The 2010 MVDP: Feat. the "Filipino Car" or Philippine Brand Vehicles

[ehnriko]

Go back to the topic -

I think ULS have a point.

I used to work with a US based Productivity and Controls Company and they do charge a huge sum to provide studies, analysis and continuous consultancy work including implementing programs for large companies - or even countries.

The guys working in these companies are also the highest paid workers in the world. I forgot the figure but it is one of the facts.

These studies makes any entity more credible... If the competition are all ISO9001 - they probably will have more stars on top of it. It can position the company to be in a position to have more capital infusement.

They also have their own university inside where the stuff you learn is hardly available in a normal school. Many times, as a business tool, any entity can use them... Unless they can excercise their own in house ability to clean up their own house and be determined to make themselves really productive and efficient - but not without making the people competent and motivated.

[jpdm]

Cool it boys...

jpdm and uls, both of you are in the same boat.

Neither of you are experts.

No amount of "observation" & "reading" will make you one.

------------------------

*jpdm - no number of cut & paste articles you post in tsikot.com forum will make you an expert in any field.

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enough said.

Hmmm...still has a few words to tell me.

At least its based on articles plus my personal (though academic) knowledge of the industry. Unlike some people here who gives comments or accusations using invented scenarios, invisible sources or just plain lying.

At least Im humble enough not to claim and pretend to be an expert in any field. (but of course you are so clueless of what I know outside this kingdom of yours called tsikot.com.)

But how about you?

And spare me of you lecture about who or what is an expert.

Enough said.

My opinion only.

sorry GH

my last post here in this thread

No! this thread is for "experts" like you.

[romski123]

[SIZE=2]http://www.mb.com.ph/articles/236565/rp-auto-industry-faces-makeorbreak-stage-with-revised-mvdp[/SIZE]


RP auto industry faces ‘make-or-break’ stage with revised MVDP

Part I
By BERNIE CAHILES-MAGKILAT
January 2, 2010, 1:26pm
The year 2009 proved to be a very challenging year for the automotive business as it took severe beating from the global financial meltdown.
The closures of manufacturing plants, financial bankruptcies and massive layoffs of workers of the world’s biggest autoplayers were clear signals of an industry in dire straits.
The local automotive industry, no matter how modest it is, was not spared. Automotive companies instituted mitigating measures to counter the impact of the crisis like retrenchment by offering attractive early retirement packages, shortened workweek and job rotations.
The crisis has made it even more pressing for the government and the industry to vigorously push for the completion of the review of the industry’s 7-year-old Motor Vehicle Development Program (MVDP) under Executive Order 156, which the Board of Investments (BoI) has declared a failure as industry sales continued to stay behind the 1996 peak of 162,000 unit level making the Philippines a laggard in ASEAN.
The BoI-approved policy framework of the proposed new MVDP seeks to craft strategies for the domestic auto industry to become globally competitive because the zero tariff in ASEAN would take effect this month while the ASEAN dialogue partners are also moving into the zero tariff regime.
To support this objective, the BoI came up with seven critical and revolutionary components under the MVDP framework hardcore assembly operations, exports program, parts and components development, review of the excise tax on vehicles, policy on importation of used vehicles, standards, and creation of an automotive “authority.”
Specific measures for each of the seven components have yet to be determined under the Implementing Rules and Regulations of the new MVDP.
FILIPINO CAR
One special feature in the new MVDP framework is the provision for the development of the so-called Philippine Winners or the “Philippine Brand Vehicles” (PBV) making it the biggest beneficiary of the MVDP framework.
PBVs would be granted full tax and fiscal incentives, exemption from excise tax payments, a special exports program and with assured mass market. In other words, the MVDP is gunning for localization of the auto industry.
The PBV would be the fifth category of the current three categories under the MVDP – passenger cars, commercial vehicles and motorcycles.
Overtime, however, the government through the BoI has undertaken revisions of the motor vehicle industry program to ensure sustainable business and to address needs of Filipinos for access to affordable vehicles.
The closest attempt at building a Filipino car was during the time of Trade and Industry Secretary Jose Concepcion Jr. and DTI Undersecretary and BoI managing head Tomas I. Alcantara.
Alcantara pushed for the implementation of the People’s Car category when the BoI amended the Japanese-controlled Progressive Car Manufacturing Program to become the MVDP by allowing new participants as long as they start in the production and marketing of People’s Car.
People’s Car participants were allowed to import their People Car entries as CBUs. They were required to market these models over a certain period of time at a price under control by the BoI before they could graduate into the assembly and distribution of higher-end models and even if they have graduated from the People’s Car program, they are still required to maintain their People’s Car models. They were also required to invest in the assembly of cars and parts manufacturing.
Notably, however, none of the existing auto program members participated in the People’s Car program.
Anyway, the People’s Car program was a first for the Philippine market and for the automotive industry to see an influx of imported small cars marketed as Peoples Car.
Indeed, the People’s Car program has opened the door to new players including the Koreans, Europeans and Americans. It also brought down prices of vehicles to as low as P320,000 per unit for a less than 1 liter engine car and widened the industry base.
But the People’s Car Program had long lost its relevance as its participants failed to sustain such operation.
Honda Cars Philippines, which entry to the Philippine market, was through the People’s Car Program said their entry model of a hatchback Honda Civic was heavily subsidized.
Honda, however, has pursued local assembly operations and is now producing and marketing higher-end models. But it has long abandoned its People’s Car model. Other People’s Car participants became pure traders.
Then there was the Asian Utility Vehicle category, whose attractiveness was eroded when it was subjected to excise tax payments.
The previous attempts at building the Filipino car had not taken into consideration the development the Philippine icon, the lowly jeepneys.
With the revival of the Filipino car program under the PBV, the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) are overjoyed because its e-jeepney project is going to qualify under this new category. E-jeepneys are now plying in select cities and areas in the country.
The development of PBVs also means the development of the local auto parts industry.
“The PBV is the light at the end of the long, dark tunnel for the local automotive industry,” declared MVPMAP president Raffy Villareal.
“We have long advocated that given the opportunity and the resources, the Filipino engineer can build a truly Pinoy vehicle. This is also in line with our advocacy for the local car assemblers to locally assemble at least two vehicle brands,” Villareal said.
Villareal said the proposed PBV must be locally-designed, developed
and assembled vehicle for the mass market, low priced, with high local value added labor and materials and compliant to standards.
The PBV is just a segment of the MVDP and would have its own market. The major players are positioning themselves for the mainstream market.
According to the study Deloitte Economics (Australia), the Philippines could be the best bet as the second regional hub for the global auto players provided the right government incentives support and commitment of players to invest and expand operations to attain a global manufacturing scale of 500,000 units by 2020.

