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By Katrina Mennen A. Valdez, Reporter
UNIVERSAL Motors Corp. (UMC), the local
assembler and sole distributor of Nissan commercial vehicles, is
eyeing to invest in a stamping facility.
Elizabeth Lee, UMC executive vice-president,
told reporters the venture may involve a partnership with Nissan
Motors Japan.
A stamping facility produces pressed auto parts
like the structure and body of a vehicle, including body panels,
fenders, front doors, hoods, quarter panels, rear doors, rear floor
panels and roofs.
The cost of the stamping facility will depend on
its capability and level of sophistication, but usually runs from
millions to a billion dollars.
“[We] intend to transfer a stamping facility
here. [Our] OEM is receptive about this joint venture,” Lee said,
referring to the local assembler’s original equipment
manufacturer.
Lee, who is also president of the Chamber of
Automotive Manufacturers of the Philippines Inc. (Campi), has pushed
for the retention of auto assembly in the 2008 Investment Priorities
Plan (IPP) to entice more assemblers to expand their operations in
the country.
“[We] don’t have more incentives than our
competitors. What [we] have are only the basic incentives,” she
said.
Under the Cabinet-approved 2008 IPP, the
government will limit fiscal incentives and other perks only to
assemblers that will invest in parts and components manufacturing.
Trade Undersecretary Elmer C. Hernandez had said
that the “purely assembly no incentives policy” was in line with
the representation letter that Campi submitted to the Board of
Investments last month.
“Without completely knocked down [CKD]
assemblies, there should be no opportunity for the makers of parts
and components,” Lee however said.
Without the incentives, Lee said planned
investments would instead be diverted to other cost-competitive
countries in the region particularly Vietnam.
“The Philippines is competing versus Vietnam
and Thailand over the planned stamping investment,” she said.
The Campi executive said investments in the auto
sector involve long gestation periods of five to eight years for
medium-term planning and 10 to 15 years for long-term ones.
“[We] cannot just change the rules in the
middle of the game,” she said.
Lee said that since the Philippines has
impressive advantages such as highly skilled technical workers,
productivity and an English-speaking manpower pool, incentives from
the government would trigger investments by OEMs in the country.
“The huge consumer base in the country [of
about 90 million] and the increasing entrepreneurial interest of the
Filipinos are most likely enough to sustain this kind of
investment,” she said.
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