Going Around in Circles Part II

The last time this writer was at the steering wheel in this column, we gave our two centavos worth on the matter of the ongoing Audi tug-o-war. Surprise, surprise! We got reactions from both sides of the Audi fence. I don’t know whether to consider the letters we received as thankful, supportive, combative or inquisitive, but to (hopefully) put an end to this squabble, in the interest of balanced reporting and upon the suggestion of our editor-in-chief Isaac Belmonte, we’re using this space to reprint their letters. Here’s what Audi AG (through their legal counsel Bernas Law Offices) and Auto Prominence (through their corporate communications manager Bambi Custodio) had to say…

Dear Mr. Magsajo,

We act on behalf of our client Audi AG, in relation to your "Backseat Driver" column of July 20, 2005 at The Philippine STAR.

In your column you wrote that our client has "to come clean if they intend continue doing business in this country."

As counsel for Audi AG, we only wish to provide you with the facts on hand which you failed to verify and/or failed to mention. These facts should show that the letter and tenor of your column have misappreciated the facts and the applicable law on the controversy with the Rodriguezes.

Our client does not do, and has not done, business in this country. They simply sell their cars to Filipino dealers who import the vehicles from Germany; our client has never granted an exclusive distributorship: not to PGA and definitely not to APC.

Our client is, and has always been "clean". It does not owe the government any taxes or other obligations. Contrary to APC’s contentions, Audi has provided every kind of assistance required by APC or the Rodriguezes to deliver and sell the cars to its customers.

In contrast, the Rodriguezes, we estimate, stand accused in eighty-four (84) bouncing check and estafa cases. They further stand accused at the Sandiganbayan for defrauding the government of tax credits worth Seven Million Two Hundred Thousand and Ninety Four Pesos (P7,200,094.00). It is of public record that APC and/or the Rodriguezes allegedly owe the Board of Investments of at least One Hundred Million Pesos, and are defendants in a civil case filed by the government for collection of unpaid taxes and customs duties. Lastly, Proton Pilipinas, the precursor of APC, is in debt amounting to at least One Billion Pesos in the form of loans from different banks.

The Rodriguezes sued Audi in Alaminos, Pangasinan, alleging that it was the location of its principal office. However, based on our verification in Pangasinan, they do not actually hold office there. It appears that they sought the Courts of Alaminos as venue for their case, for an "unknown" reason, despite provisions in their Agreements with our Client, which require otherwise. The Distributorship Agreement between Audi and APC under paragraph 20, clearly provides, thus:

"20. The place of performance for all undertakings connected with this agreement shall be the location of the registered offices of the Supplier.

"The law of the Federal Republic of Germany shall apply. Application of the United Nations Convention on Contracts for the International Sale of Goods of 11.04.1980 and of the German International Civil Law is hereby excluded.

"Place of jurisdiction is the court responsible at the location of the registered office of the Supplier. The Supplier shall also be entitled to have recourse to any other responsible court" [emphasis supplied]

Thus, even assuming Audi deserved the admonition that it should come clean, then by all means, such an admonition should likewise be directed against the Rodriguezes. In our opinion, the Rodriguezes have filed the suits only as leverage with the hope that our Client pays contrived damages. The case they filed against our Client is currently pending before the Regional Trial Court of Alaminos City, Pangasinan, Branch 54, the same Branch where all their other cases in Alaminos are also pending against different Defendants.

Would you propose that APC or the Rodriguezes are "clean"?

What damages can you possibly imagine they are entitled to as importers or dealers of Audi? It is simply inconceivable that they would be owed any damages when all vehicles sold by Audi perform consistently with their specifications.

Had you perused the contracts, you would have readily seen that all the contracts stipulate specific termination dates and termination processes. Your references to "lambing" and "amor" do not justify departing from contract stipulations, and it is plainly irresponsible to suggest that Filipinos are entitled to or should disregard their contractual obligations, when the Article 1315 of the New Civil code provides, thus:

"Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to the consequences which, according to their nature, may be keeping with good faith, usage and law."

We realize that you write an opinion column and that you are entitled to your own opinion. However, in the process of forming your opinion, we think that it would be fair to seek our side of the story.

We trust that you appreciate our concerns, which led us to write you.

We thank you for your time and would greatly appreciate any effort to clarify and/or rectify the matter.

Very truly yours,

Jose A. Bernas

* * *

Dear Mr. Magsajo,

First of all, we would like to thank you for your fair reporting in your column’s "Going Around In Circles", "Backseat Driver", The Philippine STAR dated 20 July 2005.

