Support the Local Auto Industry

[uls]

like i keep saying over and over

the Phils. is not investor friendly

[jpdm]

I hope the government will heed the call of CAMPI

Lee said their group recently concluded a planning session with the Board of Investments and the Department of Trade and Industry which could result in policies and options that support directions to retain and expand CKD manufacturing in the country.


This, she said, includes [SIZE=3]excise tax preference for locally assembled vehicles and the industry’s permanent inclusion in the annual Investment Priorities Plan, allowing them to continuously enjoy ITH for new projects.[/SIZE]


“First, it is imperative that assistance and efforts be made to strengthen the local CKD manufacturing and assembly of vehicles in the country while, at the same time, providing for all other auto sectors [nonassembly] to grow as well, in an environment that is conducive to increased investments in the country that will benefit all industry players and the country as a whole.


Campi also wants opportunities for domestic auto manufacturers to participate in the refleeting and modernization program of the government.


Business Mirror
February 6, 2008
Max V. de Leon

[jpdm]

opps double post

[SLK]

I agree we have to support the local car industry but I believe we should also ask local car companies for relief in terms pricing. I mean the car companies treat the cars they sell as appreciating assets, that is, all they do is increase prices. I mean if they make their cars more affordable, these grey market vehicles will die a natural death.

I mean they continue to offer top end products like a 2.0 liter Corolla and stuff and entry level 2.4 liter Camry and Accord when our neighboring and more affluent countries like Singapore still sell the 2.0 liter Camry and 1.6 liter Corolla.

[jpdm]

I agree we have to support the local car industry but I believe we should also ask local car companies for relief in terms pricing. I mean the car companies treat the cars they sell as appreciating assets, that is, all they do is increase prices. I mean if they make their cars more affordable, these grey market vehicles will die a natural death.

I mean they continue to offer top end products like a 2.0 liter Corolla and stuff and entry level 2.4 liter Camry and Accord when our neighboring and more affluent countries like Singapore still sell the 2.0 liter Camry and 1.6 liter Corolla.

Well, that is the trend here (especially for "gas guzzlers" or with bigger engine displacement), in fact it started all the way since the Marcos era.

[ocanursjr]

like i keep saying over and over

the Phils. is not investor friendly

Agree * uls, too many red tape.

Governed by mobs.

Too much bureaucracy...

[jpdm]

Manila Bulletin


Auto assemblers, part makers get relief

By Bernie Cahiles-Magkilat

March 8, 2009, 9:26pm


The Board of Investments mulls the deferment on the compliance of requirements and conditions imposed to participants of the Motor Vehicle Development Program (MVDP) and the Automotive Export Program (AEP) to provide relief to the domestic industry and encourage possible new investments in light of the global financial crisis.


Under the proposed policy measures, registered participants in the MVDP are allowed to defer their investment commitment for assembly and parts manufacturing parts, production and sales schedule, base equity of at least 25 percent, and parts localization program.


Under the MVDP rules, each new participant over a period of one year shall invest and/or bring in investments in the manufacture of motor vehicle parts and components for both export and domestic markets, equivalent to $ 10 million for passenger car assembler, or $8 million for commercial vehicle assembler or $ 2 million for motorcycle assembler.


On the automotive parts localization program, the government has also issued Executive Order 262 in December 2003 to restructure the most favored nation (MFN) tariff rates for motor vehicles and their raw materials, parts and components at such rates that will encourage the development of the local motor vehicle industry.


Under the order, MFN rates or duty on motor vehicle parts and components imported outside of ASEAN have scheduled tariff rates for implementation.
The tariff lines cover Chapters 40.90 to 94.01 involving motor vehicle parts and components of the Tariff and Customs Code of the Philippines.



Given the difficulties of the industry, the restructured tariff rates may also be suspended to ease the requirements of the motor vehicle assemblers.
To assist AEP participants, the BOI has also moved to defer the period of compliance of the minimum export requirements. It also move that the export compliance under the program may be extended up to the end of the period of the utilization of the net foreign exchange earnings (NFEE) (year 6 and 7) provided that no NFEEs shall be credited to the participant during such period.

The AEP grants preferential tariff rates to participants in their importation of completely built-up units (CBUs) on the basis of equivalent foreign exchange earnings (NFEEs) from their exports of locally assembled CBU packs.

This means that the availment of preferential tariff rates is contingent upon export performance of a participant on a yearly basis. The NFEE shall only be used against the import duties of the participant.
.(BCM)

Good move!

