CARS Program...

expecting a new player to hit that? Do the math,” he said. Mitsubishi Motors Philippines Corp. is the second car firm expected to participate in the new automotive program using its small car model Mirage.

When asked what would it take to make a car program attractive to new entrants, Orbeta noted of its original position to enter under the auspices of the old Motor Vehicle Development Program (MVDP). At that time, the VW top management from Germany was still scouting for a possible site in ASEAN for its regional production hub. Orbeta was trying to push the Philippines as one of the sites to be considered. The Philippines was deemed in the running to get the VW’s planned huge investment in ASEAN.

Thinking they could not comply with the requirements under the planned CARS Program, VW hoped they could be accommodated under the old MVDP, but the Board of Investments (BOI) decided to pursue the new CARS Program, which was issued in May this year, promising three new car models to be produced here $600 million in tax support as long as they assemble 600,000 units in total within a six-year period.

“There was a window that was open last October, but of course that window cannot be opened all the time,” he said referring to the old MVDP. With the issuance of the CARS Program under Executive Order 182, all other automotive programs are deemed superseded.

“I’ve been very transparent with the DTI, I said, ‘can you allow us to come into the MVDP because the CARS can never be a viable option for a new entrant?’ I’ve been very consistent, but no. So, we have to move on,” he said.

VW’s investment has already been approved in Thailand and in Indonesia he said feeling sorry for the Philippines for the huge lost investment.

“I think the DTI wants to focus on the CARS program that’s really their priority now. We respect that. We wish them good luck to hit their goals but like we said from the very beginning it’s not attractive to new entrants to come in and build a new plant and make that big investment and just focus on one vehicle,” he explained.