In July 1958, DMG Inc., the exclusive assembler and distributor of Volkswagens in the Philippines started delivering VW Transporters of the Kombi Type. The following months saw the arrival of the other VW’s - the delivery vans, pick-ups and the famous Beetle made their appearance. They had 17 dealers. In 1969, they introduced the Sakbayan, considered the first Filipino car. Also introduced was the Trakbayan, a commercial vehicle. Both used the VW Type 1 engine and most of the VW components. The sporty Toro was also introduced. It had parts used by the Karmann Ghia.

In 1977, there are more than 47,000 VW’s in the country. Today, a large quantity is still running. Due to the value of the Philippine Peso against the German Deutchmark in 1980, the VW vehicles from Germany had a price disadvantage over similar Japanese cars, DMG had no other option but to cease operation.VW left the Philippine market in March 31,1981. When the local distributor closed operations, the VW car owners relied on independent importers for their spare parts. The Filipinos, known for their resourcefulness and ingenuity was able to maintain their VW’s by dismantling wrecked or junked VW’s for the reusable and recyclable parts. You should see the performance and quality of these restored and maintained cars. Soon after, a core group that shared the same VW interest started to emerge.

Volkswagen was back only in June 14, 1996 to introduce the VW Polo Classic and the Caravelle. It was no less than the President of the Philippines, Fidel V. Ramos who was the guest of honor at the launching ceremonies.
Here is his speech:

Statement of  H.E. President Fidel V. Ramos
Launching of Volkswagen Models Polo Classic and
Caravelle by Exclusive Assembler and Distributor
Proton Pilipinas Corporation, Manila Polo Club,
Forbes Park, Makati City, Philippines
1730H, June 14, 1996

Introduction

With pride and pleasure, we welcome the re-entry of Volkswagen into the Philippine Automotive Market. This is a significant occasion that, I am certain, will be greeted with great joy, not only by the faithful admirers of this lovable car, but also by ordinary Filipinos who have now been afforded a wider choice in the market.

The entry of Volkswagen has been made possible by the strategic alliances Proton Pilipinas has forged with Proton, Volkswagen and Audi. I am delighted to learn that very soon Proton Pilipinas will also launch its Audi product, and within a few months, the first complete ASEAN car from the Proton Pilipinas factory in Alaminos, Pangasinan.

I commend Proton Pilipinas for taking advantage of our liberalized trade and investment policies to make these auspicious advances. With these partnerships, they are able to share and fully exploit their plant capacity, paving the way for sustainable growth and improved viability.

Promoting Industrialization

I also cite Proton Pilipinas for spearheading the industralization of the north, specifically Region One. The Proton Industrial Park in Pangasinan has become a symbol of successful collaboration, not only of business and industrial ventures on the part of two countries but of several countries. It has created new jobs, developed industrial capabilities and expanded our modernization prospects.

The Proton Industrial Park's Multi-brand complementation is not singly focused on cars, but extends as well to automotive components, aircraft assembly and overhaul, and completion centers. This makes the park a new science and technology growth center.

This dynamism took place under the guidance of  Mr. Peter Y. Rodriguez, President and Chief Executive Officer of Proton Pilipinas.

A Laudable Endeavor

As we welcome Volkswagen as a major player in our car development program (CDP) and commercial vehicle development program (CVDP), we continue to encourage others to come to the Philippines which is now a prime location for business and industry. We share in Volkswagen's strategic vision of setting-up its Asia-Pacific regional vehicle export assembly and component manufacturing in the Philippines. This is a laudable endeavor to which we are happy to lend our full support.

The commitment of Proton Pilipinas and Volkswagen to this worthy endeavor heralds increased cooperation among the Philippines, Malaysia and Germany. This project is being undertaken by a multi-national team composed of people from ten countries, namely, Germany, the United States, Spain, South Africa, Singapore, Malaysia, Hongkong, China, Taiwan and the Philippines.

This spirit of cooperation and teamwork, indeed, moves the Philippines closer to economic prosperity, social equity and global competitiveness.

Thank you and Mabuhay!

Mr Domingo S. Guevara, Jr. has generously answered my questions on the history of Volkswagens in the Philippines. Here are the details:

Wilfred T. Ruiz: Who were the founding fathers?

