DTI asks car firms to submit investment plans

MANILA, Philippines - The Department of Trade and Industry (DTI) has asked auto manufacturers to submit their mid term investment and expansion plan in order to help the government craft the Implementing Rules and Regulations (IRR) for the Comprehensive Motor Vehicle Development Plan (MVDP).

This was done as car importers questioned the legality of the MVDP. Importers alleged that the new law favored manufacturers over them and has asked President Aquino to revoke the Executive Order that was signed by former President Arroyo.

However, Trade Secretary Gregory L. Domingo said that it is vital to take care of firms that provide employment.

Auto manufacturers employ hundreds of thousands for their assembly plants. They have also invested heavily in the country in order to put if their manufacturing plant. On the other hand, auto importers bring in vehicles assembled in other countries and merely sell it here.

“There is always a bias towards companies that generate employment domestically. To what extent is the question,” Domingo told reporters in an interview.

“The MVDP should be crafted so that it promotes long-term employment growth,” he added.

Domingo said he has met with players in the auto industry and asked them to submit their five- to 10-year plan to the government. “We want to know their long-term plan in order to better help them.”

Meanwhile, Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) president Elizabeth H. Lee said that the IRR is important to make a strong MVDP. She said they have a long way to go because this is only their third meeting.

“What we have is not strong enough. We need a strong and positive MVDP and this is a very positive step towards that direction,” Lee said.

“The MVDP was written to support the local auto industry especially those who invest heavily in the assembly plants,” she added.

Lee said the MVDP will help expand the automotive market which will help all players in the industry. By cracking down on the illegal importation of second hand vehicles, Lee said the market for the players in the formal sector will expand.

“We are all for market expansion and this will benefit everyone,” Lee said.