Fuel-burning issue for local dealers
Published:Sunday | December 5, 2010 | 12:00 AM
Brian Bonitto, Special Assignment Editor
Lynvalle Hamilton, president of the Jamaica Used Car Dealers Association (JUCDA), says his organisation would breathe a sigh of relief if the government should decide to import cleaner diesel fuel.
"I know quite a number of members [of JUCDA] who have imported vehicles and the diesel fuel currently available has damaged their engines ," said Hamilton, in an interview with Automotives.
Currently, used-car dealers are restricted to importing vehicles - using both diesel and gas - that are no older than three years.
"If the move to import cleaner diesel fuel should be implemented, it would allow the used-car dealers to import a wider range of vehicles and that would be beneficial to our industry," Hamilton continued.
Two Fridays ago, Karl Samuda, Minister of Industry, Investment and Commerce, publicly declared his commitment to improving the quality of fuel for vehicles available locally and said he would convene a meeting with the relevant ministries in that regard. He was speaking at the official opening of ATL's Automotives Limited in Bogue City Centre in Montego Bay.
SITUATION REVIEW
"We are going to review the entire situation as it exists today. And, to see what we can do to move it forward quickly," said Samuda to hundreds of guests.
The minister admitted there was no quick fix to the problem, as major upgrades had to be done to existing storage facilities.
At the same event, Adam Stewart, deputy chairman of ATL Automotive - dealers of Audi, Land Rover, Honda and Volkswagen, highlighted the benefits of using cleaner fuel.
"This is not about money. This not about debt. It is about the environment," said Stewart. "Clean fuel is the beginning [of the process]," he continued.
Stewart said new-car dealers were hampered in the importation of motor vehicles with the latest technology due to poor quality of fuel available on the island.
"You cannot go to Europe and buy [vehicles with] the latest technology. It will fail in Jamaica," he said.
The diesel fuel available locally is high in sulphur, possessing 5,000 parts per million (ppm) as opposed to 10 ppm to 15 ppm as what now obtains in First World countries.
duty structure
Stewart also proposed that the government should review the current duty structure with a view to encouraging Jamaicans to buy vehicles that are environmentally friendly.
"Bring the duties down, so people in Jamaica can afford new cars that are being manufactured not to damage the environment through emissions," he said.
Despite the challenges that face the local car industry, coupled with the global recession, Stewart was upbeat.
"We have moved from two per cent of market share to 15 per cent [since 1997]. We have won Honda's top awards two years in a row and, this year, we were recognised for having achieved the deepest market penetration for the region," he said.