Living in Peru : your everyday companion

New bill could allow more car imports into Peru

Living in Peru
Israel J. Ruiz

APRA congressman Jorge Leon was immediately criticized when he proposed to pass a bill that would allow more used vehicles to be imported into Peru.

Many assured that the bill would in no way help the country's current transportation problem; instead, it would worsen the Andean nation's situation by allowing older vehicles into Peru.

The bill proposes to continue allowing the importation of used vehicles into Peru but would modify regulations by allowing the importation of vehicles that have been used for more than 180,000 kilometers (111,846 miles).

Only vehicles less than 5 years old and which have not been used for more than 80,000 kilometers (49,709 miles) are currently allowed into Peru.

Critics have claimed that if the bill were to be approved, it would only add more junk onto the country's roads, increasing pollution and possibly cause more accidents.

On the other hand, the bill does not intend to change how old a car can be when imported into Peru. The maximum age would remain at 5 years.

This fact has also raised concern.

It has been questioned if it would be a good idea to import vehicles which have been used over 180,000 kilometers (49,709 miles) in 5 years.

Furthermore, the bill proposes to allow vehicles that have been involved in accidents and that have not been repaired into the country.

Politicians disagreed and assured this did not fit into the government's plans to improve the country's transportation system.

 | |

• Politics : Peru's next Prime Minister says some of Garcia's cabinet must stay
• Sports : World Cup qualifiers: Peru faces off against Bolivia 11,000 feet above sea level
• Politics : Who is Peru's new Prime Minister? - Yehude Simon's background
• Politics : Peru's President Alan Garcia chooses new Prime Minister
• Peru : Peru: Morning News Roundup - Saturday October 11

# No more imported junk cars says :
6 June, 2008 [ 15:19 ]

This proposed bill makes absolutely no sense.  Congressman Leon should be forced to go outside and put his lips around the tailpipe of one of the imported cars with more than 180K Km and breathe deeply.

# Congressman says :
6 June, 2008 [ 16:26 ]

Look, I can propose whatever the hell I like. I answer to no-one.
A change in used car import laws, if it is rushed through quickly, would allow my friends and I, poised and read, to make a quick buck.
No-one has the right to criticise my busines dealings. I'm just trying to make an honest living. Why won't anyone think of MY needs?

# Jorge MM says :
7 June, 2008 [ 00:57 ]

Jorge Leon or Jorge Burro?? ... Peru does not deserve to become dumping ground of old japanesse, american or european pieces of junk.. we need more new full efficient or LPG cars to reduce the pollution in Lima.

# kevin lichtman says :
7 June, 2008 [ 09:25 ]

Free trade is NOT a dirty word and importation of goods to markets unable to manufacture them more efficiently is good for the economy because it frees up capital for other uses and fosters competition.

Limiting importation of any vehicles (or other products) to Peru artificially restricts supply and inflates the price of available vehicles for Peruvian consumers and businesses. Simultaneously, the same market conditions compel sustaining older existing vehicles in service longer.

If Peruvians are concerned about safety and pollution, then they can address those issues seperately through vehicle legislation and by enforcing inspections on imports.  Meanwhile, Peruvian entreprenuers and foreign investors should be encouraged to develope an internal automotive industry including natural gas vehicles.

# Smart fellow says :
7 June, 2008 [ 09:40 ]

Kevin, you speak words of wisdom.  A good, well thought out post.  If only people could see how artificially limiting trade causes its own host of problems. 

Would you consider running for political office, you sound like a voice of reason. 

# jb says :
7 June, 2008 [ 09:55 ]

All countries have importation restrictions.  Try importing a new BMW from Germany into the US that doesn't meet California emmissions standards.  It wouldn't even get loaded on the boat in Europe.  Why should Peru be the dumping ground for the world's junked cars?  The average age of a auto in Peru is 17 years.  We need to decrease this number because these old cars are not properly maintained for safety nor emmissions standards.  The famous "technical review" will help but it has been started and stopped a couple of times.  Lord knows when it will get back on track.
Internal automotive industry in Peru? Do you know how many new cars are imported annually?  It is a fraction of the amount required to justify an automobile assembly plant.  In all of Latin America, the only markets large enough to attract this type of investment are Mexico and Brazil because they have internaly consumption large enough to attract foreign investment. 