Domingo S. Guevara, Jr: The founder of DMG Inc. is Mr. Domingo M. Guevara Sr.

WTR: What date was the VW operations of the DMG (Group of Companies) established?

DSG: The company was incorporated in 1955. Although the actual operations of the Volkswagen business started only in 1958. The original meaning of DMG was DIESEL MOTORS OF GERMANY. Its initial representation in the Philippines was that of Henschel and Hanomag diesel engines and trucks. It was only in 1958 that DMG started its assembly of COMMERCIAL vehicles or KOMBI. The BEETLE or VW 113 was eventually assembled in mid 1959.

WTR: Where was the corporate office located?

DSG: The corporate headquarters of DMG was initially housed at 53 Tanduay St., Quiapo, Manila. The first Service shop was located on Mendoza St., Quiapo, Manila.The corporate HQ was eventually transferred to the VW HOUSE corner T.M. Kalaw and Florida Str., Ermita, Manila in 1967. The assembly plant was located at the DMG-RW Compound along Libertad St., Mandaluyong City. The assembly plant was transferred to the former Ysmael Compound at 333 Rodriguez Ave., Quezon City from 1974 to 1981.

WTR: Were there foreign partners?

DSG: There were no foreign partners. Some of the minority partners in DMG Inc. were the ALVENDIA, TUASON, & SIBAL families.

WTR: What was the business structure relationship of DMG and VW Germany?

DSG: The business relationship between DMG and VW AG. was based on an EXCLUSIVE IMPORTER-DISTRIBUTOR & ASSEMBLER contract.

WTR: Were there German advisers or executives?

DSG: The first German Technical man to be assigned in the Philippines was Herr. Manfred Rullman, who helped set-up the assembly plant. The second one was Herr. Leonard Ober, who set up the service and parts operations.

WTR: Where were the assembly plants located?

DSG: The assembly plant was originally located in a 7 ha. property along Libertad St., Mandaluyong City and then transferred to the former Ysmael Compound along E. Rodriguez Ave. QC, from 1957 to 1974 and 1974 to 1981 respectively.

WTR: Who were the government, business and famous personalities that attended the inauguration?

DSG: The late President Diosdado Macapagal was present during the inaguration of the Libertad assembly plant.

WTR: When did the first VW roll out of the assembly line?

DSG: The first Kombi rolled out in 1957. The first BEETLE rolled out in 1959.

WTR: What was the total production for the first few months of operation?

DSG: The first 48 units of KOMBIs were assembled in the first two months of operation. The first 120 BEETLES were also assembled in two months in 1959.

WTR: What were the types of VW’s assembled here?

DSG: The types assembled were: TYPE 1 (beetles) Type 11 (kombis,single & double cabs, pick-ups and Vans, Type 111 Sedans and Variants, Brazilian Beetles, Kombis, and Passats, and our own SAKBAYANS (THE FIRST REAL FILIPINO DESIGNED AND FABRICATED VEHICLE!)

WTR: What was the total (yearly) production at its peak? What year was it?

DSG: The best year was 1970 when we built a total of 6100 vehicles and became #1 in the Philippines market.

WTR: How many workers were employed?

DSG: During our peak period, we had only about 250 employees. This was because we were purely assembling CKD units. It was only in 1975 that the Progressive Car Manufacturing Program became fully operational, thus forcing the assemblers to go into parts manufacturing or develop vendor parts manufacturers.

WTR: What VW was last assembled here?

DSG: The last models to be assembled were the Brazilian Beetle, Brazilia Sedan, Kombi and the Passat.

WTR: Where was the first dealership located? When did it open?

DSG: The first dealership was opened in Manila. It was called Radiowealth Trading Corp. and had its main office at 430 Tanduay St., Quiapo, Manila. It opened in 1957 and sold the first 48 units of KOMBIs. Unfortunately, we have no recollection of the first customer.

WTR: What VW’s that were not assembled here, were ordered through DMG?

DSG: We were selling TAX FREE VW Beetles, Kharman Ghias, MIcro Buses and even Campers, mostly to Americans and foreign Embassy personnel thru our DIRECT SHIPMENT ORDER (DSO) or thru TOURIST DELIVERY program.

WTR: At its peak, how many dealerships were there?

