Car parts makers defend MVDP

MANILA, Philippines - Local auto parts makers yesterday defended the Comprehensive Motor Vehicle Development Plan (MVDP) against the Alliance of Vehicle Importers and Distributors (AVID) and insisted that EO 877-A is not a “midnight” EO.

AVID has written to President Aquino asking for the revocation of the EO saying that it is a midnight EO.

Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) president Raffy Villarreal says that EO 877-A was just an update of the circa 2002 EO 156.

“EO 877-A is therefore just part of an evolving program and merely brings up-to-date and makes relevant the MVDP with the current times, this era of free trade. We now operate in a borderless economy and we have to face some business realities, painful though it may be,” Villareall said.

“This EO was intended to help level the playing field in the Asian region. This was the result of various industry consultations conducted by the Board of Investments during the last few years with all the stakeholders, even going down to the formation of various technical working groups to help craft and recommend specific portions of the EO,” Villareal explained.

He added that the EO hopes to address the global competitiveness or non-competitiveness of the Philippine parts and auto manufacturing industry that is currently uncompetitive against the likes of its Asian neighbors Thailand, Indonesia, Malaysia and even Vietnam.

“The Philippines is at the bottom of the list, a poor fifth in the big five. Sadly enough, we have been left behind and will continue to be so unless we confront the issues and resolve them,” he said.

Villarreal said that MVPMAP has long been open about its support for EO 877-A as it provides a lot of support for local auto parts makers to redeem lost grounds. “For the last 12 years, our membership has been reduced from 250 to the current 125 member-companies. Most of our members have to close shop and those that survive are now operating at only about 40 percent of rated plant capacities,” he said.