 Losses of BMW AG’s local unit widened as it ended operations in the Philippines last year and turned over the local dealership to its Filipino business partner. BMW Philippines Corp., in its 2008 financial report, said it had to sell inventory at a loss ahead of the closure of local operations. The company’s net loss last year ballooned to P186.53 million from only P22.43 million in 2007. Meanwhile, sales of the leading luxury car brand inched up by only P15 million to P1.89 billion in 2008. BMW Philippines decided to stop local operations last Dec. 19. The company, a joint venture between BMW AG of Germany and local partner Asian Carmakers Corp., said it had terminated lease agreements and other major contracts effective Dec. 31. It also paid P25.2 million in separation packages to its 34 employees. Last September, BMW AG announced the dissolution of Philippine operations, citing the need to improve business efficiency worldwide. The car maker also shut down operations in Turkey and Taiwan, citing the same reason. BMW Philippines has said the move would not affect customers. Asian Carmakers’ operations will be monitored by BMW’s regional office in Singapore, which also oversees the dealerships in Vietnam, Brunei and Guam. The local BMW dealership sold 621 units last year, down by almost a quarter from 805 units in 2007, industry data showed. Asian Carmakers Chairman Jose Ch. Alvarez said last year that BMW’s sales would drop to 600 to 800 units this year due to the entry of Japanese luxury cars with the implementation of a bilateral free trade agreement between Japan and the Philippines. Source: www.tsikot.com |