Isuzu bucks BOI proposal on used trucks importation

Isuzu Philippines executive vice president Hiroshi Ishino warned yesterday that the government would virtually killing the local truck manufacturing sector if it accepts the proposal of the Board of Investments (BOI) to lower the gross vehicle weight (GVW) limit for used or second-hand imported light trucks to 2.5 tons from the current regulated limit of 4.5 tons to six tons.

"The BOI proposal would affect the local truck manufacturers and even the pick-up makers," Ishino said.

The BOI is proposing to lower the GVW of regulated imports of light trucks to 2.5 tons, primarily to benefit local government units and small and medium enterprises which use such vehicles.

However, the BOI also set a specific GVW of three tons and above for imported pick-ups to prevent importers from using the 2.5-ton limit as a loophole to import pick-ups.

"It is unfair to local vehicle manufacturers who had invested in manufacturing operations of light trucks," Ishino said.

He said that while the local production of light trucks is still small, locally manufactured trucks conform to the country’s environmental and safety standards.

Local vehicle manufacturers have repeatedly warned that most of the imported second-hand vehicles may have some major defect especially since most of them are converted from right-hand to left-hand drive.

Buyers, likewise, do not have any record of the vehicle’s history, whether it has been involved in any major accident or has been repaired extensively.

The GVW limit for light trucks is one of the remaining issues delaying the signing of the revised Motor Vehicle Development Program (MVDP).