DSG: There were basically only two dealers in Metro Manila and eight independent provincial dealers.

WTR: What companies ordered the VW’s as their fleet vehicles?

DSG: The bulk of our fleet users were the major PHARMACEUTICAL companies, TRANSNATIONAL and MULTINATIONAL companies. The "biggies" then were the ZUELLIG GROUP, CIBA-GEIGY, MARSMAN, CALTEX, GOODYEAR, GOODRICH, and UNITED LAB.

WTR: Where was the first service center located?

DSG: The first service center was in Mendoza St., Quiapo, Manila

WTR: At its peak, how many service centers were there?

DSG: (Twenty Three: They are:) P.Tamo (Makati),Magsaysay Blvd.(Sta. Mesa), J.Abad Santos (Manila), Shaw Blvd. (Mandaluyong),P. Casal (Quiapo), Marikina, Baguio City, Cabanatuan City, Dagupan City, Naga City, San Fernando, Pampanga, San Pablo City. In the Visayas, we were in Cebu City, Ormoc, Bacolod City, and Iloilo City. In Mindanao, we were in Cagayan de Oro, Iligan City, Gen. Santos, Cotabato City, Butuan City, Davao and Zamboanga Cities.

WTR: Are there VW prototypes? What were they? Whatever happened to them?

DSG: There were a number of prototypes made. There were five (5)different TOROS. I still see one of them parked along Kamagong St. in Makati.It is parked infront of an "ihaw-ihaw" joint, a few meters away from the AQUA VIDA outlet.I had a BEETLE-IN-BARONG TAGALOG. I left it in DMG when the company was taken over by First Manila Mgt.

WTR: Who headed or manned the Research & Development Dept? Where was that department located? Where are they now?

DSG: The R & D was directly under me and my main designer was Rey (?)with the help of one carpenter, a tinsmith, a painter and an all around "go-for". It was located on the ground floor of the then admin bldg. at the DMG compound in Libertad St.The TOROS, SAKBAYAN, and TRAKBAYAN were all products of that R & D. The "go-for" at that time was Joe Lanuza, who operates a VW shop somewhere nearby. Either in Libertad or Samat St.

WTR: What car rallies, drag races, slaloms, circuit races, etc did DMG field an entry / entries? Who were the drivers? What awards did it won?

DSG: I started the Racing team in 1962. Our main activity then was DRAG RACING and SLALOM. I have numerous trophies to show specially since I held the title of LITTLE ELIMINATOR for many racing season. We joined Rallyes in 1966 and became oveall CHAMPION in 1969. The team was headed by Henry Dyliaco and Louie del Moral. I also won the FIRST MANILA GRAN PRIX held in 1970 at the Luneta.The BEETLE won the overall championship in the 1969 Rally and I drove a Formula V when I won the Gran Prix. Our most notable driver in VW racing was Pocholo Ramirez. The two biggest motoring event we did was the TURISMO PILIPINO and THE LONDON-MANILA EXPRESS IN 1969 and 1970 respectively. The first was run in 104 hours (Zamboanga to Manila) and the latter in 79 days from London to Manila.In both instances, I was with the group and used SAKBAYANS and BEETLES. The late Ronnie Pasola was with me during the two events.Some of the guys with me then were: Loy Martinez, Willy Ingles, Freddie Masigan, the late Tony Siddayao,Tirso Aguilar, and the late Ramon Hachero.

WTR: What is the present set-up connection between DMG Motors Group, SM ACA and VW Germany?

DSG: DMG Motors Group is a franchise dealer for VWs & AUDIs for Metro Manila of Proton Motors. DMG MOTORS GROUP Inc. is a joint venture between the SM Group and Mr. Domingo S. Guevara Jr. There is no direct relationship between VW Germany and DMG Inc. today.

WTR: What are your future plans for VW?

DSG: To continue the dealership operations.

WTR: Which dealerships sold EMPI accessories for VW's?

DSG: All dealers of DMG inc. sold EMPI accessories

WTR: Which local advertising agency handles your account? Who are the account executives involved? For print ads? For TV and Film commercials?

DSG: Link Advertising.The Pres./GM was Loy Martinez assisted by Noel Trinidad, Frankie Lacambra, Ramon dela Rosa, Ariel Ureta and Sluggo Rigor.