TOYOTA SEEN GETTING MANILA APPROVAL FOR CAR OUTPUT
Toyota Motor Corp <TOYO.T> of Japan is
expected to get approval from a Philippine government agency to
produce cars and other items here, government sources said.
    This follows the company's proposal to invest about 400 mln
pesos and generate about 100 mln dlrs in export earnings over
five years.
    The sources said Toyota is likely to be brought into the
government-backed Progressive Car Manufacturing Program (PCMP),
which since the 1970s has controlled the number of car makers.
The PCMP is administered by the Board of Investments (BOI),
which screens investments by foreigners and locals.
    The sources said Toyota had also applied to produce wiring
harness, hardboard and ferro-silicone for local and export
markets. It has not yet said what kind of cars it will make.
    The sources did not say when BOI would announce its
decision on the Toyota application.
    In 1984 Toyota severed its ties with <Delta Motor Corp>,
its local partner for more than 20 years, because the latter
was suffering financial difficulties. The state-owned
Philippine National Bank later foreclosed on Delta's assets and
the sources said Toyota is now negotiating to buy these.
    The government sources also said Toyota was in the final
stages of negotiations with a new local partner.
    Toyota would be the third participant in the PCMP, joining
<Pilipinas Nissan Inc> and <Philippine Automotive Manufacturing
Corp>, formerly Canlubang Automotive Resources Corp.
    Two U.S. Car firms, General Motors Corp <GM.N> and Ford
Motor Co <F.N>, withdrew from the local car market shortly
after the country was hit by a financial crisis in 1983.
 REUTER
