00:30.7
but it's a chance for the Philippines to industrialize, finally.
00:35.0
So this is our chance.
00:36.1
So why are we giving it to foreign manufacturers
00:38.7
when we local manufacturers can build better jeepneys than what they are doing?
00:45.1
So that's actually our question.
00:49.3
Local manufacturers can build better jeepneys.
00:52.2
That takes me to my next question.
00:54.0
Do the local industry,
00:57.3
does the local industry have the manufacturing capacity?
01:00.7
Do we have the supply chain, the logistical chain,
01:03.2
and the financial muscle to take on this daunting task and compete?
01:08.6
If you think about it, with China-made cars that are very cheap,
01:12.5
you can get them for as low as 500,000 pesos.
01:16.0
Yes, actually, Mimi,
01:17.3
I've always believed that we have to think big to solve smaller problems.
01:21.6
In fact, the jeepney manufacturing of Francisco Motors
01:25.3
is just a tiny part of the big...
01:27.3
of the bigger project that we are doing,
01:29.3
because we are developing a special economic zone,
01:32.3
a 200-hectare special economic zone in Camarines Norte,
01:36.3
of which the jeepney manufacturing is just one of those locators in that economic zone,
01:43.3
wherein we are inviting all of the suppliers in the supply chain
01:48.3
of the manufacturing of electric jeepneys
01:50.3
to locate in that special economic zone.
01:54.3
So this endeavor will generate a lot of demand.
01:56.3
So this endeavor will generate a lot of demand.
01:57.3
It will generate a lot of jobs for Filipinos here at home
02:00.3
of which, if we continue to import minibuses from other countries
02:05.3
like China, India, or wherever,
02:08.3
we are taking away jobs that are supposed to be for the Filipino workforce.
02:13.3
So this is one of the reasons why Francisco Motors is doing this
02:17.3
to preserve or to save the jobs that are supposed to be for Filipinos
02:23.3
and not export those jobs to other countries.
02:26.3
I wonder, Elmer, and this is a, I'm personally curious, I would like to know and visualize, how does your manufacturing facility look like today?
02:35.2
We all know how the jeepney is iconic, it's something, it's very rich in history.
02:41.2
But when you go to, for example, the Francisco Motors facility, what do we see?
02:46.0
Do we see automated supply chains moving these jeepneys from one point to the next or is it mostly, do we see lateros?
02:54.7
What's the plan here? Do you buy the engines abroad and then just, you know, isasalpak na lang yung katawan ng jeepney?
03:04.6
How will this work? How advanced?
03:08.3
Yes, Mimi, we have been building jeepneys for 77 years already.
03:14.1
So ever since 1960, 1947 to 1959, lahat yan surplus.
03:20.5
Galing yan sa military jeeps that were left by the U.S. Army.
03:24.3
After World War II.
03:26.1
But since 1960, lahat ng jeepney na ginagawa ng Francisco Motors, ay 100% brand new.
03:32.4
So 1960, we brought in Isuzu to the Philippines.
03:35.6
So we used Isuzu engines from Japan.
03:37.9
Then we added Mazda in the 1970s.
03:41.3
So dalawang engines ng Francisco Motors.
03:43.5
So Isuzu and Mazda.
03:45.4
But recently, since we already, dito sa POV modernization program,
03:50.3
we already have yung Evita, yung electric vehicle industry development.
03:54.3
Which was passed last April 2022.
03:59.5
Which enables us to locally build or locally manufacture our own drivetrains, our electric drivetrains.
04:06.6
Because of this, we will no longer be importing engines from foreign manufacturers.
04:12.2
We will be mass producing them in our facility that we are building at Camarinas Norte.
04:17.5
So since you asked, dati, even in the 80s and 90s, without automation,
04:23.9
without competition,
04:24.9
ang mass production or assembly line ng Francisco Motors sa Las Piñas
04:28.7
ay nakakagawa ng 12,000 units per year.
04:32.5
So ganoon ang ganoon natin.
04:33.7
Kasi mass production yan, hindi yan yung pok-pok-pok-pok sa backyard.
04:37.6
Mas production talaga yan.
04:40.0
Because Francisco Motors, hindi lang naman jeepney yung ginawa natin.
04:43.4
We also built commercial vehicles, trucks, buses, vans, yung mga Mazda na pickups, mga vans,
04:51.9
We also brought in Hyundai.
