Date Published:
Jun 01, 2008
Code:
DP 2008-21

The industry’s lack of competitiveness, absence of economies of scale and a weak supply base are the fundamental issues that must be addressed in order to strengthen the industry and integrate it with regional production networks of foreign automakers. The entry of cheap, smuggled second-hand vehicles has put tremendous pressure on the industry. Immediate government action to address smuggling and design a coherent set of policies and a comprehensive strategy to improve industry competitiveness is urgently needed. A temporary adjustment program is necessary to help both assemblers and parts makers face competition in the future and more importantly, in preparation for the implementation of zero tariffs under the AFTA in 2010. If smuggling continues and our competitiveness remains weak, the auto industry may just be a thing of the past as auto companies shift from CKD to CBU operations. This is the reality of doing business under the globalization age.

Citations

This publication has been cited 7 times

In other Publications
  1. Medalla, Erlinda M. and Veredigna M. Ledda. 2013. Philippines-Japan Economic Partnership Agreement (PJEPA): An initial ex-post review. Discussion Papers DP 2013-12. Philippine Institute for Development Studies.
  2. Ofreneo, Rene. 2016. Auto and car parts production: Can the Philippines catch up with Asia?. Asia Pacific Business Review, 22, no. 1, 48-64. Taylor & Francis Journals.
  3. Ofreneo, Rene E.. 2015. Auto and car parts production: Can the Philippines catch up with Asia?. Working Papers DP-2015-09. Economic Research Institute for ASEAN and East Asia (ERIA).
  4. Quimba, Francis Mark A. and Maureen Ane D. Rosellon. 2011. Innovation in the automotive sector of the Philippines. Discussion Papers DP 2011-17. Philippine Institute for Development Studies.
  5. Wignaraja, Ganeshan, Dorothea Lazaro, and Genevieve De Guzman. 2010. FTAs and Philippine business: Evidence from transport, food, and electronics firms. Trade Working Papers 22880. East Asian Bureau of Economic Research.
In Congress Documents
  1. Rodriguez, Maximo Jr. 2016. House Bill 1689: An act to strengthen the competitiveness of the Philippine motor vehicle manufacturing industry. House of Representatives.
  2. Rodriguez, Rufus. 2019. House Bill 1833: An act to strengthen the competitiveness of the Philippine motor vehicle manufacturing industry. House of Representatives.


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