Read El Comercio today - business section.  There is an interview with this knucklehead congressman Flores.  He was quoted: "If you give adequate maintenance, a car can last 300Km".  His first five words are the key to the folley of his proposal.  No one in Peru does this.  The prosecution rests.

# moni says :
7 June, 2008 [ 10:11 ]

I haven't been in eru for 5 years but, the pollution is a problem, which leads to asthma and other respiratory diseases. The govermment should be strict and regulate not to receive junk that leads to poison on the air and people pays the consequences in Peru, it is time for the govermment to regulate and cut down on clicks and companies who doesn't care, it happens in many parts of the world. Hopefully Peru will still keep the escence of keeping the nature without destrying the humanity and our animals and leading to destroy the air. Eveyone knows specially when you lived overseas as Europe and United States. Restrictions should apply to let junk cars for profit, only for those ones who will take advantage of the situation and live on the poor to sell their junk. Morals and values should apply from a president as a leader and his congress representatives.

# kevin lichtman says :
7 June, 2008 [ 10:11 ]

JB: It is not unreasonable to think that a for-profit business could, at the very least, assemble and market motor vehicles in Peru for sale domestically and even for exportation.

Peru has competetive labor costs, easy access to ports and suffcient infrastructure to support light manufacturing. Components requiring heavy manufacturing and specialized technology can easily be imported from OEM manufacturers in places such as Asia, Mexico and Brazil. Other components such as upholstry, plastics, glass are easily and efficiently made in Peru.

Sweden, with half the poplation of Peru, manufacures two brands of motor vehicles plus private and military aircraft. In the US, over 50% of the components of a Ford or GM vehicle are manufactured elsewhere.

In case you haven't heard; the world is "flat" (Thomas Friedman).
Peruvians only need to take advantage of the opportunities available.

Smart Fellow: Thank you for your kind praise. however, I prefer a more honest profession to 'politics' (besides, I am not Peruvian).

# moni says :
7 June, 2008 [ 10:20 ]

Many ignorants like you congressman states like that, you do whatever you want for profit, hell to the rest of the peruvians, typical thought of freedom and ignorant egocentric as i see thousands of people where i live now, therefore time will get there. it is a cycle, americans thought it will never happen, see because of taking care the stupid irak war, look where it is leading the recesion of economy which affected the americans, because they put their nose where doesn't belong. now the fuel is high, the cost of living triple, and foreclosure on a rise, i knew one year ago, it is coming, but who pays the consequences is people, it is time to stop to be powerful and analyze what wrong you can do to others, and not to take advantage. It is clear, it is difficult to go up but when you get there just be careful because you can get down in seconds. The same concept applies to those ones who doesn't have values neither morals, that's why the world is where it is. Don't bring your junk to Peru and stay as far as you can, i rather see Peru with problems than being exploited and used by others who only take advantage of the poor and couldn't do anything in their own countries.

# moni says :
7 June, 2008 [ 10:33 ]

i can tell you are not peruvian without ofending your last name leads to jew american, i can pick up by their last name, besides i am 100 peruvian and lived in Germany for 5 years and speak and write German and english but exposed me to be broad not to be ignorant, only to suck up money as the age of early ages slavery times where Moises and people suffer, time changes, the last ones will be the first ones. By the way, you only looking for profit, I rather have Peru in a cleaner environmment than a worst environmment where it's people will pay in a long run. Politicians in Peru should stop look for their own personal profit and should apply the philosophy as the scandinavian countries, for example Norway, third in production of oil, second on gas production and fish production in the world, there is no way you can do as you please, as long as the govermment interferes and gets involve in your business. Perfect example: If you have a terminal disease, the police automatically will take you license, and will be removed and the doctor office will contact the police, and you are not able to drive or the rest of your life. Prevention on death, killing others.

# kevin lichtman says :
7 June, 2008 [ 10:37 ]

Moni: are not new jobs good for Peruvians? are not revenues from exportation of Peruvian goods good for Peru's economy? are not lower prices for transportation good for poor Peruvians?

Pollution and safety can be insured without sacrificing economic initiative and a better life for ALL Peruvians. Allow the import cars, but only those meeting minimum requirements for polltion and safety. Encourage the manufacture of domestic vehicles to provide jobs for Peruvian workers and better choices for Peruvian consumers.