04:54.3
From South Korea, sa Pilipinas, and Fiat from Italy.
04:57.4
So marami tayong ibang experience sa ibang mga vehicles.
05:01.1
Not only the jeepneys, we also have the locally developed ANFRA na utility vehicle,
05:05.5
and Pinoy na utility vehicles.
05:07.8
So basically, what we're doing right now is,
05:10.5
yung sa Las Piñas namin na planta,
05:12.7
we already closed it down because we're transferring to Camarinas Norte,
05:16.5
sa Special Economic Zone,
05:18.1
so that we can avail of fiscal and non-fiscal incentives from the government.
05:22.3
So that we could further learn,
05:24.3
and lower the costs of production.
05:26.4
So natutuwa ko dahil ang pesa, meron na silang domestic market enterprise,
05:30.5
of which we cater to the domestic market.
05:32.5
Aside from keeping our eyes on export,
05:37.8
because in the future, we will be exporting.
05:40.3
So gagawa tayo dito ng ating mga electric vehicles.
05:43.3
And Francisco Motors has gone full electric.
05:46.3
So we will not be building fossil fuel powered vehicles anymore.
05:51.4
Then, aside from the battery electric vehicles,
05:53.4
we are also going to the direction of hydrogen.
05:55.4
So hydrogen fuel cells for our land transportation and also for our EV tolls.
06:03.4
EV tolls are electric vertical take-off and landing vehicles.
06:07.4
So soon enough, maybe next year, you'll be seeing flying jeepneys.
06:13.4
But before we get to the flying jeepneys,
06:15.4
let's talk about the Special Economic Zone in Camarinas Norte.
06:19.4
When will it be fully operational?
06:21.4
When are you making the big move?
06:23.4
And how many players are currently signed up for this Special Economic Zone?
06:29.4
It's a 200-hectare property, you say?
06:31.4
Yes. So it's a 200-hectare property.
06:35.4
Yan yung pinag-uusapan namin ni Governor Dong Padilla of Camarinas Norte
06:40.4
and also Director General Teo Panga ng PESA.
06:44.4
So we will start developing the 30 hectares out of the 200 hectares.
06:50.4
Kasi yung 30 hectares, meron na yung presidential property.
06:51.4
Meron na yung presidential proclamation sa Special Economic Zone.
06:56.4
So we can already start developing that.
06:59.4
So nandun tayo sa point na yun ngayon.
07:03.4
We will be starting land development.
07:05.4
Then we will be putting our equipment, our plant and equipment
07:09.4
for the manufacturing ng mass production ng jeepneys, na electric jeepneys.
07:13.4
So we will also be mass producing the drive trains there,
07:17.4
electric drive trains and the batteries.
07:19.4
So we will have those locally produced, yung mga drive trains.
07:24.4
Of which, hindi lang yan para sa Francisco Motors.
07:26.4
Ang plano namin, nakikipag-usap din kami sa ibang mga local manufacturers,
07:30.4
katulad sila sa RAU.
07:32.4
We can also supply drive trains to them and also local manufacturers.
07:37.4
Kasi hindi naman madamot si Francisco. So we are sharing.
07:40.4
So you're confident, Elmer, that you can gather the key critical suppliers
07:48.4
to set up an EV supply chain in that eco-zone?
07:52.4
Yes, Mimi. So we are starting.
07:54.4
But alam mo, ang Francisco Motors kasi hindi kami bago dun sa electric na space.
08:01.4
Because since the 1980s, meron na tayong electric jeepneys.
08:06.4
1980s pa. Pero of course, the battery technology back then was different.
08:11.4
Lead-acid deep cycle pa yung batteries noon. Ngayon, lithium na.
08:16.4
Then, like what I said,
08:18.4
soon enough, maybe by next year, we will replace already the lithium batteries with hydrogen fuel.
08:25.4
What is the difference, Elmer, for those who are not technical,
08:28.4
what's the difference between EV that runs on lithium versus hydrogen fuel cell?
08:34.4
Number one difference is the range.
08:36.4
So yung range niyan, ang battery kasi, very limited ang range.
08:41.4
Kasi as you add more batteries, bumibigat yung sasakyan.
08:44.4
So yung range mo, parang hindi na nagiging efficient.
