SMC, Alvarez form JV for BMW business

Diversified conglomerate San Miguel Corporation has firmed up its plans to invest in the importation, distribution and servicing of BMW vehicles in the country with the filing of an application to incorporate its joint venture with businessman Jose Alvarez.

In a disclosure to the Philippine Stock Exchange, SMC Chief Finance Officer Ferdinand K. Constantino said the “the constitutive documents for the incorporation of SMC Asia Car Distributors Corp. was filed with the Securities and Exchange Commission.

“SMC Asia Car will be the corporate vehicle that will engage in the business referred to herein (importation, distribution and servicing of BMW vehicles in the Philippines) and is 65 percent owned by the company and 35 percent owned by Mr. Jose Alvarez, respectively,” said Constantino.

SMC President Ramon S. Ang said earlier that he was invited by Alvarez to become a part owner of the company. “Don Pepito (Alvarez) and (San Miguel) chairman (Eduardo Cojuanco) are very close. And he (Don Pepito) invited me. I am going to be a director this coming month (June) and an investor also,” he said.

As a mechanical engineering graduate, the tycoon started out in the automotive business and was particularly known for souping up race cars. He is still an avid collector of sports cars.

Ang said the luxury vehicle industry is very competitive in the Philippines and noted that sales of BMW already hits P3 billion on a good year.

“That’s little for us in San Miguel, since the company is used to having billions in revenues,” Ang said.

Alvarez Group owns Asian Carmakers Corp. It has the widest dealership network in the luxury vehicle segment with eight dealerships.

These include 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.