Inputs on auto program sought

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    Integration. The new program aims to enhance the participation of parts makers in the assembly side.
    Integration. The new program aims to enhance the participation of parts makers in the assembly side.

    Automotive industry players are given until December 20 to submit their inputs to the Board of Investments (BOI) on the ongoing review of the Motor Vehicle Development Program (MVDP).

    The BOI on December 11 met with industry stakeholders to present the key features of the enhanced program.

    During the meeting, the BOI said the review is meant to update the MVDP to take into account developments in the industry.

    The new program also aims to enhance the participation of parts makers in the assembly side.

    Requirements in participating in the program will be updated while others will be eased by considering market development prior to local assembly and consider the staging of assembly.

    While the current program has attracted a considerable number of participants, the BOI aims to encourage proactive participation of players and enhance the capabilities of the motor vehicle manufacturing companies as globally competitive producers of completely built-up units and their parts and components for local and export markets.

    The BOI said by updating the program, the government will create a level playing field among players.

    At the end of the review, the BOI hopes to come up with a clear and stable industrial policy framework consistent with other laws promulgated for the development of the Philippine motor vehicle industry.

    One of the salient provisions being proposed in the new MVPD is allowing completely knocked down (CKD) production in stages.

    BOI executive director Corazon Dichosa in an earlier interview said
    the present MVDP requires participants to immediately go into CKD assembly.

    Some options include allowing the entry semi-knocked down kits and market testing schemes.

    The investment requirements under the current MVDP — $10 million for passenger cars, $8 million for commercial vehicles and $2 million for motorcycles — are also being reviewed, this time with a tweak where the BOI will check on the amount of investment needed for a specific model that the participant promised to assembly.

    Dichosa said existing MVDP participants will be asked to express their intention to retain registration and accreditation as MVDP participants . Along with the letter of intent are the names of models they are currently assembling and will assemble in the future.

    This way, Dichosa said, the BOI will be able to clean up its records for delinquent MVDP participants.

    But Dichosa clarified the new MVDP is different from the Comprehensive Automotive Resurgence Strategy which has a provision on mandatory parts manufacturing and grants fiscal support.

    MVDP participants are entitled to a preferential 1 percent tariff on imported parts and components.