Mitsubishi salutes local parts suppliers

Like one big family, the 25 local parts suppliers join their partners at Mitsubishi Motors and concerned government agencies.

For the longest time, members of the Philippine Parts Makers Association felt that they were part of a dying breed.

Not anymore, says PPMA chairman emeritus Eddie Jose.

Speaking during Wednesday’s formal ceremony of Mitsubishi Motors Philippines Corp. (MMPC) to award certificates of participation to its suppliers, Jose explained that the renewed support for parts manufacturers meant not only taking advantage of the technical skills and proficiency of the Filipino workers in doing manual tedious electronic assembly work, but also in their skills in electronics assembly and ICT (information and communications technology)-related services.

“This country sold cars that were primarily assembled and whose parts were made from someplace else, as (automotive) parts manufacturers here, we barely survived the absence of a clear automotive industrial vision and unchecked inflows of smuggled cars,” said Jose.

“After this morning’s event, we’re now seeing a ray of hope as the government and automotive manufacturers like Mitsubishi Motors Philippines Corp. (MMPC), acknowledge the role of local manufacturers.”

The awarding of certificate to MMPC’s partner suppliers is the offshoot of this June’s Board of Investments decision to green light MMPC, along with Toyota Motor Philippines, to proceed with its investments that would help boost the country’s automotive manufacturing sector (also known as the Comprehensive Automotive Resurgence Strategy or CARS program).

P4.3 billion

As part of the CARS program, MMPC is set to invest around P4.3 billion in plant and equipment, including about P2 billion in the construction of a new stamping shop facility.

The new stamping shop is due to come into full operation in the first half of 2018.

According to MMPC president and CEO Yoshiaki Kato, the company’s participation is expected to create more jobs not only for the company but also to is local parts suppliers. “MMPC just recently started in its 21-hectare facility in Sta. Rosa, Laguna, the second shift operation in preparation to the soon to commenced local production of the Mirage hatchback and its sedan version, the Mirage G4.

“A total of 500 assembly workers were hired to support this second shift operations.”

The CARS program aims to raise local vehicle manufacturing to expand the country’s auto parts making capabilities. CARS is expected to attract P27 billion in fresh investments, manufacture 600,000 more vehicles, and add P300 billion to the domestic economy (equivalent to 1.7 percent of gross domestic product).

MMPCpresident and CEO Yoshiaki Kato

25 suppliers

A total of 25 suppliers were awarded with the Certificate of Participation, and Board of Investment Gov. Henry Co informed that this is just the first batch of suppliers who have firmed up their involvement under MMPC’s local parts manufacturing program.

The 25 suppliers are AGC Automotive Philippines (automotive glass), Autocarpets (carpet assembly), Autoliv Cebu Safety Manufacturing Corp. (steering wheel), B4 Manufacturing Corp. (trunk trim assembly), Daiwa Seiko Philippines Corp. (transmission parts), Denso Philippines Corp. (aluminum radiator, evaporator, condenser, combination meter, AC pipes, wiper motor mechanism, blade), Enkei Philippine (aluminum wheel), F-Tech Philippines Manufacturing (brake and clutch pedal assembly), Harada Automotive Antenna Philippines (antenna), Hella-Philippines (accelerator pedal), Inoac Philippines Corp. (fender form block), JT Pencorp (wheel assembly), Koyo Manufacturing Philippines Corp. (electronic power steering system), Manly Plastics (large plastic parts), NHK Springs Philippines (seat assembly), Nitto Denko Philippines Corp. (stiffener), Oriental and Motolite Marketing Corp. (battery), Philippine Aluminum Wheels (aluminum wheel), Reydel Automotive Philippines (large plastic parts), Roberts Automotive and Industrial Parts Manufacturing Corp. (body shell assembly), Titan Rubber Industrial Manufacturing Corp. (rubber weatherstrip, anti-vibration rubber and hoses), Tri-R Allied Industries (body shell assembly), Valerie Products Manufacturing (suspension members, body shell assembly),Yazaki-Torres Manufacturing (automotive electrical wiring harness), and Yokohama Tire Sales Philippines (rubber tires).

BOARD of Investment Gov. Henry Co

After the awarding ceremony, Kato said that the company’s participation in CARS along with the awarding of Certificate of Participation, signifiy MMPC’s more than half a century commitment to develop the country’s automotive manufacturing industry.

Other officials witnessing the awarding were Ken Kataoka, GM of Mitsubishi Motors Corp. (MMC) Philippine Business Office; Toshihiro Ito, manager of MMC Global Procurement Department; and Junya Masuda, assistant GM of Sojitz Corp.

They were joined onstage by Co along with Undersecretary Ceferino Rodolfo of Department of Trade and Industry; Asec. Romulo Manlapig of DTI and Board of Investment’s CARS program director; and Junichiro Suzuki, Trade and Commercial Attache of the Embassy of Japan.

“Under the CARS program our projected production volume is 200,000 units within a period of six years,” Kato explained.

As participating auto manufacturer in the CARS program, MMPC is required to localize the production of body shell and large plastic parts and components.

Philippine Parts Makers Association president Eddie Jose

The implementation of the CARS program over the next six years is likewise expected to benefit the chemicals, metal working, tool and die, plastics, electronics, rubber, glass, and textile sectors, which is why according to Co, will usher the country’s capability to also enter into other industry including aerospace and medical equipment industry.

“CARS is not about building cars but building skills. It is about what we gain out of trying to build cars,” he said.