THREE auto parts makers and a manufacturing services provider have successfully registered for the Comprehensive Automotive Resurgence Strategy (CARS) program as suppliers for the new Toyota Vios small car.
In a statement Wednesday, Toyota Motor Philippines Corp. (TMP) said the suppliers were Manly Plastics, Inc. (Manly), Technol Eight Philippines Corp. (TEP), Toyota Boshoku Philippines Corp. (TBPC), and Valerie Products Manufacturing, Inc. (Valerie).
The parts makers — Manly, Valerie and TEP — will make body shell and large plastic parts for the new Vios and are considered major participants in TMP’s localized outsourcing program.
Manly and Valerie signed a technical assistance agreement with Toyoda Gosei Co. Ltd. and Ogihara Co. Ltd in October 2016 to supply parts for the new Vios.
Toyota requires some suppliers to sign technical assistance agreements (TAA) with the automaker’s suppliers in Thailand, a major supply hub for the region, to ensure quality and adherence to technical standards.
Meanwhile, TEP acquired a 1,000-ton capacity press to allow it to stamp larger parts.
TBPC specializes in process improvements to increase productivity.
CARS provides incentives for the volume manufacture of small cars, thereby spurring investment and employment.
In the statement, TMP said the parts projects were worth P1.3 billion. It did not specify whether this total represented its investment in localization.
The contracts were issued to upgrade the automaker’s capacity to deal with large expected volumes under CARS.
TMP also approved 26 local direct suppliers for the new Vios.
The company expects to start local production of the new Vios in mid-2018.
The high volume of production under CARS will give suppliers greater operational stability, Toyota said.
“The benefit of CARS to suppliers is long term. The newly acquired production capability and manpower skills will become their advantage even after the CARS program,” TMP President Satoru Suzuki said. — Janina C. Lim