Auctioneers refute charges of automotive industry

The Association of Philippine Auctioneers branded yesterday as "lacking in truth and substance" allegations made by the automotive industry against imported used vehicles saying the quality of vehicles coming out of Subic is beyond normal standard, safe and has passed strict government regulations.

APA president Romy Armamento also sought to dispel rumors being circulated by the car assemblers that vehicles coming out of Subic pose a danger to the buyers because these vehicles are "crudely converted into left-hand drive."

Armamento said auctioneers of used vehicles adhere to strict government regulations which includes smoke emission tests conducted by the DOTC and the DENR, and road worthiness measures by the Land Transportation Office (LTO).

In fact vehicles purchased from Subic Auctioneers are subjected to various stringent government regulations ensuring that converted vehicles pass the standards imposed by the government.

Armamento said that only vehicles coming out of Subic are subjected to stringent government regulations before given the go-signal while newly assembled vehicles coming out of various plants of car assemblers were not given the same standards by the government. Even imported brand new vehicles were not required to submit to such testing because they are not required under the car development program.

Another stringent requirement auctioneers have to pass is the numerous testing and inspection on every portion and parts of a vehicle before it was given a registration by the LTO.

"Questioning the viability and roadworthiness of vehicles from Subic is in effect questioning the capability of the government in enforcing the law," Armamento said.

Another disinformation being peddled by the truck and car assemblers was that the government is losing revenues from the importation of second-hand vehicles.

But auction industry data reveals otherwise. APA and government records show that the auction industry has contributed a total of P3 billion worth of taxes, registration fees, tariffs and other Customs duties, including VAT to the government in its two years of existence, or P1.5 billion a year.

The allegation of car assemblers that it is directly competing with them, according to Armamento is precisely not true because the car industry caters to the A, B, C classes, while the used car market is patronized by C and D classes. The latter were ordinary employees, overseas Filipino workers and small traders who previously could not afford to buy brand new vehicles.

"These SMEs whom you call the best users of capital are the prime movers of the economy. They are able to expand their businesses, thus creating hundreds of thousands of jobs. Farm to market roads are completed faster; transportation costs go down; more schools, public markets and housing projects are completed; and farmers increase their productivity," he said.