08:46.4
So you can go as maybe 400 kilometers or 500 kilometers.
08:51.4
With hydrogen, you can have more range, like 500 to 900 kilometers.
08:56.4
Kasi ang battery electric, you charge it sa charging stations,
09:01.4
of which Francisco Motors din ang maglalagyan ng charging stations sa lahat ng lugar na magde-deploy tayo ng electric jeepneys.
09:08.4
But with hydrogen, you will just refuel it with hydrogen, green hydrogen.
09:13.4
So yan, part din yung ginagawa ng Francisco Motors.
09:15.4
In collaboration with different companies, both local and foreign,
09:19.4
will be producing green hydrogen, yung produced by renewable sources.
09:25.4
Alright, so from this special economic zone, let's talk about your Chupere Hero program.
09:31.4
You've actually been pitching this to government, but I heard it's taking a very long time to get approvals.
09:38.4
Considering that you plan to give away some of these EVs to drivers, how will this work?
09:44.4
What's the business model here?
09:46.4
You own the electric jeepneys, and the operators are just partners.
09:51.4
How about the drivers? Walk us through the process.
09:54.4
Okay, the Chupere Hero program.
09:56.4
First, sinong mga pwedeng sumali sa Chupere Hero program ng Francisco Motors?
10:00.4
Ito yung proposal natin sa DOTR and sa LTFRB, of which yung pag-uusap namin ay ongoing.
10:08.4
Nagpapasalimot nga sa inyo, pati sa ibang mga kasamahan natin sa media.
10:13.4
Dahil, nang dahil sa inyo, medyo bumilis-bilis ng konti yung pagsagot ng LTFRB.
10:20.4
So, before our interview, I was in another interview, the new USEC of Department of Transportation, si Andy Ortega, is now coordinating with me.
10:30.4
And he's also talking to Chairman Guadiz of LTFRB on the best way forward.
10:38.4
So, I'm very optimistic na nandyan si USEC Ortega.
10:43.4
He's been two days as USEC, but he was the chairman of OTC before that.
10:48.4
I'm very confident na medyo bibilis yung proseso nito.
10:53.4
So, what is the process? How will this work?
10:55.4
So, the Chupere Hero program, ang pwedeng sumali dito ay yung mga jeepney operators with valid franchises.
11:02.4
So, it could be yung mga transport cooperatives, transport corporations.
11:06.4
So, ang nagbibigay naman ng valid franchise is LTFRB. So, it's part of it.
11:11.4
So, lahat sila pwedeng sumali.
11:13.4
And lahat ng sasali, meron sila mga lumang jeep.
11:16.4
So, yung mga lumang jeep nila, we can still use them to operate them and help them na lumaki yung kita nila.
11:24.4
Because we will have the unlimited rides na tickets.
11:28.4
Isa yan sa proposal natin sa LTFRB of which pinag-aaralan nilang mabuti.
11:33.4
Yung unlimited rides, it's just like sa ibang developed countries na kapag sumakay ka ng train, you can buy a ticket, you can hop on, hop off unlimited times in a day.
11:42.4
Or in a week or in a month. So, depende sa ticket na bibiliin mo.
11:46.4
So, kung kayang gawin nyo ng developed countries, why can't we do it here sa Philippines?
11:51.4
So, of course, I understand that LTFRB has to follow some existing rules and regulations, existing laws.
11:58.4
But, of course, we can never have progress if we will just follow the old rules, old laws na dekadekada na rin katanda yung mga rules na yan.
12:07.4
So, we have to change certain things for us to have rules.
12:10.4
Certain things for us to have real progress.
12:13.4
Now, why are we doing this? Ang problema kasi ng mga operators natin is the cost ng mga sasakyan.
12:21.4
So, kung ang problema nila ay cost, ang solusyon is hindi pa utangin.
12:26.4
We create a business model na hindi yung lulubog sila sa utang.
12:30.4
We create a business model that is sustainable enough that we can actually give the jeepneys for free.
12:36.4
Kasi dito sa model na ito, we will have yung unlimited rides nga.
12:40.4
Dito sa unlimited rides tickets na ito, diyan kukunin yung sweldo ng mga drivers.
12:44.4
Diyan kukunin yung kita ng mga transport cooperatives.
