Review of the Progressive Car Manufacturing Program
Executive Order No. 906

August 4, 1983



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 know-how to the domestic manufacturing industry; and (3) Generate new exports for manufactured products;

WHEREAS, despite the amendments to the original guidelines, these objectives have not been fully attained; cdt

WHEREAS, the Board of Investments is empowered under

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 of government adopting fundamental reforms in the PCMP;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the

1. The Board of Investments shall review and revise the Progressive Car Manufacturing Program as adopted in 1970 with the end objective of achieving an economic balance considering technology development, increased domestic manufacturing activity, foreign exchange savings, and reasonable consumer prices. casia

2. Specifically, the Board of Investments shall; at the conclusion of said review, come up with new guidelines for the Progressive Car Manufacturing Program which will limit the participants to not more than two (2) assemblers.

3. The new guidelines shall specifically indicate the commitments of the winning participant/s as well as terms and conditions relative to the assemblers to be phased out.

4. The Board of Investments is likewise 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.

5. The Central Bank shall grant foreign exchange allocations to support the participant/s of the new Program upon the recommendation of the Board of Investments.

This Executive Order shall take effect immediately.

DONE in the City of Manila, this 4th day of August, in the year of Our Lord, Nineteen Hundred and Eighty-Three.

Published in the Official Gazette, Vol. 79 No. 44 page 6224 on October 31, 1983.