CARANZO, Nico David C.

TAN, Andrea Joses P.

CHAPTER IV

DATA PRESENTATION AND ANALYSIS

I. PRESENTATION OF DATA

From the previous chapter, the methods that the researchers have done in

conducting the data gathering will be laid out and analyzed. The data that the researchers

were able to acquire came from the interviews conducted and the supporting data which

are the statistics and reports done by the public and private sectors that will contribute in

the study. In doing so, the data will be analyzed thematically, with the assistance of a

quantitative data analysis software, MAXQDA. With the data presented and analyzed, the

researchers will be able to synthesize the answers gathered from the interviews, along

with the supported descriptive statistics as discussed in the interviews, to the main

problem of the study on how the partnership or interaction between the government and

the automotive industry associations facilitate the development of the Philippine

automotive industry.

Main Players on the Development of Automotive Industry

There are two main players involved in the study. For the government sector is the

Board of Investments and for the automotive sector is the Chamber of Automotive

Manufacturers of the Philippines, Inc. Both of these players share the vision and mission

towards the development of the automotive industry. This study tries to prove that the
partnership between the BOI and CAMPI is vital and defines the development of the

automotive industry.

Board of Investments

Each player has its distinct role in contributing to the development of the

automotive industry. The Board of Investments for the government sector is the facilitator.

Their mandate is to generate local and foreign investments and develop local automotive

industries to be globally competitive. They closely work with the automotive associations

such as CAMPI to better know how to help the automotive industry. Through closely

working with them, they help them develop which then they could be promoted. As BOI

have said, they develop the industries to be able to promote them globally. Because you

cannot promote when your industries are not attractive to investors.

CODED SEGMENTS THEMES SUB-THEMES

Yung recognition na yan, it does not have
certification involved. They don’t register with us.
FORMATION RECOGNITION
In fact to be a recognized association kasi sa SEC
ka. BOI transcript RTF: 10 - 10 (0)
coin themselves recognized kasi, well for one thing
BOI works with them regularly for the automotive
but it does not entail certifications of any form.
FORMATION RECOGNITION
Recognized lang in terms of kausap naming sila and
yes we do honor their existence BOI transcript RTF:
10 - 10 (0)
And once na participants na sila, ano yung
kailangan nilang gawin. So they have to follow
those rules or else face the consequences depende FORMATION ROLE
doon sa program or doon sa batas BOI transcript
RTF: 25 - 25 (0)
And then one of the things we do actually is to FORMATION ROLE
audit the companies. BOI transcript RTF: 25 - 25 (0)
AVID, establish natin. CAMPI is the association
composed of both importers and manufacturers.
FORMATION ROLE
AVID is purely importers
BOI transcript RTF: 81 - 81 (0)
 And then one of the things we do actually is to OBJECTIVES ROLE OF BOI
audit the companies. BOI transcript RTF: 25 - 25 (0)

Meron kasi mga programs na nag aim or an

objectiveness to increase the number of local
assemblers then there are other programs that OBJECTIVES OBJECTIVE VARIETY
aimed to increase the numbers of car makers. So
yun nga iba-iba yung aim or objective nung
programs. BOI transcript RTF: 77 - 77 (0)
Ang programs namin dito sa BOI is mostly geared
for the manufacturing industry. So manufacturing
of automotive, manufacturing of parts and OBJECTIVES MANUFACTURING
components, yun yung overview namin. BOI
transcript RTF: 81 - 81 (0)
Isa sila sa mga kino-konsulta namin mga na
association when we conduct consultations for
FDAs. Kinakausap namin sila pero yung mostly the OBJECTIVES ROLE OF BOI
programs that we do does not really concern them.
BOI transcript RTF: 87 - 87 (0)

mandate ng BOI is to promote and is to develop.

We develop to promote. Kasi para mapromote mo
yung isang bagay kailangan maganda yun tingnan
so pinapaganda namin sila para attractive silang
tingnan, mas maraming mapapunta. Tulad sa auto
industry, right now one of our initiatives is to OBJECTIVES MAIN MANDATE
promote and develop the parts manufacturing kasi
with how the auto industry works kung marami
kang parts manufacturers mas maraming
maglolocate sayo kasi marami kang local suppliers.
Mas madali makapag-manufacture mas mura ang
production.
BOI transcript RTF: 146 - 146 (0)

Chamber of Automotive Manufacturers of the Philippines, Inc.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) for the

automotive sector is a major player in the automotive industry. CAMPI has the biggest

percentage in relation to the market shares which reached to 90%, with the main reason
of having most of the automotive companies as its members. The association was formed

for the reason of creating one voice for the many that the government will recognize.

Before an official decision is made, CAMPI conducts a meeting for all members to be

heard of his perspective and interest then there should reach to a consensus. CAMPI

influences on the policy formulation, provides inputs, data and technical expertise on the

expense of its members to the government depending on the objective of the programs.

SOURCE CODED SEGMENTS THEMES SUB-THEMES

So there are a lot of committees I handle.

