Toyota welcomes restored CARS funding, cites renewed investor confidence

Toyota Motor Philippines Corporation (TMP) said it welcomes the reinstatement of funding for the Comprehensive Automotive Resurgence Strategy Program (CARS), saying the move renews investor confidence 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. TMP sincerely appreciates the government’s decisive action to reassure investors and stakeholders who have long supported the Philippine automotive manufacturing industry. This move reinforces confidence in the country as a sustainable base for automotive manufacturing,” the company said in a statement on Monday.

TMP added that it remains committed to working closely with the government to revitalize the Philippine automotive sector as a driver of nation-building.

On Friday, Finance Secretary Frederick D. Go said the Marcos administration has secured a solution to fund the CARS Program, assuring enrolled car manufacturers that “the government will fulfill its commitment to investors.”

However, Go declined to disclose the amount to be allocated, saying Budget Secretary Rolando Toledo would address the technical details of the financing structure.

Not a withdrawal of support

Meanwhile, the government’s economic team issued a separate statement to address misconceptions following the veto of the CARS Program item in the FY 2026 General Appropriations Act (GAA).

“The Department of Budget and Management, Department of Trade and Industry, and the Department of Finance 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 joint statement said.

The agencies explained that the FY 2025 GAA contains two relevant budgetary items: operating requirements of the CARS Program Project Management Office and fiscal support arrearages.

While the fiscal support arrearages item was not carried over to the FY 2026 GAA, the government said it can still settle validated obligations by augmenting the existing FY 2025 arrearages line item under the DTI-Board of Investments budget, using verified savings from the Department of Public Works and Highways, subject to presidential approval and compliance with budget rules.

“Based on the Tax Payment Certificates (TPCs) already issued and validated, the government has the capacity to settle dues to participating car manufacturers, including Toyota and Mitsubishi, as well as eligible auto parts makers. These payments will be supported by available FY 2025 savings, subject to the approval of the Office of the President and compliance with all applicable fiscal and legal requirements,” the statement said.

The agencies added that any remaining validated claims not yet covered by issued TPCs may be proposed for inclusion in the FY 2027 National Expenditure Program, subject to cash programming and available fiscal space.

“The government’s position is clear: we will not abandon the auto industry. Obligations supported by issued and validated TPCs will be paid in a legal, orderly, and responsible manner, consistent with our fiscal space and established budgetary rules,” Toledo said.

Trade Secretary Cristina Roque underscored the importance of sustained collaboration between government and industry players.

“The government recognizes the automotive industry’s vital role in job creation, technology development, and industrial growth. We are committed to ensuring that the incentives under the CARS Program continue to encourage investors to do business in the Philippines. The industry can expect continued partnership to ensure that the program is implemented in line with its intended objectives,” Roque said.

Go, a former Special Assistant to the President on Investments and Economic Affairs, reiterated the administration’s position.

“President Ferdinand R. Marcos Jr. has given clear direction that the government must honor the commitments it made to investors who placed their trust in the Philippines. The CARS Program is a key pillar of our strategy to strengthen local manufacturing, and we will ensure that legitimate obligations are paid—consistent with the law and within the capacity of public funds,” he said.

“Our message to the auto industry is clear: do not worry—you remain part of the government’s long-term plan for industrial development, job creation, and economic growth,” Go added.

The agencies said validation of TPCs remains ongoing, with the DTI continuing to review claims for accuracy and compliance before any fund release.