Isuzu on wait-and-see mode for CARS entry
Isuzu Philippines Corp. (IPC) remains on a wait-and-see mode regarding its participation in the government’s Comprehensive Automotive Resurgence Strategy (CARS) program.
IPC marketing head Joseph Bautista said his team met with Trade Secretary Ramon Lopez last month wherein the trade chief mentioned “something about that possibility of changing requirements.”
“What he wants are people movers, most likely entry level trucks for the third slot. Small trucks which can be converted into buses, passenger vans and for light cargo to generate economic activity and replace ageing public transport system,” Bautista said.
“But (after that) we had no talks yet for the CARS. So we’re just waiting for them. We know the secretary is busy,” he added.
Bautista in an earlier interview said IPC is mulling its participation in the CARS program but on lower volume requirement.
He said the firm would not be able to meet the 200,000-unit requirement of the program but may consider joining should the required volume be lowered to between 50,000 to 100,000 units.
So far, only Toyota Motor Philippines and Mitsubishi Motors Philippines have applied and have been approved for the automotive resurgence program that dangles P27 billion worth of incentives.
Both companies have expressed support to the government in finding the third player that will take up the third slot, saying it will be good for the industry.
Toyota and Mitsubishi, however, aired apprehensions about the changes being planned on the rules and requirements of the program.
Under the CARS program, three local car assemblers may apply for fiscal support by locally assembling new vehicle models with a commitment to produce 200,000 units for each model during its six-year life.
“As to the requirement of 200,000 units over a period of six years, it’s a computation of the government and the industry. The manufacturing industry has been complaining about lack of economies of scale, weak domestic base, weak parts supplies. The 200,000 is computed to achieve basically the economies of scale. You have to produce that much in order to strengthen the parts suppliers,” Chamber of Automotive Manufacturers of the Philippines president and Toyota Philippines first vice president Rommel Gutierrez said.