Storm brewing between Stradcom and PETCs?

PETCs are Private Emission Testing Centers that were put up by the private sector, as encouraged by the government to help meet some of the major provisions of the Clean Air Act, which is to ensure that motor vehicles in the country would meet the law mandated emission levels required to help maintain cleaner air in the country. The government appealed for help from the private sector to put up these “emission testing centers”, which the government had no way of funding. The government conceded that there was no money to put them up despite the presence of the billions of pesos that were collected from the “Road Users’ Tax”, which intriguingly had this as one its purposes to begin with. Of course that’s another story altogether and an unresolved issue at that – what has happened to the funds accumulated from the “Road Users’ Tax”?

To continue with the issue facing us before we get sidetracked by the “Road Users’ Tax” funds, which we shall also tackle here in the future, Stradcom on the other hand is the IT service provider of the Land Transportation Office (LTO) with a contract to assist in the LTO’s IT requirements in providing such services as Driver’s License, vehicle registration, etc.

Since emission testing certification is a strict requirement before vehicle registration, an added hassle for vehicle owners, the practice of NA or “non appearance” became rampant mostly among the “fly-by-night” emission testing center operators to the consternation of the legitimate ones. Being the majority in the industry the legitimate operators helped design a system wherein the IT Providers of the PETCs would relay “real time” computer photos of vehicles that have been tested to the LTO prior to the approval of registration, precisely to completely eradicate the NA practice. The system making the PETCs IT Providers “as the sole aggregators of emission test data” is reportedly pursuant to DOTC Department Order 2005-37, which was never rescinded up to the present according to present DOTC Secretary Anneli Lontoc.

However, according to one of the PETC’s IT Providers, Mr. Jay Bautista of Eurolink, in June 2009 during the time of LTO chief Arturo Lomibao the LTO allowed to have an “operational testing” of a “direct connection” of such data from the PETCs to Stradcom, “which was further extended indefinitely appearing to have been approved even without undergoing any review.”

The issue now is the continuing PETC Direct Connect Facility, which the Coalition for Clean Air Act (CCAA) composed of those from the industry like testing centers, IT Providers, equipment suppliers, calibration technicians, etc. (an industry that came about due to the government’s call for succor) claims “has no legal basis and have allegedly wrought havoc to the industry by connecting unscrupulous PETCs to their system, which has caused the resurgence of rampant “non-appearance certification.”

IT Provider, Atty. Dan Barrameda of RDMS said, “The IT Providers lament that for so long Stadcom has been acting like the LTO. We don’t even know the legal basis of our contract with them. According to the law, we are supposed to be connected to the LTO IT System and not to Stradcom.”

Ms. Grace Casiple of Cyberlink adds, “We complained to the LTO about the whole thing. Stradcom knows how fragile and precarious their position is. On the other hand, we have full faith and confidence that the new LTO leadership will not succumb to the lies and half truths they are peddling and we urge the public to do the same.”

Mr. Mark Halili of ETC IT, another IT Provider for the PETCs has his hopes high regarding the issue by saying, ”Since the incoming administration promises to put an end to graft and corruption, we would strongly suggest that it includes Stradcom’s BOO (Built-Operate-Own) contract in its list of government contracts to be immediately investigate.”

The CCAA also is inquisitive why Stradcom’s BOO is still enforced when it was executed in 1999 for only a period of ten (10) years.

I wonder what the other party has to say to all these.

Mitsubishi Motors Philippines on a roll

Our friends from Mitsubishi, Froy Dytianquin, avp for marketing services and Arlan Reyes, asst. manager for ad & promo were elated to share with us their good news that for the first four months of 2010 MMPC achieved its highest monthly sales volume last April with 3,004 units. This sales volume is so far the highest monthly volume achieved by MMPC after the Asian crisis of 1997. In addition, MMPC’s April 2010 sales volume accounts for a significant increase of 59.4% compared to April 2009’s volume of 1,885. For January to April, MMPC has already sold a total of 10,188 units or a 51% growth over the same period last year.

MMPC also posted increases in almost all of the industry categories. Mitsubishi passenger cars grew by 51.6% based on year to date sales given the sales improvement in both Lancer 1.6 and Lancer EX 2.0 models. With its very competitive pricing the Lancer 1.6 continues to attract sub-compact passenger car buyers with its much larger size and it is more equipped with features. Accordingly, MMPC attributes the growth in its Lancer 2.0 EX sales volume as it is now more affordable with the introduction of the MMPC assembled Lancer EX models.

MMPC’s Light Commercial Vehicles also increased by a 56.4% compared to the same period last year. With this performance, MMPC’s was able to achieve 19% market share and maintained its ranking as the 2nd best selling automotive brand in the Philippine automotive market.

Why the success?

MMPC’s sales performance can be attributed to its exciting new vehicle line up. The Montero Sport continuously draws interest not only in the SUV segment but also in other vehicle segments, because of its superb handling, features and best value for money. In fact, total sales of Montero Sport grew by 90%, as compared to the same period last year and continue to lead the SUV segment. MMPC also reported increases in sales of its other models such as the Strada pick up (64% growth year to date), Adventure (30%) and L300 (57%) models.

“We at Mitsubishi Motors Philippines remain to be optimistic given the successful staging of the national elections, we expect that the Philippine economy will be on the upswing which will benefit the auto industry towards full recovery,” Mr. Masahiko Ueki, MMPC President & CEO said. “Likewise, MMPC is confident that it will maintain its current strong position in the industry and will continue its upbeat performance given our continuous commitment to deliver quality vehicles and customer satisfaction,” Mr. Ueki added.

Line up your choices now

The yearly polls to determine the most preferred models in each automobile category like sedans, SUVs, pick-ups, vans, AUVs and even sports cars plus the most popular “Automobile of the Year” shall start in a month’s time.

The Auto Focus 2010-2011 People’s Choice Awards shall be officially launched on June 24 and to be auspiciously marked by an “Industry Forum”, which shall see the local auto industry’s “movers and shakers”, limited to chairmen, presidents, CEOs and COOs discussing what the newly elected leaders of the country can further do to hasten the development of the auto sector – indeed a very apt sounding board for the country’s new leaders.

Public voting for the industry’s current automobile models starts on July 1 and shall end on September 30, 2010.

A grand display and test drive of all the winners of the Auto Focus 2010-2011 People’s Choice Awards together with all the other models being offered to the motoring public by the auto industry shall be held during the Auto Focus Motor Show & Auto Expo scheduled at the Mall of Asia Concert Grounds from November 4 to 7, 2010.

Happy Motoring!!!

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