and Mercedes Benz are jointly negotiating with the Mexican government for a cut
in taxes paid by new vehicle buyers.

Ford Mexico chief executive officer Kathleen Ligocki said that Mexican vehicle
makers want help to compete against imports from the United States and Canada
when car import tariffs within the North American Free Trade Agreement (NAFTA)
areas are abolished in 2003, Mexico City daily Reforma reported.

Ligocki predicted that new car prices would be virtually equal in all three
NAFTA nations within two years. However, she added, Mexican car makers would
be at a disadvantage because of a new-vehicle tax (ISAN) currently levied on
their products.

The Mexican Automotive Industry Association (AMIA) and the Mexican Auto Distributors
Association (AMDA) are also taking part in the talks, according to Reforma.

To view related research reports, please follow the links

Automotive Legislation

automotive industry in Latin America: Mexico, Brazil and Argentina Forecasts
to 2005