Inquiry on automotive sector roadmap sought

MANILA, Philippines–A lawmaker has filed a resolution seeking an inquiry on the proposed automotive manufacturing roadmap to ensure that the new polices to be laid out for the industry will be aligned with the government’s existing infrastructure plans.

In a statement, Sen. Paolo Benigno “Bam” Aquino IV said the call for an inquiry, which he formalized through the filing of Senate Resolution No. 929, would also look into the factors that could hamper the growth of the automotive industry, such as the worsening traffic conditions in the country.

“Given the rising demand for automobiles and the worsening road condition and congestion, there is a need to ensure that the automotive industry roadmap is aligned with the country’s infrastructure roadmap,” Aquino said.

The proposed automotive manufacturing roadmap, which will provide attractive fiscal incentives to a limited number of participants and for certain vehicle models, will be contained in an executive order.

To qualify for incentives, a company must be able to produce 40,000 units of a specific vehicle model per year and invest at least $60 million in facilities that will produce key car components in the country, including body stamp panels, large plastic parts like bumpers, dashboards.

The incentives will include financial support meant to help close the $2,000-per-unit gap between the cost of producing a vehicle a year and the cost of importing a car.

Aquino, chair of the Senate committee on trade, commerce and entrepreneurship, said a clear direction was crucial for the auto industry with the integration of the Asean economies by 2015.

“I believe the Philippine motoring industry can be at the forefront and be the driver of this movement, with our capability to develop world-class products that are globally competitive and backed by a culture of quality and excellence,” Aquino said.–Amy R. Remo