Subic auctioneers question car development program

Subic car auctioneers questioned yesterday the country’s continued implementation of the Motor Vehicle Development Program (MVDP) after more 20 years of existence.

The Subic auctioneers were retaliating against the MVDP following a warning from the Board of Investments (BOI) that the Subic auctions of used cars, motorcycles, trucks and buses will affect the viability of the government’s car development program.

In a position paper, the Auctioneers Association of the Philippines said "the car program has been in the country since the Marcos regime and thus it may be time to review if the program is still necessary given the 21st century scenario."

The group pointed out that if the MVDP has been successful, the "Philippines should have been exporting cars by this time."

They also questioned a provision under the MVDP which prescribes a minimum local content for vehicles manufactured in the country. They observed that up to this time, only batteries seem to be sourced locally since even tires are imported.

The group also questioned the "importation" policy of the BOI. They noted that BOI-registered firms are only allowed to import fixed quantities of completely built up (CBU) units and the rest must be completely knocked down (CKD) units "to encourage the development of the local car industry."

The Subic auctioneers, said they have temporarily stopped the sale of used cars. However, they said, the group is still allowed to sell through auctions trucks and heavy equipment and construction machinery.

All those items, the Subic auctioneers said are liberalized with existing restrictions.