By Joann Santiago
MANILA, June 2 (PNA) — The government’s Comprehensive Automotive Resurgence Strategy (CARS) program is seen to contribute about 1.7 percent of domestic output, Deputy Presidential Spokesperson Abigail Valte said Tuesday.
She also disclosed that the program, to be implemented by the Department of Trade and Industry (DTI) from 2016-21, is expected to generate about 200,000 direct and indirect jobs during the six-year period.
“Essentially, the government weighed the advantages of the program and found that the effects are beneficial to the industry, especially if it means creating more jobs,” she said in a statement.
Malacanang released Tuesday a copy of Executive Order (EO) No. 182 that explained the CARS program, which vies to boost the country’s competitiveness in automotive manufacturing in the Association of Southeast Asian Nations (ASEAN).
An estimated Php 27 billion worth of incentives is seen to be given under this program.
Under this program, incentives will be extended to companies involved in the production of three models of four-wheeled motor vehicles, manufacture of body shell assembly and large plastic assemblies of the model, manufacture of common parts and strategic parts not currently produced in the country at original equipment manufacturer (OEM) standards of the models; and shared testing facility for vehicles and/or parts.
Qualifications of interested companies will be assessed by the Bureau of Investment (BOI).
In line with this, the EO created an inter-agency Committee on Automotive Industry Development, which will be spearheaded by a representative from the BOI.
Other members of the Committee will come from the Department of Finance (DOF), Department of Transportation and Communications (DOTC), Department of Science and Technology (DOST), National Economic and Development Authority (NEDA), Industry Development Council and National Competitiveness Council. (PNA)