DTI, Toyota start talks on CARS

The Department of Trade and Industry (DTI) and Toyota Motor Philippines Corp. (TMP) have started talks on what can be done on the Comprehensive Automotive Resurgence Strategy (CARS), including possible adjustments, given the difficulty faced by participants in meeting the production volume requirement under the program.

Rommel Gutierrez, first vice president for corporate affairs at TMP, said in a press conference during the launch of the new Fortuner on Saturday, the company had a Zoom meeting with Trade Secretary Ramon Lopez about two weeks ago to talk about the CARS program.

“Initially, we have an understanding that the CARS terms and conditions need to be revised and reviewed given the situation, especially COVID. While we do not have specific actions or solutions yet moving forward, we already agreed the volume requirement cannot be met and government understands this,” he said.

He said there would be upcoming meetings with the DTI to further discuss the matter.

“So, we will continue to discuss with government and find ways in order to comply or even make adjustments in the terms and conditions of the CARS program,” he said.

Last month, he said TMP wants the government to extend the six-year period given to CARS participants to meet the production volume target as recent events such as the higher excise taxes on vehicles under a tax law which took effect in 2018, the eruption of Taal Volcano earlier this year, and the COVID-19 crisis have weakened demand and affected sales.

Under the CARS program, participants should produce at least 200,000 units of the enrolled vehicle model to enjoy incentives from the government.

TMP has enrolled the Vios sedan as its entry in the CARS program.

Despite the challenges faced by the automotive industry, TMP has rolled out the new Fortuner.

Jose Maria Atienza, senior vice president for marketing at TMP, said the company is targeting to sell around 3,000 units of the new Fortuner this year.

Sherwin Chua Lim, first vice president for vehicle sales operations at TMP, said the additional safety features, as well as exterior and interior improvements of the Fortuner, are expected to allow the firm to continue to be a strong leader in the sports utility vehicle (SUV) segment.

Since its launch in 2005, TMP has sold more than 220,000 units of the Fortuner.

“The Fortuner captured the hearts of many Filipinos as proven by strong sales. It has an SUV body perfect for the Philippines’ flood-prone streets, an array of variants, including a fuel-efficient diesel engine, a macho look that satisfies desires, and most of all, an affordable price – making it an achievable dream,” TMP president Atsuhiro Okamoto said.

Starting today, the new Fortuner which has a price range of P1.633 million to P2.414 million, will be available in all of TMP’s dealerships.