RSA confirms talks with BMW

MANILA, Philippines -  Tycoon Ramon Ang will not only be behind the wheels of his collection of BMW cars soon, he will also be driving the company behind the German automotive brand in the Philippines to a new direction.

Ang has confirmed an earlier report by The STAR that he is in talks with Palawan Governor and businessman Jose “Pepito” Alvarez for a partnership involving the BMW brand in the Philippines currently distributed by Alvarez through Asian Carmakers Corp.

“I was invited by Pepito Alvarez to join him in BMW he is close to me and (San Miguel Corp.) chairman (Eduardo “Danding” Cojuangco),” Ang said.

Ang said he is set to be a director and shareholder of Asian Carmakers Corp. “this coming month.”

“As of now there are no details yet but I am sure to become a director and sure to become a shareholder. How much, I don’t know yet because I’m still shy to ask,” SMC’s president and chief operating officer said.

Ang, who is a known car enthusiast who has a collection of BMWs and other vehicle brands, said the automotive business is a hard and very competitive industry to venture into, especially with the upcoming plan to impose higher excise tax on motor vehicles.

The proposed excise tax hike on automobiles under the tax reform package will have the biggest impact on the luxury segment, in which BMW operates in.

“Once the government increases the taxes on cars, then the more the government will not able to collect tax. What will people do? They will return and buy cars from the gray market,” he said.

In the first four months of the year, sales of Asian Carmakers dropped 38.5 percent to 160 units from 260 units in the same period last year.

Its market share among Chamber of Automotive Manufacturers of the Philippines member companies stood at 0.13 percent as of end April.

BMW had an assembly operation in Bicutan in the 1990s but was closed a few years after. Officials earlier said the company is still not keen on reviving its assembly operations in the Philippines any time soon.

Asian Carmakers is a wholly owned Filipino company under the Alvarez Group of Companies, headed by Alvares as chairman emeritus.

The company boasts of the widest dealership network in the luxury vehicle segment with eight dealers composed of Auto Allee BMW in Eton Centris, North EDSA, Autohaus BMW in Quezon City, Motor Ventures BMW in Alabang, Prestige Cars BMW in Makati, Premier Cars BMW in Pampanga, Autobahn BMW in Bacolod, Autowelt BMW in Cebu and Premium Motoren BMW in Cagayan de Oro.