The Cuban Ministry of Transport, alongside the state-run Automotive Services SA (SASA), has rolled out a new initiative aimed at allowing owners of vintage cars to exchange them for vehicles retired from state entities, as reported by the state media outlet Cubadebate. This measure, governed by Decree 119/2024, is touted as a response to the severe parts shortage and ongoing transportation crisis in Cuba, though it falls short of addressing the aging vehicle fleet and the limited access Cubans have to modern automobiles.
According to Cubadebate, the exchange will be managed exclusively through the SAG platform, accessible only within Cuba. The allocation of vehicles will be automatic, disregarding the brand or manufacturing year of the car. Each participant is granted two chances to accept or decline the offer. Upon finalizing the exchange, participants are required to pay a portion of the new vehicle's cost in the national currency.
Once notified via email, recipients of the offer have five days to accept it online and another five days to confirm the transaction in person. They then have 30 days to hand over their old car and complete the purchase. Over 3,000 applications have been approved in the program's first phase, which ends on March 16. Starting March 21, registration will open to all citizens. Currently, 7,975 applications are pending, with 113 incomplete due to missing information.
The vehicles available for exchange are not new models but rather ones retired from the tourism sector and other state institutions. While some of these vehicles feature more recent technology compared to cars that have been inactive for decades, the challenge of accessing modern vehicles in Cuba remains unresolved. The Ministry of Finance will set the prices, encompassing regulated taxes and commercial margins.
Outdated and Hazardous Vehicle Fleet
Cuba's vehicle fleet is among the oldest globally, comprising numerous Soviet-era cars and American models from the 1940s and 1950s still running due to makeshift repairs. The scarcity of spare parts forces many drivers to resort to improvised modifications, jeopardizing road safety.
Adding to the issue are the exorbitant costs of vehicles on the island, where purchasing a modern car is beyond reach for the majority. Prices in the state market have been historically high, and the informal market's scarcity further limits buying options.
The condition of the vehicle fleet also contributes to Cuba's high rate of traffic accidents. Official statistics link many recent incidents to mechanical failures, brake system issues, or the inability to find suitable spare parts for preventive maintenance. Poor road conditions and inadequate signage exacerbate the problem.
A Temporary Relief in a Long-standing Crisis
While the government's new exchange program could offer some relief to a number of drivers, it does not tackle the fundamental issue of vehicle access in Cuba. The reliance on repurposed state vehicles and the absence of a more accessible import market continue to leave most Cubans without real opportunities to enhance their personal transportation.
Until there are options allowing the acquisition of vehicles under more favorable conditions and without restrictions, the island's transportation crisis will persist as a barrier to citizen mobility and a risk factor for road safety.
Frequently Asked Questions About Cuba's Vehicle Exchange Program
What is the purpose of Cuba's vehicle exchange program?
The program aims to provide a solution to the shortage of car parts and the transportation crisis by allowing owners of old cars to exchange them for vehicles retired from state entities.
How does the vehicle allocation process work?
The allocation is automatic, with no consideration for the car's brand or manufacturing year. Participants have two chances to accept or reject the offer and must pay a percentage of the new vehicle's cost in the national currency if they proceed with the exchange.
Are the vehicles offered in the program new models?
No, the vehicles are not new models. They are units retired from the tourism sector and other state institutions. Some may have more recent technology than older cars but are not modern vehicles.