MITSUBISHI Motor Philippines Corp. (MMPC) is hoping the next administration will honor the newly passed Comprehensive Automotive Resurgence Strategy (CARS) Program, as this will be the stimulus for robust job generation that every candidate is pledging to provide.
MMPC Vice President for Marketing Froilan Dytianquin told reporters that with the new administration stepping in soon, the implementation of the manufacturing stimulus program will continue as planned.
“[The CARS] has already been settled and if there will be changes, that is something that the new administration should think about, because it will involve the local companies and, of course, our principals. The Mitsubishi president has already brought in the Japanese suppliers. The program should be honored; we don’t want a government that will cut off policies. It should be a continuing policy throughout,” the MMPC official remarked.
The CARS Program, approved last year, is a government program aimed at boosting local car assembly through a P27-billion support package.
Local assemblers face a $1,800 cost gap in the production of a vehicle compared to counterparts in neighboring manufacturing countries.
Both the auto industry and the government asserted the program will substantially increase direct and indirect employment in the auto industry, being a major industrial sector.
Dr. Rafaelita Aldaba, Trade undersecretary for Industry Development and Trade policy, said earlier the auto industry has an employment multiplier of 169 per P100 million in investment.
Dytianquin said this employment factor should be considered by the next chief executive as a compelling reason to continue the program.
“It’s the only program that will eventually provide what [these presidential candidates] are clamoring for. Everyone’s saying let’s provide jobs. Here is the chance to provide them not just for the industry, but for the dealers and the parts suppliers. There are tier-1 and tier-2 suppliers, and they will be hiring more people as well,” the MMPC official said.
MMPC expects its direct employee count, now totalling 900 workers, to double over the six-year period of the CARS program.
The Japanese car brand’s bid for the program is the All-New Mitsubishi Mirage (hatchback) and Mirage G4 (sedan) variants which it unveiled on Friday. Under the CARS program, the registered car participants have to produce an average of 33,000 units of their applied model.
In 2015, MMPC produced a volume of 19,000 of the Mirage hatchback and sedan, but is confident of meeting the required volume set by the program.
The Mirage hatchback is said to be the number- one model in the industry’s hatchback category while the sedan is at third place in the B-segment or sub-compact category.
The company is slated to begin assembly of the Mirage model next year.
The entry-level Mirage G4 retails for P563,000 while the Mirage hatchback’s basic model starts at P553,000.