THE country’s Comprehensive Automotive Resurgence Strategy (CARS) program is expected to attract fresh investments from among auto parts makers now that the program is underway, the Board of Investments (BOI) said.
The Philippine Parts Maker Association (PPMA) has expressed full support and commitment to participate in the CARS Program in a meeting earlier this month with the BOI as well as Mitsubishi Motors Corp. and Toyota Motors Corp.
Toyota and Mitsubishi have been approved by the BOI to participate in the CARS and have formally been registered as Participating Car Makers or PCMs.
Supported by the government through a fiscal-capped, time-bound and performance-based program, the local parts makers said they see an opportunity to expand and develop their capabilities.
PPMA currently has 94 members with manufacturing capabilities in parts such as seats, carpets, aluminum wheels, wiring harness, small metal, plastic parts, and others.
New members are expected to join and bring in capabilities for new strategic parts that are not currently produced in the country.
Toyota and Mitsubishi will initially invest a combined P7.5 billion to produce their respective enrolled models — the full model change Vios and the Mirage/Mirage G4 — of which 20 percent or P1.6 billion will come from local parts suppliers.
These investments are expected to create some 14,000 new jobs and pay salaries and wages amounting to at least P18 billion over a six-year period.
The implementation of the CARS program over the next six years is also expected to benefit the chemicals, metalworking, tool & die, plastics, electronics, rubber, glass and textile sectors.
According to the Department of Trade and Industry and the BOI, which are supervising the program, the booming vehicle demand in the country and the automotive industry’s linkages to other industrial processes are expected to expand industry technical capabilities, contributing to overall industrial growth.
The CARS program is at the core of the government’s Manufacturing Resurgence Program given its strong linkages to allied industries, the DTI/BOI said.