Mitsubishi firms up CARS entry with P4.3-B investment

MANILA, Philippines – Mitsubishi Motors Philippines Corp. (MMPC) has firmed up its planned participation in the Comprehensive Automotive Resurgence Strategy (CARS) program, with its top official from Japan announcing the company’s intention to invest P4.3 billion to expand its assembly operations in the country.

Osamu Masuko, Mitsubishi Motors Corp. chairman of the board and chief executive officer, said the company would produce the hatchback and sedan units of the Mirage to avail of the incentives of the CARS program.

“We will immediately file application to the CARS program and when accepted, we are planning to start production of the hatchback and sedan of Mirage starting 2017,” he said.

Masuko said bulk of the investment would be used to put up a new stamping press facility while a portion would be spent to add new assembly lines to its Laguna plant.

“With the new model production plan of MMPC, we have asked the parts suppliers which have decided to penetrate into the Philippines to accompany us. The investment will result to the expansion of existing production base and provide technology for local corporations,” he said.

Masuko explained the amount announced is just for the initial phase of its participation in the CARS program and more investments would come once demand for the local vehicles produced picks up.

The CARS program, approved by President Aquino in May last year, seeks to encourage local car assembly through incentives and allow industry players become more competitive.

Under the program, prospective local car assemblers may apply for fiscal support not exceeding P27 billion by locally assembling three vehicle models, or P9 billion per model, with a commitment to produce 200,000 units for each model during its six-year model life.

MMPC and Toyota Motor Philippines are currently the only manufacturers which have indicated interest in joining the program.