DTI submits revised auto manufacturing plan to Malacañang

MANILA, Philippines - The Department of Trade and Industry (DTI) has resubmitted the revised Motor Vehicle Development Plan (MVDP) to Malacañang after explaining that they have already made second hand importation more restrictive.

“There was no change in the MVDP,” Trade Secretary Jesli A. Lapus told reporters.

According to Lapus, they only made clarifications because Malacañang returned the MVDP to them after receiving letters from the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Fair Trade Alliance (FTA).

“I don’t see any conflict there at all. They can sign the MVDP if they accept our explanation to their queries,” Lapus noted.

He said the group has been asking about the prohibition.

In a separate interview, CAMPI president Elizabeth H. Lee said that there is a need to review and revise the current MVDP. “They have to strengthen the current tone.”

She said the article on the importation of used vehicle should be tighter and stronger in order to lend support to the local industry.

For their part, the Philippine Automotive Competitiveness Council Inc. (PACCI) said the current auto program needs updating to address the competitiveness of domestic auto manufacturing in view of opening up of the markets in the region.

PACCI said the local automotive manufacturing industry is currently under immense pressure as evidenced since the domestic auto manufacturing industry is currently operating at just a quarter of installed capacity or 60,000 units out of 250,000 units of installed capacity.

As of 2009, the sales of locally manufactured vehicles has drastically gone down to 63,813 units which is 49 percent of the total car sales, from 145,888 units or 90 percent in 1996. The proliferation of used vehicle imports and the high growth rate of brand new vehicle imports have contributed to this decline which causes a drain on foreign exchange.

PACCI added that the significant decline in the locally manufactured vehicles translates to about 50 percent loss of direct jobs from 140,000 to about 70,000, including those from parts’ manufacturing sector over the last 10 years.

PACCI is confident that the New MVDP will address key competitiveness and productivity concerns of the industry, resulting in sustainable economic benefits – more quality jobs, increased investments and more government revenues – providing tangible success of the government’s industrial policy.

PACCI’s primary objective is to support the Philippines’ domestic auto and auto parts’ manufacturing industries and increase their overall competitiveness.