BOI okays importation of 1,000 Chrysler automobiles by Norkis

Daimler-Chrysler Corp., through its local partner Norkis Automotive Resources Corp. (NARC), has finally been allowed by the Board of Investments (BOI) to import this year an initial 1,000 semi-knocked down (SKD) units of Chrysler automotives.

BOI gave its nod for the initial importation of 1,000 SKD units upon instruction of Malacañang which gave a conditional approval to the request of Daimler-Chrysler and NARC to import a total of 7,000 SKD units over a three-year test period.

Daimler-Chrysler has set a three-year test period to determine which model would be the best to eventually assemble locally.

However, Malacañang has set four conditionalities which NARC and Daimler-Chrysler must meet before it allows the additional importation of 2,500 SKD units in the year 2002 and another 3,500 SKD units in the year 2003.

These conditionalities are: 1) Commitment to put up investment in CKD (completely knocked down) operations within 18 months from first SKD importation; 2) Generation of additional net foreign exchange earnings in addition to regular net foreign exchange earnings requirement; 3) Submission by Daimler-Chrysler of a corporate guarantee to ensure investment in full CKD operations within an 18 month period; and 4) Submission by Daimler-Chrysler of a firm commitment to implement terms of 1, 2 and 3.

NARC has promised to invest P376 million for its assembly plant in Cebu. Daimler-Chrysler has also assured that its importation requirements will not draw on the country’s foreign exchange reserves.