Government urged to review car program

MANILA, Philippines - Local auto parts makers are urging the government to review the Motor Vehicle Development Program (MVDP) and fasttrack approval of pending bills to help the auto market and encourage other auto assemblers to stay in the country amid Ford Philippines’ planned closure of its assembly plant.

In a statement yesterday, Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) president Ferdi Raquelsantos said the government must undertake steps to get the auto assemblers to stay in the country as Ford announced last week it shall halt its assembly operations in Sta. Rosa, Laguna by the end of the year.

“We plead for private sectors, government and end-users to take concrete steps so that the remaining auto assemblers will not go Ford’s way,” he said.

MVPMAP vice president Rommel Juan said a concrete step the government should take is to have a second look at Executive Order 877-A or the MVDP which was approved two years ago.

He said the government must decide whether the MVDP, which covers the manufacture and assembly of knocked-down motor vehicles in the country, must be scrapped or replaced with another one.

“What we want to see is a firm resolve on government’s part to put in place an MVDP that would provide fiscal and non-fiscal incentives not only to assemblers but to end users as well. It has to be one that will encourage local manufacturing rather than just trading,” he said.

He said the government must likewise work on the approval of pending bills which are expected to help the local auto market such as the alternative fuel vehicles bill that would help grow the liquefied petroleum gas, compressed natural gas and electric vehicle market in the country.

“In the end, what we want to have is a business environment that would induce foreign investments then have them stay for good,” he said.

Ford officials said last week that the firm is closing its assembly plant in Laguna as part of the restructuring of its regional manufacturing operations.

The plant’s closure is seen to affect about 250 employees.

Raquelsantos said Ford’s shutdown of its plant is also seen to affect the local auto parts making industry.

“Of course we cannot blame Ford since this was a business decision. But then again, this is definitely a big blow to some 50,000 workers including those in the upstream and downstream industries dependent on the parts making industry,” he said.

He said that as most of the MVPMAP’s plants are operating at below 50 percent of their rated plant capacities and the increasing importation of completely-built units (CBU), Ford’s planned closure of its assembly plant would be another obstacle in their attempt to get back on their feet.