[ghosthunter]

At least its based on articles plus my personal (though academic) knowledge of the industry. Unlike some people here who gives comments or accusations using invented scenarios, invisible sources or just plain lying.

How does "academic" knowledge of an industry hold up when you are actually in the middle of it?

Why do we have internships, OJTs, etc just students can have actual experience if "academic" knowledge is sufficient?

Simple, "academic" knowledge can only get you so far. Without actual experience, it is like trying to pilot a sail-boat by simply reading an instruction book on how to sail.

Although my line of business might not be related to automobiles, but the principles are the same. It is business. I have had many levels of experience in my years either as an employee or as a business owner. I have known many people as well who were either successful in their business or otherwise.

All practical experience that cannot be taught in the proverbial classroom.

But of course... you have your "articles" and academic knowledge of the industry.

At least Im humble enough not to claim and pretend to be an expert in any field. (but of course you are so clueless of what I know outside this kingdom of yours called tsikot.com.)

You not claiming to be an expert in any field? An entire subforum here full of your "articles" in tsikot.com says otherwise.

But how about you?

I am no expert. I have never claimed to be one.

All I have is my experience in many fields of technology, science, computers, and business.

I use that experience and with the help of tsikot.com forums, I help others who might benefit from my past experiences.

[jpdm]

More news on PBV..

PBV may replace jeepneys

Malaya Business Insights
Jan. 25, 2010

If the plan of the Board of Investments (BOI) to have the country’s Philippine Brand Vehicle (PBV) pushes through, the days of dilapidated jeepneys may be over.


The jeepney has its origins from refurbished US military jeeps at the end of World War II. Jeep builders have turned it into an icon, a symbol of Filipino pop culture while still retaining its purpose as a popular means of transportation, earning the monicker "king of the road." Backyard assemblers have come up with upgrades of jeepneys that resemble vans or even mini buses, replete with van amenities like airconditioning.


Industry players supporting the BOI’s goal believe the PBV, envisioned for public transport, would step up the refleeting of existing public vehicles replacing them with ones that comply with safety and environment standards.



