Sabado, Marso 31, 2012

LEONARDO SARAO TOFIL Awardee


LEONARDO SARAO  TOFIL Awardee

Leonardo S. Sarao
TOFIL Awardee for Entrepreneurship, 1991

Leonardo S. Sarao was the hand behind the undisputed King of Filipino Roads, the ubiquitous jeepney.

Sarao finished only elementary schooling because of poverty. He helped his parents earn a living at a very young age. He worked first as a cochero and as a construction worker. It was when he worked in a jeepney body-building and repair shop, that he was hit with the inspiration for a business venture.

With just P700, he opened Sarao Motors in 1953 in Zapote, Las Piñas. He remodeled American-issue GI jeeps thus transforming these WWII remnants into reliable public transport vehicles. His business boomed so that he was able to acquire land of his own only after several years. In 1962, he incorporated his business and bought additional land for expansion purposes.

Sarao’s success grew such that before long, he was chairman and president of Sarao Motors, Inc., Liberator Transportation Corp., Pagsanjan Tropical Hotel and Resort, Las Piñas Finance Corp. and Sarao Development Corp.

Sarao Motors, the pioneer in jeep manufacture, briefly closed shop in 2000. It re-opened soon afterwards, with a restructured organization in place.  Until now, Leonardo Sarao’s legacy lives on, as jeepneys prevail as the common Filipino’s choice of mass transport, and the unique icon of Filipino popular culture.

THE BRIEF HISTORY OF MOTORS


THE BRIEF HISTORY OF SARAO MOTORS 
 
THE BRIEF HISTORY OF MOTORS
Makers of the first Jeepney and famous around the world.
NO REGRETS: Leonardo Sarao, left, and his son, Edgardo an Architect from UST, says that at least the company was debt-free when it was forced to close down operations

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Leonardo Sarao was an enterprising cochero (calesa driver) who found work in an automotive bodybuilding and repair shop. The first Sarao Motors jeepney rolled out in 1953. Anastacio Francisco was a calesa painter who was later employed by Sarao, and who struck out on his own to found Francisco Motors, but that's another story. The earliest passenger jeepney is said to have been conceived, built, and driven in 1945 by Clodualdo Delfino, a musician-entertainer who needed to make a living immediately after liberation.
A Famous Tourist spot in the Philippines, see how Jeepneys are made by Filipino craftsman by hand

"Last October [2000], when Leonardo Sarao broke the news to his staff of almost 300 that Sarao Motors – once the biggest jeepney-makers in the Philippines – was ceasing production, most broke down in tears.

"It is probably the hardest speech 78-year-old Sarao has ever had to make. But he had no other viable choice as the 47-year-old transportation company had been bleeding since 1995, mainly, he says, due to changed government regulations. "Our sales of jeepney units plunged because the Land Transportation Office (LTO) cancelled the issuance of franchises to jeepney lines, but let other public transportation vehicles such as taxicabs continue to get theirs," says the hoarse-voiced founder of Sarao Motors."

Sarao Motors
 Field Trips are set for Kids at Sarao Motors
This business is one of a kind so far. Sarao has made history together with the progress of Las Piñas being a producer of the primary form of transportation, jeepneys. This company is one of the large contributors to the high economy that we are experiencing. They contributed so much because of the unique and eye catcher designs that draws everyone's attention. If a Las Piñero is asked about jeepneys he would probably mention Sarao: major producer of jeepneys in Las Piñas.

The business is known in the whole world for its competency rate and their progress rate. It also has a big role to the introduction of urbanization, specially in transportation, to our city. It also served as a start of the business in Las Piñas and inspired the uprising shops to excel in their shops and stores.

The company also uses top certified, quality Filipino products and materials having a 100% pinoy product and by doing this it supports the other businesses together in improving his vehicles. In this we can see the give and take relationship between the competing businesses in Las Piñas. Certainly, Sarao motors identified Las Piñas as a industrialized and progressive city.


Who is Leonardo sarao?


