The domestic automotive industry has underscored the urgency to implement a new Motor Vehicle Development Program (MVDP) and expressed hope the review of Executive Order 877-A that the new government officials would like to do could be done within the EO’s time frame saying that further delays in its implementation would further move back the industry’s growth.

Elizabeth H. Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), said the industry has yet to be called for a meeting on the pronouncement by Trade and Industry undersecretary and Board of Investments managing head Cristino L. Panlilio that EO 877-A needs major revision to come up with an “out of the box” strategy and dovetail it with the Aquino administration’s policy for jobs creation.

New DTI Secretary Gregory L. Domingo and Panlilio are of the opinion that the new MVDP, one of the last EOs signed by then President Gloria Arroyo before her term ended, needs major revision. It took more than a year for the BoI to come up with the EO as it has to balance conflicting interests of industry players. The local auto industry is estimated to employ 70,000 direct workers including parts makers sector.

The BoI is already in the process of crafting the Implementing Rules and Regulations of EO 877-A, which provides that an IRR should be completed by August 30 this year. The BoI is expected to meet the industry this week to present the draft IRR.

Lee, however, said that the industry supports the Aquino administration’s objective to create more employment, but she equally urged for urgent action. CAMPI is composed of 20 automotive players in the country, both assemblers and pure traders of completely built-up vehicles.

“We do need to act fast so the Philippines can actively participate in the developing opportunities where global brand makes, most of whom have existing assembly/manufacturing plants in the country can take advantage of the excess capacity to supply the increasing demand within the region and beyond,” Lee said.

Benjamin C. Sevilla, executive director of the Philippine Automotive Competitiveness Council Inc. (PACCI), echoed the same hope. PACCI represents the country’s five auto assemblers Toyota, Mitsubishi, Isuzu, Ford and Honda, and the auto parts manufacturers’ organization the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP).

“We are hopeful that this review and possible revisions can be accommodated within the existing timeframe that is ongoing for the IRR process of EO 877-A. It is ideal so as not to delay it,” Sevilla said.

Lee also said that ASEAN as a group is seen as one of the key emerging markets and the Philippines should keep up and be a beneficiary of the growth.

“Demand from emerging consumers will ramp up demand and supply of autos if based on the current regional structure and capacity- is no longer enough. Hence, our neighbors to include Indonesia, Vietnam, among others, are busy enticing and encouraging automakers to invest in their respective countries to build capacity to supply the growing demand. The Philippines should not be left behind,” he said.

According to Lee, the immediate advantage for the Philippines is the underutilized assembly/ manufacturing plants.

“With the utilization of this excess capacity, the immediate impact would be job creation for auto workers as well as increased demand for our local Philippine parts and components industry, however, we must be competitive,” Lee said.