ANNOUNCED AS TEMPORARYNo
On 26 March 2015, the government reintroduced a program which allows transport vehicles that are older than 10 years to be exchanged for newer ones. The measure is directed at cargo trucks and buses of which at least 50% have to belong to small transport providers, so called 'hombres camión'. The guarantees will be provided by the National Development Bank (Nafin) at an interest rate of 10 to 15 per cent.
The policy is preceded by a similar measure, which lasted from 2004 to 2014 but resulted in few vehicles being scrapped, i.e., about 3'750 per year. The new scheme differs from its predecessor in a few points: The monetary support is about 55.5%-81.3% higher and is adjusted annually to inflation, 6'000 vehicles are expected to be scrapped per year, and it introduces the option to exchange two old vehicles for one new one.
The government argues that the scheme will improve road security, reduce gas emissions and increase the competitiveness of the automobile sector. It is effective from 27 March 2015 until 31 December 2016 with possibility of extension.
In a separate decree, Mexico also introduced local content requirements for the renewal of vehicles. For this, please, consult measure no. 9517 under Related Measures.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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