Tañada named chairman of Universal Motors

Former Senator Wigberto Tañada has been named the new chairman of Universal Motors Corp. (UMC).

As the new chairman of UMC, Tañada called on the government to address the problems of the local automotive industry.

Tañada, who is also the lead convenor of the Fair Trade Alliance (FTA), said globalization is threatening to demolish the local automotive industry which could result in massive job loss.

"Globalization has forced the government to agree to a rapid reduction in import tariff and a change in the country’s excise tax system, both of which may adversely affect the local automotive industry," Tañada said.

He warned that a lower tariff could result in the proliferation of imported second-hand vehicles.

The Philippines’ acceptance of imported second-hand vehicles is in contrast to the policy of its neighbors such as Thailand, Malaysia, Singapore and Indonesia which have banned the entry of second-hand vehicles in order to protect their own local automotive manufacturing industry.