Isuzu says it will sell only locally-assembled vehicles once CMVDP is in place

MANILA, Philippines –  Isuzu Philippines Corp. announced they will be selling all locally-assembled vehicles once the Comprehensive Motor Vehicle Development Plan (CMVDP) is put in place.

In an interview, senior vice president Arthur Balmadrid said that 90 percent of vehicles sold by Isuzu are assembled here. This is the highest among leading car manufacturers and dealers.

“We are highly localized and we can be completely localized or sell 100 percent Phlippine assembled vehicles once the CMVDP is put in place,” Balmadrid said.

However, Balmadrid warned that if the CMVDP is not implemented then even the 90 percent production may be cut. “We need to justify to our head office our operations here and with the free trade among countries we really need incentives to continue manufacturing here,” he explained.

The government is asking for commitments to auto firms to beef up their manufacturing and eventually export Philippine made vehicles to other countries before signing the implementing rules and regulations (IRR) of the MVDP which has long been delayed. The executive order for the CMVDP was signed before President Arroyo stepped down from office and the IRR was supposed to be completed during the third quarter of last year. Until now, there is still no IRR for the auto sector.

Isuzu said that they are willing to export their vehicles. In fact, Balmadrid said they tried exporting the Crosswind to Vietnam but it was too expensive. He conceded that incentives may make this more attractive.

Balmadrid said they can export their products to Central America or Europe but they need to make it cost efficient. “We really want to develop a local product that can be exported.” 

Meanwhile, Isuzu sales stood at around 11,000 last year overshooting its 10,000 2010 target.

For this year, Balmadrid said that they expect sales to grow by five percent. He said this is consistent with the target set by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI). CAMPI is looking at growing by four percent to five percent this year.