The Jeepney Economy

Jeepney Factory Floor

MANILA, PHILIPPPIANS: Originally it was called a Jeep Knee because passenger knees would knock up against each other sitting on the cramped parallel benches in the back. It all started when after WWII the Philippians found they had no public transportation. Fortunately, the U.S. Army had left them their jeeps and with a bit of innovation they learned how to extend the chases allowing them to carry more passengers. Over time, however, they ran out of American jeeps and started importing used parts from Japan, but for some inexplicable adherence to tradition they kept the look of the American jeep. At the height of jeepney’s production there were five companies, employing over 300 each. Now there is only one, employing just forty-four. The reason for the industry’s demise, according to my guide, is that more and more of the jeepneys are now assembled by former employees in their own backyards. Taking just two months to assemble, a steel jeepney can fetch as much as $6,000, a stainless steel one over $12,000. In renting out a jeepney, an owner can net $20/day. At that rate, he can recover the cost of the material and assembly in a year. We visited the last standing jeepney factory. Since it was Sunday, there were only a handful of people milling around. Except for two ancient metal cutters, two rusted out bending machines, a half-dozen used engines heaped in a pile, and a dozen or so sheets of metal resting on a rack, the workspace, with its blackened and cluttered concrete floor, looked more like a small town blacksmith shop than an assembly plant. Yet without the jeepney — it’s hard to imagine — the Manila economy would come to a standstill. During a weekday up to a million Manila commuters might rely on the jeepney to get them to and from work.