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

[uls]

reclassification of imported used engines and other components from “prohibited” to “regulated” in the nmvdp.

so from "prohibited" to "regulated" means the japanese assemblers can bring in used engines and parts from japan

hindi ba brand new cars and trucks ang products nila?

what the hell are they gonna do with used engines and parts?

are they gonna install used engines and parts in "brand new" cars?

obviously, it's a great way to lower cost

but will they tell customers the cars and trucks they are buying are not 100% brand new?

seems like the Japanese are looking for a way to reduce their used engines and parts in Japan by dumping it here

[uls]

why do the japanese carmakers want used engines and parts to be reclassified as "regulated" from "prohibited"?

why do they want to import used engines and parts?

is it coz they are planning to build the pinoy built vehicle (PBV) and the only way to keep cost down is to use used engines and parts?

the whole point of the PBV project is to come up with a pinoy built motor vehicle that's cheap

and the only way to make it cheap is to use used engines and parts

that's why Elizabeth Lee is against it

if the Japanese carmakers produce a cheap motor vehicle, her company's sales will be threatened

[jpdm]

I hope the government indeed should completely ban the importation of used engines, parts and used CBUs to the Philippines.

Focus should be on promoting local assembly or manufacturing.

BOI head says postponing MVDP a setback


BY IRMA ISIP
Malaya Business Insights
April 5, 2010

http://www.malaya.com.ph/04052010/busi4.html#


There is no point or sense in postponing the passage of a new motor vehicle development program (MVDP), according to Board of Investments (BOI) managing head Elmer C. Hernandez.


Hernandez was reacting to a call by a multisectoral group and workers in the automotive industry to let the new president enact the new EO, the draft of which has been sent back and forth to Malacanang and BOI for revisions.


Hernandez admits this would be a setback for the industry which needs to be in competitive shape using an updated MVDP as the tool.
"The new MVDP came out on the request of the industry itself. We’ve done our job," Hernandez said.


He added that the new program went through consultation and workshop. "We now have a new MVDP and we’re eager to implement it," he said.
Hernandez said the new MVDP sets the direction for the industry to become competitive in the light of the global environment and the country’s trade agreements, not only the Japan-Philippines economic partnership agreement (JPEPA), Asean Free Trade Agreement (AFTA) and Asean plus dialogue partners.


"How do we address these if we base our policies on an old EO?," Hernandez said.


The old MVDP, crafted eight years ago, even includes a provision on Asean industrial complementation which has long been superceded by AFTA.
Hernandez said all of the issues raised by the industry, such as taxation, standards and safety have been amply addressed by the new MVDP.
The Fair Trade Alliance (FairTrade), the Automotive Industry Workers Alliance (AIWA) and the Philippine Metal Workers Association sought for the suspension of the signing of the new MVDP to give Trade Secretary Jesli Lapus as well as the incoming administration enough time to study the amendments to Executive Order 156.


The groups are opposed to a provision that "will regulate importation of used engines, parts and components" since this will allow smuggling to proliferate because imported engines, parts and components are then assembled and later be sold to the public.


The groups said the EO should explicitly ban importation of used vehicles and engines.


The groups said the proposed EO speaks of regulating importation of used vehicles, parts and components and in fact allows importation of motor vehicles with gross vehicle weight of above 2.5 tons to 6 tons whereas EO 156 expressly prohibits the importation of motor vehicles with GVW of 6 tons and below.


FairTrade lead convenor Wigberto Tanada in a letter to President Arroyo dated March 31 reiterated these positions.


In the letter, Tanada said organized labor through its federations and unions should be part of the Automotive Council that will oversee the development of the local auto industry to ensure its effectiveness, relevance and transparency.

[uls]

like i said before, if there's such thing as a sure bet, it's betting the local auto industry always failing to get its act together

the local auto industry is made up of foreign and local investors with conflicting interests

good luck getting them united on a common goal

[ghosthunter]

I hope the government indeed should completely ban the importation of used engines, parts and used CBUs to the Philippines.

Focus should be on promoting local assembly or manufacturing.

How can the "Filipino" focus on manufacturing a whole vehicle when the Filipino fails at even making a fully functioning engine from "scratch"?

The only thing the Filipino auto industry is good at is assembling parts made abroad.

How can the Filipino auto industry even try to design a single engine from scratch when the total auto local market totals only a few thousands for everyone?

[uls]

from the article above:

There is no point or sense in postponing the passage of a new motor vehicle development program (MVDP), according to Board of Investments (BOI) managing head Elmer C. Hernandez.

Hernandez was reacting to a call by a multisectoral group and workers in the automotive industry to let the new president enact the new EO, the draft of which has been sent back and forth to Malacanang and BOI for revisions.

a concerned group opposes the new MVDP

the new MVDP will allow importation of used engines and parts from Japan

the new MVDP is being supported by the Japanese automakers

the BOI wants the president to sign the EO

the concerned group wants the signing delayed

why does the BOI think the new MVDP is good for the local auto industry?

---

still an unanswered question: why do the Japanese automakers want to bring used engines and parts into the Phils.?

---

still from the article:

He added that the new program went through consultation and workshop. "We now have a new MVDP and we’re eager to implement it," he said.

