After Vios, Toyota plans to roll out new car model from RP plant

Toyota Motor Philippines Corp. (TMPC) will be investing at least P2 billion next year, with a big chunk of the amount going to the assembly of a new model that the company will introduce soon in the domestic market. Alfred Ty, TMPC vice chairman, said the new model will be converted to completely built units (CBUs) in its Sta. Rosa, Laguna plant from the semi-assembled completely knock down (CKD) kits. This means that Toyota will be adding another model for local production, following its decision to manufacture the Vios compact sedan here. TMPC invested P1 billion to set up and operate the new Vios production line. Also this year, TMPC affiliate Toyota Auto Parts Inc. (TAPI) opened its P5-billion transmission manufacturing facility in Sta. Rosa, Laguna. The output of the plant will be supplied to Toyota’s global production for its International Innovative Multipurpose Vehicle (IMV) line that includes the Innova, Fortuner and Hi-Lux. “Next year, [we will be investing] P2 billion easily. We will be launching some new exciting models towards the middle of 2008," Ty said. Ty refused to give more details on the new model that the company will start producing locally next year. He said there are advantages in doing the assembly of some models in the country instead of just merely importing. These advantages include savings on tariff payments and shipment costs, he said. However, the government, he added, should put in place policies that would encourage auto firms to produce more models here. The conversion of CKD into CBUs also benefit the country in terms of fresh employments, dollar inflows and more business for the local parts manufacturers. Santos Guerrero, senior vice president of TMP, said the company is looking at increasing its CKD volume to 25,000 units in 2008 from about 15,000 units this year. - GMANews.TV