Global Brands Toyota and Mitsubishi joins CARS Program
The Comprehensive Automotive Resurgence Strategy (CARS) program supported by some of the world’s most dominant players in the automotive industry will spur an estimated P408 billion in government revenues in the next six-year period. According to the Board of Investments (BOI) the initial P8-billion investment of Toyota Motor Philippines (TMP) Corp. and Mitsubishi Motor Philippines Corp. (MMPC) in the CARS program will spur P18-billion investments in parts in the country.
Aside from the revenue for the Philippines under the Duterte administration, direct purchases of raw materials for parts making will amount to P63 billion. The investments from both Toyota and Mitsubishi will also create an estimated 14,000 news jobs for Filipinos whose salaries and wages will amount to P8 billion over a period of six years.
Toyota and Mitsubishi plans to manufacture around 430,000 locally-produced cars over a six-year period, lifting significantly the share of domestic against imports while boosting parts manufacturing. The Board of Investments already approved Mitsubishi and Toyota as participants to the CARS program.
The CARS program aims to raise local vehicle manufacturing to expand the country’s auto parts making capabilities. The program is expected to attract P27 billion in fresh investments, manufacture 600,000 more vehicles, and add P300 billion to the domestic economy (equivalent to 1.7 percent of gross domestic product).
In an interview with the media, Rafaelita Aldaba, assistant secretary of the Department of Trade and Industry stated that the Japanese manufacturer Mitsubishi Motors applied to produce 200,000 units of the Mirage/Mirage G4, while the world’s leading car manufacturer also from Japan, Toyota applied for the production of 230,000 units of an all new (full model change) Vios.
Under the CARS program, both world-renowned car manufacturers, Mitsubishi and Toyota will start their production in the year 2017. Based upon the requirements of the Philippine government, participating carmakers, are required to localize the production of body shell and large plastic parts and components of their new vehicle models.