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Elmer, you know, much has been said about the PUV modernization.

So I want to start from a different angle.

You are a second generation Francisco, I understand.

It was your dad who set it up.

And you're passing the baton soon to your son as well.

I wonder, this PUV modernization program,

do you see this as the next leg of growth for Francisco Motors?

Yes, actually, that's something that we are looking at.

And it's really a chance, not only for Francisco Motors,

but it's a chance for the Philippines to industrialize, finally.

So this is our chance.

So why are we giving it to foreign manufacturers

when we local manufacturers can build better jeepneys than what they are doing?

So that's actually our question.

Better jeepneys.

Local manufacturers can build better jeepneys.

That takes me to my next question.

Do the local industry,

does the local industry have the manufacturing capacity?

Do we have the supply chain, the logistical chain,

and the financial muscle to take on this daunting task and compete?

If you think about it, with China-made cars that are very cheap,

you can get them for as low as 500,000 pesos.

Yes, actually, Mimi,

I've always believed that we have to think big to solve smaller problems.

In fact, the jeepney manufacturing of Francisco Motors

is just a tiny part of the big...

of the bigger project that we are doing,

because we are developing a special economic zone,

a 200-hectare special economic zone in Camarines Norte,

of which the jeepney manufacturing is just one of those locators in that economic zone,

wherein we are inviting all of the suppliers in the supply chain

of the manufacturing of electric jeepneys

to locate in that special economic zone.

So this endeavor will generate a lot of demand.

So this endeavor will generate a lot of demand.

It will generate a lot of jobs for Filipinos here at home

of which, if we continue to import minibuses from other countries

like China, India, or wherever,

we are taking away jobs that are supposed to be for the Filipino workforce.

So this is one of the reasons why Francisco Motors is doing this

to preserve or to save the jobs that are supposed to be for Filipinos

and not export those jobs to other countries.

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?

We all know how the jeepney is iconic, it's something, it's very rich in history.

But when you go to, for example, the Francisco Motors facility, what do we see?

Do we see automated supply chains moving these jeepneys from one point to the next or is it mostly, do we see lateros?

What's the plan here? Do you buy the engines abroad and then just, you know, isasalpak na lang yung katawan ng jeepney?

How will this work? How advanced?

Yes, Mimi, we have been building jeepneys for 77 years already.

So ever since 1960, 1947 to 1959, lahat yan surplus.

Galing yan sa military jeeps that were left by the U.S. Army.

After World War II.

But since 1960, lahat ng jeepney na ginagawa ng Francisco Motors, ay 100% brand new.

So 1960, we brought in Isuzu to the Philippines.

So we used Isuzu engines from Japan.

Then we added Mazda in the 1970s.

So dalawang engines ng Francisco Motors.

So Isuzu and Mazda.

But recently, since we already, dito sa POV modernization program,

we already have yung Evita, yung electric vehicle industry development.

Which was passed last April 2022.

Which enables us to locally build or locally manufacture our own drivetrains, our electric drivetrains.

Because of this, we will no longer be importing engines from foreign manufacturers.

We will be mass producing them in our facility that we are building at Camarinas Norte.

So since you asked, dati, even in the 80s and 90s, without automation,

without competition,

ang mass production or assembly line ng Francisco Motors sa Las Piñas

ay nakakagawa ng 12,000 units per year.

So ganoon ang ganoon natin.

Kasi mass production yan, hindi yan yung pok-pok-pok-pok sa backyard.

Ah, wow.

Mas production talaga yan.

Because Francisco Motors, hindi lang naman jeepney yung ginawa natin.

We also built commercial vehicles, trucks, buses, vans, yung mga Mazda na pickups, mga vans,

and also cars.

We also brought in Hyundai.

From South Korea, sa Pilipinas, and Fiat from Italy.

So marami tayong ibang experience sa ibang mga vehicles.

Not only the jeepneys, we also have the locally developed ANFRA na utility vehicle,

and Pinoy na utility vehicles.

So basically, what we're doing right now is,

yung sa Las Piñas namin na planta,

we already closed it down because we're transferring to Camarinas Norte,

sa Special Economic Zone,

so that we can avail of fiscal and non-fiscal incentives from the government.

So that we could further learn,

and lower the costs of production.

So natutuwa ko dahil ang pesa, meron na silang domestic market enterprise,

of which we cater to the domestic market.

