Sojitz Enters Philippines’ Automobile Financing Market
Feb. 1, 2016
Sojitz Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director: Yoji Sato; “Sojitz”) has reached an agreement with JACCS Co., Ltd. (Office: Shibuya-ku, Tokyo; Representative Director: Yasuyoshi Itagaki; “JACCS”), Mitsubishi Motors Philippines Corporation (a Sojitz affiliate dealing in the production and sale of Mitsubishi brand vehicles in the Philippines; “MMPC”) and BDO Leasing and Finance, Inc. (a subsidiary of BDO Unibank, Inc., the Philippines’ largest commercial bank; “BDOLF”) for the joint establishment of an automobile financing company called ‘MMPC Auto Financial Services Corporation’ (“MAFS”), which will provide financing exclusively for customers of Mitsubishi brand vehicles. The joint venture agreement was signed on January 28.
MMPC has a long history in the Philippines dating back to their start in 1963. At present, they hold the number two market position for annual car sales in the Phillppines. Sojitz has been deeply involved with business expansion and management of MMPC since acquiring partial shares in the firm in 1972.
Sojitz and MMPC will develop MAFS’s sales and conduct marketing in collaboration with Mitsubishi dealerships in the Philippines, whereas JACCS will bring financing know-how they have cultivated in Japan and the ASEAN region. BDOLF will construct a strong management framework for the new company by providing their expertise in the Philippines’ financing business and assisting with operations through the nationwide network of their parent company, BDO. This will serve to further expand sales for Mitsubishi brand vehicles in the Philippines and create a business network for JACCS spanning three different countries in the ASEAN region.
The Philippines’ auto market is bolstered by the country’s roughly 100 million people—one of the largest populations in Asia. Alongside the nation’s growing consumer market and healthy economic growth in recent years, the Philippines broke records in 2015 with 320 thousand in annual car sales—a 19% increase over the previous year. MMPC holds about 50 thousand of this total market (about 17%). MAFS has set its annual target for financing contracts for Mitsubishi brand vehicles at more than 20,000 units in anticipation of this demand.
Working together with JACCS, MMPC, and BDOLF, Sojitz will endeavour to make it easier for customers to purchase Mitsubishi brand vehicles, help to distinguish MMPC from competitors, and provide financing options to a greater number of customers by developing financing options which customers will find attractive and streamlining the credit approval processing. MAFS will contribute to the growth of the Philippines’ automotive industry and financing market, as well as support the country’s economic development and enrich its quality of life.
MMPC Auto Financial Services Corporation (MAFS)
|To be Established||February 2016 (scheduled)|
Approx. ￥2.1 billion (750 million Philippine Peso)
|Head Office||Pasig City, Philippines|
|Main Business||Financing for customers of Mitsubishi brand vehicles|
JACCS Co., Ltd. (JACCS)
|Office||1-18, Ebisu 4-chome, Shibuya-ku, Tokyo|
|Main Business||Shopping credit, auto loans, credit cards, credit card loans,
credit guarantees, mortgage guarantees, debt collection
Mitsubishi Motors Philippines Corporation (MMPC)
|Capital Stock||Approx. ￥4.5 billion(1.6 billion Philippine Peso)
(Mitsubishi Motors Corporation – 51%, Sojitz – 49%)
|Head Office||Santa Rosa, Laguna Province, Philippines|
|No. of Employees||940|
|Main Business||Production and sale of Mitsubishi brand vehicles|
BDO Leasing & Finance, Inc. (BDOLF)
|Capital Stock||Approx. ￥6.2 billion (2.2 billion Philippine Peso)
(BDO – 85%, Free Float – 15%)
|Head Office||Quezon City, Philippines|
|No. of Employees||191|