The PBV is the Philippines’ answer to Thailand’s one-ton pick-up, a widely successful vehicle for the movement of people and goods and to Malaysia’s national car, Proton.


A source privy to the ongoing discussions on a new Motor Vehicle Development Program (MVDP) said some players in the industry are planning their own PBVs pending the release of the new program.


The source said the [SIZE=2]PBV is definitely not going to be a sedan[/SIZE] which is for private use nor an AUV which has evolved into a taxi-type shuttle service.


It would be a multipurpose vehicle in its own category. The PBV may not necessarily be locally-designed and need not source most of its parts from local manufacturers. But once economies of scale are achieved, the BOI expects the PBV to open opportunities for partsmakers to diversify.


According to the source, the BOI is in talks with industry players to look into venturing into PBV production.



Some already have existing models which they retrofit to become a PBV.


The source said the BOI plans to exempt the PBV from excise and value-added taxes to make it attractively priced, and therefore encourage fleet owners to replace their vehicles - Irma Isip

[jpdm]

Another article on PBV....

Japanese commit to make RP-branded auto

By BERNIE CAHILES-MAGKILAT
January 24, 2010, 1:02pm
Manila Bulletin


The proposed special Philippine Brand Vehicles (PBV) program has attracted keen interest and commitments from the industry players including Japanese assemblers, which dominate the domestic market, but stayed away from developing a customized vehicle model that could truly be called a Philippine brand.


Trade and Industry Undersecretary and Board of Investments managing head Elmer C. Hernandez revealed this as the BoI is approaching homestretch in the crafting of the new Motor Vehicle Development Program of which the PBV is expected to be a major highlight in this industry blueprint.


“Existing automotive players including the Japanese are looking at that already and committed to customize a model for their PBV entry,” Hernandez said.


Hernandez explained that the PBV concept is a multi-purpose vehicle that could be useful for the Filipino masses as a form of transport, for family use or for entrepreneurial purposes.


“It is neither a passenger car nor a sports utility vehicle because we have addressed those vehicle segments already,” he said.
A PBV model must be a new vehicle - engine, parts and all – are OEM (original equipment manufacture), but it does not mean it must have a high local content.


“You can import the parts or source them locally,” Hernandez said.
A PBV does not even mean it should be locally designed, but Hernandez said that players can customize their own model to meet the local specifications to be able to serve primarily the Philippine market.


Hernandez noted that the current vehicles sold in the market are also being marketed in other markets and there has been no customized model for the Philippine market.


The popular but already phased-out Tamaraw-FX of Toyota was not custom built for the Philippines as it was originally made for Indonesia under its Kijang brand.


In pushing for the PBV strategy, the BoI has taken a cue from Thailand’s successful one-ton truck strategy, which was customized to suit the Thai market. The Thai one-ton truck was backed up with a generous government incentives program.


In the case of the Philippines, Hernandez said, the lowly jeepney is the commonly used vehicle for transport, family use and cargoes.
But, no one had taken the cudgels to improve this unique vehicle because there was no incentive.


To push for the improvement of the iconic Philippine jeepney and to promote the PBV in general, Hernandez said there are standards and measures to make it competitive.


“This is not an open-ended program, we are going to set the standards,” he said including the granting of incentives to make it more attractive to investors and for the market to refleet the old and reconditioned units that are contributing to air pollution.


This is expected to create a niche market for PBV or the multi-purpose vehicle, Hernandez said.


“This will now open opportunities for parts markers to produce for the use of the PBV,” he said.


This also calls for the granting of tax incentives to make the investment worthwhile and to encourage the end-users to refleet by making the brand new jeepney more affordable.


“We have to have the carrot and stick strategy because we have to make it attractive and competitive,” he stressed.

[uls]

if there's a sure bet, it's betting the local auto industry will always fail to get its act together

the latest on the MVDP...

all they achieved was a proposal to create a "council"

haha

http://www.bworldonline.com/main/content.php?id=6295

"We were supposed to come up with a new Motor Vehicle Development Plan but all we see here is really just putting up a council... On its face, there is nothing there that will make investors [want to come in]. It should have a more compelling reason for the next generation or new model to be assembled in the Philippines," said Elizabeth H. Lee, president of the Chamber of Automotive Manufacturers of the Philippines, Inc., at the hearing.

http://www.mb.com.ph/articles/243429...w-mvdp-hearing

“What we see in this MVDP is a council,” said Elizabeth H. Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), referring to the proposed creation of the Automotive Industry Development Council as a policy making body of the industry attached to the BoI.

