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Balancing price fluctuations, meeting the economy’s growing demand

THE inflation rate has made a considerable jump this year from 3.8% in January to 5.7% this July. This brings inflation beyond the upper end of the 2 to 4% target of the Bangko Sentral ng Pilipinas (BSP) and already within the full-year forecast of the Development Budget Coordination Committee (DBCC) at 4.5%.
Based on the latest analysis of the Department of Finance (DoF), the leading driver of inflation in July was electricity, gas, and other fuels. For consumers in Metro Manila and neighboring areas, the higher price of electricity represents a combination of the higher feed-in-tariff (FIT) allowance rate and the upward adjustment in the generation charge due to the depreciation of the peso. Prices of household fuels also increased. Private vehicle users faced higher pump prices of diesel and gasoline, which cost P14.30 and P11.60 per liter more, respectively, compared to July of last year.
For the month of August, the prices of goods are expected to rise anew with a projected inflation rate of 5.9%. The prices of electricity, gas and other fuels are estimated to jump the highest among major commodities.
As electricity, gas, and fuels remain to be the major contributors to this uptrend, the Philippine power sector lies at a critical juncture as the challenge to ensure affordable, reliable, and accessible power lies at the heart of balancing price fluctuations, in view of the increasing inflation rates and meeting the economy’s growing demand.
SUPPLY MUST KEEP UP WITH GROWING DEMAND
Based on the Department of Energy’s latest list of committed power projects in Luzon, additional installed capacity in Luzon grew by 4.3% from 15,745 megawatts (MW) in 2017 to 16,426 MW in the first half of 2018. However, this growth was still lower compared to the 8.2% increase in demand from 10,054 MW in 2017 to 10,876 MW in the first half of 2018.
As a result, there have been seven (7) instances of yellow alerts in Luzon in the first half of 2018 compared to only three (3) during the same period last year, based on the group CitizenWatch Philippines’ advocacy called Power Plant Watch, which monitors the performance of power plants and their scheduled shutdowns. The first “yellow alert” happened on Feb. 26, which was a cause for concern for all electricity consumers considering that the tight supply situation occurred before the summer months of March to May when the usual demand for electricity spikes at increasing rates.
A “yellow alert” is declared when the total of all available reserves is less than the capacity of the largest plant online, which, for the Luzon grid, is 647 MW.
EFFORTS TO REDUCE ELECTRICITY RATES
Rising electricity prices have become a source of frustration. Based on the recent Ulat ng Bayan Survey of Pulse Asia, a majority of Filipino adults, at 60% of the respondents, are dissatisfied with the price of their electricity. Dissatisfaction is highest in the National Capital Region at 84%, even if the survey was conducted on June 15 to 21, a week after the Manila Electric Co. (Meralco) announced lower rates that month.
While the electricity rates of Meralco still rank the fourth highest in Asia due to the lack of government subsidies, the latest study of the International Energy Consultants (IEC), an Australia-based consulting firm specializing in Asian power markets, shows that current Meralco residential rates (P/kWh) have in fact decreased by 18% while the overall consumer price index (CPI) climbed up by 19% since 2012. Meralco’s tariff reductions were due to competitively priced power supply agreements (PSA) in their generation portfolio since 2013.
While the decrease in power rates is encouraging, the rising inflation and the concomitant price hike of consumer goods, however, is putting heavy pressure, especially on the poor.
Streamlining of permit process, increasing investments in power generation and resolving regulatory delays
To lower the cost of electricity, regulatory issues and the delay in energy projects in the pipeline must be immediately resolved. Investments in the power sector, especially in generation, must be encouraged and market competition must likewise be promoted.
Creating a more stable environment and increased confidence for generation investment requires the assurance of reliable supply of electricity. As such, ineffective bureaucratic policies that drive away investors can be resolved by fast-tracking and streamlining the permit process. A pertinent legislative measure is Senate Bill 1439, or the Energy Virtual One Stop Shop (EVOSS) Act of 2017, which aims to remove red tape in the permitting process of new power generation projects.
Furthermore, to address the lack of quorum in the Energy Regulatory Commission (ERC), another Commissioner must be appointed to replace the vacancy of retired ERC commissioner Alfredo Non. As we write, only ERC Chairperson Agnes Devanadera and recently appointed Commissioner Atty. Alexis M. Lumbatan are in office in view of the suspension of other incumbent ERC commissioners Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana. As such, the regulatory agency is still paralyzed to adopt any ruling, order, resolution, decision or other acts in the exercise of its quasi-judicial and quasi-legislative functions.
Energy security is crucial for the success of the Duterte government’s economic agenda. This can be met by encouraging investment in infrastructure that could expand access and provide affordable and reliable energy for all. Taking into consideration the market forces at play, it is critical that regulators and legislators should focus on facilitating investment in new generation now to meet rapid demand growth and promote competition at the retail level.
 