[jpdm]

[SIZE=4]BOI, local industry to
update auto development program [/SIZE]



By Ben Arnold O. De Vera, Reporter
July 20, 2009

The Board of Investments (BOI) and domestic auto industry will be crafting a new Motor Vehicle Development Program (MVDP) “that is attuned to the times” by yearend, the Trade department said.

According to Trade Undersecretary Elmer Hernandez, an updated roadmap for the country’s auto sector is necessary for the industry to remain competitive amid a zero-tariff regime beginning next year under the Asean Free Trade Agreement (AFTA).This is also needed in light of the other bilateral, regional and multilateral trade pacts entered by the Philippines, Hernandez, who is also the BOI managing head, added.


To come up with the new MVDP, the Trade official said the BOI will soon form a technical working group (TWG) composed of people from the agency and appointed representatives of the local auto players.


When the TWG wraps up, the BOI will then convene a final whole day “CEO workshop,” where the inputs will be presented and fine-tuned and remaining issues among the industry players will be ironed out, Hernandez said.
Hernandez said inputs from the study conducted by Deloitte would also be considered in drawing the updated MVDP.


He said representatives of Deloitte have already conducted a briefing with the BOI, but they have only presented a summary of the study. The agency expects a copy of the full study by the end of this month.
Once the BOI is provided the full Deloitte study, the agency’s technical people will review it for 15 days and will make recommendations before forming the TWG, Hernandez said.

Time to strengthen the Philippine auto industry for it supports thousands of local jobs.

[jpdm]

[SIZE=4]MVDP To Ensure Smooth Regulatory Environment[/SIZE]



Business Mirror


By Max V. de Leon/Reporter
05 August 2009




AUTO-industry players will be getting more than just incentives from the new Motor Vehicle Development Program (MVDP).


This is because the Board of Investments (BOI) is making sure that even the regulatory agencies dealing with vehicle manufacturers will be giving their share in ensuring the growth of the industry in crafting the new MVDP, Trade Undersecretary and BOI managing head Elmer Hernandez said.


“What we are coming out [with] is a real comprehensive program because we will make sure that government agencies will get their acts together in helping the local industry become competitive.



This, he said, is why the other government agencies such as the Land Transportation Office (LTO), Department of Environment and Natural Resources, Department of Energy, Department of Finance (DOF) and Bureau of Customs (BOC) should also be onboard in the new MVDP.

Hernandez said the LTO, for instance, is being asked by the industry to ensure faster registration of new vehicles, while being careful not to allow contraband vehicles from getting registered.


The DOF, on the other hand, is in charge of the classification of vehicles for excise-tax purposes. Right now there are new vehicle types that are coming out like hybrid and those purely electric-powered, and the DOF must have a clear and fair scheme to classify them.


The BOC, meanwhile, leads the efforts against smuggling.


The new MVDP, Hernandez said, will be issued at the end of the year.

Hopefully this will help transform and strengthen local auto manufacturing in the country instead of just merely engage in assembly and importation.

[jpdm]

Native assemblers should be included by the government and industry like MDJuan, Alana Motors, Malaguena, Almazora,Sta. Rosa and those Pampanga and Iloilo AUV fabricators...

[jpdm]

China’s 7 biggest automakers eyeing RP as production hub

By BERNIE CAHILES-MAGKILAT
September 13, 2009, 2:33pm
Manila Bulletin


China’s seven biggest motor vehicle manufacturers are keen on investing in the Philippines and transforming the country as their production hub for the Chinese and other export markets, a move that long-time Japanese motor vehicle investors in the country did not even attempt to pursue.


This developed after Trade and Industry Undersecretary and Board of Investments (BoI) managing head Elmer C. Hernandez secured the investment commitments of the top officials of these companies during his recent meetings in China.


Hernandez identified these firms as Geely Group Co. Ltd., Foton Beiqi Motor Co. Ltd., Jiangling Motors Co. Ltd., Chongqing Lifan Industry Ltd. (Group Co. Ltd.), Chongqing Zongshen Group, Shineray Motorcycles China, Chongqing Yinxiang Motorcycle (Group) Co. Ltd.


“This is a welcome development as we would be having new investors in the motor vehicle sector not just in motor vehicle assembly but parts development as well. The Chinese are serious in making the Philippines as its export hub for other markets,” Hernandez said.


Hernandez said the Chinese would like to pursue their investment plans in the country in joint venture with local businessmen.


Once these commitments are converted into actual investments, the Chinese would be the first motor vehicle investors that would really push for the development of the country’s motor vehicle sector for the exports market.


The Japanese have been here for the longest time but failed to do so or did not even attempt at pursuing.



