Japanese used car

Automotive giant Toyota Motor Philippines Corp. (TMPC), the country’s largest motor vehicle manufacturer, is spending P1.5 billion to establish a new assembly line for a new “minivan” inside its sprawling economic zone in Sta. Rosa, Laguna.

The Board of Investments (BOI) is now evaluating the application of TMPC as a new domestic producer of the innovative multipurpose vehicle (IMV) with a capacity of 13,020 units once it starts commercial operations next month.

The additional equity infusion would be used to acquire machinery and equipment, dies and jigs, at the same time finance the project’s working capital requirements. The entire project cost would be sourced from internally generated funds.

The new model dubbed as “Innova” would have a seating capacity of eight and would possess a new body style, larger body size and advanced design, new chassis or platform (higher gear transmission), new frame and suspension, newly developed engine, and new advanced interior and exterior features.

The “Innova” will launched on February 14 would add to the models being assembled by TMPC, such as the Tamaraw Revo, the Corolla, and the Camry.

TMPC is a participant of the BOI’s Motor Vehicle Development Program (MVDP). Its other models include the Land Cruiser Prado, the RAV4, Hiace, Hilux pick-up and Previa.

The new model is a generic vehicle that is designed and suited for the Asian market.

The “Innova” was registered as a new basic model under Executive Order 156 otherwise known as the new MVDP last June.

The project is expected to generate employment for 1,233 direct and indirect workers.

Assemblers registered under the revised MVDP are entitled to fiscal and nonfiscal incentives such as income tax holiday (ITH) of up to six years.

TMPC has an authorized capital stock of P2 billion of which P1.55 billion has been subscribed and paid-up. Its major shareholders include the Metrobank Group (30 percent) Filipino-owned Titan Resources (21 percent), Maximus Management Holdings (9 percent), Toyota Motor of Japan with (34 percent), and Mitsui & Co. Ltd. (6 percent).

Last September, Toyota Motor of Japan announced that it was investing P7 billion to transform the Philippines as its largest manual transmission production hub outside of Japan.

The fund will also be used to modernize its existing production facilities, raise production capacities, and transfer new technology to the Philippines.

The additional equity infusion is on top of the P15-billion investments injected by the Toyota Group into the country. Besides TMPC, Toyota Japan has invested in the country through Toyota Autoparts Philippines Inc. (TAP) that is currently exporting automotive transmission and constant-velocity joint (CVJ) to various countries worldwide.

TMPC operates a plant in Sta. Rosa, Laguna that was opened in 1997 where it assembles the Corolla and the Camry with a capacity of 48,000 units but only produces 20 percent of its total output.

The firm recently decided to close down its Bicutan plant built in 1988 with a capacity of 36,000 units of the Tamaraw Revo but is only producing half of its total capacity.

TMPC dominated the industry after it sold 29,198 units last year or 4.95- percent more than the 27,821 units sold in 2003.