Who is Leonardo sarao?

 1955 Sarao Motor 

In his early youth, Sarao worked as a calesa driver, or cochero, before finding employment in an automotive bodybuilding and repair shop. In 1953, at age 32, he acquired enough know-how strike out on his own with P700.00 borrowed from a brother. Two years later, he assembled his first jeepney with the help of brothers Rafael, Eduardo, and Ernesto, who have since joined him as business partners. By 1958 they were mass-producing the Sarao jeepney. In less than 15 years, their jeepneys had out numbered all others on the road nearly 7 to 1. Theirs were chosen for exhibition at the New York World's Fair. When Jeepney King Leon Espelita went on a goodwill tour of Japan as part of his prize, he drove a yellow Sarao. The trademark today has become so popular that Sarao is Jeepney! Wherever exhibited abroad, Sarao's draw predictable reactions: grasps, giggles, the raising of conservative eyebrows, monosyllabic superlatives, and the kind of smile one usually sees in carnivals and parades. 
No wonder Leonardo Sarao speaks about his jeepneys with pride-"as if they were his children", according to a spokesman at his plant. A stocky family man with simple tastes in food and clothes, he projects the robust confidence of a born winner, not only because he has always enjoyed the loyalty of his brothers, his other business associates, and some 300 employees, but also because he has never really cut off ties with his simple rural background. His exuberance matches that of his finished products at his plant, especially when he talks about the units he has exported to the U.S., Germany, Japan and Malaysia; about the tourist who have made his plant a regular stopover (he runs a souvenir shop right in the premises, but oddly no mini-jeepney models are for sale); about the time he dispatched his jeepneys to the 1974 Miss Universe Beauty motorcade; about the 1975 visit of Italian movie-actress-turned-photographer Gina Lollobrigida to take photos of jeepneys at his plant for her two coffee-table books in the Philippines. 
The success story is not all smooth cruising. Some years ago, order of jeepneys suffered a sharp decline caused by another one of those jeepney-ban scares in Manila. Alarmed operators even considered selling their units at a loss. When the suggestion arose to lay off some shop workers, the paternalistic Sarao rejected it. He is quoted as saying, "They also need their money badly." Is he not daunted by the possibility of jeepneys to be faced out to give way to the reportedly more efficient Greyhound-type buses? He had a quietly knowing smile ready for asking that, as he started to rummage his office desk - a disarray of papers, wads of folded one hundred peso bills, knick knacks - for clipping abroad had sent him. "We want to show unused item about a suggestion made by an English man to his countrymen…" but the clipping could not be found. This English man's point, he said, was that London's traffic problem could be licked if the traffic authorities adapted a Philippine solution: jeepneys. In Metro Manila, at any rate, Sarao believes that the smaller, nibbler runabout is a better solution to the traffic headache than super buses, not the other way around. Given the generally narrow streets of Metro Manila, one is likely to agree. Economists, E.F. Schumacher's "small is beautiful" philosophy for developing nations could not have found a stauncher ally at Pulang Lupa, Las Piñas

 Sarao Jeepney Manufacturing in PULANG LUPA, LAS PINAS CITY

History of the Philippine Jeepney


History of the Philippine Jeepney

Jeepney HistoryJeepneys are a popular means of public transportation in the Philippines. They were originally made from US military jeeps left over from World War II and are well known for their flamboyant decoration and crowded seating.
As American troops began to leave the Philippines at the end of World War II, hundreds of surplus jeeps were sold or given to local Filipinos. Locals stripped down the jeeps to accommodate several passengers, added metal roofs for shade, and decorated the vehicles with vibrant colors and bright chrome hood ornaments.
Jeepney HistoryThe jeepney rapidly emerged as a popular and creative way to re-establish inexpensive public transportation, which had been virtually destroyed during World War II. Recognizing the wide-spread use of these vehicles, the Philippine government began to place restrictions on their use. Drivers now must have specialized licenses, regular routes, and reasonably fixed fares.
Jeepney HistoryAlthough the original jeepneys were simply refurbished military jeeps, modern jeepneys are now produced by independently owned factories within the Philippines. In the central Philippine island of Cebu, the bulk of jeepneys are built using second-hand Japanese trucks, originally intended for hauling cargo rather than passengers. These are euphemistically known as "surplus" trucks.

