Regularization of “Chocolate” Cars to Hurt Puebla: CANACINTRABy Rodrigo Andrade | Thu, 06/23/2022 - 16:00
The National Chamber of the Transformation Industry (CANACINTRA) warned that including Puebla in the program to regularize illegally imported vehicles will hurt the state’s automotive industry and supply chain management.
Volkswagen Mexico and Audi, for example, have assembly plants in the region and do not agree with adding Puebla to this program, said Luis Espinosa Rueda, President, CANACINTRA. “We understand that chocolate vehicles are used by people with fewer resources for economic activities, such as farming, but others use them for transportation. However, there will be an impact on the industry, which is a driving force in Puebla, as well as on the market for new vehicles.” CANACINTRA represents Mexico’s industrial sector, aiming to promote its competitiveness and productivity.
The program to regularize illegally imported vehicles, also called “chocolate cars,” started on March 3, 2022. Applicants have to pay a MX$2,500 (US$125) fee but the program only applies for cars older than five years. The funds collected from fees will be used to fill potholes. The program initially started only in 10 states but has since been extended to others, including Puebla.
The program “will affect the number of vehicles that are granted regularization and thus affect the formal market of used and new vehicles,” said Guillermo Rosales, Executive President, Mexican Association of Automotive Distributors (AMDA), as previously reported by MBN. Rosales said that the methods being employed for the regularization are not viable, do not represent long term solutions and will bring more problems. “The federal authorities do not look for viable alternatives and go for actions that attract votes, it is clear that they are campaigning to the detriment of the automotive industry,” he said. The regularization could also lead to environmental problems, as these vehicles do not have the necessary requirements to pass Mexico’s vehicle inspections, said Rosales.
The program aims to regularize Mexico’s 2.2 million “chocolate” vehicles. “These are vehicles that need to come out in the open,” said Rosa Icela Rodríguez, Head, Chamber of Security and Citizen Protection.