Aside from keeping our eyes on export,

because in the future, we will be exporting.

So gagawa tayo dito ng ating mga electric vehicles.

And Francisco Motors has gone full electric.

So we will not be building fossil fuel powered vehicles anymore.

Then, aside from the battery electric vehicles,

we are also going to the direction of hydrogen.

So hydrogen fuel cells for our land transportation and also for our EV tolls.

EV tolls are electric vertical take-off and landing vehicles.

So soon enough, maybe next year, you'll be seeing flying jeepneys.

Exciting times.

But before we get to the flying jeepneys,

let's talk about the Special Economic Zone in Camarinas Norte.

When will it be fully operational?

When are you making the big move?

And how many players are currently signed up for this Special Economic Zone?

It's a 200-hectare property, you say?

Yes. So it's a 200-hectare property.

Yan yung pinag-uusapan namin ni Governor Dong Padilla of Camarinas Norte

and also Director General Teo Panga ng PESA.

So we will start developing the 30 hectares out of the 200 hectares.

Kasi yung 30 hectares, meron na yung presidential property.

Meron na yung presidential proclamation sa Special Economic Zone.

So we can already start developing that.

So nandun tayo sa point na yun ngayon.

We will be starting land development.

Then we will be putting our equipment, our plant and equipment

for the manufacturing ng mass production ng jeepneys, na electric jeepneys.

So we will also be mass producing the drive trains there,

electric drive trains and the batteries.

So we will have those locally produced, yung mga drive trains.

Of which, hindi lang yan para sa Francisco Motors.

Ang plano namin, nakikipag-usap din kami sa ibang mga local manufacturers,

katulad sila sa RAU.

We can also supply drive trains to them and also local manufacturers.

Kasi hindi naman madamot si Francisco. So we are sharing.

So you're confident, Elmer, that you can gather the key critical suppliers

Yes, we can.

to set up an EV supply chain in that eco-zone?

Yes, Mimi. So we are starting.

But alam mo, ang Francisco Motors kasi hindi kami bago dun sa electric na space.

Because since the 1980s, meron na tayong electric jeepneys.

1980s pa. Pero of course, the battery technology back then was different.

Lead-acid deep cycle pa yung batteries noon. Ngayon, lithium na.

Then, like what I said,

soon enough, maybe by next year, we will replace already the lithium batteries with hydrogen fuel.

What is the difference, Elmer, for those who are not technical,

what's the difference between EV that runs on lithium versus hydrogen fuel cell?

Number one difference is the range.

So yung range niyan, ang battery kasi, very limited ang range.

Kasi as you add more batteries, bumibigat yung sasakyan.

So yung range mo, parang hindi na nagiging efficient.

So you can go as maybe 400 kilometers or 500 kilometers.

With hydrogen, you can have more range, like 500 to 900 kilometers.

Kasi ang battery electric, you charge it sa charging stations,

of which Francisco Motors din ang maglalagyan ng charging stations sa lahat ng lugar na magde-deploy tayo ng electric jeepneys.

But with hydrogen, you will just refuel it with hydrogen, green hydrogen.

So yan, part din yung ginagawa ng Francisco Motors.

In collaboration with different companies, both local and foreign,

will be producing green hydrogen, yung produced by renewable sources.

Alright, so from this special economic zone, let's talk about your Chupere Hero program.

You've actually been pitching this to government, but I heard it's taking a very long time to get approvals.

Considering that you plan to give away some of these EVs to drivers, how will this work?

What's the business model here?

You own the electric jeepneys, and the operators are just partners.

How about the drivers? Walk us through the process.

Okay, the Chupere Hero program.

First, sinong mga pwedeng sumali sa Chupere Hero program ng Francisco Motors?

Ito yung proposal natin sa DOTR and sa LTFRB, of which yung pag-uusap namin ay ongoing.

Nagpapasalimot nga sa inyo, pati sa ibang mga kasamahan natin sa media.

Dahil, nang dahil sa inyo, medyo bumilis-bilis ng konti yung pagsagot ng LTFRB.

So, before our interview, I was in another interview, the new USEC of Department of Transportation, si Andy Ortega, is now coordinating with me.

And he's also talking to Chairman Guadiz of LTFRB on the best way forward.

So, I'm very optimistic na nandyan si USEC Ortega.

He's been two days as USEC, but he was the chairman of OTC before that.

I'm very confident na medyo bibilis yung proseso nito.

