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

[uls]

kaya i said it's more a JPEPA condition (to allow imports of used engines, parts)

[OyiL]

kaya i said it's more a JPEPA condition (to allow imports of used engines, parts)

gusto siguro ng CAMPI patayin ang backyard jeepney builders. dahil pag brand new engine ilalagay, magkapresyo na yung L300 FB atsaka jeepneys, xlt,...etc.

yari din yung multicab dahil wala na importation ng used cbu.

[uls]

this was my post on Jan 4 2010 on page 1 of this thread

if a Philippine Brand Vehicle (PBV) didnt materialize in a high tariff environment, how can it happen in a zero tariff environment?

the CEPT-AFTA was signed 1992 by Indonesia, Brunei, Malaysia, Philippines, Singapore, Thailand

everyone had years to develop their own local industries so by the time zero tariffs take effect, everyone would be ready to compete with each other

what was the Phils. doing all those years?

now that CEPT-AFTA takes full effect, the govt wants to encourage the development of PBVs?

good luck

the free trade agreement will make imported cars cheaper

what incentive is there for investors to put money in a PBV project?

who's gonna be crazy enough to put his capital in a PBV project when everyone else around him will be importing tax-reduced CBUs?

kung hindi na nga makalaban sa foreign brand vehicles na mataas ang tax

paano pa lalaban ang isang PBV sa foreign brand vehicles na tax-reduced?

an article today in Business World

Auto firms selling fewer locally assembled vehicles
http://www.bworldonline.com/main/content.php?id=9199

LOCALLY MADE vehicles continued to lose market share in the first quarter as tariffs on competing Southeast Asian imports were dropped and work on an incentive program for car assemblers stalled.

"Complete knock down" (CKD) units assembled here by three industry leaders accounted for just 41.2% of their total sales as of March, according to data obtained by BusinessWorld. This was down three percentage points from the 44.2% share recorded in the same period last year.

The weakened performance follows a seven-year downtrend in CKD share which, a manufacturers’ group claimed, has already slashed the industry workforce by half to some 70,000 and threatened existing investments worth billions.

Toyota Motors Phils. and Mitsubishi Motors Phils. sold more imported units than locally assembled units

Toyota Motors Philippines Corp., Mitsubishi Motors Philippines Corp. and Honda Cars Philippines, Inc. sold a combined 3,747 CKDs during the first quarter, 17% more than yearago levels. But this feat was outpaced by a 25.6% sales growth for their imported units. The three account for nearly two-thirds of the Philippine automobile market.

Top seller Toyota sold only 3,747 locally made cars or 30.4% of its 12,341 total sales in the first quarter, slightly down from the 30.6% CKD share during the same period last year.

Mitsubishi likewise saw its imported brands edge out Philippine-assembled cars. It sold 2,934 CKDs which cornered just 40.8% of its 7,184-unit total, when in the same time last year its CKDs enjoyed a larger 47.1% share.

Honda, meanwhile, saw its CKD share slightly grow to 71.5% from 70.4% but its total sales fell in the quarter.

like i said, if our local auto industry can't compete in a tax-protected environment, it will even be less able to compete in a free trade environment

The continued drop in CKD share comes as cars and parts manufactured elsewhere in the region began entering duty-free in January under the latest round of tariff cuts required by the Association of Southeast Asian Nations (ASEAN) Trade in Goods Agreement.

Imported Toyota, Mitsubishi and Honda models sold here are sourced from Thailand and Indonesia aside from Japan and Taiwan, spokespersons of the car firms said.

[uls]

New MVDP to restrict importation of used automotives, assures BOI
http://businessmirror.com.ph/index.p...nomy&Itemid=60

INSTEAD of relaxing the rules on importation of secondhand vehicles, as feared by industry workers, the Board of Investments (BOI) assured that the new Motor Vehicle Development Program (MVDP) that is now up for signing in Malacañang will actually make it more difficult to bring in used automotives even for those that are currently enjoying exemptions.

A top BOI official said there is no way the agency will just remove the prohibition on used-vehicles importation, especially after the long legal battle that it had with importers on the validity of the MVDP.

“The Supreme Court already affirmed the legality of the ban so there is no reason we would opt to change it. So what we did in the draft MVDP is actually to strengthen the prohibition,” the official told the BusinessMirror.

^^^

the concerned groups want to see it in black and white

but the BOI won't release copies of the MVDP draft

The Automotive Industry Workers Alliance (Aiwa) and the Fair Trade Alliance (FTA) suspect that the reason the BOI has been unwilling to release to the public copies of the draft MVDP is because it decided to do away with the ban on importation of used vehicles.

Aiwa and FTA are saying that they got reliable reports that in the provision on the importation of used vehicles, the BOI replaced the word “prohibited” with “regulated.”

But the BOI official said the prohibition stays, and what the agency is seeking to regulate are the exemptions.

For instance, returning overseas Filipino workers and executives will not be allowed to bring in their used vehicles unless they have passed the required standards, including emission tests.

here's the reason why

The official said the BOI has decided not to release copies of the new MVDP until Malacañang has signed it.

“Malacañang is still studying it. What if suddenly Malacañang decides to have some of the provisions revised or removed? We do not want to preempt Malacañang,” the source said.

Surely, at this time, the source said, several camps are doing some lobbying in the hope of swaying Malacañang to decide in favor of their respective proposals.

kaya pala

hindi pa finalized

special interest groups are still lobbying the govt

no surprise

everyone will protect their own interests first

that's business

Meanwhile, the multisectoral FTA asks the Department of Trade and Industry’s (DTI) BOI: “Where is the official draft of the Motor Vehicle Development Program and why is it not given to the stakeholders?”

