Toyota unveils P1-B press line for body shell

MANILA, Philippines — The local unit of Japanese automaker Toyota Motor Corp. has inaugurated a P1 billion high technology press line for the production of large body shell parts, enabling the firm to meet the required localization target of the Vios car model under the government’s Comprehensive Automotive Resurgence Strategy (CARS) Program.

In a statement, Toyota Motor Philippines Corp. (TMPC) said the new press line which would be operational next week, would allow the firm to start local production for side member panels or the largest body shell parts of a vehicle.

 “We now have the capability to produce the largest body shell part with high productivity, better energy efficiency and lower maintenance costs,” TMPC president Satoru Suzuki said.

The new press line, which can produce 66,000 units per year, complements the firm’s existing mechanical press line and out-house press parts production.

Apart from its capability to produce large body shell parts, the new press line allows TMPC to achieve 58 percent localization of total body shell weight for the new Vios, higher than the 50 percent target under the CARS Program.

Through the CARS Program, participants like TMPC can receive fiscal and non-fiscal support from government in exchange for investments in the local automotive industry.

In 2017, TMPC also put up a  P700-million resin injection moulding facility for the localization of the Vios under the CARS Program.

The moulding facility has an annual production capacity of 66,000 units.

At present, the moulding facility produces bumpers and instrument panels for the new Vios.

TMPC’s investments in the CARS Program have reached P5.38 billion as of May this year.

TMPC’s participating model in the CARS Program, the new Vios, remains the best-selling passenger car in the country.

As of the first semester, TMPC remains the leading automotive firm in the country with sales reaching 73,454 units, up slightly from 73,136 units last year.

TMPC expects to post single digit or less than 10 percent growth in sales to reach around 165,000 to 168,000 units this year.

Last year, higher taxes on automobiles under the government’s tax reform program took a toll on TMPC’s total vehicle sales which only reached 153,004 units, 16.8 percent lower than the 183,908 units sold in 2017.