Palace asked to recall Norkis’ permit to import 1,000 Chrysler automobiles

The Motor Vehicle Parts Manufacturers Association of the Philippines Inc. (MVPMAP) is asking Malacañang to overturn the decision of the Board of Investments (BOI) allowing the Norkis Automotive Resources Corp. (NARC) to import 1,000 semi-knocked down (SKD) units of Chrysler sports utility vehicles and pick-ups this year.

In a letter to President Estrada, the MVPMAP objected to the total planned SKD importations of NARC consisting of another 2,500 units in 2002 and 3,500 units in 2003.

The MVPMAP, likewise, expressed its opposition to extend for another 18 months NARC’s authority to import the balance of 500 SKD units under an earlier, but already expired authority.

According to the MVPMAP, the approval not only violates the existing rules and regulations under the Motor Vehicle Development Program (MVDP), but also disrupts the viable implementation of the said program.

The MVPMAP said allowing NARC to go ahead with its planned SKD importation would be "highly detrimental of the primordial objective of the MVDP which is to develop parts and components manufacturing as the base of the automotive industry in the country."

The MVPMAP further argued that the MVDP would be seriously prejudiced and the interest of the parts and components industry totally unprotected.

Such disregard, the group warned, would be against the gains achieved by the industry through local sourcing which earns export revenues for the country of $1.1 billion annually.

The MVPMAP pointed out that the SKD has no local component.

The importation of SKDs, the MVPMAP said, is regulated, if not banned, because it runs counter to the development of local parts industry under the MVDP.

Allowing the importation of SKDs, especially of such a big magnitude (a total of 7,000 units) and for a period of three years, the MVPMAP warned, would have an adverse effect on the local parts industry development.

The SKD importations, the group insists, would mean substantial market losses that would also result in labor displacements.

It said that Norkis has failed to-date to put up completely knocked down (CKD) assembly operations.

Norkis’ failure to comply (after its privilege to import SKD to test the market given in 1999 was served in accordance with the guidelines) is an indication of Norkis’ negation of its commitment under the rule of the MVDP.