Hannah Viola is Energy Fellow at Stratbase ADR Institute and Convenor of CitizenWatch Philippines.

His loyalty to party ended where loyalty to country began

IN DEATH Sen. John McCain was honored by colleagues whom he disagreed with, even fought with and who considered him a disloyal maverick during his long tenure as a politician.
Former Vice-President Joe Biden summed up the attitude of the usually partisan personalities who crossed John McCain’s life before brain cancer took it at age 81.
Speaking at McCain’s internment in his home state of Arizona, Biden, opened up by declaring, “I am a Democrat…and I loved John McCain.”
Special guests at the final rites for McCain were former President Barack Obama who trounced the senator, as Republican party standard-bearer, in the 2008 presidential elections; former President George W. Bush, who defeated McCain in the 2000 presidential primary and whose campaign even resorted to such dirty tricks as spreading the baseless rumor that McCain had fathered a black child; and former President Bill Clinton and Hillary Clinton.
Absent was President Donald Trump. He was not invited to McCain’s final rites.
Trump’s absence was obvious at the various ceremonies honoring McCain. That included the one where he lay in state at the Capitol rotunda, a distinction reserved for the most outstanding and exemplary personages in the United States, such as Abraham Lincoln.
McCain was only the 31st person to be honored with an official internment at the Capitol rotunda. Interestingly, this honor was decided on by the leaders of the Republican-controlled Senate and House of Representatives. The same leaders who were sorely disappointed with McCain when he cast the nay vote that doomed President Donald Trump’s and the GOP’s vow to repeal the controversial Democrat-passed Affordable Care Act (AKA Obamacare).
In truth, if Trump had his way, the Capitol rotunda honors would have been denied McCain, just as Trump balked at flying the US flag at half-mast during the entire period of McCain’s internment. It was only because of the uproar caused by Trump’s petty antagonism against a political critic (including a protest by members of the American Legion), that Trump relented and issued an executive order allowing due honors to be accorded to the late senator.
The final days of McCain above-ground must have virtually buried Trump in shame, as the entire country ignored the president of the United States while paying tribute to someone he considered an enemy.
But political enmity was set aside during McCain’s internment. For one shining moment, America’s political leaders cast aside partisanship and extolled the maverick senator who valued loyalty to country over and above loyalty to his political party.
With one voice, they conceded that McCain was a genuine hero and patriot. But what set him off in comparison to Trump was that McCain was also a person of grace and nobility, rather than pettiness, a trait that Trump has, unfortunately, shrouded himself with.
During the blistering contest against Obama, one McCain supporter at a political rally had very unkind words to say about the African-American candidate that bordered on racism. McCain stopped the supporter and contradicted her, pointing out that Obama was a decent and respectable person and not the kind being portrayed.
In contrast, throughout the campaign to choose the Republican standard-bearer, the presidential contest itself against Hillary Clinton, and throughout Trump’s brief tenure as president, he has been the epitome of boorishness, pettiness, racism, self-delusion and falsehood, playing to the basest attitudes of his supporters.
On the other hand, McCain never played to his base, often disappointing his party mates and refusing to toe the party line.
As a congressman and six-term senator, McCain earned the moniker of “maverick” because he often bucked the Republican position on issues, and often reached over to the opposition Democrats to work on critical legislative initiatives. He worked with the late Senator Edward Kennedy on comprehensive immigration reform, voted against tax cuts for the rich (which Trump forced through in the name of tax reform), campaigned against dependency on fossil fuel, warned against global warming, and advocated campaign finance reform.
While he was a known supporter and admirer of President Ronald Reagan, McCain, as a rookie congressman, spoke vigorously against Reagan’s plan to send US marines to Lebanon. The slaughter of hundreds of US and allied soldiers in a terrorist attack on a Marine camp in Beirut proved McCain right, but it was a pyrrhic validation of his principled stand.
For sure, McCain was not infallible. He was known to make poor judgments, such as choosing Alaska Governor Sarah Palin as his running mate in the 2008 presidential campaign. Palin was a drag on the campaign and confirmed people’s negative perceptions of her afterwards.
But McCain stood by his convictions, even if it wouldn’t have made sense to the less principled.
As a soldier and a prisoner-of-war in Vietnam, he endured five and a half years of torture and solitary confinement — and yet when he was offered an opportunity to be released, he declined because of the unwritten rule among POWs of first-in-first-out, meaning that those who had been confined ahead of McCain deserved to be released ahead of him, too.
Trump disdained McCain. The feeling was obviously mutual. McCain refused to endorse Trump, the official Republican standard-bearer in 2016, sunk Trump’s pet campaign vow to repeal Obamacare, and characterized Trump’s summit with Russia’s Vladimir Putin as “one of the most disgraceful performances of an American president.”
McCain was also the antithesis of Trump in other ways. McCain, whose father and paternal grandfather were both admirals, volunteered for active duty with the US Navy at 17. He flew fighter jets, was shot down over Vietnam and was a POW for five and a half years.
On the other hand, Trump avoided being drafted into the military and avoided being sent to Vietnam five times by claiming a bone spur in his feet at one point and claiming college education four other times.
A ridiculous comment by Trump about McCain was that the latter was not a hero because he was captured. According to Trump, heroes were not supposed to be taken prisoners. This prompted pundits to comment that Trump’s “heroism” was by sparing the US armed forces of his cowardice.
McCain’s passing may have been a sobering hiatus for professional politicians. And the soaring rhetoric that the speakers spoke during the internment ceremonies may have given Americans reason to hope that the divisiveness that has marked the Trump presidency can be healed.
But it’s too early to tell. Politicians have this magical talent for putting on a noble mask when occasion demands, and especially during funerals.
As a Tagalog pundit puts it, “Bihisan mo raw ang matsing ay matsing pa rin.” (You may dress up a monkey but it is still a monkey).
The likes of Senator John McCain will be missed.
 
Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.
gregmacabenta@hotmail.com

The TRABAHO Bill:Recurring dilemmas

WHILE few of us were watching, the House Committee on Ways and Means approved on Aug. 7 the substitute bill for the second package of the Tax Reform for Acceleration and Inclusion (TRAIN), which is now known as the Tax Reform for Attracting Better and High-quality Opportunities, or the TRABAHO Bill, for brevity.
Despite its new moniker, the TRABAHO Bill retains the essential features of the TRAIN 2 package, by primarily cutting down on the country’s high corporate income taxes and streamlining existing incentives being granted to corporations.
The measure consolidated several House Bills on TRAIN, including House Bills 7214 and 7458, which propose different methods of cutting down on corporate income tax rates. House Bill 7214 will cut down corporate income tax rates depending on the annual reduction in incentive expenses in relation to the country’s GDP, under which scheme the corporate income tax can be reduced to as low as 25%. On the other hand, House Bill 7458 will unconditionally decrease corporate income tax by 1% every year, with the end goal of reducing the same to a fixed rate of 20% by 2029. It remains to be seen which of these methods will be approved, but the general consensus appears to be that a reduction in corporate income tax in the following years is necessary.
While the Department of Finance (DoF) generally views the measure as a revenue-neutral proposal, it still intends to offset any perceived losses through the rationalization of existing tax incentives. According to the said agency, the government suffered an estimated loss of potential revenue amounting to P178 billion in the year 2016 alone, due to redundant tax incentives. With the TRABAHO Bill, the agency hopes to limit and realign these incentives to strategically benefit small and medium enterprises and, in turn, generate more job opportunities through said enterprises.
The DoF lays down the premise that of the 915,000 firms registered in 2015, only 2,844 firms were able to avail themselves of tax incentives worth P301 billion. Juxtaposed with the fact that firms with no incentives pay 30% regular corporate income tax, while firms with incentives pay 6% to 13%, and the inequity becomes even more apparent. Thus, by reducing corporate income taxes, these small and medium enterprises, which comprise 32.86% of the national employment rate, stand to benefit the most.
It is worth noting, however, that there have been concerns regarding the TRABAHO Bill’s impact on foreign direct investments. According to the Philippine Ecozones Association, the bill may help boost the domestic market, but at the expense of export-oriented firms which enjoy existing tax incentives. In fact, due to the uncertainty of these existing incentives, registered investment pledges under the Philippine Economic Zone Authority have plunged to P53.067 billion in the first half of this year, which is more than a 50% reduction from last year’s P120.220 billion during the same period.
Ultimately, therefore, the approval of the measure boils down to an age-old question in economics: what cost is this government willing to incur, and for what, or whose benefit?
Perhaps we’ll get our answer this year.
The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.
 
