The last isn’t hard to understand. Japanese registration fees are very high for old cars, both to encourage people to simply buy new cars and support the local industry, and to discourage them from driving around in cars that have a hard time complying with ever-stricter emissions standards. So if you’re Japanese, you get the maximum mileage out of your car in the few years that you own it to get your money’s worth. By the time you’re done with it, it’s accumulated thousands of kilometers of mileage already, and the wear-and-tear will become only too evident to the next buyer: the Filipino who can’t resist these ‘bargain basement’ imports from Subic. But the question is: are these really a steal? And if so, who is getting the better part of the bargain?
Every used import is practically a lost sale to the local automobile industry, and by this we don’t just mean the big-name manufacturers like Toyota or Mitsubishi or Nissan — it also means the scores of suppliers for these companies, the ones that make the wiring harnesses and seatbelts and fuses and fabric materials, the little bits and pieces that are produced locally and which all go into a brand-new automobile.
Now, everyone knows that business is down. What with the oil price crisis and our government’s resolve to balance the country’s books by simply taxing us more instead of, oh, getting its house in order so investments could come in for a change, what is there to do but just roll with the punches and tighten our belts as we seem to have been doing for the past couple of years already? The local automobile industry, however, feels that government is mucking up the job exceptionally well when it comes to protecting legitimate investments that employ thousands of Filipinos.
In a joint statement to the Senate issued by the Chamber of Automobile Manufacturers of the Philippines Inc (CAMPI), Philippine Automotive Association (PAA), the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP), and the Automotive Industry Workers Association (AIWA), the industry expressed its distress at government’s contradictory policies when it comes to used vehicle importation. Executive Order 156 bans the importation of used vehicles, while Republic Act 8506 bans the importation of right hand drive vehicles.
Following from Senator Richard Gordon’s revelations about the used-imports industry — P9 billion in sales of 90,000 units from year 2000 to 2003, but with a considerably disproportionate contribution in taxes since Subic Freeport’s tariff rules are considerably less restrictive — CAMPI, PAA, MVPMAP, and AIWA are understandably alarmed about the unfair advantage the Subic importers seem to have. In 1996, the year before the Asian financial crisis hit, brand-new vehicle sales were 166,000. Last year, a little more than half at 88,000. Yet Subic imports average around 30,000 yearly, largely tax-free to the importer while stealing sales from local manufacturers who pay full taxes while providing gainful employment to 75,000 people.
But you see, even if you’re not working for the local automotive industry, you should be alarmed as well. Economics will tell you that a flourishing industry is good for everyone. More sales mean more money, and this is the kind of money that circulates and makes sure that wages are paid, things are bought and sold, and the economy in general hums along. But when business is down, everybody suffers. Factories shut down, workers are laid-off, the remaining money stays in the bank instead of circulating in other industries, and you ultimately end up with fewer choices on what you can spend your money on… if you’re still in a mood to spend it, that is.
Buyers of used imports say that they really don’t have a choice in the matter — it’s all that they can afford to buy. But I seriously doubt that. This may have been true several years ago when we were starved for choices, especially in the P500,000 range. Not anymore, however. That amount will get you either a Toyota Surf or a decent econo-car. The former is old, will guzzle fuel, and contributes very little to the economy. The latter is brand-new, far more efficient, and will let you rest easy knowing that you did your part in helping to get our economy out of its rut.
Here are some backseat drivers’ comments from last week.
Greetings! I would like to find out your views on the good and bad side as well as your verdict on the Hyundai Matrix CRDi version. Thanks. — 09198341297 (James Deakin did a review story on the Matrix CRDi last June 22. Send in your email address if you want a copy of the story.)
Saan po ba pwedeng magpa-ayos ng malalim na scratch ng windshield? — 09162135829 (Our advise, if it’s a deep scratch, have it replaced instead of repaired as this reduces the thickness of a windshield, making it more dangerous in the process.)
Mr. Deakin, thank God for you! Your column today is spot on! Do you have an email address? — 09177001625 (Yes, in fact he does. It’s cmag@pldtdsl.net)
Half of Masaya Street in U.P. Village, Quezon City blocked by jeepneys parked diagonally. LTO/MMDA/barangay do something please. — 09189304560 (Man, you are relentless! We’ve printed this message once yet you still text in week after week. We hope that this time your pleas are heard.)
The new scourge of the roadways, scooters. They pass you left and right, yet when they’re hit, what drama they portray as the injured victims! — 09195928207
Is there a law banning overtaking on the right like what most motorcycle riders do? I hate it when they do so. — 09178161978 (Strictly speaking, there is no such law. Proper driving procedures, however, dictate that in countries where left-hand-drive cars are the norm, overtaking must also be done of the left lane, where other vehicles are most visible.)
Why do the MMDA personnel manning the Cubao Ibabaw area solicit P200 from motorists swerving into bus lanes instead of issue traffic violation tickets? — 09206008060
Beware of the MMDA personnel at EDSA Cubao near Aurora. They accost motorists for imaginary violations but let buses get away with everything. — 09178459239
Why don’t you write about fuel saving techniques learned from all those econo-challenges? That would be a great service to us readers considering the skyrocketing fuel prices. — 09178271055 (Andy Leuterio did the last time he was at the Backseat Driver helm. However, if you missed out on that one, watch out for a few more tips right here next week.)
How about a feature on alternative fuels? — 09175642816 (Good thinking, Batman! Seriously, we are in fact planning a series on alternative fuels and vehicles in the near future.)
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.