New bill filed to help motor vehicle manufacturers

MANILA, Philippines - As the government failed to implement Executive Order 877-A or the Comprehensive Motor Vehicle Development Plan (CMVDP), Congress has filed another bill that aims to help motor vehicle manufacturing in the country.

House Deputy Speaker Lorenzo “Erin” R. Tañada III is pushing a bill that will stage the country’s comeback as a leading motor vehicle manufacturer in Southeast Asia.

Tañada has filed House Bill 5279, or the Comprehensive Motor Vehicle Development Act to put the country back on track as a highly competitive car manufacturer and exporter and contribute to the economy in terms of employment and revenue collection.

To ensure continuing demand for the locally manufactured vehicles, the bill provides for an explicit prohibition of the importation of second-hand vehicles, engines, parts, and components.

“As proven by the local automotive industry’s performance when Executive Order 156 was still in effect, the prohibition of such used items had a positive effect – from a 43 percent local industry sales figure in 2002 to 73 percent in 2009,” Tañada said.

Likewise, in accordance with the Flag Law, government offices shall be enjoined to procure brand new, locally manufactured vehicles, thus allowing for a steady market.

“It seems we are neglecting an industry that has and continues to significantly contribute to the national economy. Are we content with mere assembly that we are no longer aiming to be manufacturers,” Tañada asked, adding “we can develop our own brand as Malaysia did.”

To boost sales in the private sector, the bill will provide for the establishment of affordable and accessible financing schemes, Tañada noted.

The measure also proposes the creation of a Motor Vehicle Industry Development Office (MVIDO) under the Secretary of the Department of Trade and Industry, in place of the Motor Vehicle Manufacturing Council.