In a statement, Dreamco vice president Greg Yee said they are supportive of initiatives to develop the local auto industry. Dreamco has committed to supply the Foton diesel engine powertrain, platform and other CKD parts for a PhUV prototype that MVPMAP will develop.
"We told MVPMAP that our commitment does not start and end with the PhUV prototype. Our company’s resources can be utilized for the PhUV program, from our state-of-the-art assembly plant at the Laguna Technopark in Sta. Rosa, Laguna, to our 18 dealers nationwide that can provide the much-needed after-sales service, parts and components for the PhUV," he said.
Dreamco, a BOI-registered assembler and a member of the Truck Manufacturers Association (TMA) is importing, assembling & distributing commercial vehicles from China through its network of dealers and service centers nationwide. It is the authorized Philippine distributor of Beiji Foton Motor Co. Ltd and Nanjing Automotive Co. Ltd. for its Yuejin and Naveco commercial vehicles.
MVPMAP director and head of the PhUV technical working group Ferdi Raquelsantos said Dreamco’s support gives the program a big boost.
Earlier, another car assembler, Francisco Motors, a 100 percent Filipino owned company that pioneered in jeep and pickup truck manufacturing, expressed its support for the project.
Raquelsantos explained that the prototype of Dreamco will be different from the model of Francisco Motors."This means that any assembler could have his own version of the vehicle, in much the same way as in the defunct People’s Car Program, just as long as the participant meets all the criteria set under the program," he explained.
To drum up interest in the project, Raquelsantos said they will ask the Department of Trade and Industry (DTI) to exempt car assemblers and parts makers from excise tax. He said they will submit a proposal before the tri-partite PhUV technical working group (TWG) composed of representatives from the car assemblers, parts makers and the BOI.
Raquelsantos said the incentives will extend to the buyers of PhUVs as the new brand of vehicles will be affordable to the consumers. Latest data show annual industry data going flat for a period of eight years while completely built units (CBU) importation is increasing. CBU units do not have local parts and labor in them.
Aside from excise tax exemption, Raquelsantos said they will likewise ask for lower fuel prices and duty free importation among others.
"Among the proposals to be forwarded are the exemption from excise tax for the PhUV similar to those given to the jeeps and trucks, income tax holidays, duty-free importation of raw materials and machinery, reduced fuel prices for buyers similar to those extended to the public utility jeepneys (PUJs), reduced PhUV LTO registration and a government-led retail financing to make the PhUV affordable," he expounded.
Also, Raquelsantos said they will also ask the regulators to give more incentives in the form of additional excise tax reduction for PhUV units that can run using alternative fuel like ethanol (E5 or E10) or biodiesel. They will also push for the government’s strict implementation of the Clean Air Act and the Motor Vehicle Inspection System to ensure a vehicle’s safety, roadworthiness and compliance to environmental standards.