Etymology

The word jeepney is usually believed to come from the words "jeep" and "knee" because of the crowded seating, passengers must sit knee to knee. Hence, the word jeepney. The word jeepney is also commonly believed to be a portmanteau of "jeep" and "jitney".



BUHAY PINOY JEEPNEY IN THE PHILIPPINES


BUHAY PINOY JEEPNEY IN THE PHILIPPINES


Tabaco Legazpi City fruit vendor peddler unloading pineapples from jeepney to his cariton Pinoy Filipino Pilipino Buhay  people pictures photos life Philippinen  菲律宾  菲律賓  필리핀(공화��) Philippines pinya piña
Tabaco – Legazpi, Albay, Philippines
description/keywords: fruit vendor unloading pineapples from jeepney to his cariton ,pinya

Quiapo – inside a jeepney



quiapo-kalaw bound jeep, Manila transport jeepney commuting Pinoy Filipino Pilipino Buhay  people pictures photos life Philippinen  菲律宾  菲律賓  필리핀(공화��) Philippines
quiapo-kalaw bound jeep, Manila, Philippines
description/keywords:city commuting

Puerto Galera – Jeepney inside view



puerto galera jeepney transport commuting rural Pinoy Filipino Pilipino Buhay  people pictures photos life Philippinen  菲律宾  菲律賓  필리핀(공화��) Philippines
Puerto Galera, Philippines


Banaue – jeepney commuting



Banaue jeepney inside view transport commuting Pinoy Filipino Pilipino Buhay  people pictures photos life Philippinen  菲律宾  菲律賓  필리핀(공화��) Philippines

Banaue, Philippines
description/keywords: inside view of a jeep, commuting, transport, rural

Davao – flood boys fun



 swimming playing flood davao street Pinoy Filipino Pilipino Buhay  people pictures photos life Philippinen  菲律宾  菲律賓  필리핀(공화��) Philippines
Davao City, Philippines
description/keywords:children playing in the flooded street, fun, wet

transport,jeepney,commuting,overloaded,rural


Philippines

Philippines – roof top commuting



jeep transport commuting front view rural philippines pinoy
 Philippines


Lambunao, Iloilo, Philippines jeep transport commuting front right people overloaded pinoy
Lambunao, Iloilo, Philippines

Davao – overloaded jeepney



commuting, jeepney, Philippines, rural, transport jeep province rural transport people side pinoy filipino
Digos, Davao del Sur, Philippines

Iloilo – Overloaded Jeepney



jeep front right commuting transport rural province people philippines pinoy filipino
Iloilo, Philippines
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The Jeepney "Ang Sasakyang Pangmasa (The Vehicle for the Masses)

The Jeepney "Ang Sasakyang Pangmasa (The Vehicle for the Masses)



