In 2012, the Annual Automobile Title Registration Fee (tenencia) will be removed at the federal level, as stated by President Felipe Calderón Hinojosa, who pointed out that the legislatures of every state in the country would determine whether or not this would apply to their states.  In fact, some states have decided not to apply this fee. The President stated that, “Since 2007, under the Tax Reform for the Low Income People, my government proposed to repeal this tax completely. In fact, my government no longer receives a single penny from this tax, since all the proceeds go directly to the coffers of the state governments.” This proposal encountered much resistance and obstacles from the start, but as a result of legislative debate and discussion, the initiative was approved and was postponed to December 31 of this year. The nation’s President claimed that the next package of the Law of Income and Budget of Expenditures of the Federation will be one that clearly puts an end to the Annual Automobile Title Registration Fee. Since June of 2010, the government has supported consumers who decide to buy a new car with the payment of the Annual Automobile Title Registration Fee. President Calderón explained that this measure continues to be in force and will continue throughout this year for new vehicles and, starting in 2012, such will apply to all vehicles. The President pointed out that, solely in 2010, automobile production in Mexico increased 50% to a manufacturing record high of almost 2,300, 000 vehicles. He also said that exports rose 52%, reaching a new record of nearly two million vehicles sold in international markets. Mexico has become the ninth largest vehicle manufacturer in the world and the sixth largest vehicle exporter.