C motoring 2


HESE days, the issues that engulf the Philippine car indus- try remind me of why being an economist, lawyer or politician never had any appeal to me. It’s be- cause issues that have political and economic ramifications are usually the issues that are the hardest to comprehend—especially those that get handled by a government ad- ministration that loves gray areas. Take the case of this Japan-Phil- ippines Economic Partnership Agreement—or JPEPA, if you want to save 2.74 seconds. This bilateral free trade agreement was signed in September 2006 and was effected in December 2008. It aims to either reduce or eliminate tariffs on ex- ported products and services be- tween Japan and the Philippines. The most loved president in the his- tory of this country, Gloria Arroyo, approved this so we could send healthcare workers and agricultural crops to Japan without much trou- ble—or so her PR machinery said. In return, of course, Japan could send us its best products free of taxes. And as you know, Japan’s best products—besides Hello Kitty and Maria Ozawa—are automobiles.


T f.y.i


Thanks to the JPEPA, cars with 3.0-liter engines and above that come directly from Japan are now levied zero import taxes—down from 20 percent in 2009 and 30 per- cent before 2009. Note that only vehicles truly imported from Japan are affected (just making it clear in case you have this notion that all vehicles sold by a Japanese brand get imported from Japan). In fact, many of the products—pickups, small se- dans, midsize SUVs—that Japanese carmakers sell in our market come from Thailand, so these are not cov- ered by the JPEPA.


As far as I can tell, the Japanese cars affected by the JPEPA are the likes of the Nissan Patrol, the Mazda CX-9, the Mitsubishi Pajero, the Toyota Land Cruiser, the Subaru Outback, and practically the entire Lexus lineup. For instance, the Land Cruiser LC200 is now priced at P4.065 million, significantly cheaper than its previous price tag of P4.506 million. The gasoline Pajero is now priced at P2.55 mil- lion, down from P3.27 million. And Lexus’s cars are now much more af- fordable: ES350, P3.188 million (from P3.718 million); GS460,


The Manila Times TUESDAY August 10, 2010 JPEPA by golly, wow


P4.878 million (from P5.328 million); RX350, P3.718 mil- lion (from P4.208 million; LX570, P6.688 million (from P7.238 million); LS460L five-seater, P6.888 million (from P7.458 million); and LS460L four-seater, P7.888 million (from P8.418 million). The government—which has yet


to provide the auto industry with the JPEPA’s implementing rules and guidelines—notified car companies in July that the zero tariff on con- cerned vehicles was already in effect. Maybe it wasn’t a coincidence that Lexus sold 30 units in July, easily up from the usual 15 to 20 units it used to move. I expect this number to grow in the coming days as news of Lexus’s lower pricing spreads and some affluent car buyers migrate from Audi and Porsche after realiz- ing Willie Revillame owns the same brands of cars. It’s only natural that the folks at Lexus are upbeat nowadays. “The implementation of the JPEPA shows the Philippines’ strong commitment


HARDTOP


and faithful compli- ance with interna- tional trade agree- ments,” says Lexus Manila President Daniel Isla. “The JPEPA provides greater opportunity for the Philippine auto industry to en-


hance its competitiveness especially in the face of full trade liberaliza- tion. The rationalization of import duty rates both for CBU and CKD under the agreement will have posi- tive impact on our operation.” It’s also just as natural that im- porters of non-Japanese cars—par- ticularly importers of European cars—will feel a certain degree of inequality. “Importers of completely built-up units coming from non- Asean and non-Japan countries that do not have any existing free trade agreements with the Philippines will definitely encounter stiffer com- petition from those models enjoy- ing the JPEPA rates since they will still pay the 30-percent duties,” points out Val de Leon, senior vice president of Nissan Motor Phils. “The JPEPA placed our Japanese


car competitors at a price advantage in the large car and SUV segments,” admits Lyn Buena, marketing serv- ices director of Chevrolet Phils. “We are currently reviewing our product lineup to be able to offer Chevrolet products in these segments with a better value proposition.” “With the JPEPA, Japanese brands


will now have an advantage in terms of pricing,” stresses Felix Ang, presi- dent of CATS Motors, the local dis- tributor of Mercedes-Benz. “It has made it more viable to import than assemble. We should find a provi- sion within the agreement to help create a true manufacturing sector for the automotive industry.” “It obviously puts us at a price


disadvantage,” adds Maricar Parco, marketing director of Asian Carmakers Corp., the authorized distributor of BMW in the country. “We can only be truly competitive when there’s a level playing field. That’s all we ask for.”