Emiko Antonette T. Escovilla is an Associate of the Davao Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).
etescovilla@accralaw.com

Associate justice questions provision for Senate concurrence on treaties

By Vann Marlo M. Villegas
Supreme Court Associate Justice Marvic Mario Victor F. Leonen has questioned the Senate’s practice of approval of treaties, which included clause that requires its concurrence from the withdrawal despite it pending approval from the Senate.
Mr. Leonen asked Senator Francis N. Pangilinan whether Resolution 286 led by the senate minority which expressed the “sense of the Senate regarding the requirements for a concurrence for a withdrawal.
“The matter was not adopted by the Senate although 14 senators has signed the resolution. It maybe adapted at some point in future time but unfortunately other resolutions and other pending bill had to be addressed or tackled by the Senate and therefore this was not officially acted upon,” Mr. Pangilinan said.
He clarified, however that it is not rejected but only not calendared for adaption.
Mr. Pangilinan said that they have passed and ratified 17 treaties with the specific provision of the requirement of senate concurrence for withdrawal.
Mr. Leonen, however, questioned its applicability in the ratification of the Rome Statute.
Now going back to Senate Resolution 546 which ratifies the Rome Statute, is there such a clause?” he asked.
“In that particular Rome Statue, the clause is not present,” Mr. Pangilinan said, affirming that resolution prior to the 17 treaties does not also have the said provision.
“This has now become the position of the senate in terms of treaties that it would require a concurrence of the Senate should there be any withdrawal,” he also said.
Six senators filed before the Supreme Court a petition for certiori and mandamus seeking to declare the withdrawal as “invalid or ineffective,” claiming that it needed concurrence of at least two-thirds of the senators, and to compel the executive department to cancel, revoke, or withdraw its instrument of withdrawal.
They cited the Article VII Section 21 of the Constitution which states that “no treaty or international agreement shall be valid and effective unless concurred in by at least two-thirds of all the Members of the Senate.”
The petition was filed by Pangilinan, Franklin M. Drilon, Paolo Benigno A. Aquino IV, Leila M. de Lima, Risa Hontiveros-Baraquel, and Antonio F. Trillanes IV.
The Philippines submitted its withdrawal from International Criminal Court to the UN Secretary-General in March following the announcement of the international court that it will conduct preliminary examination against the president over its alleged crime against humanity over its war against illegal drugs.

Mini SUV gets big changes


Text and photos by Kap Maceda Aguila
A TOTAL of five vehicle launches are rolling out for Ford Philippines this year, with three now in the books via the recent reveal of the EcoSport. Following the unveiling of the all-new Mustang convertible and all-new Expedition in April at the Manila International Auto Show, Ford last week presented the refreshed version of its compact utility vehicle, the EcoSport.
“The launch of the EcoSport back in 2014 paved the way for Ford to introduce and lead the mini-SUV segment in the country,” said Ford Philippines managing director Bertrand Lessard, in a speech at last week’s launch event in Taguig City. The EcoSport, he declared, was “a response to the need of Filipinos for a vehicle with high ground clearance that can go through floods and uneven roads,” and promises the agility, affordability and fuel efficiency of a compact car with the flexibility and spaciousness of an SUV.
Mr. Lessard’s enthusiasm over the EcoSport is not unfounded. Over the last four years, the EcoSport has maintained its lead in the segment it basically helped introduce locally. “In 2017, the EcoSport achieved a record full-year performance, with sales rising by 13% year-over-year to 11,299 [vehicles] delivered to customers,” reported the executive. Today, even with “more than 10 competitors” in the niche, the EcoSport corners about half of the business. The company reports that total unit sales in the Philippines is now approaching 39,000.
With the refreshed model, the Ford Philippines head is “optimistic that the new EcoSport will [continue] drive [the company’s] retail performance.”
ECOBOOST ECOSPORT
Headlining the new EcoSport is its top-of-the-line EcoBoost variant, which boasts 125 hp and 170 Nm, plus automatic engine start/stop technology. Three additional variants still sport a 1.5-liter, twin independent variable camshaft timing engine — delivering 123 hp and 150 Nm — mated to a six-speed automatic transmission.
Touting a “bolder look and design, refined interiors, [additional] smart and safety features, and driver-assist technologies including Sync3 with navigation and rear-view camera with rear parking assist,” the new EcoSport has a ground clearance of 209 millimeters, and receives a new grille, hood, head lamps, and 17-inch alloy wheels.
Inside, the EcoSport has additional interior accoutrements such as a leather dashboard, power sunroof and an eight-inch multicolor touch screen with redesigned interface. The Trend and Ambiente variants have a nine-inch touch screen. A seven-speaker system comes standard with the Titanium grade. Meanwhile, storage space and convenience has been augmented; a total of 1,178 liters of cargo can be accommodated and 25 storage compartments are now available.
Safety features across the range include hill-start assist, electronic brake-force distribution, an electronic stability program, ABS and six airbags.
The new EcoSport variants are priced as follows: 1.0-liter EcoBoost Titanium A/T (P1.168 million), P1.5-liter Trend A/T (P1.028 million), 1.5-liter Trend M/T (P968,000), and 1.5-liter Ambiente M/T (P918 million).

