Dateline Ibalon

The Sakbayan in the Middle East in 1970 | Conrado (Sluggo) N. Rigor, Jr.

Foreword

The story about the Sakbayan began with Domingo M. Guevara Sr. (1909–1990s), a pioneering self-made Filipino industrialist. He is celebrated as the founder of Guevara Enterprises (Guevent Group), which birthed Radiowealth—the country’s dominant local appliance brand—and DMG Inc. (Diesel Motors Germany, Inc.), the iconic exclusive assembler and distributor of Volkswagen in the Philippines.

Domingo M. Guevara, Sr. (credit: Guevent)

Guevara’s path from humble beginnings in Camarines Sur to the industrial heart of Manila is a masterclass in persistence. Armed with knowledge from a radio technician correspondence course, he opened a small radio repair shop in the 1930s. By the mid-1950s, his company, Radiowealth, was manufacturing the first locally produced television sets, speakers, and picture tubes, successfully dominating the Philippine market long before Japanese brands arrived.

In the early 1960s, noticing a local market flooded by heavy, gas-guzzling American cars, Guevara envisioned a future of fuel-efficient vehicles. He relentlessly pursued Volkswagen Germany for the rights to represent them—even flying directly to Wolfsburg and patiently waiting outside executive doors until he secured the partnership.

Under DMG Inc., Guevara transformed his manufacturing plant on Libertad Street in Mandaluyong (now renamed Domingo M. Guevara Street in his honor) into a sprawling industrial hub. DMG built and distributed legendary models like the VW Beetle and Passat and eventually scaled up to a modern assembly facility in Quezon City. That same factory also produced Admiral appliances, a US brand, and Electrolux refrigerators, a Swedish brand.

A DMG Volkswagen print ad featuring the Sakbayan (credit: Gabriel H. Mercado)

Guevara’s crowning automotive achievement was the Sakbayan (a portmanteau of sasakyang bayan, or “people’s vehicle”), introduced in the late 1960s. Utilizing a Volkswagen chassis and engine but boasting a body fabricated with up to 80% local materials, the Sakbayan was the very first Filipino-designed and manufactured native vehicle.

Faced with the choice of losing his health or compromising his integrity, Guevara stepped away from his manufacturing empire and went into self-exile in the United States. Though his dreams of a fully industrialized, manufacturing-forward Philippines were shortchanged by history, his legacy lives on through Guevent Investments Development Corporation, a multi-billion peso company with investments in real estate development, interests in consumer finance, transportation services, information and mobile communication technology, gaming, medical services, hospitality, and insurance.

Guevara’s rise was cut short by the declaration of Martial Law in 1972. As a principled delegate of the 1971 Constitutional Convention, Guevara was one of only seven brave individuals who voted against the martial law constitution. Following his dissent, Marcos kleptocrats pressured the Guevara family to surrender shares of DMG without any payment. When the family resisted, government entities retaliated by squeezing credit line extensions, adjusting taxes, and stalling essential permits.

This piece first appeared on October 30, 2026 in the Philippine Post, a digital newspaper published and edited by veteran journalist Val G. Abelgas that covers the Filipino-American community in the Greater Los Angeles area.

The Sakbayan cruising a roadway in the Middle East

In the 1960s and 70s the Philippine automotive industry was dominated by assemblers of CKD (complete knock-down) cars from foreign sources. Aside from its engines and axles, the ubiquitous jeepney was technically the only locally built motor vehicle.

To a developing economy, the automobile industry is a heavy foreign exchange reserve spender. To try mitigating this, the government drew up an aggressive plan to rationalize the industry. It also wanted to develop local manufacturing initiatives.

When the Board of Investments announced a Progressive Car Manufacturing Program (PCMP) addressed to some 12 car brand importers-assemblers, there began a keen, unprecedented competition. Automotive companies were invited to participate in a program spread out over a short period of time to select brands that would be able to adapt to the standards required. Only three were rumored to be chosen. These were companies that would be able to make do with local parts without sacrificing quality and road worthiness.

Components sourced from suppliers would mainly be batteries, glass, wiring harnesses, paint, metal and rubber parts to name a few a manufactured locally.

Only the assemblers chosen by the BOI would continue to operate in a growth market of 300K minimum units per year.

The Sakbayan on its journey somewhere between London and Manila

The Philippines at that time was considered by foreign car companies as a potential anchor for the larger southeast Asian market. A testament to this was the support of foreign corporate bigwigs who came to the country to boost visibility of their brands. Ford Philippines had Madam Cristina Ford no less ride on a Ford Fiera at the inauguration of San Juanico Bridge in the south.

