DTI ready to scrap Motor Vehicle Development Plan

MANILA, Philippines - The Department of Trade and Industry (DTI) is ready to scrap one of the last Executive Orders signed by President Arroyo, the EO 877-A or the Comprehensive Motor Vehicle Development Plan (MVDP) after the department ordered another round of talks between the government and auto manufacturers.

Trade Secretary Gregory L. Domingo announced that he has directed Undersecretary Adrian Cristobal to meet with auto manufacturers in order to find out what the auto industry needs so that it can beef up local manufacturing and exports of vehicles.

Domingo is keen on export of locally manufactured vehicles. Unfortunately, the industry said that it cannot ramp up its production given the small domestic base. Currently only Ford Group Philippines sells locally made cars overseas.

The MVDP was expected to increase investments in the automotive industry by making the country a more attractive destination for car makers.

The DTI was supposed to come out with the Implementing Rules and Regulations (IRR) for EO 877-A more than a year ago. The implementation of the MVDP has been delayed because the IRR for cars cannot be completed. The IRR for motorcycle and second hand vehicles were finished ahead of the problematic car component.

However, in earlier interviews Domingo said he was not satisfied with the EO because he cannot see “the light at the end of the tunnel.”

When asked if he will now scrap the EO, Domingo merely nodded. Initially, Domingo and his team in DTI said that they will come up with the IRR for the MVDP once the study made by the University of Asia and the Pacific (UA&P) was completed.

The study was already submitted to Domingo but the secretary said he needs six months to study it.