By Bernie Cahiles-Magkilat
The Board of Investments (BOI) has approved four companies with investments of P1.3 billion for the production of automotive parts to be supplied to Toyota Motor Philippines for the assembly of Vios under the Comprehensive Automotive Resurgence Strategy (CARS) program of the government.
The approved firms are Manly Plastics, Inc. (Manly), Technol Eight Philippines Corporation (TEP), Toyota Boshoku Philippines Corporation (TBPC), and Valerie Products Manufacturing, Inc. (Valerie) will be producing body shell and large plastic (BSLP) parts for the New Vios, Toyota Motor Philippines Corporation’s (TMP) CARS-enrolled model.
These parts projects are worth approximately P1.3 billion and constitute TMP’s main out-house localization investments.
Aside from the four main CARS suppliers, TMP has also approved 26 local direct suppliers for the New Vios. These localization projects have generated investments of P600 million on top of the BSLP investments. TMP has also invested R1.9 billion in in-house parts manufacturing to complement its out-house localization. To-date, TMP’s total CARS investments have reached P5.2 billion.
Since 2016, TMP and its supplier network have been preparing for the production of the New Vios in mid-2018. For some of the suppliers, it was necessary to obtain technical assistance agreement (TAA) with Toyota suppliers in Thailand to address quality and technical capability gaps.
With TMP’s support, Manly and Valerie started TAA collaboration with Toyoda Gosei Co. Ltd. and Ogihara Co. Ltd in October 2016 for the New Vios. Suppliers also needed to level up production capacity to match CARS volume requirement. TEP acquired a 1,000 tons press machine for larger parts stamping while TBPC focused on process improvements to increase productivity.
Tags: auto parts suppliers, Board of Investments, BOI, BOI okays 4 Toyota CARS suppliers, CARS Project Management Office, Comprehensive Automotive Resurgence Strategy, Manly Plastics, President Koji Yamaguchi, President Takayoshi Kato, Technol Eight Philippines Corporation, TMPC President Satoru Suzuki, Toyota Boshoku Philippines Corporation, Toyota Motor Philippines, Toyota Motor Philippines Corp., Toyota Motor Philippines Corporation, Undersecretary Rodolfo, Valerie Products Manufacturing