Ford Motor Philippines said the grant of incentives will put the Philippines at par with other countries which extend export subsidies to their local automotive assemblers.
An official of the American auto grant pointed out that Australia and South Africa extend export subsidies to their respective car assemblers to prop up their car export industry. Australia extends a $600 subsidy per vehicle sold by its local assemblers abroad, while South Africa grants as much as $2,000 per unit.
"We have to recognize that we need export incentives if the Philippines wants to become a major player in the field of car production," Ford Philippines president Henry Co said.
Co noted that because of incentives such as tax rebates and duty drawbacks to its local car assemblers, South Africa is now exporting 100,000 vehicles yearly to Europe.
Another local car assembler pointed out that the Philippines has the smallest domestic market in Southeast Asia and needs to prop up its foreign market.
The domestic market, according to local car assemblers, is already saturated and in order to make car business "on the go," it should eye the foreign market.
At present, only vehicle spare parts manufactured in the Philippines by Manila-based car assemblers are being exported. They are, in effect, losing the market to their Asian neighbors due to price competition because of subsidies from their respective government. – Rey Arquiza