DTI asks automakers to get parts locally to prevent shortage due to Coronavirus (Covid-19)

MANILA: With the threat of COVID-19 still looming over the world, supply chains of various industries, including automotive, are gearing up for the potential shortage of manufactured parts.

As a precautionary measure, the Department of Trade and Industry (DTI) is encouraging auto assemblers and manufacturers to source parts locally in order to avoid delays in servicing vehicles around the country.

“There will probably be a challenge as to the supply chain, but just like people, companies cope up. They can do a backup strategy, sourcing from alternative sites as well. That can be in other parts of China or other parts of the world, including the Philippines. Find local sources for any eventuality, not to rely on a single source. It’s like part of business continuity planning,” said DTI Secretary Ramon Lopez.

He also urged major auto brands to expand the lineup of vehicles assembled and/or manufactured in the Philippines and think of it as an opportunity to begin exporting locally made vehicles to the region.

Toyota Motor Philippines (TMP) first vice president Rommel Gutierrez has announced that the company has yet to feel the negative effects of the shutdown of major production hubs in China to prevent the spread of COVID-19. He added that TMP has “enough stocks” to fulfill production demand.

Gutierrez also maintained that TMP’s auto parts currently come from Toyota’s regional affiliates, such as Indonesia, Malaysia, and Thailand.

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