Yung aftersales to monitor the aftersales
activities ng industry. Service yung training
regulations . And then we also have technical
committees. More on sila sa technical
regulations ng government. So if you are
aware maraming technical regulations CONSENSUS/ ROLE TO
CAMPI FORMATION
particular sa auto industry. For example, MEMBERS
vehicle fuel economy labeling. So that’s one of
the regulations that DOE is pushing for. So as
part ng… well having a consensus among the
members ito yung ini-include namin sa regular
meetings namin. So marami din, may
marketing. Well yung marketing naman is
more on consolidating sales report. CAMPI
transcript RTF: 8 - 8 (0)
Well we have an annual event yung PIMS,
Philippine International Motor Show. Well
that’s part of our mandate to strengthen each
other, I mean strengthen our members kasi
we have them promote their products to the
market. Although nandun naman siya, existing STRENGTHENING
CAMPI OBJECTIVES
in the market pero still having an international MEMBERS
motor show such as our PIMS kumbaga it
gives platforms sa aming members to have
intensive promotions, to market, etc. So one
of that is aming auto show CAMPI transcript
RTF: 8 - 8 (0)
 we solicit their inputs. So kumbaga, when we
give statements or inputs to the government
we should first have consensus among our
STRENGTHENING
CAMPI members. So having consensus before that OBJECTIVES
MEMBERS
soliciting inputs from them para at least equal
share kumbaga walang left behind. CAMPI
transcript RTF: 8 - 8 (0)

Making Policies and Programs

The Board of Investments as the facilitator, formulates and implements policies on

the automotive industry. The government has determined that the automotive industry is

vital to the industrialization and economic development of the country. Ever since the

government recognized the contribution of the automotive industry, policies and programs

were formulated for its development. The BOI’s first step in policy making is to find

problems and determine the potential of the automotive industry. In order to do that, the

government needs to seek the participation and cooperation of the automotive

association. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI),

an automotive association serves as the voice of its automotive company members.

Before cooperating and participating in consultation meetings with the government for the

policy formulation, CAMPI conducts consensus meeting among its members for an equal

share of perspective. The policy formulation and implementation revolve around the

partnership or relation among the Board of Investments and the Chamber of Automotive

Manufacturers of the Philippines, Inc.

SOURCE CODED SEGMENTS THEMES SUB-THEMES

 parang nadetermine na ng government that
the automotive is vital to the industrialization
MAKING
and economic development of the country. RELEVANCE OF
BOI POLICIES AND
Such the government in those times created AUTO INDUSTRY
PROGRAMS
already programs for the development of the
industries. BOI transcript RTF: 20 - 20 (0)
a tax holidays under the EO 226 or yung mga
duty free importation yung mga ganun. MAKING
BOI Conditional kasi yun, so we provide you POLICIES AND COMPLIANCE
something but you do something in return. PROGRAMS
BOI transcript RTF: 25 - 25 (0)

implementing rules and regulations na

pinupublish din natin na dun nakalagay lahat
ng mga details of the program including sino MAKING
BOI mga pwedeng magparticipate, ano yung POLICIES AND COMPLIANCE
kailangan nila mameet to participate. And PROGRAMS
once na participants na sila, ano yung
kailangan nilang gawin. So they have to follow
those rules or else face the consequences
BOI transcript RTF: 25 - 25 (0)
“A,” may problema kang nakita na gusto mong
solusyonan, or “B,” may nakita kang room for
MAKING
growth. So based on that, we will respond,
BOI POLICIES AND PROCESS
titignan natin kung ano yung pwede gawin
PROGRAMS
doon sa mga bagay na nakita natin. BOI
transcript RTF: 41 - 41 (0)
We conduct, when creating policies and
programs, it’s always done inter-agency. So we
talk to other agencies, consult with other
MAKING
agencies, and we talk to the industry. Kasi we
BOI POLICIES AND PARTNERSHIP ROLE
recognize na although government yung
PROGRAMS
magimiplement, tatakbo yung programa dahil
dun sa participants. BOI transcript RTF: 41 - 41
(0)
it is a give and take relation. It’s a working
relationship where we talk to each other and
PERCEPTION
see the issues of the industry, see the issues of
OF STATE AND
BOI the government and find somewhere na PARTNERSHIP
INDUSTRY
pwede kaming mag work together to achieve
PARTNERSHIP
whatever we want
BOI transcript RTF: 138 - 138 (0)
Meron kasi mga programs na nag aim or an
MAKING
objectiveness to increase the number of local
BOI POLICIES AND OBJECTIVE VARIETY
assemblers then there are other programs that
PROGRAMS
aimed to increase the numbers of car makers.
 So yun nga iba-iba yung aim or objective nung
programs.
BOI transcript RTF: 77 - 77 (0)
Ang programs namin dito sa BOI is mostly
geared for the manufacturing industry. So MAKING
BOI manufacturing of automotive, manufacturing POLICIES AND MAIN MANDATE
of parts and components, yun yung overview PROGRAMS
namin. BOI transcript RTF: 81 - 81 (0)

