Mitsubishi commits to Philippine auto industry development

MANILA, Philippines - Japanese automotive giant Mitsubishi Motors Corp. signed yesterday in Tokyo a letter of intent (LOI) with the Philippine government witnessed by President Duterte, to continue its support on the local automotive industry under the current administration.

Mitsubishi said the LOI with the Department of Trade and Industry reinforces its commitment to further contribute to the Philippine economy through expansion of local production.

In June, its local unit Mitsubishi Motors Philippines Corp. (MMPC) received approval to participate in the government’s Comprehensive Automotive Resurgence Strategy (CARS) program.

“The LOI reconfirms both parties’ commitment regarding the CARS program and contribution to the Philippine automobile industry under the Duterte administration,” Mitsubishi said.

MMPC will participate in the CARS program through local production of the Mirage and Mirage G4 subcompact models starting January 2017.

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 model life.

The program, signed by former president Benigno Aquino III under EO 182, seeks to boost the country’s automotive manufacturing industry by providing P27 billion worth of incentives to local automotive assemblers.

“Receiving approval to participate in the CARS program from the DTI affirms the over 50 years of contribution to the development of the Philippine automobile industry. It is my hope that MMPC not only promotes employment in the Philippines but also contributes to the overall development of the economy,” Mitsubishi chairman, president and CEO Osamu Masuko said.