The Federation of Philippine Industries (FPI) and the Philippine Parts Makers Association (PPMA) lauded the pronouncement of Finance Secretary Frederick Go that the Comprehensive Automotive Resurgence Strategy (CARS) program has finalized a funding mechanism for it, weeks after President Ferdinand Marcos Jr. vetoed the program’s P4.32 billion budget before signing the 2026 General Appropriations Act earlier this month.

“We welcome the government’s move to secure funding for the CARS program despite earlier budget vetoes. This is a vital step toward rebuilding investor confidence and honoring commitments to manufacturers,” said FPI chairperson Elizabeth “Beth” Lee in a statement on Sunday.

Lee stressed that automotive manufacturing is more than about vehicles — it drives jobs, technology transfer, and the growth of our local parts industry, maintaining that policy consistency is the true cornerstone of competitiveness.

“And we call on government agencies to turn bold pronouncements into timely, transparent action. Only by sustaining industrial programs with credibility can the Philippines position itself as a trusted destination for long-term manufacturing investments," according to Lee.

For its part, the PPMA also appreciated the government’s announcement, recognizing it as an important step in sustaining investor confidence and reaffirming the government’s commitment to revitalizing domestic automotive manufacturing.

PPMA president Ferdinand RaquelSantos noted that the P4.32 billion allocation for CARS is vital in supporting the continued operations and production plans of the program’s participants, including vehicle manufacturers and the local supplier base that supports them.

“This resolution strengthens policy stability, protects jobs, and helps preserve the manufacturing ecosystem that the Philippines has worked hard to build over the years. At the same time, PPMA respectfully reiterates the industry’s strong hope that the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program will be implemented as soon as possible,” he said.

The group also underscored that only P125 million is needed to initiate and operationalize RACE, an amount that can unlock significant benefits for the broader industry, especially for local automotive parts manufacturers who are key contributors to inclusive industrial growth.

“PPMA believes RACE is the natural complement to CARS, as it strengthens the domestic supply chain by supporting investments in tooling, technology upgrades, quality and safety certifications, productivity improvements, and local content expansion. These are critical interventions that enable more Filipino parts makers to participate meaningfully in local vehicle production and compete within the ASEAN region,” he said.

On Friday, Finance Secretary Go said the Marcos administration has secured a solution to fund the CARS program.

“After much chatter on the vetoed funding of the CARS program, the government has finalized a funding solution for the CARS program. Therefore, car manufacturers enrolled in the program can now be assured that the government will fulfill its commitment to investors,” he added.

However, Secretary Go declined to mention how much funding the government will pour into the CARS program, passing it to Budget Secretary Rolando Toledo on technical details of the financing structure.