Auto and parts manufacturers urge government to boost industry
Thursday, January 12, 2012
MANILA—Representatives of the domestic vehicle and parts manufacturing sectors on Thursday asked the government to further boost the industry.
“Auto and parts manufacturing in the Philippines is both viable and sustainable. An ambitious but realistic strategy can take it to the next level,” Feliciano Torres, chairman of the Philippine Automotive Competitiveness Council Inc. (PACCI), said.
Besides generating new jobs and providing substantial export revenues to support public spending, these policies, according to Torres, can eliminate uncertainty associated with regional supply chain disruptions.
As a result of the massive flooding in Thailand last year, parts manufacturers have been forced to limit or entirely suspend production, including parts for auto manufacturers in the Philippines.
In a 2010 study by University of Asia & the Pacific economist Cid Terrosa, findings show that a “one-peso increase in consumption or investment spending for motor vehicles will result in P3.67 worth of additional output in the economy.”
Moreover, a P100-billion worth of investments in the domestic automotive manufacturing industry is estimated to generate at least 169,061 new jobs.
The study also revealed that the output multiplier of Philippine automotive manufacturing industry is greater than that of all the investment priority industries of the Department of Trade and Industry (DTI) – tourism, business process outsourcing and information technology services, electronics, mining, housing, and agribusiness.
PACCI members recognize that the barriers to investment and industry development are high, but they believe that they can be effectively addressed.
The group is composed of auto manufacturers Ford Motor Company Philippines, Honda Cars Philippines, Inc., Isuzu Philippines Corporation, Mitsubishi Motors Philippines Corp., Toyota Motor Philippines Corp., and parts maker Motor Vehicle Parts Manufacturing Association of the Philippines. (Virgil Lopez/Sunnex)
