EO on used car importation ban a farce?

Word is strong in the automotive industry that the government has finally turned its "listening ear" to the plight of local car manufacturers on the wanton importation of second hand vehicles. The belief is further strengthened by newspaper accounts of a draft E.O. or Executive Order made by the Department of Trade and Industry (DTI) for the approval of President Gloria Macapagal-Arroyo on a total ban on the importation of used vehicles, except those under the balikbayan privilege, while a selective ban will be imposed on light vans and specialized vehicles like ambulances, fire trucks, dump trucks and the like. The ban, though does not cover those used vehicles brought in through the Subic Free Port.

But if one would look into the supposed draft EO, there seems to be really nothing new to it.

To begin with isn’t there an existing law banning the importation of second hand vehicles? And isn’t there also a law already extending a privileged exemption for balikbayans?

Now, aren’t most of the imported second hand vehicles running in our streets shipped in through the Subic Freeport and sold at auctions?

If there is anything new in the EO, it is the subliminal announcement that light vans or specialized vehicles "may possibly be allowed to be imported" even if they fall under "used vehicles" category, which are not really allowed to be imported to begin with.

The people behind this, what looks like, "consuelo de bobo" move should realize that the local car manufacturers were "not born yesterday" not to see through this very shallow approach. In contrast it appears to be a very visible and transparent admittance that the government cannot do anything or "will not do anything" to stop the illegal importation of used vehicles despite being convinced that its continuance would definitely hurt the local automotive industry and eventually local labor that is being extensively used in the automobile assembly plants.

We realize that there’s a very strong lobby by those involved in the malpractice that influence even some of our peers. The amounts allegedly involved to grease some government hands to facilitate the misconduct are mind-boggling. But it will not take much moral values to realize that used cars being sold cheap due to this illegal importation serve those who can afford to buy cars, while the practice could eventually lead to plant shutdowns and summarily affect the lives of thousands and thousands of plant workers who may find themselves without jobs and can’t even afford to live.

With this EO, life goes on blissfully for the illegal importers of used vehicles to the detriment of the entire legitimate automotive industry.

A farce?

Formula One Update

The last Grand Prix of the season pretty much summed up what the entire year was like for Formula 1: dull, boring, and predictable. And considering how the penultimate leg ended, even bordering on irreverence.

Just like in the Driver’s Championship, Michael Schumacher and Rubens Barrichello finished 1-2 in Suzuka, Japan, for the nth time this season. And as usual, they lorded over the entire pack the whole race. The total dominance of Ferrari is viewed by many as the culprit in making the series a ho-hum affair.

Some even found the attempt of the Prancing Horse duo to make a record-breaking dead-hit finish as a wanton mockery of the league. As the results proved, Schumi’s attempt even turned the tables on him as Rubino finished .01 of a second ahead.

Kimi Raikonen capped his impressive sophomore season with a 3rd place finish. Takuma Sato of Jordan gave the Japanese a reason to celebrate as he registered his 1st championship point in his home race.

Many are really hoping that next year’s season would be much more exciting considering some dramatic changes like the adoption of Ford engines in the Jordan team, thereby consolidating Honda’s efforts of coming up with a winning engine with the BAR team. There is also the complete change of drivers in the Toyota lineup, as well as other driver movements within the league.

Speaking of driver changes, Jenson Button will move to BAR Honda next season and will most likely be partnered with Jacques Villeneuve. He is also scheduled to set foot on Philippine soil on the 9th of November at 1pm at The Fort in an event sponsored by Mild Seven. True-blue F1 fanatics surely wouldn’t want to miss this!

They Come in Threes, Big Ones

Toyota Motor Philippines Corporation (TMPC) again recently held one of its usually impressive cocktails this time to honor three distinct meaningful occasions; to recognize the significant contributions of the Toyota Group to the Philippine economy, to celebrate the 10th anniversary of Toyota Autoparts Philippines Corporation and to mark the opening of Toyota Financial Services Philippines Corporation.

Many of us may not know it but the local Toyota Group, a tandem of Toyota Motor Corporation of Japan and one of the country’s most respected captains of industry, Metro Bank’s Mr. George S.K. Ty, has paid over 39 billion pesos in duties and taxes to the government since 1988 and by the end of 2002 will be turning over an additional 4 billion pesos–indeed a substantial and very significant contribution to the Philippine economy. On the other hand, Toyota Autoparts Philippines is celebrating its 10 years of efforts of exporting transmissions to our ASEAN neighbors and Africa representing over 90 % of the accumulated 1.5 transmission units manufactured by the company. The Toyota group also leads in the area of exports in the industry. In 2001 alone the group generated export revenues of 276 million US dollars equivalent to 30 % of total automotive exports from the Philippines.

And just recently Toyota Motor Philippines Corporation’s commitment to the country gained a new dimension–making Toyota vehicles more accessible than ever to the Philippine market by way of Toyota Financial Services Philippines Corporation and its comprehensive range of financing solutions and products designed to cater to the needs of Toyota customers.

The glittering event was well attended by invited guests coming from the government, the local automotive industry and the motoring media. As always, a mark of all Toyota events, fine food, wines and spirits flowed generously all throughout the night.

Well, I miserably missed the event knowing that our exclusive family of motoring journalists would be there. But my absence only meant that our good friends Danny Isla, Raymond Rodriguez, Joey Atienza and Ariel "Anak" de Jesus might have saved on at least 2 bottles of "XO".

Happy motoring!!!

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