Thursday, August 20, 2020

Toyota Motor PH to Seek Government Help to Keep Local Manufacturing Viable


With the economic slowdown, the Philippine automotive industry will need the government’s support to survive.

At the media virtual press conference of the 2021 Corolla Cross, Toyota Motor Philippines First Vice President Atty. Rommel Gutierrez says that the carmaker along with other members of the Chamber of Automotive Manufacturers of the Philippines (CAMPI), is now in talks with the Department of Trade and Industry (DTI) about possible assistance to keep the auto industry, especially local manufacturing, afloat amid the pandemic.

Atty. Gutierrez says that Toyota and Mitsubishi—the only two participants of the government’s Comprehensive Automotive Resurgence Strategy or CARS program is seeking some adjustment to its volume requirement due to the slowdown in auto sales as well as shutdowns brought upon by the implementation of community quarantine measures.

Under CARS, Toyota would have to produce 200,000 units of the Vios sub-compact sedan in a six-year time frame. The number one carmaker in the country has pumped more than P 5.2 billion to locally produce the Vios in exchange for fiscal support from the government either through a fixed investment support or production volume incentive.

Atty. Gutierrez did not say how many units Toyota Motor Philippines has produced thus far.

The automotive industry and its allied services (parts suppliers, banks, dealerships, etc.) contribute to about 15 percent of the Philippine GDP.

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