12:48.4
Of course, Francisco Motors will have a profit also because we are a social enterprise.
12:53.4
It's a business. Hindi naman kami DSWD.
12:56.4
Elmer, but you mentioned earlier, pwedeng gamitin ng mga operators yung mga lumang jeepney nila.
13:04.4
So, you will convert these jeepneys?
13:09.4
So, pwede pa nilang gamitin yung jeepneys nila.
13:11.4
Kasi ang rule ng LTFRB is from the approval ng LPTRP or Public Transport Route Plan,
13:19.4
from that approval, binibigyan sila ng 27 months or a little more than 2 years to replace the old jeepneys with modernized units.
13:30.4
Yes. So, within that period, ang gagawin natin, continue pa rin. So, magkakonsolidate sila.
13:37.4
Then, tuloy-tuloy pa rin, gagamitin pa rin yung mga old jeepneys nila hanggang sa unti-unti natin mapalitan ng modernized units.
13:45.4
But the difference is wala silang kailangan bayaran.
13:48.4
We will give these jeepneys to them for free.
13:51.4
Then, aside from that, ang maintenance ito kasi under warranty. Lifetime yung ano niya, yung warranty niya.
13:57.4
So, yun yung maganda.
14:00.4
Yes. So, ang maganda dyan, yung mga pasahero, makakatipid din sila dahil doon sa unlimited rides.
14:06.4
So, instead of paying every time sasakay sila, they'll just be paying once in a month.
14:10.4
Alright. Elmer, just very quickly, we're showing live footage from the Philippine Stock Exchange.
14:16.4
This is coming to us live from
Taguig. The countdown to the special bell ringing.
14:22.4
This is for the listing of Cebula and Masters, 5 billion pesos. So, follow on offer.
14:26.4
Three, two, and one.
14:30.4
I hope we have a sound here.
14:33.4
Alright. Just imagine the sound, but it's a special.
14:35.4
We are seeing Mr. Sobedano, the father, his son Joe, shaking hands now with PSC President Ramon Monson.
14:42.4
Of course, the third guy from the bell wearing a gray suit. We just had him about a few weeks ago.
14:49.4
That's Grant Chang, the CFO.
14:53.4
So, again, this is for the 5 billion pesos follow on offer of Cebula and Masters.
14:56.4
This comprised of 5 million series A preferred shares, 1,000 apiece issued in two sub-series.
15:02.4
That's series A1 and A2.
15:05.4
The funds raised will be used to partially finance project development and capex.
15:09.4
The Visman developer, as we reported a few weeks ago, posted a 29% growth in full year 2023.
15:15.4
Consolidated that income at 4.6 billion as revenue grew 20% to nearly 19 billion pesos.
15:21.4
More on that later. I think we can go back to Elmer just very quickly.
15:25.4
Hi, Elmer. Sorry about that. We just had to bring in the live shots from the Stock Exchange.
15:30.4
Yeah. Actually, it's like I heard the actual ringing of the bell.
15:35.4
Atabi pa lang yung Philippine Stock Exchange.
15:37.4
Oh, alright. Elmer, just speaking of investors, Maharlika Investment Fund is keen on putting money into your project, into your ambitious plan.
15:47.4
Where are you on that?
15:49.4
Yeah, we're talking. We haven't agreed on anything yet, anything concrete.
15:53.4
We're talking si Joel Conzing, pati yung board ng Maharlika.
15:58.4
But what we are talking about are about the terminals.
16:01.4
Because Francisco Motors, hindi lang jeepney ginagawa natin.
16:04.4
Like what I mentioned, the manufacturing is just a tiny part of the bigger plan.
16:09.4
Part of it is we will put up terminals, jeepney terminals.
16:13.4
We have an ambitious plan of putting up 100 terminals.
16:17.4
That's one for each province, 82 provinces, then 17 sa Metro Manila and one Central.
16:23.4
So ang pinag-uusapan namin ng Maharlika Investment Corporation is for them to fund the first terminal.
16:29.4
So yun pala yung pinag-uusapan namin ngayon.
16:34.4
Yung pinag-uusapan namin is I'm coordinating with the office of House Speaker Valdez.
16:39.4
Because we are looking into idle government properties owned by the national government.
16:45.4
Because with that, magiging yung non-performing asset ng government magiging revenue generating.