The Jeepney was once called the "Undisputed King of the Road". . . . . . but no longer. Indeed, once it was the symbol of Filipino creativity, innovativeness and ingenuity. Today, it is a tarnished icon, its survival threatented from many fronts – bullied by government regulations, victimized by rising costs and the competition of cheaper alternatives.
Surely, it has come a long way from being the World War ll Willysjeep surplus that provided an early postwar topless form of share-taxi transportation, soon enough acquiring a roof and stretching the back to accommodate more passengers, taking on colors and accessories. Even as the supply of Willy jeeps and alternative mother-vehicles became exhausted, it continued to spawn an industry and commerce of build-from-scratch jeepney production, providing the needs of the populace for an affordable means of transportation and all imaginable hauling needs. It was, indeed, the workhorse of Philippine transportation, and deservedly for decades, it was the "Undisputed King of the Road." 
To say that it continues to be the symbol of the Filipino's creativity, innovativeness and ingenuity is arguable. The jeepney has remained in its angular and boxy construction, gas-guzzling and weighty with its20 plus sheets of 15- to 18-gauge stainless steel or galvanized sheets, its guts usually surplus Japanese diesel engines and chassis, its aerodynamics eaten up by an unyielding metal shell and its profusion of accessories, mirrors, grills and guards.
In an age of incredible automotive innovations for fuel efficiency, aerodynamics, safety and creature comforts, the jeepney has remained an immutable, uncomfortable, gas-guzzling and polluting anachronism, severely lacking in safety features and unadaptable to universal safety and seat-belt regulations. Its boxed interior is designed to cram up as many passengers as possible. Check out the spare tire, easily inspected on the driver-side, and the threads are usually so worn out, dental floss in the groove would stick out. Some are a thumb-tack away from a blown-tire. It's the nature of this beast–surplus and recycled parts,
Ubiquitous in the pages of travel brochures, the jeepney is often blazoned as an "essential part of the Philippine adventure" . . . Uhmm. . . well, sort of. . . in a Third-World-cheap-thrills kind of way.
A Can of Sardines
It is devoid of passenger comforts. Depending on length, it can load from 18 to 30 passengers, the drivers usually waiting for a full load before going his way. And on a full load, it's a can of sardinesshoulder-unto-armpit, back-unto-chest, shoulder-unto-shoulder, elbow-unto-hipbone, unavoidable thigh-on-thigh intimacy, butts accommodating forward to the seat's edge as another squooshes back to mold into tight spaces. It's a disparate mix of the 'masa' forced into sharing a humid olfactory and respiratory environ teeming with the composite scents of body odors, fading perfumery, and the more than occasional passenger reeking of alcohol, his head drifting into a slumberous rest on a fellow passenger's shoulder. The open windows welcome the miasma of urban ground ozone pollution and freshly brewed and belched smoky black clouds of diesel fumes spewed out by buses and jeepneys alike. For the masa, it is a daily sufferance in a cramped space that tests the limits of jeepney etiquette. And for some men, "chancing" and voyeur opportunities, eyeballs rolling and roving for beaver shots and cleavage gazing, while women desperately cover their necklines and tug down their hemlines.

So, if you want to ride from one end of Manila's polluted thoroughfares to the other, in a typically 'open-window' jeepney, where the cumulative ground ozone fights for turf with the freshly belched diesel exhaust fumes, your eyes smarting and tearing while one hand holds on to the ceiling bar as the other desperately clasps a handkerchief over the mouth and nostrils, and alas, despite that futile effort, exposing yourself to the unhealthy and noxious equivalence of smoking a few cigarettes . . . yeah. . . yeah. . . I would say that qualifies as a Philippine adventure, if that's what floats your tourist boat. 
But, it is the transportation mode for the 'masa,' the proletariat, the working class. It's Third-World transpo. The burgis would not be caught riding one.




A work of Art on Wheels?Alas, most of the almost quarter of a million jeepneys roaming the urban thoroughfares, provincial roads and rural backroads fail in the category of Filipino jeepney creativity, drab in their galvanized shells with a modicum of streaks or strips of color and minimum of accessories. Some are barely functional geriatric metalworks on wheels, plying their routes to eke out a daily survival. And for the riding public, the masa, long jaded from its ubiquity and blind to the 'art', the jeepney is nothing but that utilitarian mode of transportation – available and affordable.




But there head-turners, jeepneys that qualify as "art-on-wheels," although few and far in-between — show-case jeepneys made especially for tours, fairs and exhibits and privately owned jeepneys — malignant with art and accessories, veritable works of art, glistening in their shining armor of steel, their hoods crowded with protrusions of accessories, its sides an expanse of metal canvas colorfully filled with sticker or airbrushed art. Of these few, most are owned by those with deep pockets; a few, perhaps, who have found in their rolling canvas of steel an outlet for their creative expression; and some, by those who save or readily put out their last pesos to upgrade or add a borloloy here and there. . . .taking pride, or doing it . . . just because.







