Results 1 to 10 of 828
Hybrid View
-
Tsikot Member Rank 3
- Join Date
- Jun 2007
- Posts
- 2,854
January 4th, 2010 05:18 PM #1Still hoping.....
RP auto industry faces ‘make-or-break’ stage with revised MVDP
Part I
By BERNIE CAHILES-MAGKILAT
January 2, 2010, 1:26pm
Manila Bulletin
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 [SIZE=3]“Philippine Brand Vehicles” (PBV)[/SIZE] 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.
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.
[SIZE=3]“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.[/SIZE]
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.
(To be continued)
http://www.mb.com.ph/Last edited by jpdm; January 4th, 2010 at 05:56 PM.
-
Tsikot Member Rank 3
- Join Date
- Jun 2007
- Posts
- 2,854
January 4th, 2010 05:26 PM #2This is possible, given the right incentives...
RP eyed as second Asean auto hub
Part II
By BERNIE CAHILES-MAGKILAT
January 3, 2010, 1:22pm
Manila Bulletin
The Deloitte study entitled, “The Future of the Philippine Automotive Industry” premised its conclusion on some advantages and disadvantages prevailing in the country over its competitors.
These advantages include an already established presence of several global automotive players in the country, a strong auto components sector, capable workers, English language proficiency, a domestic market that is ready to take off, and [SIZE=3]government understanding on the importance of the auto manufacturing industry to the economic development of the country.[/SIZE]
[SIZE=3][/SIZE]
“These advantages are real and could support the development of a world scale industry,” said Jon Stanford, lead author of the Deloitte report.
Stanford said that after the economic recession that left the automotive sector badly scarred, thus global auto players need to rebuild.
While Thailand is the clear beneficiary of much of the investment in the auto industry in the ASEAN region, will the industry want to put all of its eggs into one basket?
The automotive market in the ASEAN region is expected to reach 2.5 million in 2010.
“There are clearly some risks in doing so. By allocating significant investment to develop a second production hub some of these risks could be offset,” the study said.
The study noted that global auto players need to develop a second hub in the region because if something happens in Thailand, which exports half of its 1.5 million unit annual production not just to other ASEAN countries but also to Australia and other markets, businesses would definitely suffer.
The effects of free trade together with the impact of the global financial crisis means there will be significant commercial pressures on companies to rationalise their production centres within regional and global supply chains.
The key question now is where the global auto players will place their future investment dollars.
According to the study, Indonesia is the Philippines’ closest competitor.
At present, Indonesia exports 85,000 CBU units to ASEAN. The Philippines though has only one volume CBU exporter in Ford Philippines.
Indonesia could play host to many car companies given its much faster growth and large domestic base, but it is not giving much focus on its auto industry.
But there are several challenges that the Philippine auto industry is also facing including small and slow growing domestic market, small scale vehicle assembly plants, high rate of growth of CBU imports (CBU share of the market has grown to 50 percent from 13 percent in the past five years), high level of second hand imports in last decade, weak local components supply base due to lack of scale, high logistics and energy costs, significant cost competitiveness disadvantage, reduced protection against imports from Japan (JPEPA), and approaching intra-ASEAN free trade as a result of AFTA.
Stanford noted that while the Philippine auto industry has a strong auto parts sector with internationally competitive firms, it needs a viable assembly industry operating at scale.
“We believe that the Philippines industry currently faces a cost disadvantage, on average, of at least US$1,000 per car relative to Thailand. Many of the problems identified above contribute to this cost disability, but the fundamental reason is lack of scale,” he said.
http://www.mb.com.ph/
-
BANNED BANNED BANNED
- Join Date
- Dec 2006
- Posts
- 379
January 24th, 2010 12:45 AM #3[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.
-
BANNED BANNED BANNED
- Join Date
- Dec 2006
- Posts
- 379
-
BANNED BANNED BANNED
- Join Date
- Dec 2006
- Posts
- 379
June 9th, 2010 08:01 AM #5I wouldn't tell people what I do too if I smuggle in Subic Imports.
Originally Posted by uls
Kaya ka pala hindi proud. Claro na.
-
Tsikot Member Rank 3
- Join Date
- Jun 2007
- Posts
- 2,854
June 9th, 2010 08:26 AM #6Lovely. You just told the public. Originally Posted by uls
That all along you are among those people who are selling all imported vehicles from SUBIC that the local auto industry is trying to stop through MVDP.
No wonder you love to bash all efforts to produce Phillipine made vehicles (assembled by the Japanese or Americans here or those assembled by Pinoys) including CKDs.
And you keep on insisting that the demand for CBUs will definitely increase in the future probably because it will be good for your business.
Oh well, anyway, thanks for the info.[IMG]file:///C:/DOCUME%7E1/user/LOCALS%7E1/Temp/moz-screenshot-8.jpg[/IMG]Last edited by jpdm; June 9th, 2010 at 08:35 AM.
-
BANNED BANNED BANNED
- Join Date
- Aug 2006
- Posts
- 1,488
June 9th, 2010 08:37 AM #7[SIZE="4"]"SUBIC IMPORTS"?[/SIZE] Originally Posted by uls
track some posts and you see not just subic, but [SIZE="4"]"PORT IRENE"[/SIZE], too. This guy is actually one of the reasons of the industry's death.
-
BANNED BANNED BANNED
- Join Date
- Dec 2006
- Posts
- 379
-
Tsikot Member Rank 3
- Join Date
- Jun 2007
- Posts
- 2,854
June 9th, 2010 09:10 AM #9 Originally Posted by OyiL
No wonder he mentioned Port Irene (source of imported vehicles aside from Subic)as a response to the articles regarding MVDP and the revival of CKD and even Philippine brand AUV and other utility vehicles.
-
Tsikot Member Rank 3
- Join Date
- Jun 2007
- Posts
- 2,854
June 9th, 2010 08:37 AM #10 Originally Posted by uls
Originally Posted by romski123
Originally Posted by romski123
Originally Posted by uls
As expected, in response to Tesla’s entry into the Philippines market, Ford will be bringing in the...
Tesla Philippines