Car importers hit ‘super body’ proposal

The Alliance of Vehicle Importers and Dealers reiterated its opposition to an executive order allowing local car assemblers to create a motor vehicle “super body,” saying it could kill the trading industry.

The group said in a statement that some local assemblers were now favoring a revision in the tariff structure of imported vehicles under Executive Order No. 877-A signed by former President Gloria Macapagal Arroyo.

“It’s becoming clear that the real intention of EO 877-A is not only to provide… a set of generous incentives to local car assemblers; the EO is principally designed to create the Motor Vehicle Development Council—a ‘super body’ that would review and recommend raising tariffs that could price imported vehicles out the market,” the group said.

It said top vehicle traders like Hyundai Asia Resources, Inc., CATS Motors Inc., The Covenant Car Co. Inc., Asian Carmakers, United Asia Automotive Group, PGA Cars, Focus Ventures Inc., British United Automobiles Inc. and Volvo formed the group to save the industry from possible extinction.

The group said the hasty approval of EO 877-A and their non-inclusion in the crafting of the implementing rules on the vehicle program ran counter to transparency policy of the new administration.

It said the group would not have objected to the Malacañang directive if the proposed Motor Vehicle Development Council would merely lay down the road map for the success of local car assemblers.

“But since part of the super body’s proposed mandate is to tinker with tariffs of its competitors’ products, it becomes an issue that we as affected parties should have a say,” the group said.

Earlier, the group called on President Benigno Aquino III and Trade Secretary Gregory Domingo to recall the EO signed in the last days of the outgoing Arroyo administration. The group said the order was crafted with haste, lacked public consultation and had a flawed publication.

The group said its members were not asking for any incentives contrary to claims by local assemblers.

“In the first place, we never assumed that we are, nor did we ask for such incentives. We only want to compete on a level playing field,” said the group.

The members said car assemblers look down on importers and dealers as if they have no contribution to the economy.