CAMPI awaits release of car industry road map

MANILA, Philippines - The Chamber of Automotive Manufacturers of the Philippines is hopeful the government would be able to issue the Executive Order (EO) containing the automotive industry policy within the year. 

CAMPI president Rommel Gutierrez told reporters the group wants the EO for the automotive industry roadmap to be released within the year.

“We hope P-Noy (President Aquino) will prioritize it this year,” he said.

Given the expected higher demand for cars in the country and upcoming Association of Southeast Asian Nations (ASEAN) economic integration, the CAMPI has said the local automotive industry needs government support.

In particular, the group wants government to allow local players to participate in the ASEAN economic integration and close the gap between locally produced units and imported vehicles.

Gutierrez said that based on information received by the CAMPI, the draft EO for the automotive industry policy has been with the Office of the President for almost three months now.

Trade undersecretary Adrian Cristobal Jr. told reporters late last month however, that the government is still finalizing the draft EO.

Cristobal said the government is still assessing the fiscal and non-fiscal support to be given to players.

Trade Secretary Gregory Domingo had previously said that under the automotive industry roadmap being crafted, firms would need to meet certain production volume and capital investment requirements to qualify for incentives.

Domingo also said perks would be granted to automotive firms that would export locally assembled vehicles.

Apart from the release of the automotive industry roadmap this year, the CAMPI wants to see a balance in promoting the interests of consumers and vehicle distributors and assemblers when Republic Act 10624 or the Philippine Lemon Law is implemented.

 “We just want to make sure the law will be implemented smoothly and whatever is lacking in the Lemon Law, itself. We hope the right details will be placed,” Gutierrez said.

He noted that in the implementing rules and regulations (IRR) being crafted for the law, what constitutes non-conformity to standards would have to be clearly defined.

 “It should be safety related issues. It should not be any minor defects,” he said.

The Lemon Law which took effect on Aug. 7, seeks to protect consumers by entitling them a refund or replacement in the event that a brand new vehicle purchased does not meet the standards set by the manufacturers.

The Department of Trade and Industry (DTI) has formed a Technical Working Group composed of the Department of Transportation and Communications and other government agencies as well as members from the private and consumer sectors for the IRR which will be released on Nov. 7.