16:51.4
Aside from that, we don't have to buy the property.
16:54.4
So makakatipid tayo doon. That's one. It could be a tripartite agreement.
16:59.4
So owned by the national government.
17:01.4
So if Maharlika Investment Corporation may fund the development, then we can operate the terminal.
17:07.4
Sa terminal, magkakaroon yan ng ano, of course, yung mga modernized jeepneys natin.
17:12.4
Diyan yung terminal. We'll have service bays after sales parts.
17:16.4
And we'll have depots for our charging stations and hydrogen.
17:20.4
So yan yung isang pinag-uusapan namin ng MIC.
17:24.4
Alright. How much investments will the MIC need to make to make this work?
17:28.4
Because you're looking at them funding just one. The first one.
17:30.4
Yes. Actually for the whole project, yung 100 terminals, that would cost us around $200 million.
17:40.4
I'm sorry, $500 million.
17:43.4
But since it's one terminal, let's just do the math, it's around $5 million.
17:51.4
Yes. For the first terminal.
17:54.4
Oh wow. And how do you plan to bankroll the rest of the 99 terminals?
18:00.4
Actually, aside from internal funding, we also have negotiations, ongoing negotiations with many different financing companies, financing institutions, both foreign and domestic.
18:16.4
So yung sa foreign, medyo malaki-laki din. They're very interested.
18:21.4
Alam mo, ang pinaka-interesado sila is the green portion of it.
18:26.4
Kasi ano nga eh, renewable energy, renewable sources, electric vehicles. Then we're going for hydrogen.
18:33.4
Then aside from that, I also got a pledge two days ago, of which ina-announce yan ngayon as we speak.
18:40.4
Ina-announce yan ngayon ni Climate Change Commissioner Albert de la Cruz sa Kapihan sa Manila Hotel.
18:46.4
Our COO, Mr. Christian Sano says, there with him. Right now, i-announce niya yan.
18:51.4
Dahil nag-pledge siya ng 200 million pesos para dito sa project na ito.
18:55.4
For ano, i-gagawa natin yan ng mga electric jeepneys for us to give away for free.
19:00.4
And Elmer, how many electric jeepneys are you looking to give away for free again?
19:05.4
As many as we can, actually. Many as we can.
19:09.4
Because with this business model, Mimi, we can give all jeepneys for free.
19:15.4
With this business model that we did, yun sa Superhero Program, of which niya ko yan ng klarong-klaro sa LTFRB.
19:22.4
I understand that their hands are tied.
19:24.4
They have to follow certain rules.
19:26.4
But the way to move forward is to keep the communications open so we can work on possible solutions.
19:34.4
Madali naman kaming kausap. We can make adjustments dun sa mga policies.
19:41.4
Kung meron tayong kailangan sundi ng existing policies, we can do that.
19:45.4
Final question, Elmer. Are you looking at welcoming new investors into Francisco Motors?
19:51.4
Maybe tapping the capital markets?
19:55.4
Yes, we are talking. Actually, nag-uusap kami kahit SEC.
20:01.4
Nag-uusap kami regarding that.
20:03.4
But for now, alam mo, sabi mo nga Mimi, it's an ambitious plan.
20:08.4
My plan is to go for the unicorn status.
20:11.4
So we're not going public anytime soon because we have a unique situation here and it's achievable.
20:18.4
Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.
20:21.4
Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.
20:22.4
Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.
20:23.4
Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.
20:24.4
To become a unicorn. So a unicorn is a business that is valued at least $1 billion.
20:30.4
Then we'll go public.
20:32.4
Okay. And when will this unicorn be born?
20:35.4
Ano eh? Ginagawa pa namin eh.
20:40.4
We will let you know.
20:43.4
Hopefully before that.
20:44.4
Hopefully before that.
20:45.4
All right. On that note, Elmer, thank you so much for joining us, for walking us through the manufacturing requirements of Francisco Motors.
20:50.4
All right. On that note, Elmer, thank you so much for joining us, for walking us through the manufacturing requirements of Francisco Motors.
20:52.4
We are very excited to see what you will do with the Chaper Hero program and for this unicorn to be born.
20:57.4
We are very excited to see what you will do with the Chaper Hero program and for this unicorn to be born.
20:59.4
Thank you again and have a great weekend.
21:01.4
Thank you. Thank you, Mimi.
