RP expansion hinges on government perks - Mitsubishi

MANILA, Philippines - Mitsubishi Motors Philippines Corp. (MMPC) said it is capable of rolling out another 500,000 units in the next five years as long as Philippine authorities extend incentives to auto and parts manufacturers.

In a press briefing Thursday, MMPC president Osamu Masuko said that incentives for manufacturers would protect them against foreign currency price fluctuations, thus keeping their production costs low.

“It will keep prices stable,” Masuko said.

He urged authorities to review the program for automobile and parts manufacturers with the end in view of keeping the Philippine automobile industry more competitive against the aggressive markets of Thailand and Malaysia.

“The Philippines has a bright future in the Asian automobile industry,” Masuko said, adding that economic and political stability is essential to attain a higher level of productivity.

MMPC manufactures 500 to 1,000 units a month, or a maximum of 12,000 units a year. Masuko said that a minimum volume of 50,000 units per year for one model would make the Philippines competitive in the region. Such volume would likewise allow MMPC to export to other markets in the region.

Mitsubishi’s Thailand operations produce 200,000 units per year of its different pick-up models, making it extremely profitable. Philippine manufacturing plants produce quality sedans like the Lancer and Montero for export in the future.

Meanwhile, MMPC reintroduced the Lancer models as it prepares for the production of bigger and better sedan models.

“We recognize that in order to further strengthen MMPC’s manufacturing capabilities towards globally competitive production efficiencies and quality levels, we have to provide opportunities for upgrading MMPC’s facilities and also enhance the skills of its own labor force towards the assembly of newer models such as the Lancer EX,” Masuko said.

Recently, MMPC invested P200 million to upgrade its assembly line to include new jigs and fixtures, new welding lines feature spot welding robots, and an all new trim and final conveyor lines containing the new electronic control unit programming system.

It had also introduced different models adopting to green technology, driven by biofuels and compressed natural gas (CNG) in the global market. It will soon launch its electric cars in the world market.

“Mitsubishi Motors’ vision for addressing environmental issues is to lead the electric vehicle era,” Masuko added. It started the mass production of the new-generation electric vehicle known as iMiEV, and it will hit the global roads soon.

“We hope that this EV technology will find its way to the Philippine roads in the future,” the Mitsubishi official said.