# jb says :
7 June, 2008 [ 10:39 ]

KL, If it were reasonable, some smart for profit company would have already done it. 
Light vehicles, including passenger cars, multipurpose vehicles and sports utility vehicles, totalled 25,048 units for 2007.  Toyota, the most popular brand in Peru totaled 12,170. 
Aside from the small numbers, the other problem with this magnitude of an investment is the lurking and ever present "nationalization".  It has happened in three neighboring countries within the past couple of years.  It happened in Peru in the 70's.  Peru dodged a bullet this past election and Alan Garcia was elected by an eyelash.  The alternative, Ollanta Humala, would have set about nationalizing all gas, mining, telecom, power generating and heavy industry (probably including auto assembly).  His party, with the continued financial aid (petro dollars) from Hugo Chavez is waiting in the wings for the next national election. 
Sweden is hardly a fair comparison with Peru.  Peru has a GDP equal to Utah. The GDP per capita (a more important measure) is a fraction of Sweden's.  The average annual earnings per capita in Peru are less than US$2,000.  The labor force is no where nearly as educated as Sweden's.  Like I said, if it were reasonable, someone would have already done it.

# kevin lichtman says :
7 June, 2008 [ 10:49 ]

moni: shame on you for your personal and bigoted response to a friendly and intelligent argument. I will encourage the moderators of this forum to censor your future posts.

JB: you are correct in that political risk remains a barrier to capital investment. however, the greater the extent of inter-national trade and investment the greater the incentive to maintain the status quo. countries dependent on foriegn trade are less like to shoot themselves in the foot - at least not intentianally.

# Michael says :
7 June, 2008 [ 11:41 ]

Speaking from a mechanical standpoint - as long as a car is in good condition, and can meet air-quality standards, why not let it be imported?

I had a '92 minivan that I drove until 230,000 miles.  Even when I gave it to charity, it still met all of the inspection standards of California.  In fact, it was easily within range of the standards.

While the car was old, I was wishing I could have sent it to Peru.

Cars only become a pollution issue if standards are not kept up.  If Peru can start enforcing some standards for pollution (and safety), then what is imported will no longer be a problem.

My guess is that cars must be less than 5 years old because the government figures this is the best way to almost guarantee a car has good pollution controls and safety features.  Since the car isn't really inspected for these things, though, it isn't much of a guarantee of anything.  Maybe it is just easier than creating the infrastructure needed to enforce current standards for cars in Peru already.

# jb says :
7 June, 2008 [ 13:01 ]

Michael, when they cranked up the vehicle inspections in Lima 6 months ago (and subsequently shut them down 3 months later), 47% of the vehicles inspected failed the safety and emissions test.  No one here maintains their vehicles in Peru so importing more used vehicles with even higher Km's makes no sense.  Besides they reported that nearly 70% of the used cars currently imported have had the odometer turned back.  It has nothing to do with protecting "free enterprise".  It is a mafia.

# moni says :
7 June, 2008 [ 14:34 ]

My point is i am very happy that i am peruvian, my spanish and inca heritage, i understand the globalization, but if you ask yourself how many countries left are there in the world that the nature is preserve, the exploitation still exists, Peru is one of the richest countries in the world in fauna and flora, has oceans, mountains, the andes, its food, i have been in Europe for so many years, married to one and love Europe also United States because gave me the freedom to work but to respect the country, and not to do anything wrong to anyone, that's the way you go far in life, to be mentors for the future generation. But when i ask myself how my life turn into be international and broad, at the same time, you see how acelerated the world is, the food, its people, i haven't seen any part in the world as i enjoy my childhood in Peru, the beaches on summer, the andes, the freedom that you don't feel as an slave, Peru might not be an industrialized country, but I can say been abroad, I lived as a queen in Peru with nannys and luxury of living when i compare the price you pay to do everything for yourself when you are abroad, just when the politicians do wrong decisions. Destroyed people, peruvians suffer in the 80's. no water, toque de queda. no electricity, terrorrism, where where those ones who wanted to help Peru, when its people needed them???? That's my point, hoping and praying that Peru is not going to be one country to be exploited for everything and not giving a chance to their own people.
Peru is sitting on a gold mine, I can say it because i lived in several countries in the world. Nothing like Peru, respecting that I am also american and have tri nationalities children, i always talk about my Peru to them!!!!!Not to be shame and they know, mom nothing as a family, the love, the care, the values, no compare, they cry as part of their heart stays in Peru. You appreciate more your country when you lived it and you compare!!!! happiness!!!

