The Board of Investments may allow jeepney manufacturing to fill in the remaining third slot of the Comprehensive Automotive Resurgence Strategy program, a move that will benefit Filipino companies.
Trade Undersecretary and BoI managing director Ceferino Rodolfo said the slot for jeepney manufacturing was possible after no other car maker followed the lead of Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp. in registering under the CARS program.
Other car makers may have balked at the required production volume of the government program.
“We have not closed the program yet. We’re still hoping that another car companies will give it a shot. If not, we might give the slot to the eco-public utility vehicle program,” Rodolfo said.
Th eco-PUV program is similar to CARS, as it also aims to provide quality travel experience, achieve a second motorization phase and modernize the country’s fleet of transportation vehicles.
The Chamber of Automotive Manufacturers of the Philippines Inc. disagreed, saying the CARS program was solely for sedan production.
“I think the government should stick with the original plan. Come to think if it, it will probably be okay if the government will also subject the eco-PUV under the same terms and conditions as the automotive players like the investments required for manufacturing,” said Campi president Rommel Gutierrez.
He added a deviation from the original concept would be a challenge for the sector.
Earlier, commercial and truck manufacturers have sought access to the CARS program but were denied registry by the BoI because the program was solely for four-wheeled sedans.
Meanwhile, the eco-PUV modernization program is a separate program that aims to standardize all jeepney units in the Philippines to be compliant with environmental sustainability measures and retire old units that are a major cause of pollution.
An inter-agency initiative under the eco-PUV program of Trade Department is in charge of the manufacturing solution the will include the design and the sourcing of components such as power train, body, interior and peripherals.
The Transportation, Finance and Environment Departments are responsible for the social engineering, financing and fuel efficiency aspects, respectively.
Rodolfo cited an agreement in the initial design of the vehicle, like specifications on capacity and the dimension in relation to the road.
“The initial specs will be implemented in two months. The standardization is an important aspect of the design since this will help manufacturers achieve economies of scale. We will soon accredit suppliers for the program,” he said.