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Chocolate cars are damaging the auto industry, warns the PAN; they demand their closure.

Chocolate cars are damaging the auto industry, warns the PAN; they demand their closure.

León, Guanajuato.- Given the damage caused to the national industry by used vehicles entering Mexico from abroad, better known as "chocolate cars," PAN deputy Miguel Ángel Salim announced that he will call on President Claudia Sheinbaum to eliminate the decree that allows and encourages their regularization.

"Given the uncertainty surrounding the automotive sector and the tariff situation, this is an issue that greatly affects the automotive industry. Importing used cars has always affected the industry, but with tariffs, that impact increases.

We need to make a proposal because people who can't afford to buy used vehicles or don't have enough money to buy new ones tend to bring in cheap cars that are generally in poor mechanical condition," the legislator noted in an interview with AM.

Miguel Salim, federal deputy for the PAN (National Action Party). Photo: Archive

Salim explained that the decree implemented by former President Andrés Manuel López Obrador expired in 2022; however, its validity was extended until 2026. He emphasized that if Mexican industry is protected from tariffs, this decree practically eliminates tariffs.

We're asking for the decree to be reviewed, and if the tariffs persist, we'll analyze whether to expedite its cancellation. As a legislator, it's my responsibility to send a request or a point of agreement to Congress; however, it's President Claudia Sheinbaum's discretion to cancel or not the decree," he explained.

He added that the appeal to the federal leader could be made next month or wait longer for the tariffs the United States government seeks to impose on the automotive industry to be defined.

Protect the automotive industry

Arturo González Palomino, president of the Guanajuato State Automotive Dealers Association (AMDA), emphasized that to protect the local and national automotive industry, this decree should be eliminated and incentives should be provided to those who produce vehicles, spare parts, and auto parts in the country.

AMDA and all state associations have been pressing for this decree to be repealed, and we have urged the federal government, both through the media and in our contacts with certain authorities, to repeal this regularization program, which only serves to further encourage illegal vehicle imports at borders.

"Another aspect is that vehicles manufactured in Mexico or the plants that manufacture them in the country should have tariff benefits so they can compete on equal terms with other imported vehicles," he emphasized.

Arturo González Palomino, president of AMDA Guanajuato. Photo: Courtesy

He explained that currently, more than 2.5 million "chocolate vehicles" have been regularized through the decree, which Guanajuato has not yet joined through a collaboration agreement with the federation.

We hope to continue like this. The Ministry of Economy regulates these vehicles, which pay a 20% tariff, but we see it as insufficient, and if we take this issue to a political arena, we won't have good results in eliminating this decree. If we view it as an economic issue, it might be," he considered.

González Palomino warned that it is necessary to create a level playing field and encourage more automotive companies to establish, invest, and create jobs in Mexico, thus strengthening the local economy and the national market.

Financing

He specified that in Guanajuato, nearly 70% of vehicles are purchased through financing, either through bank financing through individual automotive brands, or through loans from popular savings banks, and 30% through cash.

He added that in Guanajuato, 14,356 vehicles were sold between January and March of this year, of which 10,800 were purchased through financing and the rest were paid for in cash.

It would be a mistake to delete it.

Aaron Cabañas Marcial, national president of the Union of Mexican Farmers and Emigrants (UCEM ), said he agrees with the decree, and is therefore promoting the legalization of "chocolate cars," as it would be a mistake to petition President Claudia Sheinbaum to cancel this program.

"Former President López Obrador made an excellent decision by opening the decree legalizing American cars for vehicles that are in the country and entered before 2021; the decree was issued that year."

We've been promoting the need for people to legalize their cars. We have to wait until the decree is finalized. It's important to legalize these vehicles because it provides legal security. The cars and who owns them are identified. If they're not legalized, they're sometimes used for certain illegal acts that leave no trace because they don't have license plates or are left abandoned," he noted.

He stated that if the decree is repealed, it will harm thousands of migrant families who, for one reason or another, have been unable to legalize their cars, and he considered it a cost-effective program.

He added that the funds obtained through the decree are allocated for road repairs in the states that implement it.

"We asked former Governor Diego Rodríguez Vallejo to open the decree in Guanajuato, but he didn't agree because they have all their eggs in one basket on developing the automotive industry in the state.

Authorities should be concerned about ensuring good wages. Guanajuato has the lowest wages in this sector compared to other states in the same field," he criticized.

Finally, he said that the UCEM requests that the decree be maintained and updated to 2024. This means that the decree currently only allows for the legalization of "chocolate cars" that entered the country before 2021, and all those that entered in subsequent years do not have that possibility.

"It's important because it also helps us eliminate extortion on the highways by various police authorities," he emphasized.

RAA

Dulce Muñoz Barajas
Written in Automotive Industry on

Graduate in Communications Sciences. Reporter with 10 years of experience. She primarily covers health and education; she also has experience in other topics such as politics, social activism, the LGBTI community, animal rights organizations, culture, and urban reporting. She has been a reporter for AM and Al Día since May 2017.

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