Toyota, Mitsubishi investing P8 B to roll out new models under CARS

MANILA, Philippines – The local units of Japanese automotive brands Toyota and Mitsubishi are investing a total of P8 billion initially for their participation in the government’s Comprehensive Automotive Resurgence Strategy (CARS) program.

Mitsubishi Motors Philippines Corp. (MMPC), which applied to produce 200,000 units of the Mirage/Mirage G4, and Toyota Motor Philippines Corp. (TMP), which applied for the production of 230,000 units of an all new Vios, are set to start local production of new vehicle models in 2017 following the approval from the Board of Investments (BOI) of their participation in the CARS program.

As participating carmakers in the CARS program, BOI said these two automotive firms are required to localize the production of body shell and large plastic parts and components.

“Currently, large body parts and components are imported and render local vehicle manufacturing uncompetitive. These and other parts not currently produced in-country are expected to be introduced during the six-year CARS program period,” Trade Assistant Secretary Rafaelita Aldaba said.

The BOI yesterday officially awarded TMP and MMPC their CARS program certificates.

Aldaba said the two participating car manufacturers would have to comply with performance-based terms and conditions, including the minimum output of 200,000 units over the six-year program period and local production of body shell and large plastic parts.

She said the program is expected to generate up to 200,000 direct and indirect jobs in auto manufacturing, parts making, distribution, and ancillary services.

The implementation of the CARS program over the next six years is likewise expected to benefit the chemicals, metal working, tool and die, plastics, electronics, rubber, glass, and textile sectors, Aldaba added.