Mitsubishi to make Daimler-Chrysler parts in RP

Mitsubishi Motors Philippines plans to put up a car spare parts manufacturing facility in the country for its US-German partner Daimler-Chrysler, Trade and Industry Secretary Manuel Roxas II said.

Mitsubishi, which tied up with Daimler — Chrysler in March 2000, however said the plan would still depend on the outcome of the pending excise tax bill in Congress.

The Japanese automaker added that the export incentive program by the government as well as the deliberations on the auction of used vehicles would also play a part in its decision.

Mitsubishi is the fourth company after Honda, Toyota and Ford to recently announce expansion plans in the country despite the ongoing controversy mainly on the issue of excise taxes on vehicles.

Honda, in particular, has expressed interest in using the Philippines as a manufacturing hub for completely built-up units (CBUs) while Toyota and Ford have firmed up plans to invest additional capital for their domestic manufacturing operations.

Roxas said the interest of these automakers "just goes to show that foreign automobile makers are confident of the government’s efforts and the competence of the Filipino workforce."

But he added that the Philippines is more keen on attracting CBU operations since merely concentrating on parts and components will not be enough for the future.

Eventually, he said parts and components manufacturing would gravitate to areas where CBU operation are.