Local Car Assemblers Eye Purchase of Local Parts
The Chamber of Automotive Manufacturers of the Philippines Inc. said its members are considering to buy locally-manufactured parts and components to address supply disruption from Japan.
“In principle [we are] open. Requirements will depend per brand. [The] objective is to minimize impact to our customers. All options will be considered,” Elizabeth Lee, group president, told Manila Standard in a text message Friday.
The Board of Investments earlier urged car assemblers to get their parts and components from local producers to avoid disruptions in the assembly of completely-knocked down units in the country.
Trade Undersecretary and BoI managing head Cristino Panlilio said he recommended to some car assemblers in the country to purchase their parts and components from local sources to avoid disruptions in the supply chain.
He said local assemblers had informed him of the imminent scarcity of car parts and components. “The local assemblers said we could have a problem if supply of car parts become scarce in the next couple of days,” Panlilio said.
Lee said assemblers of Japanese brands were relying on inventories on hand and those which may have been shipped out or in transit prior to the earthquake and tsunami in Japan.
“In Japan, some plants are beginning to resume operations. However, other plants to include some suppliers of parts and components are still working on resumption of operations. Hence, some key parts may be affected,” she said..
“The supply chain is critical and all brand makes are putting in great efforts to support parts suppliers as well. Further, logistics is hampered which may result in delays in the delivery of parts and vehicles. The effect of these on the Philippines’ local assembly is in the supply of parts which may either be part of the CKD pack or for regular parts purchases,” Lee said.
She also said vehicles were available for sale given the inventories on hand. “We are hopeful that the situation will improve soon enough even with limited operation levels to help stem any shortage should this arise,” Lee said.
Manila Standard Today
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