Felix J. Mabilog Comes Full Circle for Kia Motors

MANILA, Philippines - Destiny was the topic of conversation while waiting for Columbian Autocar Corporation’s president and COO Felix J. Mabilog, and as it turned out destiny became the underlying theme of the entire interview. Mabilog started as a young mechanical engineer on the way to a technical scholarship in automotive assembly in Japan to become one of the pillars of the Philippine automotive industry. One of the awards of recognition he has received recently is the Pocholo Ramirez Achievement Award conferred by C! Magazine to individuals who have made outstanding contributions to the Philippine automotive industry. Mabilog has 38 years worth of experiences and stories about the local automotive industry right from the trenches of the assembly line all the way up to the executive desks and company boardrooms, and through a few global economic crises. Today with the recovery of the global economy, Kia Motors and Mabilog are at the crest of the re-birth of the Kia brand in the Philippines. Mabilog has been eyeing retirement in the past three years. The man may not be irreplaceable but surely there is only one Felix J. Mabilog.

Tell us about how you got started in the automotive industry.

I graduated in Mechanical Engineering at De La Salle University. My first job was at a construction company contracted to set up a pineapple canning factory in what is now known as General Santos. After a year of that, I applied and got accepted for a technical scholarship on automotive assembly in Japan. At that time I was not interested in automotive, I only wanted to go to Japan. Work in automotive was not something I really had in mind.

Tell us about the notable points in your career on your way to becoming president and COO of Columbian Autocar Corporation and a Pocholo Ramirez Achievement Awardee.

The purpose of my training in Japan was for plans of Prince cars to set up shop in the Philippines. And then Nissan buys out Prince Motors. So I looked for another job and became part of Volkswagen where I got in-depth training and ended up with a truly progressive career in automotive. Within less than ten years I grew from a cadet engineer to supervisor then manager with experiences in production and marketing to becoming assistant vice president. In Diesel Motors Germany, I was in charge of the appliances and automotive divisions as assistant vice president for materials management handling purchasing, inventory control, warehousing, and distribution. Eventually I became over-all vice president for manufacturing and the whole plant was placed under me. Then there was the devaluation of the peso and our company suffered the brunt of it and I thought at that time I did not want to be in the automotive industry anymore. But the next job that came along was materials management for Canlubang Automotive Resources which is now Mitsubishi and the opportunity for me came up to become vice president for manufacturing. Then came the second crisis after the Aquino assassination and I left automotive for pharmaceutical industry. In 1992, Columbian Autocar Corporation came knocking at my door and so I was back again in the automotive industry.

Can you tell us about the position of Kia Motors in the global market?

Right now Kia is number three in the world. Certain situations came about that made Kia rise to the top in such a short time. There is such a big demand for Kia cars, it is hard to keep up.

Can you tell us about the position of Kia Motors in the local market?

What is happening to the Philippines is happening to other Asian countries. We have this regular distributors meetings and from there I found out that each country has a niche, a portion of the market that is Korean car inclined. The only complaints I know about is supply not keeping up with the demand.

What insight can you give us about the Philippine automotive industry?

When it comes to the Philippine automotive industry, I know for a fact that the Philippines used to be very advanced when it comes to automotive manufacturing. When we started car manufacturing program in the Philippines, the assembly operations was unheard of in the majority of other Asian countries. The Philippines was the first and we were ahead in assembly operations. Now we’re lagging behind and I would attribute that to politics, corruption and smuggling.

What do you think is the identity of the Kia brand to Filipinos?

At the time when Kia came in, there was hesitation with acceptance by the Filipino market. After two years the local market accepted the brand following a wide global acceptance and partly because at that time, Kia cars were one of the most affordable in the market. When the market demanded cars due to necessity and practicality, Kia was there. In 1996 before the Asian crisis, Kia was already number four in the Philippines.

Today, the Kia image is all about quality, performance, and durability. Kia is at the forefront of car design as well. When Kia launched the Picanto, people started becoming interested in small cars.

What is the advantage of Kia over the Japanese brands?

In terms of what a consumer expects from a car, Kia is at par with any brand. As far as appearance and styling is concerned, obviously Kia has an advantage. And the price is relatively lower.

How did Kia Motors and Columbian Autocar Corporation re-energize the brand?

I put in a lot of effort in advertising and marketing. We relied on price strategies and special promos. We also have a trade-in program. And of course Kia Motors supports our new car launches, promotional activities, test drive promos and even in the pricing. There is also the dealership development program wherein we are the biggest with 55 dealerships and sales outlets.

When you took over the reins of Columbian Autocar Corporation in 2005, what was your mission?

It was to rejuvenate and give birth to Kia. It was like coming out with a new brand again. This is a new Kia, a very far cry from the old brand. In 2006, Kia Motors launched a global five-year program to be in the top five of car manufacturers in the world. In that five-year period Kia Motors came in at the top four, and today probably even number three.

What hurdles did you have to overcome?

Well, perception of potential customers. With its absence from the market for five years, some still see Kia as the same as what it used to be, just a manufacturer of cheap cars. Perception is what sells in the market. If the general perception of the public is bad, even if your car is good, it won’t sell. So we had to work hard at changing the perception of people.

How is Kia doing in the Philippines today?

In 2008, our sales went up. We only faced some roadblocks in 2009 because of the global financial crisis. But this year, 2010, we are going to double our sales. It’s July now and currently we are already over by 77 percent from last year.

What is your leadership style? What management philosophies do you adhere to?

I am basically a dictator. I am a demanding manager. I want people to give their best, to be perfect. You have to aim high to achieve way higher than what you expect. But I am very fair. I see to it that good people and good deeds are rewarded. I also adhere to compassion and fairness.

What is the legacy you wish to leave Columbian Autocar Corporation?

You know, I am planning to retire soon. I have been trying to retire in the past three years. I want to leave the company in a position where nobody can say that I did not do my job. I want to leave the company in a situation wherein it is at the brink of achieving its success. I predict this year, all our hard work will pay off.

What pressing matters are you tackling for the second half of 2010?

I am trying to get as many cars as I can to sell. All our dealers are crying out for stocks. If I have stocks now, I can sell 1,000 units a month. What I am trying to do now is to make this year the most successful year of the company so far.

What is your prediction for Kia Motors in the Philippines for the next few years?

I think by next year we will have seen the worst of the economic crisis. And so the Philippines will be in a better position. We want to hit number six next year. And in the three or five years, and after that we will be number five. If we can stop smuggling and illegal importation, immediately the market will double – and that’s for all the players in the industry.