Car Stringh

"KUALA LUMPUR: The controversial Approved Permits (AP) system will be scrapped in 2015 while foreign firms will be given manufacturing licenses to hold 100% equity in firms, which produce luxury vehicles with an engine capacity of more than 1,800cc and costing more than RM150,000 under the review of the National Automotive Policy announced Wednesday.

1) which and how many foreign car that we see on the road is above 1.8 litre and cost more than RM150k? looks like Proton's 'market' is still being protected.

2) even if there are foreign car models that are above 1.8 litre AND foreign companies are allowed to own the local manufacturing facility, how many will actually buy a 1.8 litre car for RM 150k? those who can afford BMW, AUDI, Merc, other European cars most likely wont benefit also.

3) AP will only be abolished in 2015. WTF happened to AFTA? People who wish to setup company after the AFTA starts cant profit when the AP is still around. How to do business?

Under the review announced by International Trade and Industry Minister Datuk Mustapa Mohamed, the import duties of all completely-built-up (CBU) and completely-knocked-down (CKD) cars will be maintained.

4) Again. WTF happened to AFTA? Our govt lie to ASEAN + 3 again (3 is Japan, Korea & China)

5) These duties will be maintained until when? No end date is given?

Incentives and exemptions will be increased to develop local auto parts so that there would no longer be parts imports by 18 months’ time, a move which help do away with imported and used spare parts outfits.

6) Are local manufacturers able to produce SIMILAR quality parts for ALL foreign cars? As i had joked earlier, if you drive a Merc and your ECU is fried. Are you going to plug in a locally produced ECU? What happens to your car warranty for using a 'non-Mercedes' part?

7) What is the reason for the ban of imported parts? So far, no reason is given.

Vehicles which are 15 years and above would also have to go through mandatory testing to ensure their roadworthiness but provisions would be made for vintage cars, he told a press conference to announce the long-awaited review of the NAP.

IMPLEMENT this on the commercial vehicles like lorries, buses and other heavy vehicles first la. Black smoke everywhere. Breakdown everywhere.

He said that the review was undertaken after extensive discussions with industry players including manufacturers, assemblers, auto parts makers, non-governmental organisation as well as car associations.

9) mana report? the rakyat wants to see what are the feedback of those industry players. be more transparent about the findings. discussion doesn't mean mutual agreement.

Mustapa said that there were 18 new policies and measures covering licencing, duties, incentives, technology and environment, safety and standards and APs introduced under the NAP review. New policies and measures would be effective from Jan 1, 2010.

10) List down all these 18 new policies and also existing policies. Don't last minute give surprises and force us to accept 'because govt has already discussed with industry players.'

Under the new measures new strategic partnership between Proton and a global established Original Equipment Manufacturer (OEM) will be established.

Currently, Proton is in talks to establish strategic partnership with international partners.

“Up to now, Proton has yet to find a strategic partner,” he said.

11) So after 20 years, its back to OEM designs and technology from 'strategic' partners. talk and promise so much, at the end, back to square one.

Elaborating on APs, he said the AP system for imports of CBU vehicles will be terminated whereby open APs for used vehicles will be terminated by December 31, 2015, which means importation of used vehicles using the AP permit would no longer be allowed after 2015.

“No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020,” he said.

12) Looks like AFTA has changed from ASEAN Free Trade Agreement to Ada Free Trade Agreement?

Mustapa said as part of ongoing efforts to help Bumiputera entrepreneurs in the automotive industry, a Fund for Bumiputera Development will also be established.

Besides this, he said that a charge of RM10,000 for each open AP will be introduced as announced in the 2010 budget last week whereby under current status, APs are issued for free.

A fund will be established to assist Bumiputera companies venturing into the automotive and other related businesses, he said.

13) Mana 1Malaysia? Only bumiputera can do business in automotive and 'other related business'? Other Malaysians no need to do business or make profit? Bumiputera companies still need help after they get exclusivity of AP for so many years? Why so long still need help? They dunno do business give to other Malaysians. Don't waste AP. Otherwise, the Rakyat sees this as CRONYISM.

The government would also introduce a mechanism to prohibit the import of used parts and components effective June 2011, said Mustapa.

Currently, imports of new and used parts and components were allowed without any restrictions and might in some cases affect safety and environment, he said.

14) I wonder if he will kena sue by the OEM like Mitsubishi, Honda, Toyota, Nissan, BMW, Merc, etc for saying their original parts and components in some cases affect safety and environment.

A new measure under the review of the NAP is the establishment of a gazzetted price for imported used CBU motor vehicles by the Royal Customs, a move designed to stop the under-declaration of imported used-cars and abuse of the AP system.

15) So if the current bumiputera companies are abusing the APs. WHY STILL GIVE TO THEM AND EXTEND UNTIL 2015? Nothing better to do ar?

Currently only prices for new imported CBU motor vehicles are gazetted for the purpose of duty compilation, he said. - Bernama"

Zamil