‘CARS produced 207K vehicles’

The two participating car manufacturers (PCMS) in the Comprehensive Automotive Resurgence Strategy (CARS) Program have produced over 200,000 units, according to the Board of Investments (BOI).

BOI Managing head and Trade Undersecretary Ceferino S. Rodolfo told reporters during a press briefing on Wednesday that the production of Mitsubishi Motors Philippines Corp. (MMPC) and Toyota Motor Philippines Corp. (TMPC) reached 207,165 units.

Rodolfo said Toyota accounted for a chunk of the figure at 134,242 units, while Mitsubishi produced 72,923 units.

Mitsubishi enrolled the Mirage G4 while Toyota enrolled its Vios model in the CARS program. The said program mandates a minimum production goal of 200,000 units for a maximum of six years, or the life span of the particular model enrolled.

According to the BOI, Mitsubishi started its production in February 2018 while Toyota started in July 2018.

The investment promotion agency said Mitsubishi employed 35,606 people, while Toyota created 74,353 jobs, including those in parts making and the provision of ancillary services.

According to the BOI, Mitsubishi has six participating parts makers (PPMS). Toyota also has six PPMS. The agency noted, however, that the car manufacturers have three common PPMS.

The agency attached to the Department of Trade and Industry said investments in the CARS program have reached P9.6 billion. It has also resulted in $1.01-billion foreign exchange savings.

Net government revenues amounted to P18.77 billion based on a six-year model life, according to the agency.

While talks on the extension of CARS program are ongoing, the BOI said the program generated “new capabilities” in big volume parts particularly in the body shell and in large plastics, which the agency said is a “key contributor” to the high import logistics cost of complete knockdown (CKD) manufacturing.

The CARS program is a government stimulus program that aims to revive the country’s declining manufacturing sector by specifically targeting the automotive industry, given its strong linkages to other industries and its so-called multiplier effect.

Both car manufacturers are expected to deliver its commitments under the program by 2024. In August, however, TMP First Vice President and Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) President Rommel R. Gutierrez said the CARS program has to be extended until 2027 so it can achieve the objectives of the program.

Rodolfo said last November that the BOI is “closely working with the industry on a CARS extension.”