Toyota Rush 1.5 G A/T: When is an SUV also an MPV?


THE Toyota Innova having turned better appointed and correspondingly pricey meant Toyota Motor Philippines’ lineup could use a less expensive, smaller, seven-seat model. And this is exactly the slot now filled by the Toyota Rush which, unlike the Toyota Avanza (actually, the Rush is the new version of the Avanza), is ideally suited to be used by families rather than by businesses. Going by looks, too, it’s obvious the Rush aspires for SUV status while the Avanza is decidedly more taxicab-appropriate.

 
 
• The cabin of the top-spec Rush is filled with most of the features that are standard fare in cars priced around P1 million — a large touch screen panel for the multimedia system (which has the usual Bluetooth, USB, aux-in, mirroring connections), a mix of gloss-black and silvery surfaces, push-button ignition (paired with a smart entry device, of course), a 12-volt power socket, and plenty of cup holders and A/C vents. So while this space isn’t exactly luxurious, it also is beyond budget car status.
• The dashboard layout is modern, dominated by a large gloss-black trim which makes the touch screen display look bigger than it actually is, and which integrates a pair of A/C vents inconspicuously, too. Plus, the black surfaces are mixed with off-white panels made to appear like textured leather wrapping, complete with faux stitching, which brighten up the cabin. Yes, it’s mere trompe l’oeil, but the touch does lend an upscale vibe to the car’s interior.
• Seats are not covered in chintzy leather. They get fabric, which is always a better option when going for proper leather furniture only leads to an unnecessarily higher price tag for the car.
• Climate controls use dials, and so are more intuitive and less fiddly to operate. This is far better than repeatedly stabbing away at some touch screen button just to set fan speed or temperature.
• Legroom in both the front and middle rows is adequate, and even that in the rearmost row (only the top variant gets this extra row of seats) is passably decent, considering the Rush’s size. Access to this section means simply tugging at some levers to fold and slide a second-row seat out of the way — no different (nor easier or harder) from any seven-seat car with forward-hinged doors.
• Reasonably sized bulky items could still fit in the cargo bay even if the rearmost seat isn’t tucked away.
• A high stance, large 17-inch wheels and equally ample wheel cutouts on the body all conspire to make the Rush appear an SUV rather than just a fancy MPV. Busy styling, plus LED detailing, lets the car look less average, too.
• Four-speed automatic gearbox willingly shifts down when you lift off the throttle pedal, helping in slowing the car down and assuring better control.

 
 
• Five-speed automatic unwilling to shift down when you press the throttle pedal gradually — only a deliberate mash will convince it to drop down a gear so the engine can deliver more grunt…
• … of which the 1.5-liter gasoline engine does not have much, especially in the lower revs. Only when it’s revving hard can there be adequate propulsion. This creates plenty of racket.
• From a standstill, the gearbox can feel like it’s a bad CVT. Press the throttle pedal gently and the car won’t budge. Step on it a quarter-inch more and the car lurches. Stop-and-go traffic is maddening enough. This thing makes it worse.
• Seat belt mounts in front are fixed in place, the driver’s seat does not adjust low enough, the steering wheel moves only up or down, not forward or backward. Getting a proper driving position is difficult then. Sit close enough to the steering wheel and one’s legs may get too bent, cramping movement. Sit far enough so that one’s legs are only slightly bent, and one ends up reaching for the steering wheel. And then the seat belt digs at the base of one’s neck.