Because importers of European


vehicles now perceive a slanted play- ing field, they now have to resort to more aggressive sales promotions. Just last week, BMW announced its new Zero Payment Plan. How ag-


gressive is it? Well, let’s just say you can bring in your car for value as- sessment, and if it is deemed to be worth half the price of the new BMW model you are eyeing, you can readily drive home that BMW and not pay anything else—as in noth- ing!—in the next 18 months. You resume your payment after one and a half years—with zero interest. Wait a minute . . . if the JPEPA results in cheaper Japanese-sourced cars and outrageous sales promos for European cars, I say let’s come up with more of these so-called eco- nomic partnership agreements. Thanks to the JPEPA, I could very well drive home a BMW tomorrow (assuming, of course, that my tinny hatchback is worth a million bucks, which I doubt). Still, I could be one bonus away from it. In the words of Ford Group


Phils. Communications Assistant Vice President Anika Salceda: “Im- ports account for over half of new vehicle sales because ours is an open market, attracting numerous import brands.”


Quick! Somebody tell Noynoy to befriend the Italians and bring in Lamborghini and Alfa Romeo!


● AWARDS ● SPECIAL PROMOS ● ANNOUNCEMENTS ● MILESTONES


»PSBANK PROVIDES REBATES ON AUTO LOAN PSBANK Auto Loan offers hassle-free application procedures, flexible


financing terms, affordable monthly amortizations, one of the lowest interest rates in the market, and a credit decision via SMS in as fast as 24 hours, PSBank said in a news release. “The PSBank Auto Loan is a welcome relief for those who are hesitant to


avail of typical car loans that have tedious application procedures, slow approvals and steep monthly amortizations,” said PSBank First Vice President and Auto Loans Division head Jess Custodio. The company added that applicants who qualify for the auto loan will


also enjoy Prime Rebate, which it said is the only program in Philippine banking that rewards customers with rebates when they pay in advance or in excess of their monthly due. Custodio said that with Prime Rebate, PSBank Auto Loan clients can actually pay off their loans faster. “With this unique feature, PSBank Auto Loan clients can look forward to buying another car in just a few years,” Custodio said. For more details, call 845-8888 or visit any PSBank branch. You may also log on to www.psbank.com.ph.


»TOTAL TO RAFFLE OFF MAZDA2 SEDANS TOTAL


announced it is giving away two Mazda2 sedans in its Grand Dream gasoline promo, with the company explaining that for every P500 single-receipt purchase of Total gasoline products—ProTec, Premier Unleaded, Regular Unleaded and AutoLPG—customers get a coupon that will be raffled on September 2 or October 18. The promo runs until October 5. In addition to the Mazda2 sedan, Total said it would also pay the initial


registration fee of the vehicles. Plus, a winner from each participating station will receive P1,000 worth of Total gift certificates for fuel purchase.


»MONARCH STRESSES STRENGTHS OF VIP POLICY


MONARCH Insurance, which has been offering the VIP On-the-Spot insurance policy, stressed the benefits of its innovative scheme. In a news release, the company said that with the VIP On-the-Spot, a customer needs only to contact Monarch’s call-center in case of an accident. The service is available 24 hours every day. Monarch said that after receiving a call, it immediately sends its personnel to handle the customer’s claim. The company said it does not require other documents like police reports or job estimates, so the claims process is convenient and worry-free. VIP On-the-Spot policyholders can call 896-0000 for assistance within


Metro Manila.


»SEAOIL GIVES AWAY GADGETS IN PROMO MORE than 500 gadgets are at stake in the Seaoil Extreme Gadget


Bonanza Raffle Promo where customers get as much as four raffle coupons for every P300 purchase of Seaoil fuel and lubricants products, Seaoil said in a news release. To date, 138 winners from Metro Manila, Luzon, Visayas and Mindanao have won Apple iPod Nano Videos, Sony Cyber-shots, MyPhones, Globe Tattoo Prepaid Broadband kits and P500 Seaoil gift cards, the company said. It added that the same prizes are to be given away in the second draw on August 27. The promo’s grand draw will be on September 24 where 240 prizes including Apple MacBooks, TCL LCD TVs, Asus netbooks and other prizes will be raffled off.


GOING THE DISTANCE


Isuzu Crosswind logs 1,190 kilometers on a tank of fuel


1,190 kilometers on a tank of fuel in the second leg of the Isuzu Challenge, Isuzu Phils.Corp. (IPC) said, adding that the vehicle started the trip on July 13 in Cauayan City, Isabela, and used up all the contents of its 55-liter tank as it reached Tagcauyan, Quezon.


