Motor vehicle parts, truck manufacturers back govt’s draft MVDP

TRUCK assemblers and auto parts makers said they are supporting the government’s New Motor Vehicle Development Program (NMVDP) despite a provision in the draft plant that reclassified imported used engines and other components from “prohibited” to “regulated” items.

“TMA believes that policy setting based on an understanding of global and regional developments is a necessary step to help sustain the viability of automotive manufacturing in the Philippines. In this regard, TMA expresses its support to the issuance of the [NMVDP],” the Truck Manufacturers Association said in a position paper submitted to Trade Secretary Jesli Lapus.

“MVPMAP totally agrees on all aspects of the draft [Executive Order] that [the Board of Investments (BOI)] submitted to Malacañang,” Antonio Gimenez, Motor Vehicle Parts Manufacturers Association of the Philippines executive director, said in a telephone interview on Tuesday.

Pressed to comment on the reclassification of imported used engines and other components, Gimenez said his group would support the NMVDP nonetheless.

Once the NMVDP is approved, Gimenez said auto parts manufacturers are “ready” to participate in drafting its Implementing Rules and Regulations (IRR).

He said the BOI has indicated that it welcomes active participation of industry players in coming up with the IRR.

The TMA and MVPMAP positions are at loggerheads with that of the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), which proposed keeping the existing program contained in Executive Order 156 because of the loophole created by the reclassification of imported used engines and other components from “prohibited” to “regulated” in the NMVDP.

Besides TMA and MVPMAP, the Philippine Automotive Competitiveness Council Inc. (PACCI) is also supporting the government’s draft plan revising the existing program.

Four of PACCI’s members, namely Honda, Isuzu, Mitsubishi and Toyota, are also members of Campi. –BEN ARNOLD O. DE VERA Reporter