Ford seeks Malacañang OK for importation of 2,000 SKD packs

Ford Motors Company Philippines is seeking a Malacañang approval to import 2,000 semi-knocked down (SKD) packs of a compact sport utility vehicle that would compete with Toyota’s Rav 4, Honda’s CRV and the soon to come Subaru Forester of General Motors.

Malacañang’s approval is crucial since local motor vehicle manufacturers are no longer allowed to import SKDs since 1997.

Ford decided to make the request to import SKD’s, following Malacañang’s recent approval of the request of the Norkis-Daimler Chrysler group to import 1,000 SKDs.

Other local motor vehicle manufacturers had complained that allowing SKD importations anew would be a step backward for the industry.

Serafin Pantaleon, senior vice president of Toyota Motors Philippines, pointed out that allowing SKD imports would be unfair to local motor vehicle manufacturers who have already built their assembly plants and to local parts manufacturers who supply the local content of locally assembled vehicles.

Under the governments’ Motor Vehicle Development Program (MVDP) SKD imports were allowed initially as the participants built up their plants and acquired the skills of locally assembled vehicles.

SKDs are almost complete except for the tires and batteries.

However, Trade and Industry Secretary Manuel Roxas II had acknowledged that following the approval of the Norkis-Daimler SKD Importation, there is a need to "level the playing field" and allow those who have not availed of their SKD Import privilege to do so.