A


N Isuzu Crosswind XL traveled


The Crosswind averaged 21.64 kilometers per liter, with the figure verified by Rommel Millora, director of Transport and Traffic Consultants Inc. and the Transpor- tation Science Society of the Philippines. IPC said it used Caltex Diesel with Techron D to fuel the vehicle. Driving it was Domingo Escarieses while serving as navigator was Anthony Pegarro—both from the Automo- bile Association Philippines. “The second leg of the Isuzu


Challenge proves once again that the Crosswind is the most fuel- efficient vehicle in its class,” said IPC President Ryoji Yamazaki. “With the proper driving tech- niques, the Crosswind is very much capable of yielding such fuel mileage even in real-world driving conditions.” The Crosswind XL is powered by a 2.5-liter 4JA1-L turbo-charged diesel engine. It has a gross weight of 2,180 kilograms. Meanwhile, part of the Isuzu Challenge is a mileage-guessing contest where participants can win Isuzu models simply by accurately guessing the exact distance (or the closest without going over) traveled by the vehicles in the challenge. In the second leg, IPC said 27-year- old Ryan Dexter Dizon from Angeles City, Pampanga, won for himself a new Crosswind. IPC noted that Dizon is a loyal Isuzu customer who owns a Hi- Lander and who had recently bought a new Crosswind Sportivo. The third and last round of the Isuzu Challenge, which would feature the D-Max pickup, is scheduled on October 20. The mileage-guessing period is ongoing until October 19. Those interested may register and submit their entries on www.isuzudiesel mission.com.ph. MOTORING TIMES


■ Isuzu Isabela’s Marissa Mijares (left) and Isuzu Phils.’ Arthur


Balmadrid flagging off the Crosswind in Cauayan, Isabela.


Auto group cites role of govt order


THE Philippine Automotive Competitiveness Council Inc. (PACCI) remains optimistic that Executive Order (EO) 877 for the Motor Vehicle Development Program will provide meaningful benefits to the domestic auto sector, ultimately translating into more investments and jobs beyond the more than 70,000 workers presently employed in the sector, the organization said in a news release. PACCI is composed of the Motor


Vehicles Parts Manufacturers Association of the Philippines, Ford, Honda, Isuzu, Mitsubishi and Toyota. PACCI Executive Director Ben


Sevilla said E0 877 seeks to make the Philippine parts and carmakers more competitive in Asean markets. He added that another key objective is the acceleration of technology transfer to the local automotive sector, which will not only upgrade the industry but will enhance the skills of Filipino auto workers. Sevilla also said that E0 877 will


generate jobs and revenue for the government as well as increase the country’s competitiveness in the regional automotive manufactur- ing business. MOTORING TIMES


»SUZUKI CELERIO GETS AWARD


Suzuki Phils. President Satoshi Uchida receives the Suzuki Celerio’s 2010 Mini-Compact Car trophy at the recent 4th Annual C! Awards. The magazine’s accolade complements the Celerio’s record in fuel efficiency as the car achieved 34.34 kilometers on a liter of fuel at the the 2009 Fuel Economy Run of the Department of Energy.


Canon, Honda hold car photography workshop for hobbyists


■ John Chua (left), who specializes in automotive photography, lecturing the members of Canon Club EOS on panning shots and other techniques.


CANON Marketing Phils. Inc. (CMPI) said it had recently organized an exclusive workshop on photographing cars for members of Canon Club EOS. Called EOS Raw Adventures, the event was sponsored by Honda Cars Phils. Inc. Leading the participants were EOS Product Marketing Manager Bong Donato, representatives from Honda and Canon EOS Brand Ambassador John Chua, CMPI said. It noted that Chua, who conducted the workshop, is a renowned advertising photogra- pher who specializes in cars.


CMPI said that the best photographers from the first day of the activity were awarded another workshop session held in Subic. Those who made the cut included Charity Limsico and Glenn Cruz.


“I had been to a six-session seminar before, but it was mostly lectures. The actual photo shoots we did make it more fun,” Limsico said. For his part, Cruz said: “At first I just thought that since I’m a member of the Club EOS and I’m also the owner of a Honda automobile, it would be a good experience. But it was more than


what I


expected.” CMPI


said that Limsico and Cruz, along with the other


participants, learned


from Chua how to pan shots, use selective and


■ Honda CR-V as photographed by workshop participant Tynn Daez.


natural lighting, and other techniques that make a photo of a car worthy to be used in a brochure.


VERNON B. SARNE


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