Volkswagen-Werk A.G. Chief Carl Hahn was also hosted by DMG, Inc., manufacturer of the Sasakyan ng Bayan-SKB popularly known as Sakbayan. The SKB utility vehicle, built with local components and body parts, ran “Turismo Filipino” in 1969, an unprecedented non-stop week-long drive beginning at Kilometer Zero in Luneta Park. The SKB team drove to Aparri in the north, through Manila and through the Bicol area via Manila, to Davao-Cotabato and back again to Kilometer Zero in Manila. This record-setting endurance run took the SKB through deep muddy stretches in the Matnog-Samar area which took two hours to negotiate. A challenging swollen river crossing in the Tumauini, Cagayan area was another.

The Sakbayan has the same power train, a rear-mounted air-cooled engine like its cousin, the VW Beetle, the very first champion in the popular and grueling summer precision driving Shell Car Rally.

Competition further heated up as the BOI hinted that choices would be based not merely on percentage of local content but by market patronage, product quality, and the overall economies of scale in relation to the company’s business viability and interests.

The Sakbayan attracted many curious onlookers

This was the industry’s setting and climate as leading car brands Ford, VW, Toyota, Nissan, Renault, Mitsubishi, General Motors, Fiat, Moke, and Mercedes Benz vied for government and public attention. It was a contest for survival.

DMG, Inc., assembler-distributor of Volkswagen, was the acknowledged market leader mainly due to broad patronage by detail-men of drug companies. Agents assigned to provincial areas often drove over rough roads and occasional river crossings that challenged them. The Beetle was also known to be an economic gasoline user.

When the PCMP was publicly announced, DMG, Inc. and the rest of local industry leaders swung to action.

While the popular motor sports trend was car-racing and tricky track driving maneuvers, DMG, Inc. executives led by Domingo ”Boy” S. Guevara, Jr. (DSG) had more challenging plans.

With the enthusiastic support of VW corporate principals in Wolfsburg, West Germany, DSG swung to action and formed two overland travel teams. The teams would drive a Sakbayan, a 1200 Philippine-assembled VW Beetle, a Kugelwagen.  Included in the team was a colorful Sarao Jeepney that had agreed to join. The idea was to demonstrate the durability and road worthiness mainly of the SKB utility vehicle under various climate and terrain conditions. He envisioned two teams to travel on Philippine-built SKBs through an international Northern route via London and another team traversing the arid desert terrains of the Middle East.

A flag-off ceremony from London on June 24, 1970, was attended by dignitaries and Embassy officials. The teams were timed to drive back to Manila together after a planned month-long journey.

In Manila, a radio communications center was set up at the mezzanine floor of the Hotel Intercontinental in Makati, a co-sponsor of the project. Daily overland progress reports were broadcast by DZMT newscasters who likewise camped at the communications center together with radio communications engineers from GSI, a sister telecommunications company of DMG.

Daily progress of the Sakbayan global trek was publicly heralded on the entire frontage of the Volkswagen House on T.M. Kalaw St., Manila.

Daily progress of the journey was also publicly heralded through a huge billboard mounted on the entire frontage of the Volkswagen House on T.M. Kalaw Street. It was visible to Luneta Park crowds to track where the Sakbayan teams were. It was an exciting two-months adventure by intrepid Filipino motorsports enthusiasts.  Media practitioners and sportsmen led by DMG boss Boy Guevara, MidEast Team Leader Ronnie Pasola, London-Northern Team Leader Loy Martinez, Freddie Masigan, Willy Ingles, Iking Gonzales, Tom Borja, top VW mechanic Tirso Aguilar, ace photographer Willy Avila, composed the historic LM Express.

A few months later, the BOI announced the brands chosen for the PCMP program. The Sakbayan with Volkswagen power train was among the few that were to be included in an unprecedented government-supported program.

To average Filipino car enthusiasts, the spectacular London-Manila Express was more than just a big motoring spectacle. It was a demonstration to the world that Filipinos are capable of making cars that can compare with the world’s best.

The header colorized photo features the Sakbayan sharing a road in the Middle East with a camel. All photos from the collection of Prof. Andy Ferreira, except where duly noted.

About the author:

Conrado (Sluggo) N. Rigor, Jr.  was Executive Director of a non-profit social services organization, International Drop-In Center, (www.idicseniorcenter.org) based in Seattle. He also published and edited a broadsheet community newspaper, Filipino-American Bulletin. He pioneered and hosted Fil-Am Radio that became a popular 90-minute Sunday noon program. A thoroughbred product of the University of the Philippines, Sluggo served as Information Attaché of the Philippine Consulate General in Seattle in the 1980s. As a staunch Filipino WWII veterans’ advocate, he lives with better-half Marivic, a General’s daughter, and their five children in Seattle, Washington.

(Inset photo: Sluggo Rigor with wife Marivic)

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