Ang academe kasama rin sa consultations

namin. On top of the auto industry, we have a
project where we are working for EV. We’re MAKING
working with La Salle, Ateneo, UP, MAPUA, INTER-
BOI POLICIES AND
and TUP kasi sila yung may mga know hows on PARTNERSHIP
PROGRAMS
EV. So we tend to continue those kinds of
interactions especially in developing programs
and projects kasi it does not only help us in the
technicalities, it also help develop them.
BOI transcript RTF: 158 - 158 (0)
Other than NEDA, for automotive, by default
DOTR under niya si LTO, LTFRB depending on
the concern. Nai-involve si Customs. In CARS
Program, meron kaming joint administrative
order with DMB and the DOF kasi they will
manage the incentive. We are the one’s who
will tell how much, they will do the whole
money count. Depende sa mandate so
depende sa concern. If importation problema MAKING
BOI mo kausap mo si BOC. If sa mga registrations POLICIES AND INTER-AGENCY
ang problema LTFRB. If sa registration ng mga PROGRAMS
sasakyan LTO. IF electric vehicles because
that’s the direction of the automotive industry
right now, diyan pumapasok sila DOST, hindi si
DOST kahit saan pala. Pumapasok si DOE at si
DENR. DPWH para sa infrastructures natin for
the industry. We talk to a lot. To LGUs.
Depende talaga sa objective. BOI transcript
RTF: 162 - 164 (0)
 And then we have regular meetings,
committee meetings actually. We have
technical committees ganyan government
MAKING
relations. So yung mga committees na yun INFORMATION
CAMPI POLICIES AND
are… well we get consensus among the GATHERING
PROGRAMS
members on certain issues like the issue on the
liberalization on the ASEAN Korea Trade
Agreement.
CAMPI transcript RTF: 8 - 8 (0)
Usually ang government is always looking for
inputs or complete data that they can use on
their policy making. So on our part, we share
those data from the principals of our
members. So marami kaming partners
DTI,DOE, DOTR for the road transport. The LTO
kasi siyempre… currently may ongoing policy
ang LTO regarding the bagong call ni Duterte
na kung saan ang bagong sasakyan kailangan
may bagon plaka na bago lumabas ng dealer. MAKING
CAMPI So LTO is asking kung… siyempre ang members POLICIES AND ROLE OF CAMPI
have many dealers nationwide. So for that to PROGRAMS
be implemented kailangan ng industry help
kumbaga kailangan ng assistance from the
industry kasi our members have dealers that
they can help out para i-speed out ang pag
release ng plate. So currently, they call it the
moving forward program ito yung plaka o OR
CR sa paglabas ng casa. it’s an on going
initiative by LTO and CAMPI. CAMPI transcript
RTF: 14 - 14 (0)

Relation Toward Automotive Development

Both Board of Investments and the Chamber of Automotive Manufacturers of the

Philippines, Inc. engage in consultation meetings with a mission to promote and develop

the automotive industry. BOI mostly works with CAMPI for a variety of policies and

programs. It depends on the objective wherein they aim to increase the number of local

assemblers or increase the number of car makers. They mainly consult with CAMPI to

have a whole perspective of the automotive sector and to have them participate on the
policies and programs formulated. These programs are wholly for the development of the

automotive industry which BOI then implements for the members of CAMPI to participate

and comply to. Compliance is required which then the participants could claim their

incentives upon complying to the rules and regulations of the policy. The Board of

Investments audits and requires the CAMPI to send reports for them to evaluate their

progress on the policy. This becomes a cycle as this policy is continuous with its

implementation.

SOURCE CODED SEGMENTS THEMES SUB-THEMES

Actually the government is the facilitator. So
they facilitate the policies and we influence
them on the policy making. So we contribute
inputs in policy making. So actually marami
kaming partners like of course BOI, DTI as part
ng industry association. Kumbaga we have
partners as well with TESDA on training
regulations of the automotive industry sector.
Kasi currently may mga regulations ang kino
come up ang TESDA which need inputs from the
industry. Kasi ang industry has the experts. So in PERCEPTION OF
drafting or preparing the regulations, they need STATE AND
CAMPI inputs from the industry. So that’s ongoing, ROLE OF CAMPI
INDUSTRY
yung training regulations, yung National PARTNERSHIP
Certificate on Automotive Industry. So we also
have DOE. We need to maintain the relationship
with the government kasi they have the power
to craft policies. While on our part, we just share
inputs based from our expertise, the expertise
of the industry. CAMPI transcript RTF: 14 - 14 (0)

Usually ang government is always looking for

inputs or complete data that they can use on
PERCEPTION OF
their policy making. So on our part, we share
STATE AND
CAMPI those data from the principals of our members. ROLE OF CAMPI
INDUSTRY
So marami kaming partners DTI,DOE, DOTR for
PARTNERSHIP
the road transport. The LTO kasi siyempre…
currently may ongoing policy ang LTO regarding
 the bagong call ni Duterte na kung saan ang
bagong sasakyan kailangan may bagon plaka na
bago lumabas ng dealer. So LTO is asking kung…
siyempre ang members have many dealers
nationwide. So for that to be implemented
kailangan ng industry help kumbaga kailangan
ng assistance from the industry kasi our
members have dealers that they can help out
para i-speed out ang pag release ng plate. So
currently, they call it the moving forward
program ito yung plaka o OR CR sa paglabas ng
casa. it’s an on going initiative by LTO and
CAMPI. CAMPI transcript RTF: 14 - 14 (0)
it is a give and take relation. It’s a working
relationship where we talk to each other and
PERCEPTION OF
see the issues of the industry, see the issues of
STATE AND
BOI the government and find somewhere na pwede PARTNERSHIP
INDUSTRY
kaming mag work together to achieve whatever
PARTNERSHIP
we want
BOI transcript RTF: 138 - 138 (0)

Figure 1. Major Automotive Companies as Assemblers and Parts Manufacturers. Source: Board of Investments
Growth and Development of the Automotive Industry

The Philippine automotive industry first started as a closed market. Importation of

complete built-up vehicles are either prohibited or very high tariffs are imposed. Foreign

investors are encouraged to source and manufacture their components and parts locally.