So, what is the process? How will this work?

So, the Chupere Hero program, ang pwedeng sumali dito ay yung mga jeepney operators with valid franchises.

So, it could be yung mga transport cooperatives, transport corporations.

So, ang nagbibigay naman ng valid franchise is LTFRB. So, it's part of it.

So, lahat sila pwedeng sumali.

And lahat ng sasali, meron sila mga lumang jeep.

So, yung mga lumang jeep nila, we can still use them to operate them and help them na lumaki yung kita nila.

Because we will have the unlimited rides na tickets.

Isa yan sa proposal natin sa LTFRB of which pinag-aaralan nilang mabuti.

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.

Or in a week or in a month. So, depende sa ticket na bibiliin mo.

So, kung kayang gawin nyo ng developed countries, why can't we do it here sa Philippines?

So, of course, I understand that LTFRB has to follow some existing rules and regulations, existing laws.

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.

So, we have to change certain things for us to have rules.

Certain things for us to have real progress.

Now, why are we doing this? Ang problema kasi ng mga operators natin is the cost ng mga sasakyan.

So, kung ang problema nila ay cost, ang solusyon is hindi pa utangin.

We create a business model na hindi yung lulubog sila sa utang.

We create a business model that is sustainable enough that we can actually give the jeepneys for free.

Kasi dito sa model na ito, we will have yung unlimited rides nga.

Dito sa unlimited rides tickets na ito, diyan kukunin yung sweldo ng mga drivers.

Diyan kukunin yung kita ng mga transport cooperatives.

Of course, Francisco Motors will have a profit also because we are a social enterprise.

It's a business. Hindi naman kami DSWD.

Elmer, but you mentioned earlier, pwedeng gamitin ng mga operators yung mga lumang jeepney nila.

So, you will convert these jeepneys?

No.

No.

So, pwede pa nilang gamitin yung jeepneys nila.

Kasi ang rule ng LTFRB is from the approval ng LPTRP or Public Transport Route Plan,

from that approval, binibigyan sila ng 27 months or a little more than 2 years to replace the old jeepneys with modernized units.

So, pang-tawin?

Yes. So, within that period, ang gagawin natin, continue pa rin. So, magkakonsolidate sila.

Then, tuloy-tuloy pa rin, gagamitin pa rin yung mga old jeepneys nila hanggang sa unti-unti natin mapalitan ng modernized units.

But the difference is wala silang kailangan bayaran.

We will give these jeepneys to them for free.

Then, aside from that, ang maintenance ito kasi under warranty. Lifetime yung ano niya, yung warranty niya.

So, yun yung maganda.

Okay.

Yes. So, ang maganda dyan, yung mga pasahero, makakatipid din sila dahil doon sa unlimited rides.

Okay.

So, instead of paying every time sasakay sila, they'll just be paying once in a month.

Alright. Elmer, just very quickly, we're showing live footage from the Philippine Stock Exchange.

This is coming to us live from Taguig. The countdown to the special bell ringing.

This is for the listing of Cebula and Masters, 5 billion pesos. So, follow on offer.

Three, two, and one.

I hope we have a sound here.

Alright. Just imagine the sound, but it's a special.

We are seeing Mr. Sobedano, the father, his son Joe, shaking hands now with PSC President Ramon Monson.

Of course, the third guy from the bell wearing a gray suit. We just had him about a few weeks ago.

That's Grant Chang, the CFO.

So, again, this is for the 5 billion pesos follow on offer of Cebula and Masters.

This comprised of 5 million series A preferred shares, 1,000 apiece issued in two sub-series.

That's series A1 and A2.

The funds raised will be used to partially finance project development and capex.

The Visman developer, as we reported a few weeks ago, posted a 29% growth in full year 2023.

Consolidated that income at 4.6 billion as revenue grew 20% to nearly 19 billion pesos.

More on that later. I think we can go back to Elmer just very quickly.

Hi, Elmer. Sorry about that. We just had to bring in the live shots from the Stock Exchange.

Yeah. Actually, it's like I heard the actual ringing of the bell.

Atabi pa lang yung Philippine Stock Exchange.

Oh, alright. Elmer, just speaking of investors, Maharlika Investment Fund is keen on putting money into your project, into your ambitious plan.

Where are you on that?

Yeah, we're talking. We haven't agreed on anything yet, anything concrete.

We're talking si Joel Conzing, pati yung board ng Maharlika.

