Carmakers and parts manufacturers briefed on CARS Program
Carmakers and parts manufacturers were briefed on the features and mechanics of the Comprehensive Automotive Resurgence Strategy (CARS) Program. The CARS program aims to boost motor vehicle manufacturing and create more jobs for Filipinos. It is estimated that 200,000 jobs will be created with the implementation of the program. Likewise, CARS aims to encourage Philippine car makers to scale up and invest in parts manufacturing.
“The program aims to jumpstart the revitalization of the country’s automotive industry, improve its competitiveness and elevate the country into an auto manufacturing hub in the region,” said DTI Undersecretary and BOI Managing Head Adrian S. Cristobal Jr.
With the implementation of the CARS program, the Philippines expects to attract more than Php27 billion in new parts manufacturing investments, produce at least 600,000 vehicles and generate a total economic activity estimated to be worth Php300 billion over the life of the program. The resulting contribution to Gross Domestic Product (GDP) is estimated at about 1.7%.
The BOI consulted with the members of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), Philippine Automotive Competitiveness Council, Inc. (PACCI),Federation of Automobile Industry Philippines, Truck Manufacturers Association, Inc. (TMA), and Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) who participated in the briefing. Consultations and dialogues with the CARS program stakeholders aim to support the drafting of the CARS implementing rules and regulations (IRR). BOI targets to complete the CARS IRR in July 2015.
“The CARS program is only one of the strategies of the roadmap. Let us not be fixated on the EO, rather, let us also work together to implement the other non-fiscal measures of the Automotive industry roadmap,” Cristobal said during the briefing. The auto industry roadmap, crafted by industry stakeholders in partnership with the BOI, was completed last 2014. The roadmap identifies the industry’s vision and goals as well as interventions and initiatives to achieve competitiveness. The crafting of industry roadmaps is private sector led while BOI, lead agency for industry competitiveness, provides the enabling environment which includes streamlining of registration processes, and business matching activities among investors and local parts makers
President Benigno S. Aquino III approved last month Executive Order (EO) 182 implementing the CARS Program.