The Trade Department said it may relax the implementing rules and regulations of the new vehicle incentives program to entice manufacturers to fill up the third and last available slot.
“It’s possible to tweak [the rules] but as long as it’s not unfair to the first two applicants. If ever we change the procedures, it’ll be most likely for improving the process,” Trade Secretary Adrian Cristobal Jr. said over the weekend, referring to the guidelines to implement the Comprehensive Automotive Resurgence Strategy program.
Cristobal said changes might take place in the area of building stronger monitoring mechanism “to ensure that these projections and investment commitments are met.”
He said improving the fine details would not necessarily modify the set of required activities needed to qualify for the program, such as the volume of production and timelines.
The department expressed optimism the interagency committee on Cars program would come up with the decision by May 2016.
Toyota Motor Corp. Philippines and Mitsubishi Motor Philippines Corp. are the only vehicle manufacturers that submitted the application to join the Cars program before the March 15 deadline.
Mitsubishi earlier revealed a plan to invest P4.3 billion to locally manufacture a sedan unit in the Philippines with the ultimate goal of exporting the same. Toyota has yet to disclose its own plan.
Mitsubishi said its investment would be spent to establish a stamping facility and additional trimming lines for big auto parts such as door panels, hood and front and rear bumpers to increase local content and create more employment opportunities.
It also brought 20 big parts manufacturers and suppliers from Japan to initiate a reliable auto parts supply chain for the company’s domestic production line-up.
Toyota committed to produce the Vios model, the best-selling compact sedan in the Philippines.
The Cars program is the biggest and most ambitious automotive incentives program the Philippine government has offered.
It commits P27 billion worth of fiscal and non-fiscal incentives that will be given to three participating car companies, all time-bound within the next six years.
Accredited car companies in exchange will manufacture at least 200,000 units of four-wheeled passenger cars each or a total of 600,000 units.
Incentives will kick in once companies produced their 101,000th unit.