PHILIPPINE
AUTOMOTIVE INDUSTRY DEVELOPMENT WORKING GROUP
MVPMAP
together with BOI, CAMPI and TMA comprises the Working Group called
Philippine Automotive Industry Development of PAID-WG to study,
create and implement plans on how to enhance the development of
the Automotive Industry.
To
REVIVE the GLORY DAYS of the Parts Manufacturers similar to YEAR
1996 where the Auto Industry registered the Highest Vehicle Sales
of 162,000 units wherein 141,000 of which are Locally Assembled
using local parts, the group is planning to manufacture vehicles
at a lower price competitive to 2nd Hand Vehicles but are Safer
and Roadworthy to attract buyers thereby increasing the sales of
Locally Assembled Vehicles.
INDUSTRY
VEHICLE SALES FROM 1990 TO 2005
COMPARATIVE
CHART
The
concept of the envisioned PhUV focuses on:
- Brand
new vehicle
- Not
limited to no. of seats
- Lower
price competitive to 2nd hand vehicle
PAID-WG
Initial Activities
- Encourage
Vehicle Assemblers to participate in this project
- Coordinate
with Parts Makers to conduct VA/VE analysis to reduce the cost
of parts by at least 30%
- Recommend
with the BOI for the necessary government policies and incentive
programs
With
the support of the Government, Assemblers and cooperation among
Parts Manufacturers the Group's initial target sales for 2007 is
90,000 Locally Assembled Vehicle Sales
- With
the forecasted 60,000 units CKD production for 2006, an additional
30,000 units will be derived from the Philippine Utility Vehicle
(PhUV) program.
Objective
General:
To increase the current market volume by 20% in 2007 based on
2006 sales
Specific:
To increase CKD to 90,000 in 2007
Strategies
1. |
Constant
policy environment and proper enforcement of policies and
regulations (like CCES for allowable importation, safety requirements
and import prohibition on used vehicles) |
2. |
Develop
a low cost vehicle with an avg. Php350,000.00 SRP |
3. |
Have
a third party other than banks (something like Pag-Ibig) that
would handle the credit facility for transportation requirements
with more liberal and affordable credit terms |
Plan
of Action
Activities |
PIC |
Period |
1. |
Identify
and validate component/parts per type (people's car and AUVs
or other utility vehicles) that can lower production cost.
1.1.
Re-engineering studies
1.2.
Offer and Acceptance |
CAMPI-Engineering
MVPMAP-Technical, Marketing
MVPMAP
MVPMAP-CAMPI |
August
2006
September
2006
End of September 2006 |
2. |
Work
with BAP and BSP to improve credit facility. |
CAMPI-PAA |
August
2006 |
3. |
Campaign
intensely for gov't to enforce existing regulations.
3.1.
Constant coordination with BOI, DENR, LTO, BOC, BIS, BPS
3.2
Tri-media campaign and networking |
CAMPI,
MVPMAP |
July
2006 onwards |
4. |
Campaign
to promote preference to lcoally assembled brand new vehicles. |
MVPMAP |
July
2006 onwards |
5. |
Review
and Assessment of the Activities |
CAMPI-MVPMAP |
October
2006 |
PhUV
Timetable
No. |
Item |
Date |
1. |
Draft
of E.O. (Automatic inclusion to EAEP - no hurdles) |
August
18 |
2. |
Present
to BOI ManCom |
August
23 |
3. |
Present
to CEOs |
August
28 |
4. |
Board
Approval |
August
29 |
5. |
E.O.
Approval |
End
September |
6. |
IRR
Formulation |
October
13 |
7. |
Industry
Consultation |
October
20 |
8. |
Effectivity
of Program (Application) |
Mid
November |
|
