No new MVDP this year – Favila

By BERNIE CAHILES-MAGKILAT
November 30, 2009, 3:35pm

It would be unlikely to come up with a new Motor Vehicle Development Program (MVDP) before the end of this year after Trade and Industry Secretary Peter B. Favila’s order to conduct thorough consultations with all the industry stakeholders.

Favila told reporters over the weekend that instructed DTI Undersecretary and Board of Investments managing head Elmer C. Hernandez to consult everyone in the industry.

“I don’t think so,” was Favila’s reply to a question if it would be possible to come up with a new MVDP before end this year.

The BoI was eager to have a new MVDP or a new executive order before end this year. It has already conducted two workshops with the industry to discuss its policy framework for the planned revised MVDP.

Apparently, Favila has been briefed of the divergent positions among automotive industry players.

“Each side should understand the situation of the other,” he said.

Some automotive players were disgruntled over the “haste” at which the proposed new Motor Vehicle Development Program (MVDP) and the specific measures were formulated which they said were partly taken from the “unvalidated” Deloitte study.

A well-placed source said the proposed new MVDP caught most of them unaware stressing the proposal was “spoonfeed” into them.

“We were shock except some that supported the Deloitte study. It was spoonfed into us. Why the haste of coming up with a new MVDP,” the source said.

The BoI, which presented to the industry its approved MVDP policy framework and some specific measures, said they considered all the various inputs, position papers and studies submitted to them including the recommendations of the Deloitte study.

“But it is so strange because the MVDP preamble was source from the Deloitte study,” the official said.

The source said that BoI should not have given enough weight to the Deloitte findings because the study even admitted that, “We have not audited or otherwise verified the accuracy or completeness of the information and to that extent the information contained in this Report may not be accurate or reliable.”

“BoI admitted that it partly incorporated the Deloitte study but even if they just partly incorporated it, we should have validated the study first,” the source said.

The source noted that when presented with this kind of input, the BoI should verify first the findings.

“First we have to identify the problem before we can solve it then we validate if the problems pinpointed are correct and if the solutions are correct, but what happened is we were presented with the proposed new MVDP already,” the source added.

The source doubted if the workshops being conducted by the BOI would lead them to a good MVDP.

The MVDP framework of the BOI has six critical and revolutionary components – hardcore assembly operations, exports program, parts and components development, review of the excise tax on vehicles, policy on importation of used vehicles, standards, and creation of an automotive “authority.”