The event was festive, the mood electric. You would think the country had just won an Olympic gold medal. Or something like that.
Japanese carmaker Mitsubishi Motors Philippines Corp. has just formalized its commitment to the government’s Comprehensive Automotive Resurgence Strategy (CARS) program, which will see it commence the local production of the Mirage hatchback and the Mirage G4 sedan by January 2017. Both are subcompact models.
The CARS program, according to the Department of Trade and Industry, is designed to provide “fiscal and non-fiscal incentives to jump-start the revitalization of the country’s automotive industry, improve its competitiveness and elevate the country into an auto manufacturing hub in the region.”
“CARS offers a package of time-bound and performance-based fiscal incentives to support new investments in fixed capital expenditures in new parts-making capability, and to encourage large-scale production in vehicle assembly,” DTI added in a statement issued last year. “The government intends to provide annually an average of P4.5 billion worth of incentives for six years to support three models. This is expected to attract more than P27 billion in new parts manufacturing investments, produce at least 600,000 vehicles, and generate a total economic activity estimated to be worth P300 billion over the life of the program. The resulting contribution to the country’s gross domestic product is estimated at about 1.7%.”
MMPC, for its part, was officially granted registration to the program in June this year, after which the company broke ground for a body-stamping facility in Santa Rosa, Laguna. According to the carmaker, this is the first time such a facility will be built in its 50 years of operation in the country.
Last week, MMPC held a ceremony to acknowledge 25 local parts suppliers that will help it achieve its manufacturing goals.
“This is just the first batch of suppliers that have firmed up their involvement in MMPC’s Local Parts Manufacturing Program,” the company said in a statement.
Attending the awarding of Certificates of Participation to said suppliers were Mitsubishi Motors Corp. general manager for Philippine business Ken Kataoka; MMC manager for global procurement Toshihiro Ito; MMPC president and CEO Yoshiaki Kato; DTI undersecretary Ceferino Rodolfo; Board of Investments governor Henry Co; CARS program director Romulo Manlapig; and Japanese Embassy trade and commercial attaché Junichiro Suzuki.
MMC, the mother company of MMPC, is said to have earmarked P4.3 billion in support of the CARS program. Under this program MMPC is expected to create more jobs not just for itself but more so for its parts suppliers. The company boasts of having hired a total of 500 assembly workers to run second-shift manufacturing operations.
“Additional manpower will be required when the stamping plant is operated by early 2018,” MMPC added.
Here is the initial batch of MMPC’s local parts suppliers:
• AGC Automotive Philippines Inc. – Automotive glass
• Autocarpets Inc. – Carpet assembly
• Autoliv Cebu Safety Manufacturing Inc. – Steering wheel
• B4 Manufacturing Corporation – Trunk trim assembly
• Daiwa Seiko Philippines Corp. – Transmission parts
• Denso Philippines Corp. – Aluminum radiator, evaporator, condenser, combination meter, AC pipes, wiper motor mechanism, wiper blade
• Enkei Philippines Inc. – Aluminum wheels
• F-Tech Philippines Manufacturing Inc. – Brake and clutch pedal assembly
• Harada Automotive Antenna Philippines Inc. – Antenna
• Hella Philippines Inc. – Accelerator pedal
• Inoac Philippines Corp. – Fender form block
• JT Pencorp Inc. – Wheel assembly
• Koyo Manufacturing Philippines Corp. – Electronic power steering system
• Manly Plastics Inc. – Large plastic parts
• NHK Spring Philippines Inc. – Seat assembly
• Nitto Denko Philippines Corp. – Stiffener
• Oriental and Motolite Marketing Corp. – Battery
• Philippine Aluminum Wheels Inc. – Aluminum wheels
• Reydel Automotive Philippines Inc. – Large plastic parts
• Roberts Automotive and Industrial Parts Manufacturing Corp. – Body shell assembly
• Titan Rubber Industrial Manufacturing Corp. – Rubber weatherstrip, anti-vibration rubber and hoses
• Tri-R Allied Industries Inc. – Body shell assembly
• Valerie Products Manufacturing Inc. – Suspension members, body shell assembly
• Yazaki-Torres Manufacturing Inc. – Electrical wiring harness
• Yokohama Tire Sales Philippines Inc. – Rubber tires