By Tet Andolong
AFTER receiving the blessing of President Aquino, Mitsubishi Motors Philippines Corp. (MMPC) will manufacture its vehicles in the country through a six-year program called Comprehensive Automotive Resurgence Strategy (CARS) beginning next year.
MMPC intends to invest over P4.3 billion in order to build 100,000 vehicles by the end of the program. The project will include a stamping facility during the first phase and a paint shop in the second phase. The program will be conducted at the Mitsubishi Plant in Santa Rosa, Laguna, where Mitsubishi started its operation in January 2015, and the facility will involve the production of 12,000 units of Mirage sedans, as well as 18,000 units of Adventure and L3s.
“I had the opportunity to meet President Aquino earlier today and we have expressed our participation in which we will immediately file an application to the CARS Program and when it is accepted, we are planning to start the production of hatchback and sedan of Mirage in the beginning of 2017,” said Osamu Masuko, CEO of Mitsubishi Motors Corp. (MMC) during the media briefing held on Wednesday at Solaire Resort and Casino Hotel in Pasay City.
Present during the media briefing were Nobuaki Katoh, chairman of Denso; Shinji Yazaki, president of Yazaki Corp.; Shigeki Dantani, EVP of Sojitz Corp.; and chief executives of other companies, including Yokohama Rubber Co. Ltd.; Toyo Seat Co. Ltd.; NHK Spring Co. Ltd.; Mitsuba Corp.; Autoliv Japan Ltd.; Nitto Denko Philippines Corp., who have decided to partner with MMPC in their latest venture.
“The parts suppliers who are here today are aiming to contribute to the development of the automotive industry of the Philippines in different ways, such as construction of new plants, expansion of existing production base and providing technology to local corporations. They are, indeed, indispensable business partners to us,” Masuko said.
The Japanese company (MMC) has been in business and involved in production in the country for more than 50 years. According to Masuko, “The Philippines is one of the most important markets for MMC. It is, indeed, a great pleasure for us to be able to contribute to the automotive industry of the Philippines for the economic, even in the slightest terms. We are doing this in order to increase the local content rate and further make investment to expand employment opportunities responding to the buildup capacity,” he said.
MMPC decided to initially manufacture Mirage and Adventure units because of their success in the previous years. In 2015 Mirage sales reached 17,000 units, while MMPC sold 8,000 Adventure units and 7,000 L3s with a 20-percent growth for the company.
According to Henry Co, governor of the Board of Investments, the country never had any such occasion (to boost the automotive industry) in the last 33 years. “I’m very excited to sit with the Japanese in the car industry. We have a government that is very supportive. Our time has come and I believe that this has benefits and it will be tremendous although it will take many years,” he said.
“If you look into the future, further economic growth is forecasted. At the end of last year, the Asean economic community was established but I believe that competition in the Asean countries will even become more severe. Among the members of the Asean Economic Community, we see the Philippines as having extremely high potential for growth and I think that it was very good timing for the Philippine government to announce the CARS Program,” Masuko said.
Image credits: RANDY S. PEREGRINO