Two car firms eye incentives under export dev’t program

Two more local automotive manufacturing firms are set to avail of the government’s Automotive Export Program (AEP) and begin exporting completely built up units (CBUs), Trade and Industry Secretary Cesar V. Purisima said yesterday.

Although he did not identify the two auto firms, industry sources said that they were BMW Philippines and Mitsubishi Motors Corp.

BMW Philippines president Mark Gilbert as far back as last year had already indicated that BMW is interested in exporting to Vietnam.

The Vietnamese transport sector, Gilbert had pointed out, is left-hand drive similar to the Philippines.

He also disclosed that BMW Philippines’ assembly facilities is underutilized and could, therefore, accommodate export production.

According to industry sources, Mitsubishi, for its part, is eyeing a "developmental model" for export.

It had been reported two years ago that Mitsubishi is interested in making the Philippines a production hub for AUV exports to the region.

Under the AEP, participating automotive firms would be entitled to a tax incentive for their CBU exports provided that they reach a minimum export volume.

At present, only one local automotive firm is availing of the AEP.

Only Ford Motor Philippines currently exports CBUs to Thailand and Indonesia.

Ford Philippines president Henry Go earlier said that Ford exported 13,500 units last year.

The car firm exports the Ford Lynx sedan, Ford sports utility vehicle Escape as well as the Mazda SUV Tribute and Protégé.

This year, Ford is aiming to increase its CBU exports to 16,000 units.