RP to help local auto parts makers<\/p>\n
MANILA (AFP): The Philippine government is to draw up a plan
\nthis year for the auto industry to aid local manufactures of
\nspare parts, Trade and Industry Undersecretary Melito Salazar
\nsaid here yesterday.<\/p>\n
Salazar said the Motor Vehicle Development Program would
\nhopefully \"accelerate the development of the car parts industry,
\ntaking into consideration how we can be of help to the consumer.\"<\/p>\n
The government was consulting with both auto assemblers, car
\nparts manufacturers and consumers, he said, adding that any
\nchanges in the existing program would \"make the auto industry
\nstrong.\"<\/p>\n
The government had said it was considering revisions to the
\nvehicle program including liberalizing the importation of semi-
\nassembled automobile units, called semi knocked-down kits (SKDs).<\/p>\n
The proposed changes are seen as being aimed at luring
\ninvestment from General Motors Corp., which plans to open a
\nparts-making venture and car assembly facilities in the
\nPhilippines.<\/p>\n
However local parts manufacturers and assemblers have
\ncriticized some of these revisions, saying they would hurt them.<\/p>\n
Salazar said that the department had met with potential new
\ninvestors but had told them that Manila would also have to
\nconsider the position of existing vehicle assemblers who had
\nalready made large investments in this country under the old
\nrules.<\/p>\n
He said that whatever the changes, the Philippines would still
\nretain a tariff differential between imports of SKDs and imports
\nof auto parts for assembly into new vehicles.<\/p>\n
However, the tariff differential may be lower than the present
\n37 percent level.<\/p>\n
Earlier this week, U.S.- auto giant General Motors re-entered
\nthe Philippine automobile market, announcing that they would be
\nimporting two models of their Opel brand into this country.<\/p>\n
However General Motors officials downplayed the reports of a
\nparts-making and car assembly facility here and said they were
\nstill trying to determine \"what level of investment and activity
\nin the Philippines would be appropriate.\"<\/p>\n
Earlier this week, Japan's Mazda Motor Corp. and Ford Motor
\nCo. of the United States announced they were discussing plans for
\na joint venture to manufacture cars in the Philippines,<\/p>\n
The Philippine vehicle market is dominated by local assemblers
\nof Japanese and South Korean brands.<\/p>",
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"sponsor": "Okusi Associates",
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