Following the approval and registration of the two main Participating Car Makers (PCMs) Mitsubishi Motors Corp. and Toyota Motors Corp., the Comprehensive Automotive Resurgence Strategy (CARS) Program is now ready to take on the development of the automotive parts manufacturing industry. The program expects an influx of investment project applications from prospective Participating Part Makers (PPMs) that will supply the local parts requirements of the PCMs.
In their participation in CARS, Toyota and Mitsubishi will be initially putting in a total of 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 will create some 14,000 new jobs, with salaries and wages amounting to at least Php18 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.
Working hand in hand with the Board of Investments (BOI) and the PCMs are members of the Philippine Parts Maker Association (PPMA), who, during its quarterly meeting at the Metals Industry Research and Development Center (MIRDC) early this month, expressed full support and commitment to participate in the CARS Program.
Supported by the government through a fiscal-capped, time-bound and performance-based program, the local parts makers 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.
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. Given its strong linkages to allied industries, the CARS Program is at the core of the government’s Manufacturing Resurgence Program.