Regional car executives bullish on local industry

The government’s firm stand against all forms of corruption has sent a strong signal to the regional automotive principals that the Philippines is a viable investment site, an industry official said in a statement Friday.

Elizabeth Lee, president of Chamber of Automotive Manufacturing of the Philippines Inc., said multinational companies, including the biggest car companies, weigh investment destinations against “unexpected costs,” including corruption.

Industry sources said the Philippines would become a more attractive site for car manufacturers if the country’s motor vehicle development program could lure investments in the assembly of completely knocked-down packs.

“We can offer our underutilized assembly plants to serve both domestic and regional export needs. We have a growing domestic market, with much room to expand, for both assemblers and distributors alike,” Lee said. “We have the capacity, we have the capability. We have the skills and engineering knowhow. And we have the right environment.”

The Philippines enjoys an edge over other neighboring countries because of its highly-skilled and English-speaking workforce and and industry capable of producing parts at par with global standards.

Campi earlier said it would revise upward its growth target this year on the back of improved consumer and business confidence. Latest data showed the industry was now expecting to sell 165,000 units of vehicles this year, up 25 percent from last year’s.

Lee earlier said the industry was benefiting from increased remittances of migrant Filipino workers. The launch of new models and the availability of products, like sport utility vehicles, pickup trucks and vans, also boosted sales in the past seven months, she said. –Julito G. Rada, Manila Standard Today