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."