Mitsubishi Motor Philippines Corporation (MMPC) said Monday it will continue processing and releasing claims to local automotive parts producers despite the veto of the P4.32-billion Comprehensive Automotive Resurgence Strategy (CARS) allocation in the 2026 national budget.

The CARS allocation was among the items vetoed under the 2026 General Appropriations Act (GAA) as the government tightened controls on unprogrammed appropriations.

The program is designed to attract more investment in local automotive parts manufacturing and strengthen the industry’s competitiveness.

MMPC said it respects President Ferdinand R. Marcos Jr.’s decision, noting "the decision’s role in safeguarding fiscal discipline and promoting responsible governance."

"MMPC remains committed to working closely with government agencies to ensure the timely processing and release of the claims and to advocate for clear, predictable, and transparent processes that support the integrity of government programs and reinforce investor confidence," the company said in a statement.

It added that it "remains dedicated to the long-term competitiveness and industrialization of the Philippine automotive sector —supporting local manufacturing, protecting jobs, and contributing to sustainable economic growth."

Earlier, Department of Trade and Industry Undersecretary Ceferino Rodolfo said the agency is coordinating with the Department of Budget and Management (DBM) to identify a mechanism to pay CARS arrearages, "especially as these had been based on validated delivery of performance commitments and on a robust and transparent inter-agency process of vetting claims against the CARS Program."

MITSUBISHI PHOTO