Regulating ‘chocolate’ Cars Will Affect The Automotive Sector: Firma Car

Regulating ‘chocolate’ Cars Will Affect The Automotive Sector: Firma Car

Mexico City. The regularization of used cars imported from the United States, commonly called chocolate, will significantly impact the “damaged” productive chain due to the Covid-19 pandemic, predicting the leasing company Firma Car.

In the framework of the Grito Biva, on the occasion of the third issuance of private debt by Firma Car, for an amount of 650 million pesos with a term of 4.6 years, Ramón Gómez, president of the council of the lessor, described that the chocolate cars They are more focused on the northern strip of the country and it hurts the automotive industry in the area a lot (in its growth and employment), so the measure proposed by President Andrés Manuel López Obrador will not help the sector.

According to Emilio Olavarria, CEO of Firma Car, the automotive industry begins to register a recovery, after the onslaught of the 2020 lockdown, which caused its worst year with the production of 950 or 960 thousand light vehicles.

“For this 2021 the Mexican Association of Automotive Distributors (Amda) estimates production of one million 100 thousand units. The sector bottomed out and little by little we will return to the highest levels recorded in 2016 of 1.6 million vehicles. If we see a frank improvement in vehicle consumption, ”Olavarria said.

Therefore, regularizing chocolate vehicles at low cost is an important impact on the entire production chain of the automotive sector, commented both executives of the lessor with eight years of history and a leasing portfolio of around 1,300 million pesos.

Own or rented

The health crisis is accelerating the change in the habits of Mexican drivers. Owning a fleet or car is no longer a priority for companies and individuals with business activities.

When presenting the placement of Firma Car, María Ariza, general director of the Institutional Stock Exchange (Biva), affirmed that companies that have car fleets resort to car leasing to optimize their costs and improve the economy of their business.

According to data from the Mexican Association of Vehicle Lessors, vehicle leasing increased 9.1 percent in the last quarter of 2020.

“Leasing a car avoids some expenses and complications such as insurance purchases, the depreciation of the vehicle, the expense of constant repairs and, at the end of the contract, it gives the option of buying the vehicle,” Ariza described.

Emilio Olavarri commented that the pure leasing of vehicles and any other asset is the basis for faster growth. Customers are not undercapitalized and can use the money for other capital goods, which are greatly helped in these times pandemic.

“The portfolio of legal entities is growing more than that of individuals with business activity because companies had a little more capital and were a little better funded and better resisted the issues of the pandemic.”

Categories: Technologies

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