Toyota group to invest P7.5 billion in next 3 years
AP FILE PHOTO
MANILA, Philippines — The Toyota Group of Export Suppliers has committed to invest as much as P7.5 billion between now and 2016 for new projects, including putting more locally manfucatured parts in the Vios model, amid challenging export market conditions.
In a statement, the Toyota Group said it has committed to continue making these new investments to prepare for export recovery, as well as to serve the increase in local demand for production parts.
These investments are being made amid expectations of a 4-percent decline in the Toyota Group’s export performance this year to $897 million, which reflected a reduction in the group’s earlier target of breaching the $1-billion mark for export receipts in 2014.
As it is, the group’s first quarter export sales already fell by 15 percent to $216 million from the $253 million registered in the same period last year, the Toyota Group said in a statement issued Wednesday. Last year, the group’s export performance also declined by 3 percent to $939 million compared to previous year’s level.
The Toyota Group is composed of 13 parts export suppliers, performing strategic roles in the manufacture and export of automotive products to the member states of the Association of Southeast Asian Nations, Japan, and other parts of the world.
Article continues after this advertisementThese suppliers are Aichi Forging Co.; EDS Manufacturing Inc.; Fujitsu Ten Corp. of the Phils.; International Wiring Harness; JECO Autoparts Inc.; Koyo Mfg. Inc.; Nippon Antenna (Phils.) Inc.; Philippine Auto Components Inc.; Philippine HKR Inc.; Technol Eight Phils. Corp.; Tokai Rica Phils. Inc.; Toyota Autoparts Phils. Inc.; and Yazaki Torres Manufacturing Inc.
Article continues after this advertisementThe revised and more conservative forecast for export receipts was due to the current situation of two major export markets affecting the group’s exports, explained Toyota Motor Philippines president Michinobu Sugata.
Decline in domestic demand is foreseen in Thailand given the political situation there, while market contraction is expected in Japan following the implementation of higher consumption tax beginning April 2014, Sugata explained.
He emphasized, however, that the “slowdown in export performance is only temporary and that exports will soon recover. The booming Philippine auto market will also be an additional source of growth for parts suppliers.”
To help the industry maximize the upcoming opportunities, the Toyota Group has also sought for immediate government intervention to revitalize local automotive manufacturing, especially at this time when investment decisions need to be finalized by the mother companies in Japan.
A major factor being considered in investment decisions is the approval of the much anticipated new automotive manufacturing industry roadmap. The timing of the issuance is reportedly critical to the Toyota Group.
Approximately $300 million in new investments are being considered in view of the forthcoming new auto policy. Final decisions will be made once the government finally issues the auto roadmap.
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