CAR assemblers are still studying whether or not to resume operations despite the easing of the lockdowns, according to Rommel Gutierrez, president of the Chamber of the Automotive Manufacturers of the Philippines Inc. (Campi).
Gutierrez said Campi members follow government regulations and protocols but there are no details on the resumption of work.
Gutierrez forecasts this year’s sales will drop at least 20 percent,
He said with the assembly lines closed since mid-March, maintenance checks have to be undertaken before restarting.
At the same time, Gutierrez said assemblers follow what is called “just-in-time” where they source inputs and produce based on demand forecast.
With no sales recorded for two months, Gutierrez said, car companies have sufficient inventory that have to be moved by their dealerships.
“We have to ensure a smooth transition,” said Gutierrez.
Car assembly operations are heavily concentrated in Laguna which will be placed under a modified enhanced community quarantine (MECQ) starting tomorrow, May 16.
Manufacture of motor vehicles is partially allowed to open in areas under MECQ but with a maximum of 50 percent of workforce allowed on-site.
Despite robotics and automation in assembly operations, a 50-percent workforce capacity is not efficient especially with demand still soft, automotive experts said.
With the MECQ and even under general community quarantine, showrooms are allowed to reopen under strict health and safety protocols.
Most assemblers have also tapped digital and other technology-based solutions to address customer needs, especially for after-sales service inquiries.
