About six months ago, I said something about the “opening” of the Cuban new-car market, which at the time seemed less like an actual market opening and more like the introduction of new sources of graft for the regime. Halfway through Year One, it’s been, let us say, less than a roaring success:
Reuters reports that because of the markup, only 50 cars and four motorcycles left the 11 nationalized lots in Cuba during the first six months of 2014, netting a total of $1.28 million USD in new car sales.
You remember the markup, don’t you?
In one example cited by the news organization, a Havana Peugeot dealership wanted $91,000 for a 2013 206, and $262,000 for a 506 of similar vintage, which makes the government’s goal of investing 75 percent of all new-car sales into public transportation easier said than done; most state workers make the equivalent of $20 USD per month.
“But Cuba has free health care!” I hear you cry. Enjoy your walk to the emergency room.