Selective motor import lib to kill auto industry — CAMPI

In five years or less, the Philippine automobile industry may die out if the government adopts a selective liberalization of motor vehicle imports.

According to members of the Chamber of Automotive Manufacturers of the Philippines (CAMPI), a further lowering of the gross vehicle weight (GVW) limit for the liberalized entry of light trucks to 2.5 tons would affect 30 percent of the commercial vehicle market.

Serafin Pantaleon, senior vice president of Toyota Motor Philippines Corp., said that lowering the GVW limit to 2.5 tons would impinge on pick-ups and provide a loophole even for Asian Utility Vehicles (AUVs) which already weigh around 2.1 tons.

Henry Co, president of Ford Motor Company Philippines, warned that if the government continues with its current policy of allowing used vehicle imports, local car manufacturers will die out soon. "We won’t be here because there won’t be any (automotive) industry," he said.

Especially with the advent of the ASEAN Free Trade Area (AFTA), Co said, none of the Philippine automotive manufacturers would be able to compete with Thailand, Malaysia and Indonesia whose markets have already recovered following the Asian crisis.

Mark Gilbert of BMW Philippines cited the experience of New Zealand whose local automotive industry faded in just four to five years time when the government decided to lower tariff and removed all duties on imported cars.

However, Gilbert explained, New Zealand’s situation differs from that of the Philippines because it only has a population of three million.

The situation in the Philippines, Gilbert stressed, is different since it has a much bigger population and is part of AFTA.