CAMPI pushes for legislation to support local vehicle production

MANILA, Philippines — The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) is pushing for legislation for a program that will support local vehicle assembly operations to encourage more investments in the industry.

“We want consistent policy implementation. Incentives like the CARS (Comprehensive Automotive Resurgence Strategy) program, which was an executive order, should be legislated so that it will be on a long-term basis as investments would require long-term planning and commitments on both the government and private sector,” CAMPI president Rommel Gutierrez told reporters on the sidelines of the industry group’s celebration of its 30th anniversary.

He said the CARS program has been effective because there are commitments on the part of the government and the private sector and the incentives are performance-based.

While the CAMPI is of the view that the CARS has been effective, only two of the three slots opened for the program were filled, particularly by Toyota Motor Philippines Corp. for the Vios and Mitsubishi Motors Philippines Corp. for the Mirage.

Gutierrez said that the program may not have attracted a third participant due to the way it was implemented.

He said having a law for the program would provide greater certainty and stability for investors.

He also said CAMPI wants a law that will not just support local vehicle assemblers, but also parts makers.

“The more players, the better, because we’re not just talking about the assemblers. Parts makers are very important. The more entities they supply, the more viable they become,” he said.

At present, the Department of Trade and Industry (DTI), Department of Finance and Department of Budget and Management are coming up with a joint administrative order (JAO) for a new vehicle manufacturing incentives program called Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE).

The release of the JAO has been delayed with the Board of Investments earlier saying that the order was expected to be completed by mid-March.

The RACE will serve as the successor program of the CARS program, which provided incentives to support local vehicle manufacturing.