BOI approves 4 Toyota CARS suppliers

The Board of Investments has awarded four Toyota suppliers certificates of registration as participating parts makers under the Comprehensive Automotive Resurgence Strategy (CARS) program.

“Manly Plastics Inc., Technol Eight Philippines Corporation, Toyota Boshoku Philippines Corporation, and Valerie Products Manufacturing Inc. will be producing body shell and large plastic (BSLP) parts for the New Vios,” Toyota Motor Philippines Corporation (TMP) said on Wednesday.

The New Vios is the CARS-enrolled model of TMP.

The parts projects are worth approximately P1.3 Billion and constitute TMP’s main out-house localization investments, according to Toyota.

TMP has also approved 26 local direct suppliers for the New Vios.

“These localization projects have generated investments of P600 million on top of the BSLP investments. TMP has also invested P1.9 billion in in-house parts manufacturing to complement its out-house localization,” TMP said

“To-date, TMP’s total CARS investments have reached P5.2 billion,” it said.

Since 2016, TMP and its supplier network have been preparing for the production of the New Vios in mid-2018. For some of the suppliers, it was necessary to obtain technical assistance agreement (TAA) with Toyota suppliers in Thailand to address quality and technical capability gaps, the carmaker said.

Supported by TMP, Manly and Valerie started TAA collaboration with Toyoda Gosei Co. Ltd. and Ogihara Co. Ltd. in October 2016 for the New Vios.

Suppliers also needed to level up production capacity to match the program’s volume requirement. Technol Eight acquired a 1,000-ton press machine for larger parts stamping while Toyota Boshoku Philippines focused on process improvements to increase productivity.

The high volume required under CARS will give suppliers greater operational stability, but the bigger impact is more than just increased output, TMP noted.

“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. —VDS, GMA News