Instead, at least 50 percent of the Japanese cars sold in the country now are imported completely built up units from other ASEAN countries.



On the other hand, the Chinese motor vehicle companies are keen on investing here not just for the Chinese market for other markets including ASEAN.


Hernandez said the Chinese firms are now laying down their plans and the BoI is now preparing to welcome these investments.


Geely Automobile, the first independent automobile manufacturer in China, is interested in producing “budget cars” or small cars in the country while Lifan is keen in manufacturing cars in the country.


Founded in 1992, Lifan Industry (Group) Co. Ltd. ( Lifan Group) specializes in R & D for the production of automobile and motorcycle engines.


Foton Motor, one of the 520 key enterprises and one of the backbones in the motor industry in China, has committed to invest into bus and trucks manufacturing in the country.

Its affiliate Foton AUV Bus Company, which has strong R & D division, is capable of producing large- and medium-scale bus.


Jiangling Motors Co. Ltd., the partner of Dreamco in China for trucks manufacturing, also plans to expand its trucks manufacturing operation here.


Hernandez said that three Chinese motorcycle manufacturers Zongshen Group, Shineray and Yinxiang are also keen on expanding their operations here.


Zongshen is currently into the production of electric bikes and is interested in producing bikes here, Hernandez said.


Hernandez said that Zongshen is looking for a local partner that would be able to produce the batteries and auto parts components for the vehicle of the future.

Good news!

[jpdm]

Good news that CAMPI welcomes the entry of new investors in the local auto industry specifically the Chinese auto makers.

New MVDP to consider Chinese auto plans

By BERNIE CAHILES-MAGKILAT
September 16, 2009, 5:09pm
Manila Bulletin


The planned entry of Chinese motor vehicle assemblers in the local market should be considered in the formulation of a new Motor Vehicle Development Program (MVDP), which used to cater only to the Japanese and American motor vehicle investors.


Elizabeth H. Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), said the planned MVDP must be fair and transparent to all stakeholders not just the existing assemblers but also parts makers, the new investors that have committed to come in, and the labor sector.


“A fair and transparent MVDP should be a result of a thorough review. As such, it will entice new investors into the industry,” Lee said.


Lee said that the entry of the Chinese firms into the domestic motor vehicle assembly and parts manufacturing is good news for the local industry largely because it entails the creation of additional job opportunities.
Hernandez for “bringing home the bacon.”She cited Trade and Industry Undersecretary and Board of Investments managing head Elmer C.


Lee in particular cited the plans of the Chinese motor vehicle assemblers to not just assemble for the local market but also for the exports market and their intention to produce major motor vehicle parts here.


She also cited a plan by the Chinese to produce “budget cars” for the C & D market noting that none of the existing local assemblers or even the imported completely built-up units is serving that market.


“I believe a budget car should be below the P400,000 level,” Lee said. Even the imported small cars being brought in by the Korean car firms and the Chinese car brands have prices over P400,000 a unit.


“Because the Chinese would like to produce and source locally then there is a potential to be able to sell their products at cheaper prices,” Lee added.

[ocanursjr]

All are welcome in the Philippines!
As long as it will create jobs for thousands of Filipino.
But still we have to support our local industry.

Be Filipino...Buy Filipino

[jpdm]

All are welcome in the Philippines!
As long as it will create jobs for thousands of Filipino.
But still we have to support our local industry.

Be Filipino...Buy Filipino

Ford Ships Focus to Indon Police Use

Written by Max V. de Leon
September 17, 2009
Business Mirror


PHILIPPINE-MADE cars will now be patrolling the streets of Indonesia after Ford Motor Co. Philippines (FMCP) completed the delivery of 577 units of Ford Focus to the Indonesian National Police Force.


The company said this is the largest-ever fleet sales for vehicles assembled out of FMCP’s Santa Rosa, Laguna plant since it started its export program in 2002.


Ford, the only exporter of completely built units in the Philippines, has already shipped over 62,500 Ford and Mazda vehicles valued at more than $800 million to countries in the region.


“This fleet-purchase to Indonesia is significant for FMCP as it points to the success of our export business and underscores the exceptional quality of the vehicles we produce in the Philippines. It is also a testament to the world-class craftsmanship and dedication of Ford’s Filipino workforce which enabled these vehicles to earn such successes,” Ford Group Philippines President Rick Baker said in a statement.


Exports currently account for roughly half of Ford’s total production volume in the Philippines.


Aside from the Ford Focus, the company also exports the Ford Escape, Mazda 3, and Mazda Tribute to Thailand, Indonesia and Malaysia.

Yes to this!

