Gov’t urged to finalize automotive roadmap

MANILA, Philippines - Labor groups Automotive Industry Workers Alliance (AIWA) and Sentro ng  mga Nagkakaisa at Progresibong Manggagawa (SENTRO) are calling on the   government to finalize the roadmap for the automotive industry and   address the high cost of doing business here to encourage more investments and create jobs.     

In a statement, AIWA president Angel Dimalanta said the group is hopeful the government would finalize the automotive industry’s road map as well as fast-track measures that would deal with the high cost of doing business here so that more investments would be made in the   industry which could lead to providing jobs for more Filipinos.     

“With the roadmap finalized, we see a glimpse of hope for the auto industry to become a global player in the future. This is why AIWA remains supportive of the government’s initiatives towards promoting   the interest of both workers and employers in the industry,” Dimalanta   said.     

He said the group has been continually fighting for the survival of   the auto assembly and parts industry to secure and even   expand the employment of automotive industry workers.     

For his part, SENTRO founding chairperson Frank Mero said that given the country’s positive economic performance, it is important for the   government to look at manufacturing, as well as the automotive   industry, to sustain growth and make it more inclusive.     

“With the country’s stable economic performance and seeing the prospects laid out in the roadmap initiated by DTI (Department of Trade and Industry) for the auto industry’s competitiveness, our   laborers are hopeful that a better quality of life will materialize in   the near future,” he said.     

The groups noted that under the draft roadmap for the automotive   industry, the country aims to capture 10 percent of the   Association of Southeast Asian Nations (ASEAN) market and create 100,000 jobs in 10 years.     

Currently, there are about 68,000 employed in the vehicle manufacturing industry and around 340,000 employed in other auto   supporting industries.

Trade Secretary Gregory Domingo said  earlier that under the roadmap, the government may provide incentives to car companies   which are able to meet the minimum volume requirement of 40,000 units per model per  year.     

The minimum volume requirement, he said, is intended to push the local automotive manufacturers to raise their output and be able to compete in the ASEAN.     

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said earlier the government needs to release the automotive industry roadmap for companies to be able to decide on future investments here as well as prepare for the ASEAN Economic Community (AEC).     

The AEC would transform the ASEAN into a region with free movement of   goods, services, investment, skilled labor as well as flow of capital.     

Data from the ASEAN Automotive Federation showed that as of end-July,   the Philippines continued to lag behind its peers in terms of vehicle   production, with its total assembled units at 43,233 units.     

This is lower compared to Thailand’s 1.542 million units, Indonesia’s 692,666 units, Malaysia’s 348,303 units and Vietnam’s 48,092 units.