Local manufacturing of parts is cheaper. In result, the local market is attracted to the

locally manufactured vehicles for the price being. Various policies and programs were

formulated and implemented depending on its objective. Some are for increasing the

number of local manufacturers. But all policies are mainly for the development of the

automotive industry. In the recent years, the Board of Investments claimed that the

Philippines are up in the trend except for 2018 where lots of events happened such as

the increase in excise tax. The imposition of the excise tax mainly affected the trend. In a

positive note, the automotive industry of the Philippines will continue develop as we are

now in the Motorization age.

SOURCE CODED SEGMENTS THEMES SUB-THEMES

CAMPI is a major player. We have about… basta
we have the biggest chunk of the automotive
industry market share kasi most of the
automotive players are members of CAMPI. So
given the question on the role, since we are… I
CAMPI mean we provide employment. Our members DEVELOPMENT ROLE OF CAMPI
provide employment. So even from the
manufacturing, diba we have a manufacturing
sector. About 90% ang aming market share sa
entire automotive industry
CAMPI transcript RTF: 10 - 10 (0)
 Well ang mga members namin, not all have
manufacturing plant or assembly plant. So we
have about… Pero not all actually. Member
namin meron assembly plant and they source
their local or raw materials in the Philippines,
CAMPI locally. So that’s part of the (inaudible 17:38) DEVELOPMENT COMPLIANCE
diba when you source yung materials mo in the
region like in Batangas or like in Laguna. So it
speeds up the assembly nung car. Pero some
members kasi naman are just importers and
distributers. CAMPI transcript RTF: 12 - 12 (0)

Well dun sa, for example doon sa CARS program.

Well they need players for that program to be
successful. Actually dalawa lang ang players
diyan, Toyota and Mitsubishi. The other one is
CAMPI maybe they are looking at the PUv sector. So for DEVELOPMENT COMPLIANCE
the investors for example, kasi sa local program
yung raw materials mo should be locally
sourced. So that’s one way of enticing the
investors to invest in the Philippines kasi meron
incentive kapag ang materials mo ay locally
sourced. CAMPI transcript RTF: 18 - 18 (0)
when the Duterte administration came in
parang same policies are being implemented.
But the PUV modernization is a new initiative ng
government. So well may mga members kami na
interested sa PUV modernization. But the same
policies parin for example doon sa CARS
CAMPI DEVELOPMENT PARTNERSHIP
program, it’s a continuous policy. Yung EO 226
pang incentives to the automotive industry,
continuous naman siya. Well mga bagong
initiatives like PUV modernization, excise tax on
fuel malaking impact yun sa industry. CAMPI
transcript RTF: 20 - 20 (0)
We conduct, when creating policies and
programs, it’s always done inter-agency. So we
talk to other agencies, consult with other
agencies, and we talk to the industry. Kasi we
BOI DEVELOPMENT PARTNERSHIP
recognize na although government yung
magimiplement, tatakbo yung programa dahil
dun sa participants. BOI transcript RTF: 41 - 41
(0)
based early on the Philippines was a closed
BOI market. Closed market tayo sa mga complete DEVELOPMENT CLOSED MARKET
build up units, sa mga buo ng units. We impose
 very high tariffs on the importation.
BOI transcript RTF: 51 - 51 (0)
So if vehicles then if imported are very
expensive which the market cannot really
appreciate much. So during those times, lots of
sellers they would opt to locate here and
BOI DEVELOPMENT CLOSED MARKET
manufacture vehicles here para mas mabenta
nila ng mas mura kasi mas maappreciate ng
market, mas malaking sales. BOI transcript RTF:
53 - 53 (0)
ASEAN we have zero tariff duties for whole
vehicle importation. Kasi within ASEAN marami
rin tayong manufacturers. Thailand is the
BOI DEVELOPMENT REGIONALISM
biggest in terms of auto manufacturing followed
by Indonesia and there’s Malaysia. BOI
transcript RTF: 53 - 53 (0)
Open siya in terms na bumaba ng kaunti ang
tariffs at hindi na prinohibit ang importation ng
CBUs. In a way naging open na yun, in a
technical definition. Pero in our current
BOI DEVELOPMENT REGIONALISM
understanding of an open market it means na
naging zero na at negligible na ang tariff rates so
by that, open na yung market. BOI transcript
RTF: 57 - 57 (0)

