesday, June 27, 2012, that they will close its only plant in the country, which is located in Sta. Rosa, Laguna, this coming December.
Image Credit: Ford Philippines Facebook
As noted at local news on Wednesday afternoon, Ford Philippines had a press conference in Makati City that day and announced that the operation of their Laguna plant will be stopped permanently, citing supply base and operational deficiencies as the main reasons.
“Effective December this year, we would cease our manufacturing operations at our Santa Rosa, Laguna, plant after we rolled out the last assembly of Ford Escape,”, Ford Asean president Peter Fleet was quoted during the press briefing, with around 250 workers are expected to be affected by the shutdown.
“The lack of supply base and economies of scale are the major issues in coming up with this very difficult decision,” Fleet added, noting that the Ford Sta. Rosa plant would roll off the last of the Ford Escape by the end of 2012.
Apparently, Ford Philippines, which stopped the production of other models last year in preparation for the shutdown, is the only car exporter in the Philippines, and has previously pulled out from the country back in the 1980s but restarted in 1998.
“This is a very difficult decision. The company studied every possible scenario and opportunity but we could not make a strong enough business case for future manufacturing,” Ford Philippines president Randy Krieger reportedly said.
“We are extremely proud of the world-class vehicles assembled in our Santa. Rosa, Laguna, plant and our exceptional team, and we will provide them with all the support they need to help them through this transition,” Krieger added, noting that the affected employees may work at any Ford factory overseas if they want to.
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