RP hints at policy change for GM

RP hints at policy change for GM

MANILA (AFP): A senior government official hinted yesterday the Philippines was ready to revise automotive industry policies to enable General Motors Corp. (GM) of the United States to set up an assembly facility here.

GM early this year proposed a US$4.04 billion investment to the government including an automotive transmission plant to be followed by an assembly plant for the Corsa and Tigra models.

However Manila has ruled that under present rules applicants to the country's motor vehicle development program have to open an assembly plant first before venturing into parts manufacturing, Trade Secretary Cesar Bautista said.

GM wants the parts plant in place and to be counted as part of its investment for the assembly plant, he told reporters.

"Existing assemblers do not want them (GM) to come in" by way of the investment scheme proposed by the US giant, and instead want it to set up "along regulations" set by the program, Bautista added.

He said the department's Board of Investments will come up with a solution to accommodate GM's proposed project without hurting the industry itself. He would not elaborate.

"We want to make sure current participants will not be disadvantaged," Bautista said. "We will make a decision based on what is good for the industry."