FOUR suppliers of Toyota Motor Corp. were authorized by the Board of Investments (BOI) to manufacture parts for the car dealer’s Philippine affiliate under the government’s Comprehensive Automotive Resurgence Strategy (Cars) program.
Toyota Motor Philippines Corp. (TMP) identified the suppliers awarded certificates of registration by the BOI as Manly Plastics Inc., Technol Eight Philippines Corp., Toyota Boshoku Philippines Corp. and Valerie Products Manufacturing Inc. These firms are now licensed to produce body shell and large plastic parts for the new Vios, TMP’s Cars-enrolled vehicle model.
According to TMP, the parts projects are valued at around P1.3 billion, and will make up a hefty chunk of the car dealer’s out-house localization investments. Toyota’s Philippine affiliate also acquired the service of 26 local direct suppliers for the new Vios.
Localization projects amounted to as much as P600 million on top of TMP’s P1.9-billion investment on in-house parts production aimed at complementing its out-house manufacturing. All in all, the car dealer’s investment on the Cars program is now at P5.2 billion.
TMP, along with its supplier network, is throwing in all the work for the production of the new Vios, which is expected to begin midyear. However, some of the car dealer’s suppliers needed to obtain technical-assistance agreement with Toyota suppliers in Thailand, so as to resolve quality and technical capability gaps.
In October 2016 Manly and Valerie began collaborating with Toyoda Gosei Co. Ltd. and Ogihara Co. Ltd., on technical-assistance agreement for the New Vios. On the other hand, Technol bought a 1,000-tons press machine for larger parts stamping, while Toyota Boshoku concentrated on process improvements aimed at accelerating productivity.
TMP President Satoru Suzuki was quoted in a statement released on Wednesday as saying the suppliers had to develop their technical capability to manage the high volume of production required under the Cars program. Suzuki claims this arrangement will work to the supplier’s advantage, as it will “provide them with operational stability, as well as increased output.”
“The benefit of Cars [program] to suppliers is long term. The newly acquired production capability and manpower skills will become their advantage even after the Cars program,” Suzuki said.