The Trade Department wants automotive assemblers to produce modern jeepneys at a cost of less than P1 million under the public utility vehicle modernization program.
“A million peso is expensive for a mass-based commercial transport vehicle. The price range should be lower than what is currently available,” said Trade Secretary Ramon Lopez.
The Trade Department said it was willing to rechannel financing support from the unused portion of the incentives given to the Comprehensive Automotive Resurgence Strategy incentives program to the PUV modernization program.
About P9 billion worth of fiscal and non-fiscal incentives should have been awarded to a third player under the Cars program. So far, only Toyota and Mitsubishi qualified as Cars participants.
The PUV modernization program is a multi-agency program led by the Transportation Department.
More than 200,000 units of modern jeepneys will be manufactured under the program to replace aging and polluting jeepneys withmodern, emission-compliant and safe and comfortable jeepney for the riding public.
Lopez said the additional support the Trade Department would provide the PUV program “is not enough” but will, nevertheless, put extra value to the program.
The program has until year-end to come up with the final concept and design.
The Trade Department is in charge of the manufacturing solution that will include the design and the sourcing of components such as power train, body, interior and peripherals.
The Transportation, Finance and Environment Departments are responsible for the social engineering, financing and fuel efficiency aspects, respectively.
