Car firms form competitiveness council

MANILA, Philippines - The local automotive industry has created the Philippine Automotive Competitiveness Council Inc. (PACCI) to promote domestic manufacturing as well as ensure overall future competitiveness and to preserve jobs, the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) said.

MVPMAP said this is the first time that vehicle makers and part manufacturers created an organization to combat the effects of the global economic downturn.

Vehicle makers already said there is a possibility for auto sales to experience a flat growth this year although the optimistic forecast is a modest two-to-four percent growth. As a result, industry players have intensified their efforts to protect domestic manufacturing in view of the changing landscape in the region.

“The formation of PACCI highlights the commitment of our founding members to sustain the development of the Philippines’ vehicle and parts manufacturing industries, and share a common vision and plan through a strong and collaborative partnership,” Feliciano Torres, an incorporator of PACCI said.

“The Philippines is one of the most open automotive markets in Asia-Pacific, and we believe that a strategic roadmap is imperative to help achieve a viable, forward-looking domestic vehicle manufacturing industry. The Philippines auto market is small by comparison to some of our regional neighbors, but there is an opportunity for more than one country to establish a viable vehicle manufacturing industry within ASEAN,” he added.

Aside from MVPMAP other members of the council are Ford, Honda, Isuzu, Mitsubishi and Toyota.

The founding members of PACCI have commissioned an independent study of the Philippines’ vehicle manufacturing industry by Deloitte Insights Economics to help formulate a series of strategic recommendations for an industry roadmap. Deloitte targets to conclude the study by the first quarter of this year and present its detailed recommendations to the group.

PACCI said it is important to have a clear roadmap for the auto industry to increase its capabilities and compete with neighboring countries like Thailand.

Agreement signed by the member countries of the Association of Southeast Asian Nations (ASEAN) target a single market by next year. Although this would mean new opportunities for the local industry, there will be challenges from countries with highly developed auto industry.