**Used Vehicle Lots Threatened by Extension of Car Regularization Scheme**
In Tijuana, the landscape for used car lots is facing a significant transformation due to the recent expansion of the decree to regulate so-called “chocolate” cars, or vehicles imported illegally. The Cámara Nacional de Comercio y Servicios Turísticos (Canaco) of Tijuana reported that the number of formal used car lots has dramatically declined from about 1,100 lots in 2008 to barely 115 today. This shrinkage has put numerous businesses and related employment sectors at risk.
Julián Palombo, president of Canaco, expressed concern over the extension of the regularization decree, now set to run until September 2026. He indicated that used car traders are anxious about the future of their businesses, especially with the removal of a decree allowing the importation of used vehicles along the border.
“This situation is a critical blow for businesses dealing in legally imported vehicles,” said Palombo. He recalled a thriving industry with over a thousand established lots generating jobs for a variety of trades, including body shops, mechanics, parts suppliers, and the lot employees themselves. He lamented that only a fraction of these businesses remain.
The local automotive industry once supported a circular economy benefiting multiple stakeholders. However, the stringent regulations and increased tariffs could make sustaining these businesses nearly impossible. Palombo cautioned that, without further extensions to the decree, the remaining used car lots might vanish within a few months.
**Secondary Story: Auto Industry Faces Rocky Road with New Challenges**
In light of recent developments surrounding the regularization of “chocolate” cars, the local car industry is bracing for additional hurdles. The extension of the decree has led to increased congestion on roads and at border crossings due to a surge in imported vehicles. This has not only affected businesses but also heightened traffic issues in already bustling cities.
Amidst these changes, used car dealers are lobbying for extended deadlines on import permits to maintain viability. Despite claims that the decree allows for better control over illegally imported vehicles, many argue that it disproportionately impacts local businesses over larger nationwide dealerships, which typically experience less risk from these regulatory shifts.
Moreover, there’s more pressure on border control as officials adapt to new procedural requirements to manage the flow of regularized vehicles coming into the country. With heightened scrutiny, everyday commuters and commercial operators alike are experiencing longer wait times and more complicated transit regulations.
As Tijuana grapples with these mounting challenges, stakeholders across the industry are calling for balanced policies that sustain both the local economy and regulatory goals. The hope remains for a solution that accommodates the diverse needs of this critical sector.