# kevin lichtman says :
7 June, 2008 [ 14:45 ]

moni: We have much in common. I am an American married to a Peruvian. I also have family in Europe and have had the good fortune to have travelled globally.

I am very much enchanted with Peruvian culture, people, cuisine and the country's rich and diverse natural resources and history. My point is that Peru is at a crossroads for opprtunity which can elevate all its citzens' quality of living. Better yet, it can be accomplished without sacrificing the country's environment or exploiting the safety and health of its most vulnerable citizens.

Rule of law, sensible policies, effective enforcement and an end to corruption are important to success of any community. 

Although you did not come out and say so - I accept your apology.

# Michael says :
7 June, 2008 [ 15:34 ]

I am married to a Peruvian and have been to Peru many times.

moni;
   You, like my wife, are from the absolutely spoiled upper class of Peru.  While you (all) grew up with servants and maids, you are shocked to find that one actually has to work to achieve in life.  Not everything is handed to you on a silver platter.

Exploitation?  How about your family, and many others; the exploited and broke the backs of the people of Peru for centuries.

I think the only reason that certain people in and from Peru and upset about the exploitation is because that used to be their job and reason to live.

# moni says :
7 June, 2008 [ 16:02 ]

That i don't know but one thing is that my parents worked all of their lives, they had ups and downs,but my dad's legacy is always work and be good to others. Girls who lived with us were accepted as family and even lived with us for years and not using uniforms, at time of tv show, chela or felipa sat with us, played with us and ate with us, and they loved us for years, and stayed with us until the end. My dad passed away the last woman we had my mom asked her you want to have your own life,fine, she helped her to have her roof over her head and fed all the workers who made her home and her roof, the relationship is forever more than just a working person. Peruvians care once they get to know them and they are part of the family in a bad times and good times. It is priceless.My parents never changed girls all the time, the few of them,lived with us 10 to 15 years and still keep in touch and visit my mom when we go there and they are our family.

# moni says :
7 June, 2008 [ 16:43 ]

jb why you just don't give your complete name and say it correctly. do you live in Peru to compare, first of how can you compare Peru and Sweden? first of Sweden is a western industrialized country and socialist not communist, second Peru is rich on resources comparing to Sweden, the cost of living in Sweden is high, but salaries are high and education is free, now every Swedish has a chance to go for free to university and even learn 3 different languages in high school level up to university. Now, Peru is not industrialized, there is poverty because of lack of govermment leadership, they only steal and put in their pockets, as it is in the capitalist country, i live in Usa for 23 years and i contribute paying taxes, there is no free lunch here either, but there is corruption here and in Peru, the big sharks and you know what i am talking about, always look to the little fishes to eat them up quickly, there is no intentions just to go to another country to help, there is almost an interest to suck up something. Either exploitation of the small countries, and to keep the small ones to be uneducated, and the big shark to get bigger, talking about international politics, i will rather have a way of living as the scandinavian countries that their oil is not privatized, their gas still belongs to the govermment, in fact they dont belong to the euro monies neither the european community, why because they want to keep their retirement plans for their citizens, they want to value their citizens, with the price of paying high taxes, but that will protect their citizens, free education, free university, free  health care, and benefit on getting a retirement plan, what can you get in other countries, how can you compare Sweden with Peru???? If you live in the states what kind of retirement can their citizens get regardless of working 29 years and paying taxes>?? nothing.

# danidanado says :
8 June, 2008 [ 16:44 ]

I think it's a progressive idea to let cars in that have more than 180,000 klicks.  If the vehicles are less than 5 years old, they most certainly could easily be converted to LPG propane.  Cars that run on propane typically run much cleaner than regular gas, need less maintenance, and last longer.  All imported cars should be inspected for safety and air-cared prior to being registered in Peru.  Even vehicles up to 10 years old could be imorted without giving up safety or dirtying the enviroment.  This would allow many more Peruvians to own cars and that would benefit the economy.  A long time ago when I lived in North Eastern Brazil, there was a shortage of buses.  The government in Recife, Pernambuco built a facility to rebuild buses imported from down south in Sao Paulo.  The old buses were made by Ciferal and the rebuilt ones were called Reciferal!  Private bus companies then bought these buses at a much lower price than new ones and the public were benefitted by having more and safer buses on the road.  Peru could also benefit by a similiar solution.