Meron kasi mga programs na nag aim or an

objectiveness to increase the number of local
BOI assemblers then there are other programs that DEVELOPMENT OBJECTIVE VARIETY
aimed to increase the numbers of car makers.
So yun nga iba-iba yung aim or objective nung
programs. BOI transcript RTF: 77 - 77 (0)
past few years, up for trend tayo both in sales
and production except 2018 when a lot of things
happened, there’s the excise tax and then
andiyan din yung economic performance natin
na medyo bumagsak so nagkaroon siya ng effect
sa purchasing power. Kasi what we are saying
now is Philippines is at the Motorization where
BOI DEVELOPMENT PH CONDITION
everyone is capable… mas lumalaki na iyong ano
natin purchasing power natin. Alam naman
natin ang kulturang Pinoy, unang bibilhin
bagong phone, pangalawa bagong appliance,
pangatlo bagong kotse. So we’re taking… yun
yung nagiging trend natin. BOI transcript RTF:
102 - 102 (0)
 This is how it works Philippines gumaganda
performance economic activities, maraming
trabaho, maraming nagkakatrabaho, maraming
tao nagkakasweldo, tapos iyong sweldo na iyon
ginagamit nila pambili ng mga necessities and at
the same time may savings sila, may extra
BOI DEVELOPMENT PH CONDITION
money na ginagamit. So as the more people…
kung maraming nagkakatrabaho, nagkasweldo
mas marami nakakabili tapos tumataas pa yung
value ng peso so mas marami ka nabibili sa piso
mo.
BOI transcript RTF: 110 - 110 (0)
Generally speaking for investors transition ng
president yan yung moment na naghohold
muna sila kasi I’m sure polsci kayo, you know
how the politics work here. Minsan magkaiba
sila ng mga focus. One president can be looking
at this side or the other will be looking at the
other side. Pero pag sa auto industry naman, so
far the presidents that we have had they would
EFFECT OF
BOI always recognize the potential contribution of DEVELOPMENT
ADMINISTRATION
the automotive industry to the economic
growth. So in terms of the implementation of
the programs on going siya, I mean it would
always go. Hindi naman siya nai-interrupt.
Based on the government administrations, in
fact there are mga moments talaga na mas
napupush.
BOI transcript RTF: 130 - 130 (0)
 Figure 2. Trend of the sales in Passenger Cars and Commercial Vehicle. Source: BOI, CAMPI, TMA

From 2014 to 2017, an upward trend was evident on the sales of passenger cars

and commercial vehicle. In 2014, 269,200 units of passenger cars and commercial

vehicles were sold and only in three years, the sales almost doubled where in 2017,

473,900 units of passenger cars and commercial vehicles were sold. The increase within

three years were projected but did not meet the expected growth, where by the end of

2015 and 2017, the sales slowed down. By 2018, the sales became lower as new laws

on tax and on the automotive industry have been imposed.

 Figure 3. 2014 and 2015 Year-Round Comparison on Passenger Car Sales. Source: CAMPI

The 2014 and 2015 monthly comparison of the car sales garnered a reasonable

amount of gap where every month, there is an average increase of 2,000 cars in sales.

Figure 4. 2015 and 2016 Year-Round Comparison on Passenger Car Sales. Source: CAMPI

The sales gap in every month between the years 2015 and 2016 were closer than

that of 2014 and 2015. CAMPI had expected that as 2016 starts, a bigger gap of sales is
to be projected since the CARS Program was implemented in mid-2015. The 2016 has

reached a new growth but compared to the 27.6 percent sales growth at the end of 2015,

2016 only ended with 24.6 percent of growth in sales.

Figure 5. 2016 and 2017 January to May Comparison on Passenger Car Sales. Source: CAMPI

2017 gained the highest sales of passenger cars in the month of January

compared to the previous years with 10,984 units sold. As CAMPI discovered the

seasonality car buyers, which triggered the sales of passenger cars, it has expected that

in 2017, there will be a very close gap between 2016 and 2017 on the car sales. As shown

in Figure 4, the months of February and April had higher sales in 2016 and only had an

average gap of 1,000 cars sold for the rest of the months.
 Figure 6. Automotive Sales 2018. Source: CAMPI, Business Mirror

In comparing the 2017 and 2018 sales of passenger cars and commercial vehicles,

the sales dropped to 16 percent, with a decrease of about 30,000 units of cars sold in

2018. The reason for this impediment was the increase in excise taxes, inflation, and

prices of fuel. However, a positive outlook is seen for the year of 2019 where the

passenger car market will be expected to increase by 3.2 percent as people start to adjust

with the new laws on taxes and prices of fuel.

 II. ANALYSIS OF DATA

The analysis of data attempts to answer the main problem of the study, on how the

interaction or relation between the government and the automotive associations facilitate

the development of the automotive industry. The researchers attempt to answer the main

problem through the analyses of the sub problems which will explain in detail the queries

of the study. Afterwards, the analyzed data, through synthesis, will look back on the

framework used in the study to further analyze the viability of the study to the framework.

Organization of Automotive Players in Strengthening the Automotive Industry

The main idea on how the automotive players organize themselves can be seen

on how these players have formed themselves in the industry. These automotive players

such as the government and the automotive industry associations were formed is through

consensus and recognition. The Chamber of Automotive Manufacturers in the

Philippines, Inc. (CAMPI) is an organization which primarily concerns about the local

manufacturing of automotive in the Philippines.

On the part of CAMPI, there are many committees by which the organization tries

to attain the involvement of all its members. Moreover, a recognition among the members

is also present. By having the involvement of every member, a consensus can be done

whenever an issue arises or a potential room for growth can be seen, and therefore, can

be pitched to the government sector.

