Mitsubishi Motors Philippines Corp. (MMPC) said it could not yet decide on which car models to roll out in the country, due to the government’s bid to advance the implementation of cleaner-fuel standards.
MMPC Vice President for Marketing Services Froilan Dytianquin said the Department of Environment and Natural Resources’s (DENR) bid to advance the implementation of Euro 4 fuel standards to June this year could lead to “unpredictability”.
“[Early implementation of Euro 4 fuel standards] is not hindering the introduction of new models, but, rather, it is complicating [matters], because we can’t decide the kind of vehicles to introduce this year,” said Dytianquin in a media briefing on Thursday evening.
The DENR is pushing for early compliance to Euro 4 emission standards, which would entail lowering sulfur content to 50 parts per
million (ppm) from 500 ppm in Euro 2 fuel, six months ahead of the original January 2016 target.
Automakers, such as Isuzu Philippines Corp., said, however, that oil players should take the first step by developing and making accessible Euro 4 fuels before car companies could make adjustments.
Dytianquin said MMPC shares the same sentiment, as well as the local automotive industry’s
position that the original target for implementing Euro 4 fuel standards should be followed. Local car assemblers have noted that oil companies, and even the Department of Energy (DOE), are not keen on advancing the implementation of the standards.
As the government has yet to issue a final decision as to whether it will pursue early implementation of Euro 4 fuel standards, Dytianquin said the company is in a bind over whether to introduce Euro 4-compliant vehicles or to continue offering Euro 2-compliant cars this year.
As per the agreement with the DENR, automotive players that have already introduced Euro 2 vehicles have until 2017 to keep offering the said models before shifting to the Euro 4-adjusted versions.
The BusinessMirror reported last year that the shift to the Euro 4 fuel standards will cause car prices to rise by at least 20 percent for diesel-fed vehicles. It is expected to have a minimal impact on the price of gasoline-fed cars.
“The cost for Euro 4 implementation is, of course, going to be expensive as there will be changes into more components, especially for new models that will be Euro 4 emission-ready,” Dytianquin said.
As early as 2010, the DENR had issued an administrative order requiring passenger and light-duty vehicles to comply with Euro 4 emission limits by January 1, 2016. This, however, is subject to the availability of Euro 4 fuel.
In September 2014 Environment Secretary Ramon J.P. Paje proposed to the DOE to implement the fuel standards six months ahead of schedule or by June, citing the urgent need to improve Metro Manila’s air quality.
However, the government and companies have yet to agree on the order’s final rules and regulations.
Seaoil, Unioil and Petron are expected to offer Euro 4 fuel products but it remains to be seen whether oil firms could make it readily available in far-flung areas in the Visayas and Mindanao.
Despite the uncertainty, MMPC said it is bullish on its prospects for 2015, as it expects to increase sales by 20 percent to 62,000 units from the 50,000 units recorded in 2014.
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Is imposing the Euro 4 fuel standard the best way to be environment friendly or are there better ways? Why not stop first the importation of 2nd hand vehicle engines, trucks and buses then phase out most old trucks, jeepneys, and buses from the road.