MANILA, Philippines - Local parts makers yesterday expressed support for the newly signed Comprehensive Motor Vehicle Development Plan (MVDP) or Executive Order 877 saying the new law will be a big help in ensuring that the industry remains competitive.
Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) president Raffy Villarreal said that the addition of Article seven on parts manufacturing and auto-supporting industries development ensures the development, competitiveness and capacity utilization of local parts manufacturing and its downstream industries.
“This will be a big boost to us, considering that most of our members have either closed shop or scaled down production volumes. Today, those who survive operate at only about 40 percent of their rated plant capacities. With EO 877, we really do not have to infuse additional investments to get back to previous production levels, as all we need to do is make use of our excess and idle capacity,” he said.
Meanwhile, Villareal said the addition of article six on standards and technical regulations is another plus factor because it will ensure that only those who are technically qualified can produce parts and assemble vehicles. “This is because now with EO 877, everybody will have to hurdle quality, safety and environmental performance standards for motor vehicles,” he explained.
MVPMAP also cited Article five on export incentives for the exportation of auto parts and components. “This opens up for us an entirely new avenue for business opportunities. EO 877 will give us an export incentive package that will encourage greater participation, better quality products and product diversification for entrepreneurs like us to break into the export market and grow exponentially,” he noted.