Friday, October 17, 2008

Going against E.O. 156

Automotive assemblers and civic groups in the country are strongly opposing Government's plan on allowing the importation of used cars even on a limited number on 5 strategic ports.

E.O. 156 - which is supposedly meant to stop illegal importation of used cars - is under discussion, and the DTI is planning to modify the said provision to open the market for the said second-hand vehicles.
If true, the DTI shall literally serve as the undertaker, who will hammer the nails on the coffins of the Philippine auto assembly industry, auto parts industry and the auto jobs that these industries have created or sustained so far.
Automotive Industry Workers Alliance (AIWA) said that the Philippine car assembly industry was second in Asia in the 1960's but is now far behind. They also reminded the government that the E.O 156 was actually made to help the deteriorating auto industry and to recover trust and interest from foreign investors.

Personally, I am against the said amendment for this would obviously result to serious problems which the country has fairly enough of today.

Importing cheap used cars would, without a doubt, generate a huge market like the one we've seen before when subic cars were auctioned at whopping very low prices, and this would serve as a great threat to the local auto industry since these would eat up the market they are serving today. And that is not good. It could result to unemployment as more and more investors would be driven out of the country as more and more people buy these cheap used cars.

Safety hazards should always be on top of the priorities as these second hand cars were originall right-hand drive cars, the opposite of our standard. And by that, they would need to be converted, which would make a significant change to the whole features of the car such as its safety measures, lighting and mirror placements - for they were made to differ for specific designs and driver positioning.

Congestion would come hand in hand with it as the second-hand market boom will flood our roads with such cheap cars. And without any law to make those decade old, rusty vintage cars and jeepneys out there retire, it would be as if eating more and more food without releasing any, and that again is not good. Plus add up the fact that these used cars were not as eco-friendly as the new ones we have today. Remember that they were made five to ten years ago, and global warming was not the main concern in the auto industry that time. Hence, expect more pollution to our already polluted cities if the said amendment would take place.

Again, I reiterate that the said amendment on the E.O. 156 should not approved as it would yield to greater problems for the country.

Source: http://www.mb.com.ph/BSNS20081016138140.html

2 comments:

mundial17 said...

Used cars are CHEAP. Yeah. But now what? They're also gas inefficient, belching, and unsightly moving coffins along the country's streets. Taking for granted that the previous owner didn't take care of and maintain it well. But in the first place, why are they selling it? Isn't that tantamount to getting rid of it?

I think that we shouldn't import used cars. If someone wants/needs a car but can't afford to buy a brand new one, then he/she can buy a used car that locally. Why does it have to be imported anyway?

By importing used cars, the government makes the Philippines a global dumping ground for unwanted trash. Aside from that, it will kill the local car assembly plants!

If we import used cars to recyle and make it into scrap metal. Then I think, as long as, its cost feasible. By all means, make the country one huge metal recycling factory!

Dogmatic said...

In Japan if I am not mistaken Cars are considered to be "disposable" and if you choose to keep your car after you had it for a certain number of years I think 3 or 5 years, you had to pay some sort of penalty. Now we all know about the situation in Japan they are way past "developing" they can for certainly be considered a First World Country if Philippines was used as a benchmark for comparison. Although indirectly related but you get the point. Importing Cheap 2nd Cars is another way having the "trash" of other countries dump in the Philippines. In Economics actually there are laws about anti-dumping acts. What’s the point of importing used cars? Don't we have enough used cars in the Streets? I think we have far too much of that running in the streets. We even have buses more that a decade old still running. Now am not being a offensive and all but frankly it’s not a good site. These countries should just instead scrap their cars in to other metals recycle them for other goods since the Philippines doesn’t have the capability to do so yet. And then maybe we can import those metals instead. (This being said with slight sarcasm and sigh or course.)