The Automotive industry proposes to the Mexican senate a rescue plan

Warning: foreach() argument must be of type array|object, bool given in /home/mexiconow/public_html/sites/mexiconow/wp-content/themes/mexiconowwpnew/single.php on line 254

MEXICO — Vehicle, bus and auto parts manufacturers proposed a rescue plan to the Senate due to the recent drop in sales, exacerbated by the national health emergency.

The document calls for immediate and future actions, such as the replacement of 10-year-old units to reactivate production and sales, protection of temporary employment, deductibility of US$14,291 for new vehicles, temporary exemption from payment of ISAN (Tax on New Vehicles), and postpone the entry into force of the rules of origin of the USMCA until 2021, among others.

According to the request of the Mexican Association of the Automotive Industry (AMIA), the National Association of Producers of Buses, Trucks and Tractor-trucks (ANPACT) and the National Industry of Autoparts (INA), the sector generates 2,000,000 jobs (direct and indirect) in the country.

Just in the first quarter, the sale of light cars in the country fell 11% compared to the same period in 2019, and 28% in the case of heavy units.

This plan highlights the request to increase access to loans under preferential conditions by Nacional Financiera (Nafin) and the National Bank for Foreign Trade (Bancomext) for small and medium-sized suppliers to the industry and to create a subsidy program for Mexican manufacturers facing increasingly complex supply chains.

It requests as well a temporary employment protection program that helps maintain the workforce; support workers affected by technical stoppages with tax credits amounting to 50% of their wages and agree with state governments to apply a zero rate of wage tax as long as the crisis lasts.

Source: El Sol de Mexico