“Plan exchange” and “green bonds”: the proposal of an Argentine businessman to eliminate old cars

The debate on the aging of the Argentine Automotive Park He took force again. The market fall in recent years, with quarries outstands at the exit of the 2001 crisis than to the 2013 records, led to less rotation and replacement of models in Argentine streets.

Federico PieruzziniCEO of Exemptofficial representative of Volvo, Jaguar, Land Rover, MG and Geely In the country, he raised the need for a National exchange plan that allows to renew the circulating fleet and move towards a safer and sustainable mobility.

“I imagine it modern, transparent and without direct fiscal cost. Learning from the 90’s plan, you have to prevent it from being a patch. The axis has to be to remove insecure and pollutants of more than 15 years that generate accidents daily and replace them with 0 km efficient”Pieruzzini said in dialogue with scope. And he added: “It can be done with deferred VAT, with contributions from the entire chain (manufacturers, importers, concessionaires, insurers, disharmed, approaches) and with strict control of chatarization. It would not be to give cars, it is to order the market.”

The diagnosis is overwhelming: Today more than 6 million cars circulate more than 15 years old. For Pieruzzini, his replacement would bring an immediate impact. “Renewing them means less accidents, less victims and less pollution. Modern cars have ABS brakes, airbags, electronic controls and cleaner motors. It is not just renewing a vehicle, it is saving lives and improving the air we breathe.”

The recipe of an Argentine businessman to eliminate old cars

In that line, he proposed to complement the plan with “Green bonds” that encourage the purchase of hybrids and electric. “Very simple: if a buyer chooses a hybrid or electric, receives an additional bonus. It can be an extra discount, a partial exemption from patent or tolls, or a cheaper insurance benefit. It is a push that does not have to come only from the state, it can be shared with insurance, municipalities or road concessions. It is a way to align market and sustainability.”

Pieruzzini also referred to the structure of Internal taxeswhich considers “the real market problem.” “The second scale generates an artificial gap. When a car pays it, it rises strongly price. That leaves a space under where the cars that do not pay can increase without really competing. Instead of ordering, the tax ends up distorting the entire market,” he explained.

That is why he proposes concrete correction: “Mainly, reduce that second scale. If we shrink the barrier, we force prices to accommodate in all segments. The State does not lose collection, but it is won in competitiveness and price transparency. ”

The impact of this Tax load It feels directly on the brands it represents exemar: “Volvo and Land Rover offer technology, security and efficiency, but end unnecessarily. And at the same time, a generalist car ends more expensive because it takes advantage of that gap. In the end, the consumer pays more, both in Premium and Semi-premium. And the reality is that Premium cars end up putting a roof in the prices of general brands. ”

Comparing with experiences from other countries, the Executive highlighted the cases of Brazil and Mexicowhere more balanced tax scales are combined with fleet renewal programs. “We can also look at Europe, where green plans combine fiscal and environmental incentives. The key is to think in the long term and not with isolated measures.”

Pieruzzini He warns that a tax correction in the highest segments would also benefit the general cars. “There would be more real competition. Today those cars raise their prices because they are shielded in the gap. If we correct the scale, those segments should accommodate and offer better prices and more value to the consumer.”

As for the expected effect in the industry, it was optimistic: “Very positive. A more competitive market, with clear and no distortions, gives certainty to the terminals, the importers and the network of concessionaires. That generates more volume and more employment, which is what we need. ”

For him Ceo to exemptpublic policies must have a clear role in the transition to sustainable mobility: “A role of facilitator, not exclusive financier. The State can order, give clear rules, differ taxes, enable electric charge infrastructure. But the transition has to be shared with manufacturers, importers, insurers and dealers.”

Finally, he summarized his future vision: “A exchange plan would be an economic, social and environmental tool at the same time. Economic, because the market moves; social, because it reduces accidents and saves lives; Environmental, because it removes polluting cars. The future I imagine for Argentina is a more competitive market, more transparent and safer. With modern cars, with an orderly transition to the green, and with policies that think of people and not only at the juncture. ”