CAMPI seeks dialogue after Marcos vetoes CARS, RACE funding

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) is seeking dialogue and collaboration with government agencies following President Ferdinand Marcos Jr.’s veto of funding for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs.

“CAMPI believes in the importance of collaboration between government and industry in securing the future viability of the Philippine Auto Manufacturing sector. Such is crucial in creating a positive environment for future investments and helps develop a more robust local auto parts manufacturing industry,” the group said in a statement released Thursday.

Funding for the CARS and RACE programs was among the 10 line items totaling P92.5 billion that were vetoed from the P6.793-trillion 2026 General Appropriations Act before the President signed the measure into law on Monday.

CAMPI said recent developments have raised serious concerns over the funding of financial incentive commitments already granted under the CARS program.

“The participants should be able to receive their incentives based on their actual performance, which has already generated economic benefits,” the group said.

CAMPI also said the RACE program is a critical transition measure for future industry development and should be implemented as soon as possible.

“Both CARS and RACE are fundamental programs that contribute to the overall industrial development of the country. We fully trust and support the efforts of key government agencies in urgently resolving these important matters,” the group said.

Earlier, the Philippine Parts Makers Association (PPMA) warned that the veto of the two programs could place the local automotive manufacturing industry at risk.

PPMA president Ferdi Raquelsantos said the auto parts sector relies heavily on CARS and RACE, warning that without sustained and predictable government support, investments could slow, local manufacturers could lose competitiveness, and skilled jobs could be lost.

To date, only two firms—Toyota Motor Philippines Corp. for the Vios model and Mitsubishi Motors Philippines Corp. for the Mirage—have joined the CARS program, which aims to attract new investments, stimulate demand, and strengthen industry regulations to develop the Philippines as a regional automotive manufacturing hub.

The RACE program, initiated by the Department of Trade and Industry, seeks to promote local vehicle assembly and the integration of locally manufactured components.

Only Toyota has so far signified its intention to join the RACE program, which it did in February 2025.