Car importers are ready for Euro 4
The Association of Vehicle Importers and Distributors (AVID), a group of 7 all completely built up car importers, are confident they would be able to supply the market with Euro 4 standards compliant vehicle come January 1, 2016 and possibly take the slack in supply that may be created because of the inability of the other motor vehicle group – the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), which said it cannot meet the deadline set by the government.
AVID President Fe Perez-Agudo said in a text message that her group, which contributes over 35,000 units out of 272,000 total industry sales in 2014, said they have long been preparing for this eventuality.
“AVID is committed to contribute to cleaner and healthier air for all. AVID members have been preparing for this new standard and are confident that the target date for full compliance set by the law will be met,” said Perez-Agudo in a statement.
“The move to upgrade our emission standard to EURO 4 is a positive step towards green motoring. This challenges everyone to make smarter choices when it comes to choice and use of vehicles. We are urging motorists, car manufacturers, and oil companies to support this drive.”
In 2014, AVID sold a total of 35,565 units or 13 percent higher than the 31,399 units sold in 2013. The group also aims to sell over 42,000 units this year. Meantime, CAMPI, which groups 18 assemblers and cars importers, sold over 234,000 units last year.
With all of its products imported as completely built-up packs, AVID is more ready to bring in only the Euro 4 standards compliant vehicle models.
“We are hopeful that as part of the long-term production planning of our members, their production systems have been aligned with Euro 4 standards to avert possible supply setbacks,” Perez-Agudo said.
In contrast, CAMPI have warned has warned of dire economic impact, production and supply disruption once the Euro 4 emission standards takes effect on January 1, 2016 stressing it is technically impossible for them to comply with the deadline set by the Department Environment and Natural Resources (DENR).
In a letter to Trade and Industry Secretary Gregory L. Domingo, CAMPI complained that Department Administrative Order (DAO) No. 2105-04 (Vehicle Emission Limits for Euro 4/IV and InUse Vehicle Emission Standards) of the DENR was issued on March 24, 2015 without formal consultation on the final detailed provisions.
“Any disruption in operations will definitely have an adverse impact on the overall production and supply chain, affecting core automotive activities from parts manufacturing up to vehicle sales,” stated the CAMPI letter dated May 15, 2015. CAMPI is the country’s largest motor vehicle organization composed of 18 motor vehicle assemblers and traders.
CAMPI President Rommel Gutierrez said that DENR has been adamant in implementing the deadline of January 1, 2016 despite the industry’s representation on the negative impact to the automotive production and supply chain.
Instead of giving the industry some consideration, CAMPI said that DENR denied CAMPI’s two requests. One is for the DENR to honor the existing Certificates of Compliance (COCs) based on its validity period consistent with DAO 2010-23 provision, which states that COCs issued shall be valid for six years from date of issue unless otherwise revoked or suspended.
The DENR also denied CAMPI’s request to suspend the implementation of emission limits/standards for heavy duty vehicles. CAMPIs wanted to exclude heavy duty vehicles because this was never part of the discussions on standards both in the local and ASEAN levels until such time that appropriate consultations have been undertaken.
“If not appropriately addressed, this will cause a major setback at a time when the automotive industry is experiencing unprecedented growth,” the letter added.