Mexico has earned a substantial amount of money from the registration of ‘chocolate cars’ over the past three years. These unregulated vehicles imported from the United States have been a source of concern for the Mexican government due to their illegal status. In an effort to address this issue, Mexican officials offered a grace period for owners to register their vehicles for a low fee, making them legal to drive in Mexico.
The registration of these chocolate cars has led to a significant revenue boost for the Mexican government, with $346 million generated for road-infrastructure projects across the country. In Baja California alone, 400,000 chocolate cars have been registered, contributing to the overall revenue.
However, the influx of these registered vehicles has had a negative impact on the used car lot industry in Tijuana. With hundreds of thousands of cars being brought in from north of the border, many used car lots have struggled to compete with the public sales of these imported vehicles. As a result, some car lots have been forced to close down, leading to job losses and economic challenges for the industry.
Julián Palombo, president of the city’s chamber of commerce, has voiced his concerns about the impact of these chocolate cars on the local economy. He highlights the importance of used car lots in supporting various businesses such as autobody shops, garages, and mechanics. The never-ending extensions for registering these vehicles have put additional pressure on the industry, making it increasingly difficult for car lots to stay in business.
Palombo emphasizes the need for a clear end to these extensions to prevent further closures of used car lots in the region. The high tariffs imposed on the importation of cars have also contributed to the challenges faced by the industry. Without significant changes, many remaining car lots may be forced to shut down within the next few months.
The term ‘chocolate cars’ is derived from the Spanish word ‘chueco,’ meaning crooked, highlighting the illegal status of these imported vehicles. Despite the revenue generated from their registration, the negative consequences on the local economy cannot be ignored. As the deadline for registration is extended once again, it remains to be seen how the industry will adapt to these ongoing challenges.
