Local Automakers to Cut Investments if Ban on Used Car Imports is Lifted
October 17, 2008 by Tsikot
Philippine car companies may halt future investments and stop expansion plans after Manila was reported to have seriously considered allowing the entry of used vehicles.
The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) reiterated its position, expressing disapproval for the reversal of Executive Order 156, which prohibits entry of used vehicles, except for ambulances, firetrucks, and hearses. “Long term business plans formulated by the industry members within the spirit and letter of EO 156 would possibly be sidetracked and derailed,” Campi President Elizabeth H. Lee said in a letter to Trade Secretary Peter B. Favila. “Likewise, any change in this nature and magnitude would have a negative effect on investors’ confidence in the Philippines as an investment destination.”
The industry group said that a policy shift “would undoubtedly undermine these investments and commitments.”
The letter was issued after recent newspaper reports indicated that Favila and the Board of Investments (BOI) may possibly be working to amend the executive order.
The supposed amendments would have the effect of allowing and legitimizing the importation of used vehicles, Campi said, citing various newspaper reports.
In the same letter, Campi said that it received a letter from the Automotive Industry Workers Alliance (AIWA). Besides saying that the move legitimizes used vehicle imports, it also threatens their jobs and families.
from GMANews.TV
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What the government is doing is actually preventing the growth of the automotive industry by limiting the players in a very limited market. When you have a monopoly in any business there is no real competition. no competition means less for the consumer. Our automotive market is a very small one due a lot of factors. If the importation of used vehicles is disallowed on the basis that it is unfair for those who built factories here in our country. I guess all importaion of built up units should be banned. There only a few units that are being manufactured here. Ford imports most of its units in complete units, toyota also imports their fortuners, hilux , LC200, prado, etc. BMW imports all, as the rest of the other brands. if all these members of campi will manufacture all the vehicles that they sell here and no importation of SKD or CKD then by all means let us all do a complete ban on importation. Put a plant here that will rival that of those in thailand and the rest of the world. Since it is one of their premise that they lose money in putting up infastructure. the fact is the market for brand new vehicles is small in our poverty stricken country. If they allow japanese imports in canada and england why can't we do the same here? is it because rhd to lhd conversions are "unsafe" maybe we should stop all the buses in edsa and all those trucks from running. I think that is a more pressing safety issue. A agency in charge of inspecting and giving the certification for rhd to Lhd conversions should be the answer to safety issues. If safety is an issue why doesn't the government make a agency to certify owner type jeeps, jeepneys tricycles? these are long over due
In the end its all just a matter of the power and control.... have you ever heard of a vehicle recall in this country? have your ever heard of a real lemon law being thought of in congress? i guess not.