FTA lead convenor Wigberto Tañada said: “There is already an ongoing public debate on the proposed MVDP, but the government is yet to furnish the stakeholders—the auto and auto-parts sectors—a copy of the official draft of the MVDP.”

“How can the sectors know and be assured that the proposed MVDP is beneficial to the local industries and its labor sector if they do not have an official copy of the proposed program?” Tañada argued.

^^

wait lang kayo

those with billions of pesos of capital at stake are still negotiating with the govt

your concerns are, well, less importatnt

money talks

[uls]

http://parliamentarydebate.blogspot..../09/jpepa.html
JPEPA Article 4

Article 4: Review of Laws and Regulations: Each Party shall examine the possibility of amending or repealing laws and regulations that pertain to or affect the implementation and operation of this Agreement, if the circumstances or objectives giving rise to their adoption no longer exist or if such circumstances or objectives can be addressed in a less trade-restrictive manner.

^^^

that's what the concerned group is afraid of

Govt can lift the ban on importation of used cars from Japan

--

Japan sends us their junk, we send Japan our nurses and caregivers

JPEPA nursing program to get going with RP-Japan MOA
06/04/2009
http://www.gmanews.tv/story/164080/j...h-rp-japan-moa

MANILA, Philippines - Half a year after the Japan-Philippines Economic Partnership Agreement (Jpepa) was ratified, a program for sending nurses and caregivers to Japan will finally get under way.

The Philippines and Japan will sign Friday a Memorandum of Understanding (MOU) for school courses under the Jpepa on the Movement of Natural Persons.

"The MOU clarifies the provisions and processes of deployment and acceptance of Filipino candidates for Nurses and Caregivers. The main processes include the following: publicity and the recruitment of Filipino candidates and institutions; matching of Filipino candidates with corresponding institutions; finalization of employment contracts; and the entry of Filipino candidates into Japan," the Japanese Embassy said in an article on its website.

[jpdm]

[SIZE=3]New Program for Vehicles on Stream by June[/SIZE]
[SIZE=3][/SIZE]

Manila Times
April 29, 2010



http://www.manilatimes.net/index.php...stream-by-june

The government will roll out the new Motor Vehicle Development Program (MVDP) by mid-June, Trade Secretary Jesli Lapus said.


Upon publication of Executive Order (EO) 877, or “The Comprehensive Motor Vehicle Development Program,” which President Gloria Arroyo signed on April 23, the Board of Investments (BOI) would come up with a draft of the program’s implementing rules and regulations in a month’s time, Lapus said.
The Trade chief said the BOI would consult auto industry players and stakeholders in drafting the implementing rules.

A copy of EO 877 was received by the Department of Trade and Industry from Malacañang’s records office on Wednesday. A BOI source said the draft submitted by the agency for the President’s approval “is almost the same” as the approved EO.

“The new MVDP will be the catalyst that would provide the auto industry the environment to maximize and even expand its capacity, provide for a wider supply base for parts and components, and encourage the development and expansion of both the domestic and export markets for vehicles and parts and components,” Lapus said in a text message to reporters.

In a separate text message, Elizabeth Lee, Chamber of Automotive Manufacturers of the Philippines Inc. president, said “We hope the [new] MVDP will truly be good for the Philippine auto industry, particularly for the CKD [completely knocked down] assembly.”

Ben Arnold O. de Vera

Good news!

[romski123]

yehey

[KCMenteryo]

I hope the new mvdp and implementing rules will really encourage new investment and expansion...

[uls]

look at the bigger picture

you have this new MVDP that's supposed to encourage more investment in assembly of CKDs and production of auto parts

but you have this very important factor beyond the control of the MVDP -- the high (now even higher) cost of electricity

manufacturing is energy intensive

so the incentives (tax breaks, tax exemptions) investors get from the govt will simply be offset by the high cost of electricity

the high cost of electricity acts like a tax on profits

ask any manufacturer what they think of their latest electric bill

welcome to the Philippines

hehe

[jpdm]

[SIZE=3]EO tightens importation of used cars and engines[/SIZE]

by Julito G. Rada
Manila Standard



http://www.manilastandardtoday.com/i...=2010/april/29





President Gloria Arroyo has signed an executive order tightening the importation of used vehicles, engines and components in the country to develop the local auto industry, especially completely knocked-down parts.


President Arroyo signed on April 23 Executive Order 877, or “The Comprehensive Motor Vehicle Development Program,” which adopted the recommendations of the Board of Investments under the new motor vehicle development program.


A source from the Trade Department said a provision in the directive stated that importation of used engines, parts and components for all motor vehicles would now require an authority from the government agency.


“Before, there was no need to get an authority to import from the [Trade Department]. But in this new EO, the provision on importation was even more tightened to boost the local parts and components makers in the country,” the source said.


The source said the new directive was contrary to the position of some industry players that it would frustrate the government’s goal of developing the local automotive industry, especially the CKD assembly.


The industry earlier expressed concern over the reclassification of imported used engines and other components from prohibited to regulated shipments.


Some industry players said instead of strengthening the prohibition, the revision effectively eased the importation of the commodities and undermined the viability of the industry and stunted the growth of CKD vehicle production.


But the Trade source said the requirement to obtain an authority to import from the department actually tightened the shipment.


The EO ordered the department to monitor all importations of used motor vehicles.



A monthly report on the result of its monitoring and the impact of imports will have to be submitted to the department.


The department may also suspend or restrict the entry of certain types of motor vehicles.

I cant wait for its full implemetation especially the Philippine Brand Vehicle (PBV) program.