Connect with us

Hi, what are you looking for?

News

Discussions to extend CARS program ongoing

REUTERS

A PROPOSED extension to the Comprehensive Automotive Resurgence Strategy (CARS) program is currently being discussed, according to the Department of Trade and Industry.

Ceferino S. Rodolfo, Trade undersecretary and Board of Investments (BoI) managing head, told reporters in a recent briefing that the two CARS participants, Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp., are still completing their proposals for an extension.

The BoI is the implementing agency of the CARS program, which provides incentives for manufacturers willing to assemble mass-market cars domestically.

“There is no (final proposal) yet but we are working on that. Trade Secretary Alfredo E. Pascual has met with the two CARS program participants (to determine) how much longer do they need so that they can be given a reasonable extension,” Mr. Rodolfo said.

“The two participants are still finalizing their offer for us. They suffered severely in terms of volume due to the coronavirus disease 2019 (COVID-19) pandemic,” he added.

Mr. Rodolfo said there are ongoing discussions to add more models into the CARS program as a possible stipulation in exchange for an extension, possibly for three years.

“If we extend, what would we get in return? For example, do we include additional models in the program? That is still under discussion. The CARS program participants already put in the fixed investments. It’s not just the two registered participants. It also includes their parts suppliers,” Mr. Rodolfo said.

Mr. Rodolfo added that there would be no additional funding for the CARS program even if an extension is agreed.

“The previous discussion (was about extending) the CARS program for three years across the board for the two participants without additional increases in the budget allotted for them,” Mr. Rodolfo said.

The program has a P27-billion budget for three car manufacturers to produce 200,000 units each for a six-year period in order to avail of fiscal incentives.

However, only Toyota and Mitsubishi joined the program.

Toyota produces the Vios compact car while Mitsubishi produces the Mirage model.

Toyota has until 2024 to meet its commitments while Mitsubishi’s deadline is 2023.

Mr. Rodolfo said the proposal to give the third slot in the CARS program to an electric vehicle (EV) manufacturer has been largely ruled out. 

“I am not expecting (a third participant) because this CARS program has been around for a long time,” Mr. Rodolfo said.

“The discussions on the third CARS slot will have to be consistent with Republic Act No. 11697 or the Electric Vehicle Industry Development Act (EVIDA),” he added.

Under EVIDA, the government and companies are required to meet a 5% EV quota for their vehicle fleets.

In the first 10 months of 2022, the auto industry has sold 280,300 units, up 30.9% from a year earlier, according to a joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association. — Revin Mikhael D. Ochave

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

The Makati skyline is seen in the background in this file photo. — PHILIPPINE STAR/ MICHAEL VARCAS MANILA — Philippine economic growth may ease...

News

Rendering of China’s Tiangong Space Station. — WIKIMEDIA COMMONS SYDNEY — Rapid advancements in China’s military capabilities pose increasing risks to American supremacy in...

News

REUTERS SYDNEY — Australia lowered its terrorism threat level on Monday to “possible” from “probable” for the first time in eight years, citing a...

News

Mexican President Andres Manuel Lopez Obrador. — Andres Manuel Lopez Obrador/Facebook MEXICO CITY — Tens of thousands marched with Mexican President Andres Manuel Lopez...

News

PRAVEEN KUMAR NANDAGIRI/UNSPLASH OTTAWA — Canada launched its long-awaited Indo-Pacific strategy on Sunday, outlining C$2.3 billion ($1.7 billion) in spending to boost military and...

News

There are many benefits to driving a Lexus hybrid electric vehicle. They help reduce carbon emissions, are fuel efficient, cheaper to run, and now...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.