Mexico auto industry enraged over “Chocolate” cars

Mexico has passed a decree which now regularizes illegally imported cars which were never commercialized in the country for a one-time fee of MXN$2,500 (US$117).

Although the new legislation – aimed at supporting low income families in their need to acquire cars – has been approved by President Manuel Andrés Lópes Obrador and published in the federal government’s official gazette, it is not being welcomed by all. 

The authorization of the cars - which are popularly known as “Chocolate” cars - ignores the demands of the automobile industry, Bloomberg said in a report. This not only violates the legal framework of the automobile industry, “it opens up the door to more contraband vehicles”, the report quoted Mexican Automotive Distributors Association (AMDA) president Guillermo Rosales as saying. 

The auto industry argues that the procedure is inappropriate as it does not verify the amount of polluting emissions or the date of entry of cars into Mexico, among other things. Owing to excessive supply, AMDA estimates that this will decrease the value of used vehicles (with the same year and model) in Mexico by 20%. 

Most “chocolate” cars are smuggled from the United States, resulting in many unregistered vehicles in Mexico’s national fleet.

Photo: Mexico flag (copyright: Shutterstock)