Industry calls for immediate stop to smuggling and importation of used vehicles

“An immediate stop to smuggling of vehicles, the strict implementation of the ban on the importation of used vehicles and the improvement of the country’s road infrastructure” are issues in its sector that the local automotive industry wishes the new incoming government of President-elect Benigno Simeon C. Aquino III would concentrate on as it officially starts its administration tomorrow, July 1, 2010.

Together with a government-assurance of an “even-playing field”, the “movers and shakers” of the Philippine automotive industry were one in their “wish list” of further government intervention to ensure their continuing growth and to hasten development. This consensus came out during the Auto Focus Industry Forum held last Thursday, June 24 at the Ballroom of the posh Valle Verde Country Club in Pasig City. The Forum, which was held to herald the launch of the BDO 2010 Auto Focus Automobile of the Year – People’s Choice Awards, the yearly public voting to determine the country’s most popular vehicles, was also an opportunity for the industry leaders to make an update of the current performance of their respective companies and provide their own prognosis of the country’s auto industry in the coming years.

The Forum speakers composed of Ms. Fe Agudo, president/CEO of Hyundai Asia Resources, Inc., Atty. Albert Arcilla, managing director/COO of The Covenant Car Company, Inc., exclusive distributors of Chevrolet, Mr. Taizo Furuhashi, evp of Mitsubishi Motors Philippines (representing the president of Mitsubishi Philippines, Mr. Masahiko Ueki who had to beg off at the last minute), Mr. Daniel Isla, president of Lexus-Manila, Mr. Bobby Rosales, president of Asian Carmakers Corp. country distributors of BMW and Mr. Greg Yu, chairman of CATS Motors, country distributors of Mercedes-Benz, Chrysler, Jeep and Dodge.

As culled from the Forum, wherein I was the moderator, the local auto industry has a positive outlook of what’s in store in the future. With the unexpected total industry performance of 132,444 units sold in 2009, an increase of 6.4 percent compared to the previous year, while in the midst of a global economic meltdown where many business observers have conceded that the sector would not be spared from its negative impact, the industry optimism remains high. The spirit is further buoyed by an increase of 36.6 percent in sales during the 1st five months of 2010 on a year-to-year basis.

Very emphatic were all of the speakers of the negative impact of the continuing and seemingly unabated smuggling of automobiles and the open importation of used vehicles, which continually breathes life to the “grey market” – an informal industry that pays no taxes, which is a bane to the legitimate manufacturers and importers. To this issue, most of the speakers made a call to the incoming administration to keep an eye on the Bureau of Customs and the LTO, agencies that can abet the nefarious practice of illegally bringing in vehicles of different makes and models. There was also mention of Philippine ports of entry that many are saying could be the most possible origins of these smuggled automobiles and illegal imported used vehicles like Cebu, Batangas and the often silently maligned Port Irene.

When this moderator hypothetically asked one of the speakers as to what he would say to President-elect Noynoy Aquino, if he would be asked for an outright solution to the problem of vehicle smuggling in the country, the speaker promptly answered, “I’ll give him a list of names of people who should be arrested. These are either ‘coddlers’ of smuggling or the smugglers themselves. If they would be arrested, then smuggling would stop.”

I had to remind all the speakers that a future episode of the TV show Auto Focus (Thursdays, 10 pm, Shop TV, Channel 13 on Sky Cable and Channel 9 on Global-Destiny) shall feature the highlights of the Forum lest some names would be inadvertently mentioned during the lively discussion.

Then there was also the issue of the prioritizing infrastructure projects that would build more roads and consistently maintain the existing ones brought about by most of the speakers. It is their common opinion that more roads build and better road maintenance would lead to more travel – the faster and more convenient the transport of goods, services and people, the better for the country’s economy and for a more alive auto industry. More road infrastructure projects form part of the “wish list” of the auto industry for the new government.

The issue of the government providing a level-playing field was brought up but was not extensively discussed. As the organizer and moderator of the Auto Focus Industry Forum, I deemed it appropriate not to dwell of the issue, which would require a deep discussion of the recently signed E.O. 877-A for two reasons; one, we felt discussions on such a sensitive issue would require more time and should not be relegated as just “one of the topics” of the Forum but instead should be considered as the sole subject matter of a future Forum and second, we felt that making this Forum a “sounding board” for the incoming administration of the industry’s “wish list” would be more timely and apt.

The Forum was designed to be an opportunity for the speakers to make a report on the performance of their respective firms and to share their view of what they think is the local industry’s future – up to the end of the year and up to 3 to 5 years from the present. To keep the exercise highly informative but non-confrontational we opted to have as part of the rules of the forum not to allow any direct rebuttals of any statement made by any of the speakers except to express views during the time allotted to them and on specific topics.

It was actual a dual event that STV, Sunshine Television lined up that evening. Right after the cocktail-dinner but before the Forum was the formal launch of the BDO 2010-2011 Auto Focus Automobile of the Year – People’s Choice Awards. Starting July 1 up to September 30, the public can vote for their most preferred models in each of the 12 automobile categories of sedans, SUVs, vans, pick-ups, AUVs and sports cars and their choice of the most popular model, the 2010-2011 Automobile of the Year – People’s Choice. Voting can be done by filling up ballots that are printed every Wednesday on the motoring section of The Philippine STAR and those that can be found on the July, August and September issues of Top Gear magazine. There’s also online voting by way of the voting website www.autofocus.com.ph, where you can also take a look at the pictures of all automobile model entries and their complete specs.

Those who would cast their votes in any of the three modes stand the chance of wining valuable prizes from the monthly draws scheduled from July to September – so vote and win prizes.

Pocholo Ramirez Subic International Raceway writes 17

In 1994, after long years of hiatus, circuit racing in the Philippines was revived with the combined efforts of avid racing enthusiasts lead by the late Jose “Pocholo” Ramirez, unarguably referred to as the country’s “racing legend” and thus the Subic International Raceway (SIR) was born.

Through the years it has hosted many national and international events. Cars, motorcycles, bicycles, go-karts, soap box derbies, RC cars, drag racing, rally, slaloms, drifting, and other imaginable motor sports to include even horse carriage racing found their home at their SIR.

But as the old saying goes, “All good things must come to an end” and the SIR, which was unanimously decided by local motoring journalists to refer to as the Pocholo Ramirez Subic International Raceway to respectfully commemorate the “racing legend” after his death, would have its “Last Lap”. This will be a “bitter sweet” celebration as the Ramirez clan says farewell to what they called “home”.

For three days (July 30, 31 and August 1) a series of events are scheduled at the track, from auto racing, automobile and motorcycle parades, drifting competitions, and other motor sports events plus concerts, parties, etc.

Be a part of this historic event by contacting any of the following: (landlines) +632-6716926 or 6719378 (fax) +632-6719667 (email) [email protected].

Happy Motoring!!!

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