Francisco Motor Corporation





COMPANY PROFILE


Corporate Highlights

    1947 - Started as Francisco Painting Shop with an initial capitalization of Php 200.00
    1960 - Francisco Motor Corporation was incorporated.
    1965 - FMC was appointed by Isuzu Motors Co., Ltd. of Japan as its assembler and distributor in the Philippines.
    1973 - FMC signed a technical licensing agreement with Mazda Motor Corporation of Japan.
    1975 - FMC joined the government’s Progressive Truck Manufacturing Program.
    1984 - Economic crisis in the Philippines and many multinational automotive companies pulled out of the country.  FMC was one of the few companies that continued its operation.
    1984 - Founder, Anastacio T. Francisco, passed away and his younger brothers, Fernando and Jorge, assumed operations. 
    1988 - The new Motor Vehicle Development Programs opened. FMC registered as a participant in the Commercial Vehicle Development Program that produced the ANFRA. FMC then developed an electric powered ANFRA.
    1990 - FMC assembled and distributed Fiat Uno cars from Italy under the government's people's car program operated by a subsidiary company, Italcar Pilipinas, Inc.
    1992 - FMC assembled and distributed Hyundai cars and vans from South Korea also operated by subsidiary company, Italcar Pilipinas, Inc.
    1995 - FMC manufactured the Pope Mobile used by then Pope John Paul II who is now a saint.
    1996 - Agreement with Mazda Corporation expires and allows FMC to diversify its product line with other manufacturers
    1997 - Asian financial crisis puts pressure on local Philippine manufacturers to meet higher import costs.
    2004 - Reorganization of corporate structure to meet rehabilitation program under Court Receivership. Operations are consolidated to reduce costs.
    2005 - New corporate management outlines new strategies to create viable opportunities in automotive industry. Finalized arrangement with Isuzu Phils. Corp. to provide complete Power Trains for Jeepney and any other possible FMC models.
    2008 - The All New FMC Passenger Jeepney with Isuzu Engine and Powertrain was launched in the market.
    2012 - Jorge T. Francisco passed away.
    2013 - Fernando T. Francisco passed away.
    2015 - A new subsidiary company, 1111 Empire, Inc. spearheaded by its Chairman & CEO Elmer Francisco, was incorporated to undertake the production of the new Francisco Passenger Jeepney (FPJ), utility vehicles and other special purpose vehicles.

    2017 - The Department of Transportation of the Republic of the Philippines initiated the Public Utility Vehicles Modernization program which aims to phase-out all Jeepneys that are 15 years old and older and replace them with brand new ones that conforms with the Philippine National Standards and powered by either an electric powertrain or at least a Euro 4 compliant diesel engine.





    FMC Passenger Jeepneys in the olden days
    FMC Passenger Jeepneys in Binondo
    ANFRA Pope Mobile in 1995 with then Pope John Paul II inside
    FMC Passenger Jeepney in a Museum

    History of Francisco Motor Corporation

    In 1947, Anastacio Trinidad Francisco estabilished a small painting shop in Zapote, Las Pinas with a starting capital of Php 200.00 that specialized in painting jeepneys, cars and trucks.

    Four years later, the small painting shop became the Francisco Body Builder (FBB) which engaged in the building of jeepney bodies. It became known as a reputable body builder with clients coming to the shop for the unique body designs from surplus jeepneys left after the war.

    By 1955, FBB ventured into assembling a complete line of jeepneys using reconditioned engines from Japan. Also in the same year, the Luneta Motor Company became the company’s first distributor of FBB bodies. This marketing relationship continued to blossom and Luneta Motor Company – which was the franchised distributor of American Ford cars and Thames trucks – partnered with FBB to assemble Ford Consul and Thames light trucks.

    The company was incorporated in 1960 and was to be known by its present name: Francisco Motor Corporation. As its name continued to be firmly established in the local automotive industry, FMC was appointed by Isuzu Motors Co., Ltd. of Japan as the franchised assembler and distributor of the Isuzu Bellett Cars in the Philippines. By 1968, FMC assembled Isuzu Elf trucks and continued its partnership with Isuzu until 1974. With its partnership with Isuzu, FMC introduced Isuzu diesel engines for the locally distributed jeepneys. FMC continued to dominate the jeepney market with its partnership with Isuzu of Japan.

