FOLLOWING the presidential visit of President Duterte and the signing of a memorandum of understanding between Mistubishi Motors Corp. (MMC) President Osamu Masuko and Trade Secretary Ramon M. Lopez last October in Tokyo, Japan, Duterte and Lopez, together with Executive Secretary Salvador C. Medialdea and Finance Secretary Carlos G. Dominguez III, led the launching ceremony of the Philippine-manufactured Mirage G4 under the Comprehensive Automotive Resurgence Strategy (CARS) on February 27 in Malacañang.
The production of the Mirage G4 in the Philippines is in line with the initiative of the government to revive and develop the auto-manufacturing industry in the country, making it as a regional manufacturing hub for auto parts.
“The CARS Program will bring in more investments, better paying and high productivity jobs that will lead to spill-over effects by stimulating economic activities in related manufacturing and services. It will create employment and require local sourcing of auto parts up to 70-percent local content, which will develop more small and medium enterprises and generate more jobs,” Lopez said.
Over 200,000 units are to be produced under the program for six years, which will require additional manpower of 1,000 workers, including direct and indirect sales and general administration employees from Mitsubishi and auto parts suppliers. The program will serve as an opportunity for technology transfer to local micro, small and medium enterprises through joint ventures and technical licensing agreements.
“This is important to enable us to maximize the trade and investment opportunities arising from the Asean Economic Community and take advantage of our growing domestic market” Lopez said, highlighting the significance of building the domestic auto market base to attain the necessary scale economies that would bring down costs of auto manufacturing in the country.
“The implementation of the CARS Program signals government’s vigorous support and focus on industries with auto as platform for manufacturing takeoff,” Lopez said.
“This will maximize the trade and investment opportunities arising from the Asean Economic Community and take advantage of our growing domestic market,” he said.