Analysis of the Board of Investments' guidelines on the progressive car manufacturing program

• Main Author: Gatmaitan, Marciano A.
• Format: text
• Language: English
• Published: Animo Repository 1973
• Subjects: Automobile industry and trade > Philippines; Automotive Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/192
• Institution: De La Salle University

In 1970, the Board of Investments invited the different car assemblers in the country to discuss the possibility of launching a Philippine Car Manufacturing Program. On May 17, 1971, the BOI, after consultation with the different assemblers and other government agencies issued the guidelines for the PCMP. The guidelines were formulated to achieve the following objectives : A. Realize a measure of dollar savings for the country through domestic manufacture of automotive components. B. Create manufacturing activity in various existing small to medium size enterprises for the domestic manufacture of automotive components and in the process upgrade engineering and production skills and provide new technological know-how to the domestic manufacturing industry. The end-product assemblers/manufacturers would serve as the local points through which engineering, management and financial assistance would be extended by international companies to domestic part makers to enable the latter's products to comply with international quality standards. Such a development would substantially expand the capabilities of existing facilities and organizations to manufacture a wide range of end-products and/or components for such articles as industrial equipment, agricultural equipment, construction and mining equipment, and spare parts thereof. C. Generate new exports of manufactured products as automotive components in a regional automotive components complementation program. It is believed that the automotive industry in Southeast Asia should develop in a manner such that the various countries would each manufacture different major components and supply these to each other while the end-product assembly takes place in each of the countries. The PCMP in itself was initiated to induce the car assemblers to do more than just assembly work. On April 17, 1972, the Board of Investments recommended to the President of the Philippines the inclusion of five participants, namely : Chrysler Philippine Corporation, DMG, Inc., Delta Motor Corpo