 

THE ARTJeepney art is a combination of the "art of the accessory" and the "art of the color" applied on a basic canvas shell of galvanized metal or buffed and glimmering stainless steel. Accessories are, for the most part, decided or handpicked, altered or added on at the owner's whim. The "art of the color" is usually applied by airbrush or sticker artists. Many jeepneys concentrate the art on the front, insanely cramming the hood area with accessories, the sides with empty galvanized expanses or scatterings of ads and small art. Some are gleamingly and colorfully wrapped with accessories and airbrushed or stickered art.
No two jeepneys are alike. Even the drab generics show distinct differences. Customization starts with the shell, a detail here and a detail there. Then the myriad of personal touches - a choice accessory, horses and horns, lights and mirrors, flaps and guards, names and dedications, a color preference, an art theme, a religious icon or invocation - a composite of details that proudly blazons a signature, a personal statement and ownership.

The art of the borloloysAccessories are often more defining to jeepney design than color. Usually symmetric and for the most part concentrated and insanely crammed on the front-hood area, they number from a few to many to excessive to pathologic-excessive: A composite of guide bars, racks and rails, grille-works, chromed horses and horns, a profusion of mirrors and lights and antennae functional and faux. Then, there are the panel boards and the crowns, the decorative mud flaps and splash guards, fenders and bull bars, and of course, the finishing touch on the center-grille, emblazoned with conspicuous and over-sized automotive emblems, most often, the "Mercedes Benz." 
The art of the color
It is a rare jeepney that does not use color - that rare specimen of pure gleaming stainless steel nakedness or dreadfully barren galvanized shell. Color dresses up the metal shell. The front, usually so crammed and crowded with accessories, take on simple accenting and decorating stripes of color on the hoods and fenders. Some jeepneys cram the all the accessories and art in front, leaving the side bare and barren, typical of many jeepneys plying the San Pablo-Tiaong-Candelaria route. For many jeepneys, the "visual art" extends to the sides, long expanses of metal for more proletarian doodling of sticker-art collage. And sometimes, the art and the color extends all the way to the back. (See: Jeepney 88 and Jeepney 87)



The art is usually the handiwork of jeepney artists. Although there are set-designs, the prospective owners may request certain themes or the addition of religious images or favorite quotes that are easily accommodated into the vast canvas of its metal shell. Most of the art is done through the use of colored plastic stickers, available in 6" wide rolls, costing P35 per foot, an average jeepney using between 150 to 220 feet, painstakingly and economically cut into design and seamlessly applied to the outside metal work, the labor cost ranging from P2,500 to P3,500. With the limitations of sticker art and colors, some prefer the use of airbrush painting allowing an expanded thematic spectrum – 'heavy metal' and fantasy-type art –and tonal values unachievable with sticker art . Not uncommonly, the side-art accommodates an incongruity of themes, an image of Christ juxtaposed with fighter planes, religious icons jostling for space with heavy metal images, a Disney character or NBA team logo or a sundry of things American for any leftover space big enough to accommodate it.
In jeepney art, anything goes. Some are "passive" artworks, compositions of jeepney artists commissioned by the manufacturers, remaining unchanged in its original form, except for the personal touch of a doodad here or a name there. Some are kinetic, frenetic, constantly mutating works by owners – frustrated artists or rabid incarnate of artists long-dead – unendingly adding and slapping details of colors and accessories.
And they are out there, alas, buried in ubiquity. But seek and you shall find – rare pieces of metalworks, strutting design and screaming attitude. They deserve a smile, a nod, or a thumbs-up.
It is art. . . Rococo. Baroque. Pop. Dada. Mobile art. Construction art. Collage-on-wheels. Art-on-wheels. Graffiti-on-wheels. Folk art. Pinoy art. People's art. Proletarian Art. Masa Art.In a country devoid of any populist program of art, where art is an indulgence of the literati and bourgeoisie, jeepney art is probably the sole venue for expression of true proletarian art.