 In BOI’s case, the automotive industry sector has been recognized as vital in the

country’s industrialization and economic development in the country since the 1970s. BOI

also recognizes the presence of the automotive industry associations as partners for the

development of the automotive industry especially in manufacturing, although no

certification was made. The formal recognition of the presence of the automotive industry

associations were done through the Securities and Exchange Commission (SEC), which

maintains the register of the automotive industry associations. Additionally, BOI has been

formed, in the case of the automotive industry, to communicate to the industry and audit

them. Both the government and the automotive industry associations were formed due to

the determination of the automotive industry in becoming vital not only to the automotive

industry but also to the local manufacturing and the economic development of the country.

The objectives of the automotive players are to be considered in the strengthening

of the automotive industry. Both the Chamber of Automotive Manufacturers in the

Philippines, Inc. and the Board of Investments hail the local manufacturing and

development to promote the Philippines to the investors so that the local production of

the automotive vehicles, in turn, will boost.

The objectives of CAMPI to its members is to strengthen them through equal

voices to the government and equal promotion of their products. In the equal voices, the

members can share their endeavors and issues so that the association may support them

in a way. For the promotion of products, this objective of CAMPI is done through the

Philippine International Motor Show (PIMS) where all the models and products of all their

members can be promoted and in turn gain sales and relevance.

 For BOI, the organization aims to support the local manufacturing of parts and

even complete build-up of units, and the promotion of the locals to the foreign investors.

The government prepares the local manufacturers to be developed and when they

become developed, they gain investors which progresses the production more, possibly

from parts to complete build-up. With these being said, the BOI closely works and consults

the automotive associations, mainly CAMPI, for their input and perspective on certain

issues for the formulation and implementation of policies and programs because it is for

their development and it revolves around the participants which are the automotive

companies.

These two actors are interdependent to one another for achieving their shared

vision and mission on the automotive industry development.

Directing Automotive Industry Through Policies and Programs

In formulating and implementing the government policies and programs in the

automotive industry, there must be a process to be followed so that the policies would

generate more advantage than hindrance not only to the private companies, but also to

the general welfare of the country. Among these are the information gathering,

compliance, relevance, and interrelations among other government sectors and the

private sectors. In CAMPI, either the BOI approaches them or they approach to BOI

whenever a certain issue or potential has been recognized and would need the

participation of both sectors. In here, both organizations generate intensive studies and

reviews to address the issues and potentials. CAMPI seeks the opinions and other inputs
of its members and relays it to the government as a representative of all the automotive

companies. With that, the government take notes and seek partnership with them for the

implementation. For BOI, just like CAMPI, it seeks information to the automotive industry

association and other government sectors to cooperate with a formation of policy or

program. As the automotive industry is seen as vital for the economy, it makes sure that

the policies and programs intended for the industry is complied.

The relationship between the Board of Investments to the CAMPI is as a facilitator

to the policies and programs of the government. It has been evident that in the previous

decades the automotive industry has been beneficial in the country’s economy. With this,

the Board of Investments try to communicate with the automotive industry through its

associations. The reason for this kind of approach is advantageous not only because of

reducing time and effort to locate them but because of these automotive associations,

each of the members will be heard and have equal platforms. The Board of Investments

initially identify the issues at hand and the possible room for growth of the automotive

industry. CAMPI, on the other hand, supplies BOI with issues and potentials in certain

areas through the researches they have conducted, statistical reports, and ideas its

members have pitched in. With the help of the automotive industry associations and other

government agencies, the policies and programs become more viable and conducive for

the development of the country’s automotive industry.

Growth and Development of the Automotive Industry

 Throughout the years, a consistent development of the Philippine automotive

industry is credited through the opening of the country’s market by lowering to eliminating

the tariff rates, regionalism, partnership, changes in purchasing power, and the transition

of the administration. Since the Philippines removed its tariff barriers, many investors and

stakeholders have put their trust in the country’s industrialization. In addition to this is the

formation of a regional organization where the Philippines is a member-state, ASEAN.

The conception of ASEAN has created a cooperative economic community among the

southeast Asian countries which generated a more dynamic market and equal playing

field among the member-states. As the Philippines slowly regain its economy, the

purchasing power of its people also increased, garnering more sales in the automotive

industry since the Filipinos today are living in the age of ‘motorization’. The transition of

administration also plays a role in the development of the automotive industry. Although

it is not noticeable, the investors or stakeholders puts their investments on hold, for them

to analyze on how the new seating administration shares its perspective in the automotive

industry.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) is an

automotive industry association which consists of different automotive companies. Their

members are both manufacturers and importers. As a consolidated group, CAMPI

conducts meetings to make official decisions through consensus among its members. In

relation to their role to the government, CAMPI influences on the policy formulation. The

association is consulted by the government for various of reasons: inputs, perspectives,

interest, data, and technical expertise. The government needs the input of CAMPI

regarding different objectives mainly for the development of the automotive industry.
There are various government agencies that consults CAMPI for their inputs such as LTO

who is asking for the help of CAMPI because of the call of president Duterte on the

requirement of the new cars to have license plates and OR/CR upon being released from

the dealership. The members of CAMPI has numerous dealerships nationwide which is

why LTO is asking for their help on this matter. Another example is the CARS Program

formulated and implemented by Board of Investments. The program seeks to develop the

local manufacturing industry through promoting locally manufacturing of parts and

components. The CAMPI has two of its members as the only participants to the program.

