News: Auto parts makers optimistic of double digit growth in sales -
02 Dec 2007
Local auto parts makers said yesterday the Supreme Court decision banning the importation of used cars will help the auto industry achieve double-digit growth for the year.
“We are very optimistic that this decision will turn things around for the local parts makers as it will help sustain the 17 percent growth of the local auto industry this year,” the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) said in a statement.
The group said the importation of used vehicles has resulted in reduced production volumes brought about in part by stagnant local auto industry sales.
As such, membership at the MVPMAP went down to 175 from 250 five years ago, as many auto parts companies closed shop.
Of the surviving auto parts makers, majority are operating at only 40 percent of their rated plant capacities. Worse, MVPMAP said if things do not improve by early 2008, more will be forced to shut down.
Earlier, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) has asked several government offices, including the Bureau of Customs (BoC), to respect the Supreme Court decision and put a stop to the importation of used motor vehicles.
“The industry is therefore appealing to all the concerned parties to abide by the High Court decision and let the law takes its due course,” CAMPI said in a statement.
“It is also strongly urging the concerned government agencies such as the BoC, Land Transportation Office (LTO), and the Subic Bay Metropolitan Authority (SBMA), among others, to fully implement the import prohibition pursuant to EO 156 as affirmed by the Supreme Court,” the group added.
CAMPI said there should be no more equivocation or hesitancy on the part of these government agencies to finally implement the policies and regulations set under Executive Order 156.
In October, the High Court affirmed its earlier decision banning the importation of second hand vehicles.
Source: PhilStar.com, By Ma. Elisa P. Osorio, December 2, 2007