Regularizará AMLO, autos chocolate

He had already anticipated it four months ago and now he will fulfill it.

President Andrés Manuel López Obrador will sign an agreement next weekend to regularize “chocolate” cars in seven states on the country’s northern border.

It will be the beginning. Then mechanisms for the regularization of cars in other states of the Mexican Republic will be reviewed.

The resources collected, said the Chief Executive, will be labeled so that each state of the Republic allocates them to cover potholes in the streets.The intention is to regularize them to prevent them from being used to commit illicit acts.

The first president made the announcement after he referred to the case of the Hermosillo municipal president, who was recently supported by the federal budget to patch the streets and later, his replacement, requested an additional 6 billion pesos.

He said that this responsibility belongs to the states and municipalities. However, immediately afterwards he commented that he will sign the regularization agreement over the weekend and that the resources collected will be to fix the streets of the states of the Republic.

The president of Mexico is seeing only part of the problem. Observe the criminal issue and social need.

What it does not take into account is what its decision implies for the formal economy.

The Mexican Association of Car Dealers (AMDA) warned immediately via twitter.

He pointed out that the regularization of chocolate cars represents a reward for the mafias that enrich themselves with smuggling and a blow to the formal car trade, which generates jobs and taxes.

It is not the first time that a President of Mexico legalizes the illegal. And although the public arguments of all those who have made the same decision are the intention to stop the illicit and cover a social demand, the truth is that it obeys more to the electoral political interest.

The regularization of cars, yields many votes, to put it more clearly. The regularization of cars that President López Obrador will carry out will be the second most important that a Chief Executive has carried out in recent history.

The previous one was carried out by then-President Vicente Fox in August 2005 and 2006.

Paradoxically, two presidents from opposite extremes: from the right and from the left, choose to regularize illegal cars.

Additionally, through the amparos, between 2009 and 2014 around 2.3 million cars were imported!, According to AMDA calculations.

With the injunctions, vehicles with up to 15 years old were imported and were exempt from a 10% tariff, provided for in the 2008 decree, in addition to being exempted from complying with the Official Mexican Standard 041 on the environment.

In 2006, more than 1.5 million vehicles were legalized. According to preliminary calculations from the automotive sector, on this occasion, the legalization of cars could be around 1 million units.

This amount will include the vehicles that are already circulating in the country plus those that are introduced in the period that the regularization is in force.

And it is estimated that it will have a 20% impact on the decline in new car sales.

According to the editor-in-chief of Economic and Financial Trends, Carlos López Jones, the sale of new cars in Mexico has fallen 25% so far during the López Obrador administration.

Consequently, it will be an additional blow for an industry that, due to the value of its exports, represents one of the engines of the economy and one of the most important sources of foreign exchange available to the country.

The legalization of illegal cars has several negative effects for this industrial sector and for the national economy.

It negatively impacts the formal trade in new and used cars. Increase the vehicle fleet with cars considered junk in the United States.

They increase environmental pollution. It encourages corruption around the illicit business of importing junk vehicles.

It is difficult for the governments that have regularized chocolate cars not to know these negative effects.

For now, another blow is coming to the Mexican automotive industry. At the time.

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Rich and powerful

He has worked continuously in newspapers, magazines, radio, television and the Internet, in the last 31 years he has specialized in business, finance and economics. He is one of the three hosts of the Alebrijes, Águila o Sol program, a program specialized in economic issues that is broadcast on Foro TV.

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