But what we are talking about are about the terminals.

Because Francisco Motors, hindi lang jeepney ginagawa natin.

Like what I mentioned, the manufacturing is just a tiny part of the bigger plan.

Part of it is we will put up terminals, jeepney terminals.

We have an ambitious plan of putting up 100 terminals.

That's one for each province, 82 provinces, then 17 sa Metro Manila and one Central.

So ang pinag-uusapan namin ng Maharlika Investment Corporation is for them to fund the first terminal.

So yun pala yung pinag-uusapan namin ngayon.

Yung pinag-uusapan namin is I'm coordinating with the office of House Speaker Valdez.

Because we are looking into idle government properties owned by the national government.

Because with that, magiging yung non-performing asset ng government magiging revenue generating.

Aside from that, we don't have to buy the property.

So makakatipid tayo doon. That's one. It could be a tripartite agreement.

So owned by the national government.

So if Maharlika Investment Corporation may fund the development, then we can operate the terminal.

Sa terminal, magkakaroon yan ng ano, of course, yung mga modernized jeepneys natin.

Diyan yung terminal. We'll have service bays after sales parts.

And we'll have depots for our charging stations and hydrogen.

So yan yung isang pinag-uusapan namin ng MIC.

Alright. How much investments will the MIC need to make to make this work?

Because you're looking at them funding just one. The first one.

Yes. Actually for the whole project, yung 100 terminals, that would cost us around $200 million.

I'm sorry, $500 million.

But since it's one terminal, let's just do the math, it's around $5 million.

For a start?

Yes. For the first terminal.

Oh wow. And how do you plan to bankroll the rest of the 99 terminals?

Actually, aside from internal funding, we also have negotiations, ongoing negotiations with many different financing companies, financing institutions, both foreign and domestic.

So yung sa foreign, medyo malaki-laki din. They're very interested.

Alam mo, ang pinaka-interesado sila is the green portion of it.

Kasi ano nga eh, renewable energy, renewable sources, electric vehicles. Then we're going for hydrogen.

Then aside from that, I also got a pledge two days ago, of which ina-announce yan ngayon as we speak.

Ina-announce yan ngayon ni Climate Change Commissioner Albert de la Cruz sa Kapihan sa Manila Hotel.

Our COO, Mr. Christian Sano says, there with him. Right now, i-announce niya yan.

Dahil nag-pledge siya ng 200 million pesos para dito sa project na ito.

For ano, i-gagawa natin yan ng mga electric jeepneys for us to give away for free.

And Elmer, how many electric jeepneys are you looking to give away for free again?

As many as we can, actually. Many as we can.

Because with this business model, Mimi, we can give all jeepneys for free.

With this business model that we did, yun sa Superhero Program, of which niya ko yan ng klarong-klaro sa LTFRB.

I understand that their hands are tied.

They have to follow certain rules.

But the way to move forward is to keep the communications open so we can work on possible solutions.

Madali naman kaming kausap. We can make adjustments dun sa mga policies.

Kung meron tayong kailangan sundi ng existing policies, we can do that.

Final question, Elmer. Are you looking at welcoming new investors into Francisco Motors?

Maybe tapping the capital markets?

Going public?

Raising funds?

Yes, we are talking. Actually, nag-uusap kami kahit SEC.

Nag-uusap kami regarding that.

But for now, alam mo, sabi mo nga Mimi, it's an ambitious plan.

My plan is to go for the unicorn status.

So we're not going public anytime soon because we have a unique situation here and it's achievable.

Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.

Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.

Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.

Di ba? Maganda na meron tayong Filipino-owned and Filipino-grown company.

To become a unicorn. So a unicorn is a business that is valued at least $1 billion.

How soon?

Then we'll go public.

Okay. And when will this unicorn be born?

Ano eh? Ginagawa pa namin eh.

Five years?

We will let you know.

All right.

Hopefully before that.

Hopefully before that.

All right. On that note, Elmer, thank you so much for joining us, for walking us through the manufacturing requirements of Francisco Motors.

All right. On that note, Elmer, thank you so much for joining us, for walking us through the manufacturing requirements of Francisco Motors.

We are very excited to see what you will do with the Chaper Hero program and for this unicorn to be born.

We are very excited to see what you will do with the Chaper Hero program and for this unicorn to be born.

Thank you again and have a great weekend.

Thank you. Thank you, Mimi.

Thank you.