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Local BMW explores PH sourcing of automotive parts

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By Bernie Cahiles-Magkilat

BMW, the world’s leading luxury car brand, is exploring automotive parts sourcing in the Philippines as the German company was encouraged by the government’s support program for the auto sector under the inclusive innovation industrial strategy.

The German automaker will hold an Information Session and Business Matching Opportunity on June 19 at the Manila Peninsula in Makati. During the event, BMW will present its Insights on the New Automotive Economy and its Sourcing Strategies and Policies.

The event will provide an opportunity to local parts makers to gain insights on how a European car manufacturer sees the future of automotive, and how the Philippines positions itself amidst the fast-paced technological growth in the sector.

To prepare local auto parts suppliers for this opportunity, the Board of Investments (BOI) conducted an event briefing and business coaching session for potential parts suppliers of the German automaker recently.

BOI Executive Director for Industry Development Services Ma. Corazon Halili-Dichosa said around 15 companies, represented by company officials and technical experts, attended the June 7 pre-event briefing. The event was specific to companies who will have B2B sessions with BMW.

David Brown, senior consultant of International Finance Corporation – World Bank conducted a video conferencing with the participants direct from Austria on value proposition coaching to ensure that potential suppliers are ready for June 19.

BOI Governor Napoleon Concepcion urged the participants to adapt to different manufacturing practices, from Asian to Western, to deepen the local industry’s participation in global value chains and maximize the country’s potential.
On the inclusion of the Philippines in BMW’s global sourcing initiative, Halili-Dichosa said that the Philippine manufacturing sector has been performing very well in the past years.

“They noted our support programs for auto and its related industries under the inclusive innovation industry strategy. They want to expand their current network of suppliers and they like to explore our competencies to help them in their international production not only their existing but also of future projects,” said Halili-Dichosa.

“This is an opportunity for participants to tap into the global supply chain of BMW, as the country continues to work towards strengthening R&D capabilities in the sector and be able to engineer the next driving experience.”

Halili-Dichosa believes that local auto parts makers have good chances of getting into the BMW global supply value chain. She, however, said that “A great part depends on how our companies will pitch their competencies to BMW.

That’s the reason why we had that June 7 event. We’re also trying to schedule a one-on-one coaching session for our interested companies with our World Bank expert prior to the B2B event.”

Halili-Dichosa said that BMW’s focus in the sourcing activity is on auto electronics, wiring harness, filters and some metal parts. She is not privy to BMW’s current sourcing activities in the country, but said that ifever they have, it is normally covered by non-disclosure agreement.

BMW used to do little assembly operations in the country, but Halili said that the car company is not registered with the BOI at present.

The BMW Information Session and Business Matching opportunity, arranged by BOI, is a golden opportunity for Philippine firms to attract new business and go beyond its traditional markets. This initiative is also in line with the BOI-World Bank Group local supplier development program (SDP) aimed at enabling local SME suppliers in the automotive, electronics and aerospace sectors to improve its products and processes and meet the global standards of Multinational Enterprises (MNEs) such as BMW.

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