New DENR Euro 4 rule worries vehicle makers

The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) on Thursday warned of possible production halts by local vehicle assemblers, should the government push through with the implementation of an agency order on Euro 4 emission standards.

Speaking at a forum hosted by leading car classifieds site Carmudi, Campi president Rommel Gutierrez stressed vehicle assemblers were not against the order issued by the Department of Environment and Natural Resources, but they were seeking for a more “rational implementation” of the order to protect the interests of all stakeholders.

“We’re not asking for the delay in the implementation of the order but we have to take into consideration the current running models, whose engines you can’t change that easily. Proper transition is needed,” he said.

Gutierrez was referring to Department Administrative Order No. 2015-04, which was issued in March this year. This order required the use of cleaner fuel effective July 2015, and provided that all “new vehicles to be used or introduced into the Philippine market by January 2016 should be equipped with Euro 4 engine and compliant with Euro 4 emission standards.”

Starting next year, the DENR said it would issue the six-year Certificates of Conformity (COC) only to Euro 4 compliant vehicles, a requirement for vehicle registration. Industry players are worried over the implication that the DAO will render invalid all existing COCs.

Gutierrez said that based on a previous interpretation, the DENR ruling should apply only to new models to be introduced starting 2016. Recent discussions, however, revealed that all new vehicles to be sold, including existing models that have valid COCs, are covered by the DAO.

“We are now working with the DENR to make sure that this new DAO will be implemented rationally. If they will implement that strictly, some of the plants will (stop production temporarily) for the models that are still Euro 2 compliant,” Gutierrez said.