Cheap imports killing RP car industry Party-list solon seeks probe

By Philip Tubeza
Inquirer News Service

THE CONTINUED influx of cheap imported second-hand vehicles is killing the country's automotive industry, a lawmaker warned Monday.

Akbayan party-list Representative Loretta Ann “Etta” Rosales said that 7,470 automotive workers have lost their jobs as of this year, or almost 10 percent of the total number of employees in the automobile assembly and distributing sector.

"The House of Representatives needs to look into the influx of cheap imported cars into the country. What is most worrying is how these vehicles have affected the job security of thousands of workers who depend on the industry for a living,” she said in a statement.

Rosales said the automotive industry employed about 100,000 people, the overwhelming majority of them involved in making car parts and components (40,000) and another significant portion working in assembly and distribution (16,000).

"I propose that the House look into the matter carefully before the continued influx of these used car imports kill the local automotive industry and put thousands of workers out of jobs,” she added.

Rosales said that from a high of 162,056 cars sold in 1996 prior to the Asian financial crisis, domestic vehicle sales have plummeted to 88,074 in 2004, a reduction of about 50 percent.
And yet, records from the Land Transportation Office on new vehicle registrations showed that almost 270,000 units were registered with it last year, but only 88,000 units were sold by Philippine car manufacturers, she said.

"What then is the reason for the discrepancy of 181,000 units? Most of these units consist of cheap second-hand imported cars, a lot of which are smuggled into the country,” Rosales said.
"In other words, it is so easy to acquire such vehicles within free ports and to bring them into use within the country,” she added.

Rosales said that imported cheap cars also posed a danger to motorists.
"Are these second-hand vehicles compliant with emission standards? Does the government have the capability to ensure that such vehicles are indeed compliant with emission standards?” she said.