The Market Monitor Minding the Nation's Business
By Kris M. Crismundo / Philippines News Agency
Tokyo-based Mitsubishi Motors Corp. (MMC) will make the Philippines the new production hub for its Mirage automobiles, once the manufacturing of the car’s models hatchback and sedan units is enrolled in the Comprehensive Automotive Resurgence Strategy (CARS) Program of the government.
In a recent press conference, Mitsubishi CEO Osamu Masuko said the company is allocating P4.3 billion for the production of the Mirage and Mirage G4, or Attrage, in some markets.
Mirage and Mirage G4 cars are currently assembled in Thailand, along with other models, such as Montero Sport and L200, or Strada.
“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 (units) of Mirage (in) early 2017,” Masuko said.
“The production site will be at the Santa Rosa plant, where Mitsubishi Motors Philippines Corp. (MMPC) (has resumed its) operations (since) January last year,” he said.
MMPC, Mitsubishi’s exclusive producer and distributor in the Philippines, only manufactures Adventure and L300 vehicles.
“In line with starting (the) production of new models, MMPC has a plan to invest over P4.3 billion…as the first phase in order to increase the local content rate and further make investments and expand employment opportunities,” Masuko said.
He added that his company had also encouraged its suppliers to penetrate the Philippine market.
About 20 Japan-based companies have joined Masuko in his recent visit to the Philippines.
These are Denso Corp., Yazaki Corp., Usui Kokusai Sangyo Kaisha Ltd., Mitsuba Corp., Hiruta Kogyo Co. Ltd., Sanoh Industrial Co. Ltd., Marugo Rubber Industries Ltd., Metaltech Ltd., Asteer Co. Ltd., Yokohama Rubber Co. Ltd., JTEKT Co. Ltd., Tokai Rika Co. Ltd., Autoliv Japan Ltd., Harada Industry Co. Ltd., Toyo Seat Co. Ltd., NHK Spring Philippines Inc., Katayama Kogyo Co. Ltd., Enkei Corp., Nitto Denko Philippines Co. Ltd., and Suiryo Plastics Co. Ltd.
“MMC has been engaged in (the) production and sales business in the Philippines for over 50 years. The Philippines is one of the most important markets for MMC,” the company chief said.
“It is, indeed, a great pleasure for MMC to be able to contribute to the automotive industry of the Philippines (in) facing a new development phase, and also further make a contribution to the economic growth of the Philippines, even in the slightest terms,” he added.
The Board of Investments (BOI) opened the enrollment for the CARS Program incentives on Jan. 15, giving interested car and car-parts manufacturers 60 days to submit their applications.
In May 2015, President Aquino signed Executive Order 182, which introduced the CARS Program in order to boost the local assembly of completely knocked down (CKD) units.
Under the program, a participating car maker is required to sell at least 200,000 units of the enrolled four-wheeled motor vehicle model for six years.
The government is allotting some P27 billion for six years to support the production of three car models.
While stimulating the growth of the local automobile industry, the government projects to attract $1.2 billion worth of investments and generate 200,000 new jobs in the sector.