 
 
• With prices comparable to top-spec subcompacts and entry-level sedans, the Rush provides an option for consumers wanting extra seating and ground clearance, but who can’t quite afford the larger SUVs. Despite some shortcomings, the Rush still equates to good value for the money. — Brian M. Afuang

BLUFFER’S BOX
Toyota Rush 1.5 G A/T
Price: P1.070 million
Engine: 1.5-liter, inline-four, dual VVTi, gasoline; 100 hp @ 6,000, 134 Nm @ 4,200 rpm
Transmission: Four-speed automatic
Drivetrain: Rear-wheel drive
Wheels/Tires: 17 inches, 215/60
Key features: LED head lamps with guide strip; fog lamps; power-folding side mirrors; LED tail lamps; multi-function display; leather steering wheel; dual zone air-conditioning; multimedia unit with seven-inch touch screen and USB, aux-in, Bluetooth, IOS and Android connectivity; smart entry system; reversing camera and parking sensors; traction control; hill-start assist; emergency stop signal

Honda tops J.D. Power’s after-sales customer satisfaction index

AMONG the 10 auto brands evaluated in the J.D. Power 2018 Philippines Customer Service Index (CSI) Study, Honda ranked highest in after-sales customer satisfaction with an overall score of 823. According to the study released on Aug, 28, Honda “performed particularly well” in service initiation, service advisor, and service facility factors. This is the second year straight that Honda topped the CSI.
Following Honda were Nissan, with a score of 822, and Mitsubishi, which scored 816. Toyota, Isuzu, Ford, Suzuki, Chevrolet, Kia, and Hyundai completed the list.
J.D. Power said the availability of an express service was a key driver of customer satisfaction, particularly for customers who visit a dealer for routine maintenance. This year, the proportion of customers who were offered express service during their most recent visit rose to 55% from 17% in 2017, with 44% among them able to get their vehicle back within two hours. Overall satisfaction among these customers is higher than among those who did not select express service — or 820 points against 793 points, respectively, on a 1,000-point scale.
“With an increasingly fast-paced lifestyle, customers in the Philippines are time sensitive,” said Sigfred M. Doloroso, country manager for the Philippines at J.D. Power. “Given the decline in new-vehicle sales this year, dealerships have been trying to maximize their service revenue and improve capacity utilization. The retention of existing customers through systematic service reminders, notifications for due service, faster service turnaround and improved customer experience is the key to business viability.”
The 2018 CSI measured customer satisfaction with the servicing and vehicle-return processes. The study is based on the responses of 2,455 new-vehicle owners who purchased their vehicle between February 2015 and May 2017, and who took their vehicle for service to an authorized dealer or service center between August 2017 and May this year.

Ferrari’s new 488 Pista Spider is brand’s 50th drop-top model

FERRARI at the recent Concours d’Elegance in Pebble Beach, Caifornia, unveiled the new Ferrari 488 Pista Spider, the 50th drop-top model from the sports car maker. Ferrari explained it chose to introduce the 488’s convertible version in the US because its clients there, since the 1950s, have been “keen connoisseurs” of high-performance convertibles.
According to Ferrari, the 488 Pista Spider sets a “new benchmark” for performance among the brand’s convertibles as it gets an unprecedented weight-to-power ratio of 1.92 kilograms per unit of cavallo vapore. This is largely due to the car’s engine — a 3.9-liter, twin-turbo V8 that outputs 720 cv (or 710 hp). This power plant, Ferrari noted, has bested its category at the International Engine of the Year Awards in 2016, 2017 and 2018.
The 488 Pista Spider’s design is a natural evolution of that marking the model’s coupe version; Ferrari said its designers’ primary objective was to keep unaltered the car’s “perfect marriage of aerodynamic efficiency, purity of form and racing spirit.” Underlining this is a livery which runs the whole length of the car, expanding towards the rear. This, the car maker said, evokes the airflow and “exalts the lines” of the 488.
In the cabin, the 448 drop-top has been fitted with plenty of lightweight, pared-back components such as carbon-fiber and Alcantara. The car’s carpets were replaced by patterned aluminum foot plates, while the driver’s door handle has turned into a strap, to save weight.
Footwear for the 488 Pista Spider are new diamond-finish, 10-spoke, 20-inch alloy wheels, which recall Ferrari’s traditional mid-rear engine berlinetta-style rims. Also available are one-piece carbon-fiber wheels that are 20% lighter than the standard forged alloys.