BAGUIO JEEPNEYS
Styles and sizes.
Altars and angels.
Ads on wheels.
Styles vary regionally. The use of "borloloys" (accessories) are typical in the urban-suburban areas and most provinces. There are cycles and regional preferences for certain accessories, colors and sticker art. In some regions , horses and mirrors might dominate the hoodspace; in others, lights and antennae. Jeepney-gazers can spot and identify details of color, art and style and say: That's a mid-80s Amante! . . or. . . That's an Armac!
The jeepneys in the Biñan-Calamba area are stylistically spartan with a minimum of sticker art and accessories, and a distinctly different roof style constructed with padded canvas, The Baguio jeepneys sit higher up off the ground, almost all with roof -racks for top-load hauling and the spare-tire, weather-proofed with double back doors and sliding windows, and an outside art showing showing an affinity for American places and icons, cowboys and indians, NBA logos, and their signaturewide-stripes of colors.




The inside has not changed much in the past decades — relatively barren compared to the frenzy of colors and accessories on the outside. The back's length dimension may be custom-stretched to accommodate as much as 28 passengers, 14 abreast. On average, passenger jeepneys sit 16 to 20 in the back, on padded bench-type seats; 2 passengers in front, plus the driver. There are ceiling hand-rails to hold on to. Roll-down window shades for rainy days or a touch of frau-frau with frilly crocheted sliding curtains.
The dashboard area is the driver's personal space, filled with personal knickknacks, controls for ear-splitting stereo sounds when deep pockets allow, and not uncommonly, a space for religious icons and occasional elaborate miniature altars.
Billboard on Wheels
Often, the insane collage of images will include images of commercial products, logos on wheelcovers and fender doodads – getting a free ride on advertisements. Jeepneys are also contracted for short-term rooftop ads or the whole jeepney dedicated to a single product, as in the Motorola and Coca-cola jeepneys. Election years bring a market for political campaign rolling ads on-the-cheap.





King of the road. . . not.
The decline?
Alas, the past decade has seen a slow decline in the jeepney's dominant status as the "King of the Road." To relieve traffic congestion, jeepneys were bullied and selectively banned from some of the main thoroughfares. Government franchise regulations, the Asian financial crises and the skyrocketing costs for Japanese engines and parts converged together to cause irreparable bleeding and helped sound the death knell for some in the jeepney industry. Sarao and many other big names in jeepney production have succumbed.

Short routes and small-load needs have been supplanted by the pesky tricycle (Trik), nimble and superior it its maneuverability, able to U-turn on a dime. Perhaps, as some observers have posited, Trik can claim the title of the new "King of the Road." Many say: King Pest of the Road.
The "Family Jeepney" has been largely replaced by surplus vans from Japan, more economical in gas consumption, air-conditioned to boot, a step-up in the ladder of consumer status. Hauling alternatives are now provided by medium-sized Elfs and bigger for-hire vehicles. In the urban settings, its share of passengers has been decimated by affordable air-conditioned share-taxis or vans. Many feel the jeepney has been bullied by edicts banning them from major passenger routes, Add to that: government imposed rates, licensing, the rising cost of fuel prices and maintenance, and the increasing difficulty in meeting and existing on the "boundary" arrangements between jeepney owner and contracted driver, the latter taking home a third of the collected fare.
In some provinces, it thrives. In Baguio, where there is a ban on tricycles, the jeepneys continue to reign supreme.

