California Offers Incentives To Philippine Automaker To Set Up Electric Jeepney Factory

California is making a significant push to attract Francisco Motors, a Philippine automaker renowned for its iconic jeepneys, to establish a major electric vehicle manufacturing facility in the state. The California Governor’s Office of Business and Economic Development has formally expressed strong support for the proposed expansion, offering a comprehensive package of incentives and institutional backing. This move aligns with California’s ambitious clean transportation goals, including a mandate for all new passenger vehicles sold in the state to be zero-emission by 2035 and a broader target of carbon neutrality by 2045. The proposed facility, known as Project Mesa, is planned for the Santa Clarita Valley in Los Angeles County and represents a substantial investment of approximately $5 billion. The multi-phase project will begin with research and development and pilot manufacturing, eventually scaling to full production and global distribution of electric vehicles. At full capacity, the plant is expected to employ between 1,800 and 2,200 workers, supported by hundreds of contractors during construction, and will occupy a site of up to 90 acres with over a million square feet of combined office, production, and warehouse space. California’s incentive package for Francisco Motors is extensive, including tax credits, sales and use tax exemptions on manufacturing equipment, property tax abatements, and workforce development programmes. The state is also offering operational support such as utility rate discounts, tax-exempt industrial development bonds, and assistance with permitting and regulatory coordination. These measures reflect California’s commitment to fostering a robust zero-emission vehicle ecosystem, which currently accounts for 35% of U.S. ZEV registrations and hosts 60 manufacturers. Elmer Francisco, the company’s founder and a long-time advocate of electric mobility, explained that while local manufacturing in the Philippines remains a long-term goal, establishing a base in California provides strategic advantages. The U.S. facility offers access to advanced EV infrastructure, a skilled workforce, and institutional support, enabling faster large-scale deployment amid current supply chain and tariff challenges. The project also incorporates sustainable operational features, including a hybrid renewable hydrogen fuel cell microgrid and water recycling systems, underscoring its environmental commitment. This development marks a notable shift in the global electric vehicle landscape, highlighting California’s role as a hub for clean technology innovation and manufacturing. If realised, Francisco Motors’ expansion could strengthen the state’s leadership in zero-emission transportation and create significant economic and environmental benefits. The next steps involve finalising site control and activating incentives to move swiftly from commitment to production, signalling a rapid progression towards operational launch.