Japanese car firms threaten pullout over used car issue

The government should decide if it wants to have a domestic car manufacturing industry in setting a policy on used car imports.

According to Scholchi Kameyama, president of the Japanese Chamber of Commerce and Industry of the Philippines, "if the government decides to allow used car imports, local car manufacturers would cease operations and the country will experience some unemployment."

Kameyama said that local car manufacturers have met with Trade and Industry Secretary Manuel Roxas II who assured them that the government will come out soon with a policy on used car imports.

Roxas reportedly wants to ban the entry of used cars, Kameyama said, but the Department of Trade and Industry is still studying the best legal option to stop the entry of used cars.

"Used cars sold cheaper and this is hurting the local industry," Kameyama said.

The local car manufacturing industry is dominated by Japanese car companies led by Toyota, Honda, Mitsubishi, Isuzu and Nissan.

Used car imports are substantially cheaper but carry some risk because they are actually converted from right-hand drive to left-hand vehicles.

Although used cars are supposed to be restricted for use only within the Freeport, importers have been able to exploit the loophole and have been able to sell the cars outside of the Freeport.