The Arroyo government is also hoping that Ford chairman Bill Ford will accept an invitation to visit the country during the upcoming state visit of US President Bush in October.
In a memorandum to President Arroyo last month, Trade and Industry Secretary Manuel Roxas II had suggested that Ford chairman Bill Ford should be invited to the Philippines during the state visit.
Ford Motors had made representations in May 2003, during President Arroyo’s state visit to the United States, that it would make the Philippines its export manufacturing hub for compact cars for export to the ASEAN region.
The major elements of Ford Motors’ export manufacturing plan is an export volume of 150,000 completely built-up (CBU) units for the period 2005 to 2009 with a total export value of $1.2 billion.
Ford Motors would also put in additional investments of $15 million in its assembly plant here which would generate employment for 600 workers.
However, Ford Motors’ plan is contingent upon the grant of export incentives.
The BOI is now in the final stages of drawing up the CBU export incentives program, more formally known as the Automotive Export Program (AEP).
The incentive program would grant a $400 per CBU export credit based on a minimum export volume.
However, it is not yet decided if the export credit would be in the form of a tax credit or would be used to offset tariff duties Ford would have to pay for its other CBU imports.
According to Roxas, Ford Philippines had informed the BOI that the export manufacturing hub decision could be one of the deliverables during the state visit of President Bush.
Thus, Roxas said if Bill Ford decides to come to the Philippines, it would strengthen the country’s roles as a Ford manufacturing hub in ASEAN.