Pnoy's Auto Road Map

[Helios]

we're not alone. same pit for pakistan and vietnam's auto industry

also the faded future for australia's manufacturing

will the next admin be any different than its predecessor

press releases are still way cheaper to produce in the phils when compared to its neighbours

[ocanursjr]

we're not alone. same pit for pakistan and vietnam's auto industry

also the faded future for australia's manufacturing

will the next admin be any different than its predecessor

press releases are still way cheaper to produce in the phils when compared to its neighbours

I agree * Helios, Ford closed down sometime last year and Holden is closing down in Australia. Next is Toyota Australia...

[jpdm]

No sense of urgency from this government.

Local parts makers impatient over delayed auto industry roadmap



April 12, 2014

It has been two years in the making and yet, there is still no end in sight for the much-awaited local auto industry roadmap as proposed by the Board of Investments (BOI).

Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) President Ferdinand Raquelsantos said that numerous well-studied drafts have been crafted, submitted to and refined by the Philippine Institute for Development Studies (PIDS) and the BOI during the last two years.


“And yet, the BOI’s target release of the roadmap on the first quarter of 2014 has come and gone. The industry is now growing impatient”.

He explained that despite the fact that the auto industry as a whole is now experiencing increases in sales, some major investments have been put on hold pending the issuance of the roadmap. As it is, the current growth forecast for manpower is for it to increase by 10% come 2016. “Investors want to see first what is in store for them in terms of fiscal and non-fiscal incentives before they pour in additional investments. The continued delay will not be good for us. We might lose this opportunity again and miss the boat again,” he said.

The same sentiment was evident during the recent Electric Vehicle Summit. Foreign investors and their local EV partners were tentative in their decisions to invest in manufacturing facilities for electric vehicles in the country.

“Just like them, we also want car assemblers to locally assemble more of their products here rather than bring them in in completely built up (CBU) form. There are no value-added contents in terms of labor and materials in CBU importation. But no investment decisions are being made right now until the car assemblers and other potential foreign investors have seen the roadmap and determined the economic feasibility of local car assembly”, Raquelsantos said.

Fourteen years ago, he said, the government imposed an increased excise tax on the Asian Utility Vehicle (AUV). This derailed the booming local AUV assembly and it never recovered. “Our Asean neighbors grabbed this market segment from us and took the lead in producing these vehicles. They became the regional manufacturing hubs for these vehicles. Now, our production output is but a fraction of theirs”.

He also cited another example. “The closure of the Ford assembly plant in Sta. Rosa and its subsequent relocation to Thailand was a big loss to local parts makers. We completely lost the Ford business to Thailand. We hate to see another car assembler leave or partially relocate some of his CKD assembly somewhere else. We hope we have learned our lessons from this bitter experience and learned them well,” he said. (Bernie Cahiles-Magkilat)

Local parts makers impatient over delayed auto industry roadmap | Manila Bulletin | Latest Breaking News | News Philippines

[Monseratto]

Hintayin nila Nognog's roadmap...Since start ng election fever na next year, I doubt the auto industry will be on the administration's mind...

Posted via Tsikot Mobile App

[jpdm]

Palace approves new auto industry program


by Catherine Pillas
June 1, 2015

Malacañang has approved the much-awaited Comprehensive Automotive Resurgence Strategy (CARS) Program, which will provide the local auto industry a total of $600 million worth of incentives over a six-year span.

The program seeks to ramp up the competitiveness of the local auto industry amid the Asean integration and attract P27 billion worth of vehicle-manufacturing investments into the Philippines.

“The program is designed to build and grow the parts-making capability of the auto industry, for without a robust parts-making industry, our carmaking industry will remain uncompetitive. The CARS Program is about building capabilities and jobs to make our automotive manufacturing industry competitive in the Asean,” Trade Secretary Gregory L. Domingo said in the statement.

The program will stimulate economic activity estimated at P300 billion over the six-year period starting 2016. The resulting contribution to gross domestic product (GDP) is estimated at about 1.7 percent.

The annual dole-out of $100 million, or an average of P4.5 billion yearly from 2016 to 2021, will be used to support three vehicle models. This is also expected to attract more than P27 billion in new parts-manufacturing investments and allow the local production of at least 600,000 vehicles.

The $600 million will be sourced from the national budget. According to Trade Undersecretary and Board of Investments (BOI) Managing Head Adrian S. Cristobal Jr., the amount can still be added in the 2016 national budget as deliberations in Congress for the new budget bill have yet to start.

The CARS Program, an initiative of the Department of Trade and Industry (DTI) through the BOI, calls for the grant of fiscal and nonfiscal incentives to the automotive industry to entice manufacturers to initiate more operations in the country.

http://www.businessmirror.com.ph/pal...ustry-program/

[dos2]

^
Well this is good news.
Hopefully the terms would be attractive enough for investors to establish production sites in the country.
Filipinos badly needed these additional jobs! ! !

[Monseratto]

Not sure if there is enough time to get that program off the ground. There is no gurantee there'll be continuity with the next adminstration come next year...

[Ry_Tower]

Also, 3 cars lang ang supported. I guess it will be the vios, avanza and innova.

O baka makasingit L300. hehehe

[donbuggy]

*cough* MVPMAP PhUV.

[ocanursjr]

*cough* MVPMAP PhUV.

Why not * donbuggy... vehicle PhUV insertion after 8 years?

- - - - - - - - - - - - - - - - - - - - - -