    Due to changes in the local market, FMC next partnered with Mazda for a new line of lights trucks for commercial use. This proved to be successful and FMC broadened its partnership with Mazda for other commercial vehicles as well as the provision of engines for its locally produced jeepneys and mini-buses.

    The continued partnership with Mazda allowed FMC to actively participate and pioneer the development of the Asian Utility Vehicle under the government’s Progressive Truck Manufacturing Program. This resulted in the introduction of the Pinoy I, a Mazda 1200 cc powered vehicle, which was widely used at the Cultural Center of the Philippines. Further improvements on the Pinoy and a new version was introduced in 1979 as the Pinoy II.

    At the same time, jeepney production reached 14,900 units. For the same period, FMC annual production reached 5,000 units per year and employed 2,000 employees in two manufacturing plants.

    As the company moved into the turbulent 80s, FMC joined the Commercial Vehicle Development Program, which replaced the Marcos-era PTMP under the Board of Investments. Under the program, FMC developed the ANFRA – a third generation Asian Utility Vehicle that was mainly used for commercial use.

    By the 1990s, FMC emerged as one of the largest and only locally owned manufacturer and assembler of vehicles in the Philippines with over 60,000 units sold. It further expanded into the assembly and distribution of small engine displacement cars under license from Fiat of Italy. As the contract with Fiat expired, FMC tied up with Hyundai of Korea to assemble and distribute Hyundai cars and vans. 

    As the 1990s closed, FMC had been a strong player in the local automotive market; however, due to the Asian financial crisis of 1997, the company had experienced a series of setbacks that affected the financial viability of the company after more than 50 years of continued operations and growth.

    By 2002 the company had filed for rehabilitation due to losses incurred in its operations. The economy was devastated by the financial crisis and FMC was not spared.

    By 2004, FMC reorganised its corporate structure to meet the rehabilitation program under Court Receivership. Operations were consolidated to reduce costs.

    By 2005, the new corporate management outlined new strategies to create viable opportunities in the automotive industry which later on finalised the agreement with Isuzu Phils. Corp. to provide complete powertrains for jeepneys and any other possible FMC models.

    By 2008, the all new FMC Passenger Jeepney with Isuzu engine and powertrain was launched.


    FMC Passenger Jeepney Brochure Page 1

    FMC Passenger Jeepney Brochure Page 2

    Business Address and Plant Location
    • FMC Plant, FMC Compound,  J. Aguilar Ave., Pamplona, Las PiƱas City, Metro Manila Philippines
    Board Of Investments Registrations under E.O. 262

    • Commercial Vehicle Development Program
      • Categories I, II, III, & IV (July 18, 1988) 
    • Car Development Program (Italcar Pilipinas Inc.)
    • Motorcycle Development Program (DAYE-FMC}
    Investments in Manufacturing Facilities and Capabilities
    (as reported to the Board of Investments)

    FMC: Php 1.32178 Billion in Assembly Facilities and Php 206.62 Million in Parts Manufacturing

    • FMC’s Parts Manufacturing Plant produces metal fabricated parts such as Vehicle Body and Chassis parts and Components
    • FMC’s Assembly Plant is equipped with modern painting facilities such as the newly-installed CED Coating and Top Coat Line
    Plant Capacity

