bury me in this dress

This is good news. I just hope that the government really implements this.

Clean, Green PhUVs to Replace Jeepneys

The government is preparing a new vehicle program to cater to a wider C and D market, replace the jeepneys , help the local vehicle parts makers and at the same time help preserve the environment.

Board of Investments managing head Elmer C. Hernandez said, the Philippines will copy the successful “one-ton pick-up program” of Taiwan.

By encouraging the assembly of vehicles costing no more than P400,000, the government will encourage public transport operators to refleet.

Thus the heavily polluting jeepneys using reconditioned engines will be phased out.

Hernandez said Quirino Rep. Junie Cua has authored a bill encouraging refleeting of public transport to use brand-new engines and locally assembled vehicles.

Hernandez said the approach of such a program is also consistent with the PhUV program, which is the assembly of a vehicle with locally-sourced parts being led by the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP). He added that Sen. Mar Roxas has met with members of the Chamber of Automotive Manufacturers of the Philippines Inc. in December where he pushed for the development of affordable made in the Philippines vehicles that would cater to the C and D classes.

Hernandez said Roxas laments the fact that local assemblers are all geared to the A and B segments of the market, which is not growing.

“To have a viable industry, we have to target the C and D markets which comprise a huge part of the base. To do that, motor vehicles should be affordable,” Hernandez said.

This way, Hernandez said, industry would also be helping solve the problem of second-hand vehicles by giving them a vehicle with guaranteed service and spare parts, assuring them of quality since these are branded.

Hernandez said if we attain a critical mass, assemblers would be encouraged to invest in engine manufacturing, one of the major investment requirements in motor vehicle industry.

The framework for the PhUV is being prepared by BOI in cooperation with Campi, Truck Manufacturers Association of the Philippines and MVPMAP which is targetted for completion before the next Congress opens in July.

MVPMAP Director Ferdi Raquelsantos said proponents look for exemption from excise tax, income tax holidays, duty-free importation of raw materials and machinery, reduced fuel prices for buyers similar to those extended to the public utility jeepneys (PUJs), reduced PhUV LTO registration and a government-led retail financing to make the PhUV affordable”.

They are also looking at asking for reduced excise tax for a PhUV unit that can run on alternative fuel, whether gasoline with ethanol (E5 or E10) or the biodiesel.

They will also push for the government’s strict implementation of the Clean Air Act and the Motor Vehicle Inspection System to ensure a vehicle’s safety, roadworthiness and compliance to environmental standards.

The industry noted that other Asean countries support their local car industry. Thailand has a comprehensive package of incentives as it developed a niche market for the one-ton pickup truck and all its SUV derivatives. In the process, it not only grew its pickup truck industry as the biggest in Asia and second to the USA but also the support industries such as the local auto parts makers.

On the other hand, Malaysia even went to the extent of developing a National Car Program just to break into the international auto market and develop a strong and reliable auto parts industry
via Malaya News

If this becomes a reality, then all we have to do is widen the roads.