Car makers seek government help

MANILA, Philippines — Local vehicle assemblers want the government to study the possible adverse effects of having a safeguard measure on automobile imports, as well as to provide support to the industry so it could keep its workforce amid lackluster sales due to the pandemic.

Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez said the group has proposed some measures to the Department of Trade and Industry (DTI) to help the industry surmount these challenging times.

He said among the recommendations made by the group is to “seriously consider the negative implications of safeguard investigation on CBUs (completely built units).”

Last year, the Philippine Metalworkers’ Alliance filed a petition with the DTI for the imposition of safeguard measures or duty on CBUs or automobile imports as it claimed the higher vehicle imports have reduced opportunities for local production.

Republic Act 8800 or the Safeguard Measures Act allows the government to impose safeguard measures or higher duties on imported goods as a form of relief to the local industry hurt by an increase in imports of that commodity.

Most of the vehicles being sold in the Philippines are imported.

DTI Bureau of Import Services and Strategic Trade Management Office director Luis Catibayan said the safeguard measure on vehicle imports is still under review.

Apart from looking at the negative effects of imposing safeguard measures or duty on vehicle imports, Gutierrez said CAMPI also wants support measures from the government for employment retention.

In addition, he said the group is recommending a temporary reduction of duty rates on imported basic raw materials.

Automotive firms were forced to temporarily close dealerships and production facilities when the government imposed a lockdown to limit the movement of people and prevent the spread of COVID-19 in March.

Apart from the community quarantine, demand for new vehicles considered as big ticket purchases has also been weak.

For the January to July period, combined sales of the CAMPI and the Truck Manufacturers Association fell by 49 percent to 105,583 units from 205,945 units last year.

CAMPI’s forecast for total automotive industry sales this year is at 240,000 units, 41.5 percent lower than last year’s sales volume.