Toyota Motor Philippines (TMP) and Mitsubishi Motors Philippines (MMPC) may soon breathe a sigh of relief, as the Inter-Agency Committee (IAC) on Automotive Industry Development is expected to issue an executive order (EO) in a few months extending the Comprehensive Automotive Resurgency Strategy (CARS) program.
According to Department of Trade and Industry undersecretary Ceferino Rodolfo, the IAC is currently working on a three-year extension for the government’s CARS program. And, as Rodolfo hinted at previously, the original volume requirement will be retained.
“We are confident that an executive order on the recommendation of the IAC for the extension of the compliance period for the CARS program participants will be issued before end of June of this year,” said Rodolfo. “We, of course, do understand the challenging unforeseen circumstances including the impact of the pandemic on the automotive demand.”
Under the CARS program, TMP and MMPC are required to produce 200,000 units each of their enrolled vehicles—the Toyota Vios and the Mitsubishi Mirage—in order to receive their incentives.
Rodolfo added that the government will not come up with a new budget despite the extension of the program as it was created with a notional budget under automatic appropriations of the General Appropriations Act.
As mentioned , the EO is expected to be issued in June later this year. Watch this space for further updates.