New vehicle program seen boosting industry edge
The Philippines could become Southeast Asia’s hub for automotive part manufacturing under the new Motor Vehicle Development Program recently laid down by Executive Order 877, a group of car and parts manufacturers yesterday said.
“E0 877 will allow the automotive industry to become a major player in the ASEAN market,” Philippine Automotive Competitiveness Council, Inc. (PACCI) Chairman Feliciano L. Torres said in a statement.
The Malacañang order, dated April 23, had stated that it was replacing the 2002 program to keep up with expected intensifying competition spurred by this year’s elimination of car and part tariffs among the 10-member Association of Southeast Asian Nations.
“It also gives greater recognition to the parts industry which has the potential to contribute much more to auto manufacturing and for the Philippines to become a hub of parts and components in the region’s auto industry,” said Mr. Torres, who also heads Yazaki-Toress Manufacturing, Inc., a major exporter of wiring harnesses.
R&D support
PACCI noted the EO’s provision establishing an “Industry Development Fund” which will be devoted to financing research and development for part manufacturing.
The fund will be sourced from the budget of and donations to the public-private sector Motor Vehicles Industry Council which the EO also establishes.
The new program also promises car and parts makers that their business activities will be among those listed in the Investment Priorities Plan for the next five years, thus qualifying these for tax perks.
PACCI went on to pledge its support for the formulation of the implementing rules of the EO which the Board of Investments is spearheading.
The group counts as members the Motor Vehicle Parts Manufacturers Association of the Philippines, as well as car makers Ford Motor Co. Philippines, Honda Cars Philippines, Inc., Isuzu Philippines Corp., Mitsubishi Motors Philippines Corp. and Toyota Motor Philippines Corp. BusinessWorld