They comply to the rules and regulations of the program in return for incentives. These

are just few examples of the countless roles of CAMPI to the government or specifically

to Board of Investments. The Board of Investments (BOI) is responsible for the promotion

of the local manufacturing of the automotive industry. Its relationship with CAMPI is in a

manner of ‘give-and-take’ because it seeks to work together not only with the automotive

industry associations, but also with the other agencies. BOI closely works with the

industry to gather information, studies, and inputs given by the associations. Furthermore,

the agency initiates in seeking possible investors for the local development.

Synthesis of Analysis

With the data collected and analyzed in this chapter, a vital relationship

between the government (BOI) and the automotive industry association (CAMPI) is

present for the development of the country’s automotive industry, especially on the local

manufacturing of parts, components, and units. The players in the automotive industry

organize themselves through a form of recognition and consent. Through this recognition
and consent, the players are able to generate information, solicit grievances and

opportunities, and be able to formulate and implement policies and programs to steer the

development of the automotive industry of the country.

BOI and CAMPI, as individuals in the automotive industry are important with each

other. The concept of interdependence is present among them. These two actors are

interdependent to one another for achieving their shared vision and mission on the

automotive industry development, whether it may be growth on the sales or the

improvement of the lives of the Filipino people through providing jobs and better-quality

vehicles for mobilization.

Given with the figures presented above, the automotive industry increases its sales

every year. This factor is one of the most considered when investors and stakeholders

before they lay down their resources. When they see the trend of sales continuously

increasing and the anticipation of a higher growth is projected, the investors and

stakeholders would willingly lay their investments. However, the priority of BOI and

CAMPI at the moment is the creation and development of the locally-produced parts and

components of the vehicles. Once the local manufacturers of parts and components are

able to sustain an ample number to lessen the cost of importing vehicles, the stakeholders

consider whether to create a manufacturing plant for the complete build-up of the units.

Besides the promotion of the local manufacturing, both the BOI and CAMPI

considers the transition of the administration. This transition period is crucial for

investments because the stakeholders assesses the new administration before they

release funds and resources for investments. BOI and CAMPI, as much as possible,

share their interests to the administration, aiming that the administration would back the
development of the automotive industry and ease the barriers among the foreign

stakeholders.

Through the market liberation, elimination of tariff barriers through free trade

agreements, and the recognition of the potentials of the automotive industry to the

contribution of the Philippine economy and giving jobs to the people, the automotive

industry has flourished throughout the years of its existence.

Looking previously on the framework used by the researchers, the in the W-

Shaped Analysis on Strategic Planning, has been proven in the analysis of the research.

The government, embodied by the Board of Investments, and the industry, reflected by

the Chamber of Automotive Manufacturers in the Philippines, Inc., work together with a

vision, which is the development of the automotive industry. Both of these players

aggregate in researches and studies, and consolidates them into creating policies and

programs. Once policies and programs are created, they are then implemented and

monitored so that results such as increase in the investments, sales, availability of jobs,

and revenue are generated. After the outcome and the results are seen, new rooms for

growth and issues arise once again. This, then becomes a continuous cycle of issues,

potentials, solutions, and responses that are done from one state of advancement to the

other.
 CHAPTER V

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

Summary of Findings

The gathered data such as interviews and statistical reports have been

categorized based on the sub problems and are then coded into the following themes:

formation, objective, making policies and programs, development, and perception of the

state and industry partnership. In the data analyzed, the researchers have found out that

the automotive industry association such as Chamber of Automotive Manufacturers in the

Philippines, Inc. (CAMPI) has been formed as an initiative to strengthen the local

automotive industry in the country. The Board of Investments (BOI), on the other hand,

was created for the promotion of the country’s local development by generating support

through policies and programs and enticement of local or foreign investors. Both CAMPI

and BOI recognize each other as vital drivers of the development of the country’s

automotive industry, specifically on the local manufacturing of automotive. Both parties

have the aim of locating local parts and components as an initial step so that local

manufacturing may be developed. In seeing development through creation of policies and

programs, the Board of Investments seek information and inputs from the automotive

association (CAMPI) and relay it to the government body which implements the policies

and programs. CAMPI, on the other hand, solicits the issues and ideas of all its members,

combines them for a more integrated viewpoint and discusses it with the government

agencies, such as BOI, with a goal of not only generating company sales, but also
services to the government and the people. Lastly, the state, through Board of

Investments, and industry, through CAMPI, see each other as an important partner in the

development of the local automotive industry. Although no formal certifications are made,

the fact that they consult each other for a long-term goal is how they recognize both BOI

and CAMPI as partners in the automotive industry development.

Overall Summary of the Study

The liberalization of the market and the ASEAN integration, in the Philippine

context, has paved the way for the improvement of the country’s economy especially in

the automotive industry. As one of the drivers of the country’s economy, the automotive

sector became vital to the industrialization and economic development of the country.

With more stakeholders investing on the country’s automotive industry, the researchers

sought to create a study on how the interaction of the state and the industry in terms of

the automotive sector, drive the development of the local automotive industry. Since the

conception of a more consolidated automotive sector, and the presence of automotive

industry associations, the country has since been experiencing an exponential growth on

its sales on automotive.

Through the study, the researchers utilized and conceptualized the Systems

Theory through the W-Shaped Approached to Effective Strategic Planning and Execution,

in order to find the relationship between the government and the automotive industry

associations for the development of the local automotive industry. In gathering the data,

the researchers sought interviews on the key organizations involved in the study and
cross-referenced their answers on the reports and data related to the research in order

to find the relationship between the government and the automotive industry associations

especially in enticing foreign investors to invest in the local manufacturing of passenger

vehicles.