Typhoon Jebi makes landfall in Japan, strongest in 25 years

Typhoon Jebi made landfall in western Japan on Tuesday, the strongest tropical cyclone to come ashore in 25 years, and has picked up speed as it bears down on one of the nation’s most densely populated areas.
The storm has paralyzed Japan’s second-largest population center, with flights and trains canceled across the Kansai region, companies forced to temporarily close their plants, and power cut to more than 350,000 homes and offices.
Jebi, the 21st typhoon of the season, had made landfall in Kobe, west of Osaka and Kyoto, as of 2:10 p.m. after earlier sweeping Japan’s smallest main island of Shikoku.
The typhoon was packing strong winds of up to 162 kilometers per hour (100 mph), according to the Japan Meteorological Agency, with gusts of up to 206 kph measured in Wakayama. That makes it a “very strong” typhoon, the second-highest on the JMA’s scale. It’s the first time for a typhoon to maintain that strength while making landfall since 1993.
The typhoon halted business in one of Japan’s main industrial centers. About 350,000 buildings were without power as of 2:15 p.m., according to regional utilities, mostly in Wakayama prefecture. More than 680,000 people had been issued evacuation orders or advisories, Asahi reported.
Trains stopped
West Japan Railway Co. halted all local services in the area’s three main cities, with some subway lines in Osaka also stopped. Shinkansen high-speed trains between Tokyo to Hiroshima were canceled.
ANA Holdings Inc. and Japan Airlines Co. canceled a total of 560 domestic and 13 international flights, while Kansai International Airport closed its runways as the typhoon approached, local broadcaster NHK reported. The Universal Studios Japan theme park, one of Osaka’s main tourist draws, will shut down for the entire day.
Authorities called on residents to avoid any unnecessary trips outside, and Prime Minister Shinzo Abe canceled a planned trip to Fukuoka in the southern island of Kyushu to deal with the disaster response.
Toyota Motor Corp. halted operations at most of its group plants, and Honda Motor Co. stopped its Suzuka plant in Mie prefecture. Kyocera Corp., Murata Manufacturing Co., Panasonic Corp. and Shiseido Co. were among manufacturers halting some of their facilities.
After hitting western Japan, Jebi is set to speed up further as it passes over the main island of Honshu and into the Sea of Japan, where it will weaken. While Tokyo will be spared the worst of the storm, authorities have warned of very strong winds and heavy rain even in the capital.
The typhoon is also bringing further downpours to areas that were devastated by sudden rainfall in early July that killed more than 200 people. Jebi is predicted to bring heavy rains through Wednesday.
Jebi is the fourth typhoon to make landfall in Japan this season. Recent years have seen an increase in the number of typhoons directly hitting Japan, with at least four making landfall every year since 2014. — Bloomberg

Drive+ auto service center opens in QC


Drive+ Car Care Center has opened shop on Quezon Avenue corner Panay Avenue, Quezon City. The center employs expert advisers and accredited technicians to provide professional services — which include routine maintenance, repairs and suspension work. It also sells a wide range of wheels and tires. The 3,000-square meter facility includes modern customer lounge. Leading the formal unveiling of Drive+ on Aug. 2 were brand manager Jason Manabat and Peter Hoffman, a former sales head at the Asia Pacific operations of Continental Tires. — A.B. Espinosa