    • The FMC plant has a capacity of about 12,000 units per year based on a one shift operation. Depending on demand, more shifts can be added.
    Plant Area
    • Pamplona Plant: 6.6 hectares
    Product Lines
    • Anfra AUV - Asian Utility Vehicles (cab, pick-up and transporter)
    • Passenger Jeepney
    • Special Military Vehicles
    • Other custom-built, special purpose vehicles
    Highlights of FMC's Strategic Plan
    • Change in the Company’s Strategic Thrust
      • Return to FMC’s Core Business
        • Manufacturing and Assembly of Asian Utility Vehicles together with core Jeepney Business
      • Institutional Strengthening
        • Professionalization of current management and operations team
        • Establishment of Management Committee
    • Marketing Plan for Re-entry of ANFRA and FMC Jeepney
      • Develop new ANFRA and FMC Jeepney based on Isuzu Power Train
        • Use 4JB1 diesel engine and powertrain
        • Re-design and re-develop ANFRA and FMC Jeepney body and features
        • Develop drive stability for new ANFRA and FMC Jeepney models
        • Add new features to current models
      • Conduct market review of existing AUV and FMC Jeepney market
        • Determine potential market size nationwide
        • Conduct pricing survey against current available models (with surplus engine models)
        • Determine competitors in the market, particularly small to medium jeepney assemblers
        • Explore the current national government, local government, police and military transport requirements
        • Explore the current utility companies' transport requirements
      • Develop marketing programs and financial plans
        • Renew relationships with dealers nationwide
        • Set-up spare parts and after sales service network in key areas in Metro Manila and key cities nationwide with existing dealer network and new potential dealers 
        • Discuss with financial institutions for possible assistance on sales financing
        • Tap other distribution channels for Anfra and FMC Jeepneys
          • Operators and drivers associations
          • Establish links with Overseas Filipino Workers
          • Tap new agricultural links for transport
        • Develop new export markets (developing countries in Asia and Africa)
      • Alignment with Government Programs and Thrusts
        • Support the government’s program to pursue the Clean Air Act by replacing current aging jeepney fleet
        • Assist in the development of road safety measures
        • Work with appropriate government agencies to pursue alternative energy sources for transportation
    ANFRA and FMC Jeepney Project Brief

    The objective of the New ANFRA and FMC Jeepney Project is to sell brand new AUVs and jeepneys in the Philippine market that will use Isuzu powertrains and locally assembled parts by Francisco Motor Corporation.

    The need to introduce new models to the Philippine AUV and jeepney market is aimed at addressing the current aging fleet of jeepneys in the public transport sector. It must be noted that the current fleet is on average more than 10 to 15 years old. With an aging fleet of jeepneys that are primarily reconditioned units or powered by second hand diesel engines, there is an urgent need to replace these with units that are compliant to the Clean Air Act. At present, there are approximately 215,000 jeepneys operating in the Philippines with concentration of operations in Metro Manila and its nearby provinces. In the other parts of the country, the jeepney represents a cheap and convenient means of transportation as well.

    Based on the above, Francisco Motor Corporation in partnership with Isuzu Philippines Corp. (IPC), is set to embark on a new program that addresses these major concerns of the Philippine transport sector.

    The program intends to focus on the provision of competitively priced brand new jeepney units anchored on the Isuzu’s powertrain business. Based on market data, the secondary market for jeepneys sell on average at about Php420,000.00 with prices reaching Php495,000.00. With this in mind, FMC believes that in order to penetrate the jeepney market with brand new jeepneys, pricing is a critical point. As such, the cost of manufacturing and assembly should be able to match current pricing practices and yet provide adequate margins in order to sustain operations. We believe that in order to re-develop the brand new jeepney market, we have to price competitively. In order to do this, we are looking at increased market share in the next 6 months and introduce our new jeepneys at about 15% to 20% above the second hand market. This pricing strategy calls for managing our manufacturing costs and rely on Isuzu Philippines’ ability to provide cost effective powertrains. We estimate that in order to be competitive, powertrain costs would account for 50% of total selling price of the finished jeepney. We propose that this pricing strategy would offer an affordable and yet reliable brand new jeepney to the market. In addition to eating into the second hand market, this pricing strategy will not eat into the current AUV market. 

    The local transport market is expected to shift to newer models in order to comply with the Clean Air Act and at the same time establish more profitable operations. The major stumbling blocks that face jeepney owners and operators as well as assemblers and manufacturers are:
    • Absence of complete and affordable replacement units
    • Proliferation of second hand diesel engines
    • Continued increase in diesel fuel prices and higher maintenance costs
    • High costs of new jeepneys
    FMC intends to address these concerns through:
    • Introduction of brand new jeepneys that are Clean Air Act compliant using Isuzu’s powertrain and locally sourced components that are affordable and fuel efficient
    • Strengthen the current dealer network and set-up when needed new dealer channels to provide:
      • Spare parts and after sales service in key sites in Metro Manila and key cities nationwide to ensure parts availability
      • Strategic centers to assist operators and owners assess vehicle conditions and evaluate appropriate measures for possible replacement or rehabilitation

    3 comments:

    1. do you manufacture stainless steel body jeepney?

      ReplyDelete
    2. Yan ang PINOY...keep the good works...God Bless

      ReplyDelete
    3. Sana kaya na rin mag-develop ng sarili nilang diesel engine.

      ReplyDelete