Mexico May Legalize Older U.S. Vehicles

Owners of used cars smuggled into Mexico from the United States may soon be able to legally register their vehicles under a bill passed by the Mexican Senate this week.

The bill would allow legal registration of foreign cars manufactured from 1970 through 1993 that were brought into the country before Oct. 31. The bill, approved Thursday, now moves to the lower house, where quick approval is expected, and it would then become law.

Representatives of Mexico’s automotive industry oppose the initiative, which they claim will hurt their business, and said they would formally protest the action Monday.

The legislation is designed to help the owners of an estimated 1.5 million illegal used vehicles now being driven in the country. Many of the owners are poor rural residents or consumers who unwittingly bought cars or trucks they did not know were illegal.

The big attraction has been price: Vehicles purchased in the United States often are cheaper than those in Mexico.

The issue has provoked long and heated debates in Mexico, where officials say restrictions on the vehicles are needed to protect the nation’s auto industry.

In an effort to stem the tide of illegal vehicles, the government last year announced that it would require drivers of U.S.-registered cars to pay deposits of $800 to drive into Mexico. The plan was withdrawn after strong criticism from both sides of the border.

In March, Mexico’s Commerce Department announced a “grace period” for illegal cars more than five years old. Those cars had until Sept. 13 to leave Mexican territory without facing the threat of being confiscated. That rule was aimed at helping people who may have unwittingly bought illegal cars.

The Commerce Department simultaneously eased restrictions on imports of old pickup trucks from the United States or Canada, allowing trucks at least 10 years old to be imported into Mexico for a fee of $200.

The new rules were aimed at helping farm workers obtain affordable vehicles. The lifting of the restrictions would have been required eventually under the terms of the North American Free Trade Agreement.