Second-hand vehicle imports killing local auto industry

STA. ROSA, Laguna – The importation of second-hand cars and trucks is not only hurting but "killing" the local automotive industry, the country’s top automakers and their workforce said yesterday.

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Automotive Industry Workers Alliance (AIWA) jointly expressed this sentiment during an organizational meeting of the Sta. Rosa Business Club, an association of businessmen whose activities are concentrated in this city.

AIWA and CAMPI are soliciting support from local government officials and businessmen in this city to lobby in Congress for the banning of the importation of used trucks and cars.

This city has been tagged as the "Detroit of the Philippines" since most of the country’s leading car manufacturers, including Toyota, Nissan, Isuzu and Ford, have set up their manufacturing plants here.

AIWA and CAMPI complained that the local automotive industry has been "hurt" by importers of used cars and trucks, most particularly the right-hand drive types.

Despite laws that regulate the importation of cars, AIWA officials disclosed that second-hand cars have freely been coming into the country through the Subic Bay free port.

Angel Dimalanta, AIWA vice president, said that importers using the Subic Bay free port have been bragging that their activities employ at least 6,000 people and bring into the country revenues of more than P300 million.

Dimalanta, however, said the local and legitimate car makers and their allied industries generate at least P11 billion yearly in terms of excise taxes and other income for its more than 77,000 workers nationwide.

CAMPI data showed that a big gap exists between the registered vehicles with the Land Transportation Office (LTO) and the number of vehicles sold by local automotive industry.

As of last year, sales of vehicles by the formal automotive companies were only 88,074 units while the LTO registered 268,075 vehicles, or about three times higher than the output of the local automotive industry.

CAMPI traced the discrepancy to the informal sales of vehicles by importers of second-hand cars.