New car sales down 60%

[NewsWhore]

The president of the Association of Vehicle Manufacturers Concessionaires (ACOFAVE) reported today that sales of new cars were down 60% in the first quarter of the year compared to the two previous years. Fernando Lama said that the reduction in new cars sales is a consequence of the high levels of tax that go into the final price of the product. He said that they paid a tariff of 10%, plus 16% VAT, and a 17% tax to get the first license plate, and this totals 43%. Lama stated that 20 businesses selling new cars directly employ 4000 people, but the crisis could force them to fire many of them. El Nuevo Diario says that ACOFAVE asked the government to issue a temporary measure to eliminate the tax on the first license plate, and a reduction in interest rates. Meanwhile, ACOFAVE executive director Enrique Fernandez said that the reduction in new car sales can only be compared to 2004 which was the worst year. According to his projections, the market for new cars will barely amount to 11,277 units, while in 2004, they sold 11,925 vehicles. He pointed out that new car imports have fallen to 0 due to lack of demand. Leading car dealers Gilberto Marion-Landais and Jose Antonio Barret were also present at the press conference, alongside Fernandez and Lama.

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