The Board of Investments (BOI) said on Tuesday it has approved the application of Toyota Motors Philippines Corp. and Mitsubishi Motor Philippines Corp. for incentives under the government’s P27-billion manufacturing stimulus program.
Outgoing Trade Secretary Adrian S. Cristobal Jr. affirmed the eligibility of the two auto companies under the Comprehensive Automotive Resurgence Strategy (CARS) Program in a news briefing on Tuesday.
“It’s just a matter of formalities now. I understand from BOI Managing Head, Trade Undersecretary Perry Rodolfo that it’s just a matter of granting the certificate of award to car manufacturers that have qualified for the CARS Program,” Cristobal told reporters.
The CARS Program is a government stimulus program aimed at boosting the country’s manufacturing sector by specifically targeting the automotive industry.
It provides for a government support fund of P27 billion, or a budget of P9 billion for each enrolled vehicle model. The CARS Program is a core strategy of the government’s Manufacturing Resurgence Program (MRP).
However, Cristobal said the third slot is still up for grabs, as no other car manufacturers have expressed interest in joining the program as the guidelines for it are still being crafted.
Earlier, the Department of Trade and Industry (DTI) announced that it may tweak the CARS Program, as some leeway is provided in the law, to accommodate a third player.
“It is possible to tweak it as long as it is not unfair to the first two applicants. Tweaking of procedures may be done to improve the process, but not to relax requirements,” Cristobal said in an earlier interview.
It has been noted by observers that the program’s ambitious requirements, specifically the production hurdle of 200,000 units over the program’s lifetime, have rendered some car players ineligible for the program.
However, Cristobal said it is possible that one of the two qualified auto players can enroll a second model to fill up the third slot.
The DTI chief said the resolution of this issue, as well as the Philippines’s ongoing row with Thailand on tobacco imports, will now be in the hands of incoming Trade Secretary Ramon Lopez.
President-elect Rodrigo R. Duterte announced late on Monday the appointment of Lopez as the new head of the DTI.