Question & AnswerQ&A (EXECUTIVE ORDER NO. 182)
The main purpose of Executive Order No. 182 is to implement the Comprehensive Automotive Resurgence Strategy (CARS) Program to attract new investments, stimulate demand, implement industry regulations, and revitalize the Philippine automotive industry to develop it as a regional automotive manufacturing hub.
The CARS Program covers the production of three enrolled models of four-wheeled motor vehicles, manufacture of Body Shell Assembly and Large Plastic Assemblies of the Model, manufacture of Common and Strategic Parts at OEM standards, and Shared Testing Facility for vehicles and/or parts.
A 'Model' refers to a nameplate not currently manufactured in the country. A full model change of a nameplate currently manufactured in the country is also considered a Model under the CARS Program.
The Board of Investments (BOI) is the lead implementing and coordinating agency for the CARS Program.
The Inter-agency Committee evaluates applications for enrollment and registration, recommends issuance of Certificates of Registration, monitors program performance, audits compliance, prepares reports, recommends withdrawal of support for non-compliance, and advises on policies to enhance the program.
Participants must be internationally-recognized car makers/brand owners or authorized in-country licensed manufacturers acting jointly with such a car maker, have a proven global track record, and have existing multinational operations.
Registered participants may receive Fixed Investment Support (FIS) and Production Volume Incentive (PVI) during the enrolled Model Life, up to six years.
Failure to invest in the manufacture of parts or establish shared testing facilities within two years from registration, failure to deliver parts within the prescribed period, non-compliance with program provisions, and failure to meet terms and conditions of registration can lead to cancellation or forfeiture.
No, registered participants shall not be allowed to register their activity under any other program granting incentives to avoid double availment.
Common Parts are vehicle parts not currently produced in the Philippines at OEM standards that registered Participating Car Makers agree to source from one supplier, such as automotive glass and seat fabric. Strategic Parts are specific parts not currently produced locally at OEM standards like struts, shock absorbers, plastic fuel tanks, head lamps, steering assemblies, and aluminum radiators.