Newly-organized Alliance of Vehicle Importers and Dealers (AVID) has expressed fear that the “midnight” Arroyo Executive Order 877-A or the Motor Vehicle Development Program (MVDP) allowing the creation of a motor vehicle “super body” called the Automotive Industry Council could spell “life or death” for the auto trading industry.

In a statement, the nine-member AVID said some local assemblers have shown their true colors by stating that one of the main goals of the MVDP is to tinker with the tariff structure of imported completely build-up (CBU) vehicles through the Council.

“It’s becoming clear that the real intention of EO 877-A is not only to provide, yet again, a set of generous incentives to local car assemblers; the EO is principally designed to create the Council a ‘super body’ that would review and recommend raising tariffs that could price imported vehicles out the market,” AVID said.

Composed of some of the country’s top vehicle traders like Hyundai Asia Resources, Inc. (HARI), CATS Motors, Inc., The Covenant Car Company, Inc., Asian Carmakers, United Asia Automotive Group, PGA Cars, Focus Ventures, Inc., British United Automobiles, Inc. and Volvo, AVID said the group was formed to save their industry from possible “extinction.”

Under EO 877-A or the new MVDP, the Council has the power to oversee the implementation of the MVDP and other programs for the development of the automotive industry under the supervision of the DTI.

The Council shall be the central policy coordinating body tasked to ensure the accelerated development of the Philippine motor vehicle industry, in accordance with EO 877-A.

It is also empowered to issue and harmonize policies, rules and regulations, and other concerns as they affect the implementation of the MVDP; and coordinate all automotive industry development efforts of all agencies and instrumentalities of the government towards the attainment of the following: Creation of a conducive environment to attract new investments and expand existing opportunities; development of innovative technologies in the automotive industry; development of high value-added manufacturing activities in niche areas; Increase in the motor vehicle industry’s exports and make the Philippines as a production hub for the region; and competitiveness of parts and component manufacturers and to enhance their contribution to the industry and the economy.

The Council shall becomposed of 13 representatives from various government agencies including the secretaries of nine line government agencies with DTI Secretary as chairman, DTI Undersecretary for industry and investments as vice-chairman and members DTI Usec for consumer welfare and trade regulations, undersecretaries from the Department of Environment and Natural Resources, Energy, Labor and Employment, assistant secretary Land Transportation Office, chairman of the Land Transportation, Franchising and Regulatory Board, Commissioner of the Bureau of Customs and four representatives from the private sector to be appointed by the President upon the recommendation of the motor vehicle industry associations.

Permanent representatives designated by the Undersecretaries shall not be lower than the position of Assistant Secretary.

AVID said there would have been no debate if the proposed Council envisioned by EO 877-A was only for the purpose of laying down the roadmap for the success of local car assemblers.

“But since part of the super body’s proposed mandate is to tinker with tariffs of its competitors products, it becomes an issue that we - as affected parties should have a say,” AVID said.

Apart from the Arroyo administration’s “hasty” approval of EO 877-A, the group lamented that their continuing non-inclusion in the crafting of its implementing rules does not speak well of the promised transparency under the new administration.

Earlier, the group called on President Benigno Aquino III and Trade Secretary Gregory Domingo to recall the EO signed in the last days of the outgoing Arroyo administration. In seeking its recall, the group said the EO was crafted with haste, lacked public consultation and had a flawed publication.

In addition, AVID said that contrary to claims by local assemblers they are not asking for any incentives.

“It’s funny that some unnamed sources from the local car assembly industry are asserting that car traders are not entitled to perks reserved only for car assemblers. In the first place, we never assumed that we are, nor did we ask for such incentives. We only want to compete on a level playing field,” said AVID.

The AVID members said car assemblers look down on car importers and dealers as if they have no contribution to the economy.

“On the contrary, our members who import from countries outside ASEAN and Japan account for billions of pesos in annual taxes and duties paid to government in 2009 alone, a significant contribution to the State coffers,” the AVID statement said.