Strategic Review-

General Motors

Mexican vehicle makers, including General Motors, want the ISAN federal tax on new vehicles abolished, according to a report in Mexican financial daily El Economista.

General Motors Mexico head of public relations Carlos Gelista said that in addition to paying 15 percent value-added tax (IVA), new vehicle buyers are currently required to pay ISAN, effectively boosting the price of a new vehicle by 25 percent.

Gelista said that many Mexicans would consequently choose to purchase their new vehicles in the United States when import tariffs on vehicles from Mexico’s North American Free Trade Agreement (NAFTA) partners, the United States and Canada, are abolished on January 1, 2004.

He said non-export sales by Mexican vehicle makers would suffer unless ISAN is scrapped.

To view related research reports, please follow the links below:-

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