Anachronistic, unchanging, dreadfully unaerodynamic, punishingly uncomfortable—Yes, the jeepney is all that. But, more than a riveted and welded box on wheels, it is also a vehicle of the masa's ethos and zaniness, an essential ingredient of the Filipino archetype. This is one chapter on Masa-Sociology 101.
Singularly Pinoy.
Simply "orig."


it continues in production, despite recurring political agendas and attempts to phase it out. In some places, it has become a niche for back-yard build-one-sell-one-at-a-time production. Japanese surplus stocks of engines and chassis continue to be stockpiled and easily available, Isuzus preferred of late. An industry of jeepney accessories thrives, not to mention the welders, mechanics, benders, upholsterers, sticker and airbrush artists who partly or mainly subsists on this declining underground economy.
Indeed, the jeepney could continue in its downhill slope from diminishing demand. And there are soothsayers who dare augur its eventual demise.Anachronistic, yes. Eventual demise. . .No.
Jeepney as wedding vehicle, replete with boquet of flowers on the bumper.
The jeepney is here to stay. It is the "people's car." The masa-transpo. The Pinoy all-purpose vehiclenonpareil. It is the collective object of the common-man's dream. For many, the purchase of a lifetime, a rung up the masa's economic ladder, a metal box that beams with galvanized or stainless pride.

It could dwindle to a niche industry, with one-at-a-time build-and-sell backyard production, but this once undisputed-king-of-the-road will always be part of the Philippine landscape — its immutable boxy form, noisily belching down the national highways or rural inroads, or turning heads, resplendent in its colorful coat of art and accessories. It will continue to grace the pages of travel brochures or displayed in World Fairs or expositions. It is part of the Filipino's cultural DNA, of its history, of its folklore, of the Filipino psyche.

And whether in its drab and generic utilitarian form or in its accessory-laden gleaming shell of buffed stainless steel with a coat of color and art, the jeepney forever celebrates something uniquely Filipino.






More Jeepney Images

Automobile Industry in Philippines


Automobile Industry in Philippines


Philippines is a member of the Association of South East Asian Nations (ASEAN), a regional trading block with combined annual vehicle sales of 1.5 million units (1996, pre financial crises.)
 
In spite of the pall of gloom descending upon the global automotive industry in the recent years, as threats of soaring fuel prices and shrinking purchasing power continue to cause jitters among nervous consumers, and as when major auto markets like the US are reporting double-digit sales slump and shedding thousands of jobs, the Philippines auto industry provides a stark contrast.
 
In fact, the Philippines auto industry continues to experience double-digit growth, with total vehicle sales rising 14.2% in 2008 compared to previous year. This can be attributed to the steady stream of dollar inflows from overseas Filipino workers and investments by rising entrepreneurs that the local auto industry has so far bucked the trend and side-stepped the global slowdown in car sales.
 
The local auto industry is dominated by global auto brands but it plays a major role domestically as an economic driver through the downstream industries that depend on it from the assemblers and distributors, to the makers of various automotive parts and components, dealers who retail the vehicles, not to mention the many ancillary industries that include car accessories, after-sales service businesses, oil and lubricant industry, among many others. 
 
There are more than 530 players in the automotive industry, which includes 21 passenger car and commercial vehicle assemblers/distributors, 256 parts makers, and more than 240 dealer outlets nationwide.
 
The economy benefits in the form of government revenues from taxes paid which enables it to spend on infrastructure development. In 2007 alone, the local automotive industry contributed a total of Peso18.92 billion in taxes, up from Peso14.94 billion in 2006.
 
Trade Barriers
In order to produce vehicles in the Philippines, manufacturers must be recognized as part of one of the Motor Vehicle Development Programs (MVDP), to produce either passenger vehicles or commercial vehicles. To participate in either of these programs, certain requirements must be met, including having a minimum of 40 percent local parts content as well as meeting foreign exchange requirements in order to import components.
 
The MVDP was first initiated in 1987 with the Car Development Program, which was designed to help foster the development of a local components industry. At that time the number of manufacturers was limited to three (all Japanese manufacturers). Since 1995 the trend in the Philippines' automotive sector has been towards liberalization, with President Ramos' initiative to remove quotas on vehicle imports. In 1996 steps were taken to open up the MVDP to all manufacturers.