[jpdm]

Good news for Local parts manufacturers

[SIZE=4]Local Parts Makers Ready To Partner With Chinese Bike Manufacturer[/SIZE]


Business Mirror
Sept. 25, 2009
Max V. De Leon/Reporter



DOMESTIC parts manufacturers are ready to partner with Chinese electric-bike manufacturer Zongshen for the production of batteries and other components that it will require from local suppliers.



Trade Undersecretary and Board of Investments managing head Elmer Hernandez said he met with some members of the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) after he received word  from Zongshen that it is seriously considering the possibility of putting up an assembly plant here.



Hernandez said Zongshen, before locating in the Philippines, wants to make sure that some key components, especially the batteries, will be available locally.



“Zongshen believes that the assembly operations will be more viable if there will be local suppliers of batteries and some parts,” Hernandez told the BusinessMirror.



He said Zongshen does not mind if the locally made parts and batteries will made in such a way that they can also be used for other brands of electric bikes.

[smoothtalker197]

time to support chinese brand cars.

di na pwede mag reklamo against chinese cars since they would be filipino made. kahit na chinese technology, it would be made with Philippine quality.

[jpdm]

Philippine assembled Mitsubishi Lancer will be back (together with the best selling locally assembled Adventure and L300 Versa Van and FB van (with Almazora-Fujino body))

Mitsubishi with Resume Philippine Assembly of Lancer

Manila Times
Oct.28, 2009
By Arnold S. Tenorio, Business Editor

TOKYO, Japan: Mitsubishi Motors Philippines Corp. (MMPC) is set to resume assembly of the Lancer car, according to an official at the Japanese carmaker’s headquarters here. The National Statistics Office on Monday reported that transport equipment manufacturing in the Philippines contracted by a slower 4.9 percent year-on-year in August from 12.9 percent the month before. In the second quarter, production grew 6.7 percent, still down from the previous year’s 7.6 percent.

“Next month we will launch the Lancer to be produced in the Philippines,” Ryujiro Kobashi, Mitsu-bishi Motors Corp. vice corporate general manager for Asia & Asean Office Overseas Operations Group, told The Manila Times.

He said the Philippines currently imports the Lancer EX GLX and GLS 2-liter models as completely built up (CBU) units from Japan.

“We expect sales of 200 to 300 units a month [in the Philippines],” he said.

Philippine domestic sales of the Lancer had grown by double digits, with its passenger car sales last year jumping 41 percent.

MMPC last assembled the Lancer in 2002. At present, the company assembles the Adventure, an Asian utility vehicle, and the L300 van.

The executive said the company’s operations in the Philippines and in a number of Asian locations outside Japan bucked the global slump in sales, having grown 20 percent last year.

Despite the Philippine unit’s growth, Kobashi said sales this year are likely to be “almost the same as last year.”

For 2010, he said MMPC’s sales would be “similar to 2008 sales” as well.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) showed that MMPC remained the country’s second top seller in the first nine months of this year with 16,632 units sold, or 29.9 percent higher year-on-year. This lifted the company’s market share to 17.8 percent, or 4.2 percent higher than last year.

In contrast, industry-leader Toyota Motors Philippines Corp.’s market share fell 1.9 percent to 34.3 percent in the same period.

MMPC likewise grew faster than the industry, which suffered an 0.8-percent year-on-year contraction in end-September sales.

Campi earlier forecast a 4.5-percent rise in sales to 130,000 this year.

MMPC last year snatched the second spot from Honda Cars Philippines Inc. as the former’s market share rose to 14 percent as against the latter’s 11.5 percent.

Mitsubishi Motors’ Philippine unit enjoyed growth of 17 percent last year, or faster than the overall industry’s 5.6 percent uptick.

MMPC sold 17,539 vehicles from 15,005 units in 2007.

The carmaker ascribed its strong showing to the warm reception for its Lancer EX and the Montero Sport 4x4 pick-up truck.

Good news! More local jobs and more market for local parts

[Rev!t]

...Montero Sport 4x4 pick-up truck.

^^meron pala nun? ano hitsura ng Montero na pick-up?

[lamborghinione]

Philippine assembled Mitsubishi Lancer will be back (together with the best selling locally assembled Adventure and L300 Versa Van and FB van (with Almazora-Fujino body))

Good news! More local jobs and more market for local parts

This is really good news! Hope there will be drastic price decrease for Lancer EX lower variants from 920K to 800K!

[jpdm]

This is really good news! Hope there will be drastic price decrease for Lancer EX lower variants from 890K to 790K!

Yes and most likely.

CKDs are cheaper that CBUs from Japan.