CARS extension sign of support to whole auto industry

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The largest automotive player in the country said the extension of the Comprehensive Automotive Resurgence Strategy (CARS) sends a strong signal to investors  of the government’s support to the sector.

In expressing appreciation to government’s move to extend the program for  five years, Rommel Gutierrez, first vice president of Toyota Motor Philippines Corp. (TMP) , said CARS program is a significant government support as it helps the industry, among others, maintain and promote employment not only to the manufacturers but also parts suppliers and other allied industries.

Gutierrez is also president of the Chamber of Automotive Manufacturers of the Philippines Inc.

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TMP is one of the two participants of CARS for its Vios. The other is Mitsubishi Motor Philippines Corp. (MMPC) for Mirage

“With continued industry-government collaboration, we can further attract more investments for auto manufacturing which is a significant contributor to the Philippine economy,” Gutierrez said.

President Ferdinand  Marcos Jr. last week approved extension of CARPS following the recommendation made by the Private Sector Advisory Council (PSAC), with the goal of expanding the  automotive industry.

The CARS program, initially introduced through the issuance of Executive Order No. 182 in 2015, gave participating automakers six years to reach the minimum volume target sales of 200,000 domestically produced automobiles for each of the enrolled car types in order to qualify for incentives.

CARS grants  two  kinds of fiscal support during the enrolled model life, up to a maximum of six years: fixed investment support (FIS) and production volume incentive (PVI). Both TMP and MMPC have qualified for the FIS but had been struggling to comply with the PVI as sales suffered during the pandemic and needed more time to comply with the 200,000 units each.

“The extension of CARS for five years  will continue to provide incentives and support for manufacturers that meet specific requirements in terms of investment, production, and technology development. CARS will also continue to provide significant employment opportunities as well as the foundation for the future development of the economy,” said PSAC in a statement over the weekend. Irma Isip

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