By Elaine Ramos Alanguilan

Universal Motors Corp., the local assembler of Nissan commercial vehicles, has postponed plans to expand its production facilities in light of the global financial crisis.

“We’re definitely going to push through with the proposed investment but not at this time. Everyone is on a wait-and-see stance because of the global financial crisis,” said Elizabeth Lee, company executive vice president.

She said the company was committed to push through with the project but would assess the impact of the global financial meltdown, which has severely hit the American automotive industry, on the local market.

The company last year disclosed plans to assemble eight commercial vehicles over five years as part of efforts to corner a bigger share of the market. Universal Motors said the assembly of new and more affordable commercial vehicles would give auctioneers of used vehicle imports stiffer competition.

The Board of Investments already approved the granting of fiscal incentives to the expansion project, will involve initial fresh investments of about P205 million.

The new manufacturing line, to be put up at the assembler’s facility in Santa Rosa, Laguna, will have the capacity to produce 6,676 units of vehicles a year.

The new line was supposed to start commercial operations in July this year. It would have generated additional employment to 195 persons at full capacity.

The project calls for the acquisition of entirely new sets of production equipment and machinery.

The company had proposed to assemble a sports utility vehicle with a suggested retail price of P750,000; a utility truck with a price tag of P600,000; a window van to be sold for P700,000; a multi-purpose vehicle selling for P600,000; and a station wagon with a unit price of P600,000.

The new models, according to the project profile filed with the investments board, will perform strongly due to their high fuel economy and spacious and functional interiors.

Universal Motors will import most of the knocked-down parts for the assembly operations from Nissan Motor Co. Ltd. of Japan. Nissan Japan assured Universal Motors and customers of the availability of parts and components.