Hernandez said the new MVDP sets the direction for the industry to become competitive in the light of the global environment and the country’s trade agreements, not only the Japan-Philippines economic partnership agreement (JPEPA), Asean Free Trade Agreement (AFTA) and Asean plus dialogue partners.

there's the answer

the free trade agreements

in the case of JPEPA, if we want Japan to allow our nurses and caregivers into their country, we have to allow their junk into our country

the anti-JPEPA people call it dumping

the new MVDP allows dumping

the Phils. has entered into trade agreements it can't get out of without consequences (if the Phils. won't allow Japanese junk, we lose an export market for our labor)

the Phils. can't do anything about it now

the BOI knows it

but the BOI gives it a positive spin it by saying the new MVDP will make the Phils. more competitive

haha

way to go

the local auto industry is now even more screwed

[jpdm]

Response of the BOI to the issue...

[SIZE=3]Import Rules on Used Carparts will be Tighter,BOI says[/SIZE]


Manila Times
April 5, 2010



http://www.manilatimes.net/index.php...ghter-boi-says

THE government said the proposed New Motor Vehicle Development Program (NMVDP) would tighten, and not relax, a prohibition on used motor vehicle parts and components imports, which had been laid down in the current program under Executive Order (EO) 156.


In a letter to Malacañang’s legal affairs department dated March 26, the Board of Investments (BOI) said, “There is no reclassification of imported used parts and components from prohibited to regulated in the proposed executive order.”

“The IRR [implementing rules and regulations] of EO 156 provides that importation of allowed used parts and components require prior authorization from the Bureau of Import Services, thus regulated.



The proposed EO strengthened this provision by incorporating the regulation not in the IRR but in the proposed EO itself,” the BOI said.

“Simply stated, used engines and parts and components that are currently allowed to be imported under EO 156 will continue to be regulated and those that are allowed to be imported but were previously unregulated will now be regulated,” the agency said.

The BOI’s response was prompted by a Palace query on two letters sent earlier by the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Fair Trade Alliance.

In a letter to President Arroyo, Campi expressed concern over a provision in the NMVDP that would allegedly reclassify imported used engines and other components from “prohibited” to “regulated” items.

In a separate letter to the President, FairTrade said the new program would undermine the local car assembly industry.

Trade Undersecretary Elmer Hernandez told reporters last week that the NMVDP is “crucial” to laying down “new directions to make the industry more competitive in the light of a global environment and all the trade agreements [the Philippines] signed.”

A review done by BOI noted that the current MVDP—launched in 2002 to bring back the local auto sector’s performance to pre-Asian crisis levels—had been “unsuccessful.”

“The industry has not yet reached pre-Asian crisis sales levels; CBU [completely built-up] sales dominated the domestic market; investments showed no expansion for the past 10 years; and industry capacity utilization only reached between 20 percent and 30 percent,” the

incentives-giving agency said.

Ben Arnold O. De Vera

[uls]

Spin

http://en.wikipedia.org/wiki/Spin_(public_relations)

In public relations, spin is a form of propaganda, achieved through providing an interpretation of an event or campaign to persuade public opinion in favor or against a certain organization or public figure. While traditional public relations may also rely on creative presentation of the facts, "spin" often, though not always, implies disingenuous, deceptive and/or highly manipulative tactics.[1]

Because of the frequent association between "spin" and press conferences (especially government press conferences), the room in which these take place is sometimes described as a spin room. A group of people who develop spin may be referred to as "spin doctors" who engage in "spin doctoring" for the person or group that hired them.[2]

BOI damage control using positive spin:

Trade Undersecretary Elmer Hernandez told reporters last week that the NMVDP is “crucial” to laying down “new directions to make the industry more competitive in the light of a global environment and all the trade agreements [the Philippines] signed.”

^^

translation: The local auto industry was unable to compete in a high tariff, protected environment. It will be even less able to compete in a zero tariff, free trade environment.

A review done by BOI noted that the current MVDP—launched in 2002 to bring back the local auto sector’s performance to pre-Asian crisis levels—had been “unsuccessful.”

^^

and the new MVDP will bring the local auto industry back to pre-Asian crisis levels?

haha

anyone wanna bet?

“The industry has not yet reached pre-Asian crisis sales levels; CBU [completely built-up] sales dominated the domestic market; investments showed no expansion for the past 10 years; and industry capacity utilization only reached between 20 percent and 30 percent,” the incentives-giving agency said.

^^

that's the trend

the market wants CBUs

if you're an investor and you don't wanna lose money -- don't fight the trend

[donbuggy]

still an unanswered question: why do the Japanese automakers want to bring used engines and parts into the Phils.?

To make their version of the PHUV? Does this mean they see a potential market for this type of vehicle?

But it does not make sense. Using secondhand engines will increase the chances of something breaking and will negatively affect the image of the manufacturer. The first generation AUVs (those with corrugated panels) from Toyota, Ford, VW, etc. had new engines.

As they say in Japan: "Wakaranai" ("I don't understand").

[KCMenteryo]

I don't think they will use the second hand components for their brand new units. They have strict standards for quality and they will not approve reconditioned engine/xmission for their local made vehicle.

The used component will still go to the aftermarket segment which is also big. (Jeepney's, owner type jeep, and sometimes small boats).