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Friday, March 29, 2024

Auto firms more bullish now

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Philippine car assemblers have turned more bullish on the prospects of the local industry with the passage of EO 182, or the Comprehensive Automotive Resurgence Strategy Program.

The Chamber of Automotive Manufacturers of the Philippines Inc. said its members would give its full cooperation to support and develop the local automotive manufacturing industry. CARS will extend as much as P4.5 billion worth of fiscal and non-fiscal incentives over a six-year period from 2016.

“This program is timely in view of the need of the Philippine motor vehicle industry to achieve competitiveness in the region, giving opportunity to the country’s automotive industry to take part in the regional supply chain,” said Campi president Rommel Gutierrez.

The chamber also welcomed the efforts of the government in ensuring a resurgent automotive industry that would boost vehicle and parts manufacturing capability in the country.

“Campi is confident that this program will be a catalyst for sustained growth of the industry particularly the manufacturing sector,” Gutierrez said.

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The country’s two leading car assemblers Toyota Motor Philippines Inc. and Mitsubishi Motors Philippines Corp. are both receptive to the program, each with its own draft of possible models they plan to manufacture during the life of the program.

The much-awaited CARS Program is expected to facilitate the expansion of local manufacturing capabilities and improve cost competitiveness, setting the stage for regional integration.

Toyota sees a clearer direction from the government.

“I am grateful to the Philippine Government for giving the local auto manufacturing industry a chance to flourish and further contribute to the economy through the CARS Program,” said Toyota president Michinobu Sugata.

Toyota’s presence in the Philippines has had a positive effect on industry linkages. Its business growth with CARS is expected to further trigger investment opportunities from its supplier network and other auto manufacturing-related activities.

Mitsubishi, meanwhile, said the new automobile manufacturing policy would make it it easier for manufacturers to expand their local operations.

CARS aims to help automobile makers increase local manufacturing operations and boost supporting businesses such as local parts makers.

“With CARS, MMPC is looking forward to further contributing to the Philippine automobile industry and economy. As the Philippines is one of our core markets in the Asean region, we’re happy that the government has decided to make a strong ‘win-win’ declaration for everyone,” said MMPC president and chief executive Yoshiaki Kato.

MMPC recently transferred its vehicle assembly operations from Cainta, Rizal to a bigger facility in Sta. Rosa Laguna to increase production capacity.

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