“This is all brotherhood statement,” said industry consultant Tony Jimenez.

“The secret of the success of Thailand’s automotive industry is a strong government policy support.

This MVDP lacks substance,” commented Angel Dimalanta, president of the Automotive Industry Workers Alliance.

“Indonesia is low price cost, Thailand has eco-car, Malaysia has its national car. For the Philippines, we see a council and the inclusion of what is already in the current MVDP,” said Lee.

i posted this on page 1 of this thread:

what i meant was --- if the local motor vehicle companies wanted to find out why the local motor vehicle industry is so anemic and how to pump up the industry, instead of hiring a consulting firm to tell them what's wrong and what to do, they should have just gone on trips to Asian countries where the motor vehicle industries are on steroids (like China, Thailand)

that's what investors do

wanna learn about the best airport/airline security in the world, go to Israel

wanna learn how to produce massive quantities of ethanol, go to Brazil

wanna learn all about rice, go to IRRI

wanna know why foreign automakers prefer to manufacture in Thailand?

go look for answers in Thailand

go find out what incentives the Thai govt gave automakers that encouraged them to invest in Thailand and come back here and tell the our govt what the Thai govt did and HOPE our govt would do the same

this is a quote from the Manila Bulletin article:

Eddie Jose, chairman of Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP), has suggested “to shop” around the neighboring countries for best practices and strategies that the program can consider adapting.

ngayon lang nila naisip yan?

siguro naman matagal na nila naisip yan

ngayon lang nila sinabi

hehe

[EVO-V]

uls, take for instance the fact that Thailand's effective minimum wage is 30% lower than ours. Moreover, workers there also do not have the right to organize themselves as unions and hence no right to strike.

Fun fun, considering left leaning labor groups here have repeatedly grounded perfectly compliant corporations with demands for better everything mitigating competitiveness.

[jpdm]

Isuzu pushes exports of Crosswind, launches ‘microbus’ in RP

By BERNIE CAHILES-MAGKILAT
March 6, 2010, 3:17pm
Manila Bulletin



Isuzu Philippines Corporation President Keiji Takeda poses beside the 20-seater Isuzu Microbus which was unveiled before the media and government authorities on March 4, 2010 at the Esplanade in Pasay City. (Photo by ANJO PEREZ)



Isuzu Philippines Corp. unveils two major projects this year: Resumption of exports of its Asian utility vehicle Crosswind to Central America and local assembly of an entrepreneurial vehicle called “Microbus” – as the company anticipates as much as 15 percent growth in sales this year.


Keiji Takeda, IPC president, told reporters at the launch of its latest Isuzu N-Series light-duty trucks that they are still negotiating with distributors in Guatemala and Costa Rica for completely built-up exports of Crosswind after exports were halted last year due to price issues.


In 2006 to 2008, IPC exported 60 units of Crosswind to these countries, Takeda said.


Overall exports of IPC including exports of some parts and components of Crosswind to Vietnam still account for a measly 1 percent of its total business in the country.


For its CKD line-up, the all-truck assembler also unveiled a new CKD model dubbed “Microbus,” which is intended for entrepreneurial purposes.

Takeda said that “Microbus”, which is a co-development between IPC as provider of brand new power train and Filipino firm Centro Manufacturing Corp. as body builder, is a 16-seater mini-bus that is expected to compete head on with existing vans being used as shuttle buses, school buses and tourist buses. The power train and the chassis would be imported from Indonesia.


Takeda said the “Microbus” would be custom-built depending on the specifications of the customer but would have a price range of P1.2 million to P1.5 million a unit.


Microbus would be launched in the market in the second semester this year.
Takeda expects to sell between 40 to 50 units a month of Microbuses out of an annual full capacity of 1,000 units a year.



IPC senior vice-president Art Balmadrid said they intend to register “Microbus” as its entry in the planned Philippine Brand Vehicle program under the new Motor Vehicle Development Program of the Board of Investments.

PBV entry from Isuzu in cooperation with Centro Manufacturing of the Philippines

[uls]

from the article above:

In 2006 to 2008, IPC exported 60 units of Crosswind to these countries, Takeda said.

exported 60 units of Crosswind to Latin America in 2 years

wow ang dami

...still negotiating with distributors in Guatemala and Costa Rica for completely built-up exports of Crosswind after exports were halted last year due to price issues.

try harder