EXECUTIVE ORDER NO. 906 August 4, 1983
DIRECTING THE REVIEW OF THE PROGRESSIVE CAR MANUFACTURING PROGRAM (PCMP)
WHEREAS, the guidelines for the Progressive Car Manufacturing Program (PCMP) were originally formulated in 1970 to achieve the following objectives: (1) Realize a measure of dollar savings for the country through domestic manufacture of automotive parts; (2) Create manufacturing activity for various existing small to medium size enterprises for the domestic manufacture of automotive components and in the process upgrade the engineering and production skills and provide new technological knowhow to the domestic manufacturing industry; (3) Generate new exports for manufactured products.
WHEREAS, despite the amendments to the original guidelines, these objectives have not been fully attained;
WHEREAS, the Board of Investments is empowered under Presidential Decree No. 1789 to formulate and implement rationalization programs for industries;
WHEREAS, the limited car market for five (5) participants in the program is a disincentive to achieving economies of scale, thereby increasing cost penalties to the consumers; and
WHEREAS, recent events in the industry have demonstrated the desirability...
Details
Amends
n/a
Amended by
n/a
Executive Orders
Directing the Review of the Progressive Car Manufacturing Program (PCMP)
Executive Order No. 906
Summary of Executive Order No. 906
Directs the Review of the Progressive Car Manufacturing Program (PCMP)
- Background:
- The PCMP guidelines were formulated in 1970 to achieve the following objectives: (1) Realize dollar savings through domestic manufacture of automotive parts, (2) Create manufacturing activity for small to medium enterprises for domestic manufacture of automotive components and upgrade engineering and production skills, and (3) Generate new exports for manufactured products.
- Despite amendments, these objectives have not been fully attained.
- The Board of Investments (BOI) is empowered to formulate and implement rationalization programs for industries under Presidential Decree No. 1789.
- The limited car market for five (5) participants in the program is a disincentive to achieving economies of scale, increasing cost penalties to consumers.
- Recent events in the industry have demonstrated the desirability of government adopting fundamental reforms in the PCMP.
- Provisions:
1. The BOI shall review and revise the PCMP adopted in 1970 with the objective of achieving an economic balance considering technology development, increased domestic manufacturing activity, foreign exchange savings, and reasonable consumer prices. (Section 1)
2. The BOI shall come up with new guidelines for the PCMP which will limit the participants to not more than two (2) assemblers. (Section 2)
3. The new guidelines shall indicate the commitments of the winning participant/s as well as terms and conditions relative to the assemblers to be phased out. (Section 3)
4. The BOI is directed to review and revise the Progressive Truck Manufacturing Program (PTMP) with the objective of maximizing economies of scale by integrating it, to the maximum extent feasible, with the PCMP. (Section 4)
5. The Central Bank shall grant foreign exchange allocations to support the participant/s of the new program upon the recommendation of the BOI. (Section 5)
This Executive Order shall take effect immediately.
Directs the Review of the Progressive Car Manufacturing Program (PCMP)
- Background:
- The PCMP guidelines were formulated in 1970 to achieve the following objectives: (1) Realize dollar savings through domestic manufacture of automotive parts, (2) Create manufacturing activity for small to medium enterprises for domestic manufacture of automotive components and upgrade engineering and production skills, and (3) Generate new exports for manufactured products.
- Despite amendments, these objectives have not been fully attained.
- The Board of Investments (BOI) is empowered to formulate and implement rationalization programs for industries under Presidential Decree No. 1789.
- The limited car market for five (5) participants in the program is a disincentive to achieving economies of scale, increasing cost penalties to consumers.
- Recent events in the industry have demonstrated the desirability of government adopting fundamental reforms in the PCMP.
- Provisions:
1. The BOI shall review and revise the PCMP adopted in 1970 with the objective of achieving an economic balance considering technology development, increased domestic manufacturing activity, foreign exchange savings, and reasonable consumer prices. (Section 1)
2. The BOI shall come up with new guidelines for the PCMP which will limit the participants to not more than two (2) assemblers. (Section 2)
3. The new guidelines shall indicate the commitments of the winning participant/s as well as terms and conditions relative to the assemblers to be phased out. (Section 3)
4. The BOI is directed to review and revise the Progressive Truck Manufacturing Program (PTMP) with the objective of maximizing economies of scale by integrating it, to the maximum extent feasible, with the PCMP. (Section 4)
5. The Central Bank shall grant foreign exchange allocations to support the participant/s of the new program upon the recommendation of the BOI. (Section 5)
This Executive Order shall take effect immediately.