Exports of Automotive Parts, Components to Reach $2 B.(Business)
Byline: BERNIE CAHILES-MAGKILAT
Exports of motor vehicle parts and components are projected to reach $2 billion in 2005 from $1.01 billion exports level in base year 2000 as the industry gears up its capabilities to compete in a global market.
Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) president Feliciano Torres, also president of Yazaki-Torres Manufacturing Corp., said during the press conference of the Japan Overseas Development Corporation (JODC) Automotive Expert Dispatch (JESA) program that the industry has assumed a 10 percent annual growth rate in its exports.
Under the JESA program, Japanese automotive experts are sent here to guide local parts producers improve their operations and attain global competitiveness.
Of the 74 exporting companies, 40 companies are in joint ventures with foreign partners.
Of the total parts and components of a vehicle, Torres said that 73 percent can be purchased locally and that 40 percent are being exported.
Exports of motor vehicle parts and components have been identified by the government as the country's emerging new exports.
Kikuo Endo, one of the JESA experts, said the local industry has a very bright future.
He, however, said that for the industry to really take off "volume" is the key word which he said could be developed with the help of a government policy that will regulate imports of second hand vehicles. …