Why the ride sharing transport industry has floundered

UNLESS you live in a far-flung province and have never set foot in Metro Manila in the last few years, there’s a good chance you’ve already tried getting around using TNVS — or transport network vehicle service. It’s like riding a taxicab, but instead of hailing a public-utility car by the roadside, you do so from the air-conditioned comfort of your home or office, using an app installed on your smart phone. You probably know this service by the popular companies that provide it, like Grab (or Uber, before it sold its Southeast Asian business to Grab).
You may have also heard that this particular sector of our transport industry is struggling. It’s struggling with government regulations. It’s struggling with the existing fare structure. It’s struggling with the supposedly inadequate supply of available cars and drivers.
The last is particularly alarming. What used to be a total of 125,000 vehicles between Grab and Uber is now down to 35,000, according to Grab. This is the result of, first, the 65,000-car limit imposed by the Land Transportation Franchising and Regulatory Board (LTFRB) early this year, and, second, the refusal of former Uber drivers to cross over to Grab. But perhaps more tellingly, in an interview with the motoring website Visor, Grab Philippines public affairs head Leo Gonzales said that some 15% of drivers quit every quarter. The reason? These drivers no longer find the gig to be financially rewarding, and so they just move on to the next job.
Even TNVS drivers who own the cars themselves leave. A former Grab and Uber driver told me that he spent P4,165 a day just to operate one of his cars (a Mitsubishi Mirage G4 and a Toyota Wigo) for a transport network company (TNC). This amount included car amortization, fuel, meals, the TNC’s commission (25%), and other miscellaneous expenses. Which meant he had to earn more than P4,165 within a 24-hour period just to earn something. And so he stopped driving for Grab in March this year and now works for a life insurance firm.
What happened? Why are TNVS drivers suddenly scrapping for decent profit? There used to be a time when these drivers made so much money that many office employees simply gave up their salaried jobs, bought a car for TNVS use, and decided to drive for either Grab or Uber (or both).
I can think of three major reasons why the TNVS gig is now having a difficult time sustaining its workers.
First, the original business model was not preserved. There’s a reason this mode of transportation is referred to as “ride-sharing.” The idea is to share, not to rent or ply. The initial concept was for private car owners to make their vehicles available for other commuters who needed to travel on the same route. The proposition, I believe, was something along the lines of “make money while you drive to your office.” This wasn’t meant to be a full-time job for drivers. The app was simply a way to connect car owners who had empty passenger seats, with commuters who didn’t have a ride but were headed in the same direction. It was supposed to be a win-win situation: The car owner would make some extra dough, and the roads would see fewer vehicles as the setup essentially promoted carpooling.
What happened instead was that enterprising individuals made it a full-time, moneymaking venture. Some operators even purchased more than one car and hired drivers to run them. In this sense, it became just a glorified taxi service, minus the exterior liveries and the metered fares. Before we knew it, the number of TNVS vehicles had ballooned to 125,000 — significantly contributing to vehicle traffic and basically shrinking the income pie to be shared by the drivers.
Second, with Uber now gone and with Grab the only major TNC in our market, the incentives that were previously used to entice and motivate drivers have all but disappeared. Ask any TNVS driver and he’ll tell you that those incentives were the gravy that sweetened the pot and made the work (and all the time spent in traffic) worth it. Without these bonuses, some drivers are now having a hard time making ends meet.
Third, our slow-to-react LTFRB can’t seem to regulate TNVS players properly. In the eyes of government regulators, TNCs are just a smart phone-aided taxi service. Hence the strict rules on fare pricing. I say let the players determine their fares. TNVS shouldn’t be treated as a basic mode of public transportation. It’s a luxury for people who can afford it. If the TNCs price themselves out of the market, that’s on them. And if riders are willing to pay what the TNCs are charging them, why stop them? Just make sure these companies pay the proper taxes and put in place all the necessary safeguards to guarantee public safety.
I still maintain that TNCs need to be regulated, but they should be regulated using an entirely different set of rules. You can’t lump them together with taxi and bus operators. It’s in this area where the LTFRB has continued to disappoint.
Meanwhile, as you read this, Grab is preparing to roll out a service dubbed GrabHitch, which the TNC describes as “social carpooling.” This means private motorists can pick up riders who are traveling in the same direction, and ask these riders to share in the fuel expense. This isn’t for profit, Grab told Visor, just a way for private car owners to help with the current public transportation crisis. Come to think of it, this was the original concept of the so-called ride-sharing.

PAL cancels flights to Osaka due to super typhoon Jebi

Philippine Airlines (PAL) has cancelled flights on Tuesday, Sept. 4, to and from Osaka Kansai in Japan, because of the temporary closure of Kansai International Airport and the closure of an access bridge as the city is being battered by super typhoon Jebi.
“All Philippine Airlines (PAL) flights to and from Osaka Kansai (Japan) are cancelled today, September 4, 2018, as strong wind and heavy rains from super typhoon Jebi caused the temporary closure of Kansai International Airport, which has been affected by flooding and a closure of the access bridge to the mainland.”
PAL said land transport to Kansai Airport from Osaka City has been disrupted after a tanker ship was blown by strong winds and hit the connecting bridge.
The flagship carrier said it will advise passengers on further updates on the status of the regular and/or replacement flights originally scheduled for today. It added that passengers of cancelled flights will be rebooked on the next available flights or replacement flights, or may choose to be rerouted via other suitable airports in Japan.

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