SBMC general manager Ben Perez told The STAR that the company has decided to venture in re-exporting used vehicles because the government is bent on stopping the sale of used vehicles to the local market.
"SBMC will now focus on the international market with our new Japanese business partners," Perez said.
He added that SBMC also plans to form a new joint venture company to re-export reconditioned vehicles to countries like Thailand, Vietnam, Cambodia, Laos, Myanmar, Russia and other left-hand drive countries in the Middle East Asia and Africa.
The initial shipment for export includes 129 units Mitsubishi Pajero, 50 units Toyota Hi-lux Surf and two units Toyota Landcruiser consigned to Carlyna Trading Co., Ltd. of Bangkok, Thailand. Carlyna Trading is the trading partner of Apple International Co. which distributes both brand new and used vehicles in Asia and neighboring countries.
Commenting on government’s lack of sympathy on the used-vehicles trading industry, Perez said that, "we will leave it up to the courts to determine the legality of Executive Order 418 which imposes an additional P500,000 specific tax on all imported used vehicles.
He pointed out that SBMC will continue "with our business and cooperate with Subic Bay Metropolitan Authority (SBMA) to prevent dislocation of its workers but will also help stop illegal activities in the Freeport particularly on smuggling issue."
Subic Bay Metropolitan Authority (SBMA) management has expressed full-support to the new business endeavor in exporting used-vehicle as she lauded the efforts of the company to develop expertise of Filipino mechanics and auto-industry workers to produce export quality automotive products.
The SBMA hopes that there will be a lot more of these export quality products to reach the global market because it is the earnest desire of SBMA to support this type of activity so that other countries, particularly in Asia would really see that the Filipinos are great and competitive.
Last December 2004, in its initial shipment for export to test the acceptability of the international market, SBMC exported 20 SUVs and pick-up trucks to Sudan in Africa.
At present, a total of 300 units are being reconditioned for export and about 1,000 units more are expected to be imported in the coming months, all for re-export business after completing local value added activities like steering conversion, mechanical repairs, tinsmith and repainting.
Perez also announced that top officials of SBMC recently welcomed its Japanese partners, Yoshinobu Kubo of Apple International Co. Ltd. from Mie, Japan and Komei Toya of Azumaya Tohin Seisakusho Ltd. from Nagoya, Japan in an investment exploration meeting with SBMA Administrator Alfredo Antonio presenting their plan to form a new joint venture company in Subic.
"We are hoping that the SBMA board of directors will approve our investment proposal to register our new export company which is aiming to bring-in more foreign investments to widen our market and employ hundreds of workers who will be displaced by the closure of small retailers,"he added.