We would like to clarify however that the Audi brand in 1996 had a zero percent awareness or zero image of Audi in the Philippines. Auto Prominence was responsible in building the image that it has envisioned to be. For one, APC took pride in stating that through the years, it has managed to develop a strong and high resale value for Audi cars, citing actual experience of being able to sell pre-owned A4s as old as 6 to 8 years at a good price comparable to similar models in the luxury segment.

This is solid proof that APC has successfully handled and given justice to the Audi brand which it introduced in 1996 when Audi was practically an unknown brand in the Philippines.

Although one can see a dilemma of sorts why we are here to continue, Auto Prominence has nurtured the brand from birth. We cannot turn away from our customers who have been with us for years.

Auto Prominence has almost a decade of training, experience and expertise in servicing Audi cars, with its computerized diagnostics systems, equipment and special tools on board backed up with Php 100 million pesos worth of Audi parts inventory. This is unmatched in the history of Audi in the Philippines. We have built the Audi infrastructure and that is not only for the "Show Purposes" which was the original motive of Audi AG whose only aim is to penetrate the Philippine market without any cost on their part.

To give an example on how APC is committed to provide after sales service reliability, we have an Audi customer who serviced his car with PGA but went back to Auto Prominence because it has been a month now that the parts have not yet arrived. This is just to show that the availability of any single spare parts cannot be assured in a just-in-time basis.

As an advance information, we would like to tell you that Volkswagen will be launching the new Caravelle with fully independent suspension, TDI engine with VTG (variable turbine geometry) for maximum power and torque and optimum fuel efficiency (12kms/liter) among others, aside from its present line-up of New Beetle and Touareg.

We have read today’s "Backseat Driver". We would like to thank you for clearing the issue regarding the reader’s question on Audi AG vs. APC.

Once again, thank you for hearing our side and we hope that we have clarified some points printed in your article.

Very truly yours,

Bambi B. Custodio

Corporate Communications Manager

So there! I’m tempted to say that we should let the public be the judge after all is said and done, but quite frankly, even that wouldn’t be right. For the record, I still stand by my original bottomline assessment of the situation (which was apparently lost on those looking hard for semantic loopholes in the form of short phrases within the article) — that both entities pulling hard in separate directions does little to help improve the brand’s image. I still say that the ideal situation is one where both Audi AG and Auto Prominence meet halfway for the benefit of the car buyers that they are apparently both eager to serve — contract disputes and legal jousts notwithstanding. And for the record, I did not and will not insinuate that either of the entities involved in this legal battle is dirty — because just like any other Backseat Driver out there, all I can really do is simply say my piece — not pass judgement. I would rather leave that to the courts.

So to Audi AG and Auto Prominence (who we both still consider as partners in this endeavor to give the Filipino motorist the kind of vehicles and service he deserves), we’ve given you your space in our publication. Gentlemen, it’s time to take your fight out of our pages and onto the courts. Best of luck.

The Backseat Drivers holler! Here’s some of what you guys had to say last week.

How about alloting more space on car care and motoring tips in you section? — 09165885780 (A sound suggestion, if ever there was any. There are plans to do just that in the coming weeks and months.)

To the MMDA: Wala na madaanan ang tao sa Tandang Sora, Visayas Avenue. Occupied na ng vendors at jeeps ang kalye at bangketa. Please do something. — 09176142417

To LTFRB: Jeepneys at Santolan LRT station ply only up to Sta Lucia. Is there such a line or this is just plain trip cutting? — 09217460822

Attention MMDA: Why is it that PUJs are allowed to park at the EDSA Monumento area? — 09175371985

I would like feedback or a review on the Chevrolet/Opel Zafira. Thanks. — 09178428769 (We did a review of the Opel Zafira a few months back in our monthly Wheels supplement section. Text in your email address and we’ll email you a copy of the review.)

To the DPWH: When can we have a smooth and well paved highway here in Ilocos Sur? — 09173662620

Aurora Boulevard is being used as free parking for jeepneys and trikes. And they’re even putting up a structure on the sidewalk. Help! — 09178459239

To Mayor Ilagan of Cainta: Your ambulance (SFY-754) is being used by its driver to pick up officemates every morning — complete with sirens and lights. — 09178549216

Speak out, be heard and keep those text messages coming in. To say your piece and become a "Backseat Driver", text PHILSTAR<space>FB<space>MOTORING<space>YOUR MESSAGE and send to 2333 if you’re a Globe or Touch Mobile subscriber or 334 if you’re a Smart or Talk ’n Text subscriber or 2840 if you’re a Sun Cellular subscriber. Please keep your messages down to a manageable 160 characters. You may send a series of comments using the same parameters.