As the researchers have the gathered data, such as the interviews, secondary and

statistical reports, the collected data were analyzed thematically through a MAXQDA

software. The researchers created themes related to the main problem and sub-problems

raised in the study and have coded the interviews, secondary and statistical reports. After

analyzing each theme and their corresponding codes, the researchers have sought the

conclusion to the main problem and the thesis statement of the study regarding the

relationship of the state and the industry in the development of the local automotive

industry of the country.

Conclusion

The Philippine market in the 1970’s is considered a closed market. This means the

government either restricts the importation of complete built-up (CBU) or impose very

high tariffs on the imported vehicle, which then is not appreciated in the Philippine market

due to its expensive price. This closed market leads the foreign automotive investors to

locate in the Philippines and manufacture their vehicles locally. Local manufactured

vehicles are much cheaper which then is more attractive to the market. In result, the

automotive investors and manufacturers source their materials and manufacture their

vehicles locally. The government has not only allowed this but also supported local
manufacturing through various policies and programs. EO 226 s. 1987 and CARS

program are few of the policies and programs encouraging local manufacturing and

investments in the country.

The ASEAN integration has made big impacts on the Philippine market. An

example from the gathered data is that it caused the opening of the Philippine automotive

market. Currently, the Philippines do not prohibit the importation of CBU vehicles and

imposes low tariffs. For its ASEAN members, the Philippines has zero tariff duties on the

importation of CBU vehicles. Considering that many ASEAN members are automotive

manufacturers lead by Thailand, Malaysia, and Indonesia.

The Philippine government has been expressing its enthusiasm in the growth of

the automotive industry since the liberalization of the market. The EO 226 or the Omnibus

Investments Code of 1987 has created the Board of Investments (BOI) to oversee the

development of the country through investments. In the case of this research, the Board

of Investments develop the local manufacturing of the automotive industry and promotes

it to the investors.

The automotive industry associations present in the Philippines and are

recognized by the Securities and Exchange Commission (SEC) aims to develop not only

of the company and the industry, but also to contribute a reasonable share on the

development of the Philippine economy. The Chamber of Automotive Manufacturers in

the Philippines, Inc. (CAMPI) has the same goals as other automotive industry

associations. The focus of CAMPI, as utilized in this research, is the development of the

local manufacturing of the passenger cars in the Philippines while generating a

considerable amount of sales with its different automotive brands.

 The aim of the study is to seek whether the partnership between the government

and the automotive industry associations develop the Philippine automotive industry

through the case of the Board of Investments and Chamber of Automotive Manufacturers

in the Philippines, Inc. Through this aim, the researchers also sought of how the players

in the automotive industry formed, the direction of the automotive policies and programs

to the development of the automotive industry, and the development of the industry

through the years, whether it improved significantly or otherwise. Through the

presentation and analysis of the presented data, the researchers found that a vital

relationship between the government and the industry, through the Board of Investments

and Chamber of Automotive Manufacturers in the Philippines, Inc.

In addition, through the findings of the researchers, it has been seen that the

academe plays a significant role in the development of the automotive industry.

Numerous intensive studies and reports were made and presented by the academe. This,

in turn, becomes one of the major contributing factors that drive the development of the

Philippine automotive industry other than the state and the industry.

Recommendations

There are additional points to consider for the further analysis of the research. The

automotive industry is one of the prominent areas where its technological innovation is

advancing at a fast pace. In the current period when the research is being conducted,

hybrid cars and electric vehicles (EV) are being looked forward by the automotive industry
and the government as the country is transitioning into a ‘modernized public transport’

phase such as e-trike and e-jeepneys.

Given that the Philippines is part of the ASEAN community where the ASEAN Free

Trade Agreement (AFTA) is being exercised, one of the primary concerns of the AFTA is

the trade in automotive vehicles within the region where, as much as possible, the tariffs

on the imports of automotive in the ASEAN region is minimized or none. This must be

given more focus since it is crucial not only in the development of the ASEAN but also the

country’s automotive industry.

The future researchers of this study may consider more in analyzing the involved

associations for the improvement of the study, including the major players in the

automotive industry. In addition to the major players are the automotive companies that

transition from import and distribution to the local manufacturing, which is the case of

Association of Vehicle Importers and Distributor’s (AVID) member, Hyundai. Considering

the inclusion of more automotive industry association’s players. The future proponents

must also include more public sectors other than the Board of Investments. As policies

that affect the automotive industry differs, the responsible government sectors differ also.

An example of this is the change of tax in petroleum. The Board of Investments primarily

works as an agency, in the context of automotive industry, in which it promotes the

development of local manufacturing and entices the foreign investors to the automotive

industry. The BOI has not much to do with the change of tax in petroleum, but more on

the case of the Department of Energy and Department of Transport. These automotive

industry associations have different partners in the government and to further improve the
relationship between the state and the industry in the automotive industry development,

they must also be included.

The academe should also be considered in the further improvement of the study

as it plays a major role in the development of the automotive industry because the it also

initiates researches and studies, which contributes to the industry and the government.

So, the partnership between the government and the industry must be coupled with the

research initiatives of the academe.