Reinstatement of CARS budget restores trust in government —Toyota

Notable carmaker, Toyota Motor Philippines Corporation (TMP), said it welcomes the reinstatement of funding for the Comprehensive Automotive Resurgence Strategy (CARS) Program as the move renews trust in the government by stakeholders in the country’s automotive industry.

“TMP welcomes the Philippine government’s clarification on its fiscal means and reaffirmed commitment to honor its obligations under the CARS Program. The government’s decisive action to reassure investors and stakeholders who have long supported the Philippine automotive manufacturing industry is sincerely appreciated. This move reinforces confidence in the country as a sustainable base for automotive manufacturing,” the TMP said in a statement on Monday.

Furthermore, TMP, regarded as the undisputed market leader in the Philippine automotive industry, said it remains committed to working closely with the government in revitalizing the Philippine automotive industry as a driver of nation-building.

On Friday, Finance Secretary Frederick Go said the Marcos administration has secured a solution to fund the CARS program, saying car manufacturers enrolled in the program “can now be assured that the government will fulfill its commitment to investors.”

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

Not a withdrawal of support to auto industry

Meanwhile, the government’s economic team released a separate statement to address misconceptions and misinformation circulating online and within the automotive industry regarding the veto of the CARS Program item in the FY 2026 General Appropriations Act (GAA).

“The Department of Budget and Management (DBM), Department of Trade and Industry (DTI), and the Department of Finance (DoF)clarified that the veto does not reflect a withdrawal of government support for the auto industry, as existing budgetary items under the programmed appropriations of the FY 2025 GAA remain available to ensure the orderly, lawful, and fiscally responsible settlement of valid obligations under the CARS Program — consistent with the administration’s clear and continuing policy that the Philippine automotive industry remains a national priority,” the agencies’ joint statement said.

The DBM, DTI and DoF explained that under the FY 2025 GAA, there are two relevant budgetary items: the operating requirements of the Project Management Office of the CARS Program and the Fiscal Support Arrearages for the CARS Program.

While the fiscal support arrearages item is no longer included in the FY 2026 GAA, the government retains the ability to settle validated obligations through the augmentation of the existing fiscal support arrearages line item under the DTI-BoI Budget in the FY 2025 GAA from the FY 2025 declared and verified savings of the Department of Public Works and Highways, in accordance with the Constitution, existing laws, applicable budgetary rules and regulations, and the approval of the President.