DOING BUSINESS IN MEXICO

Business opportunities nearby can help your

business stay competitive

Marie A. Galindogalindo@butzel.com

Content

• Why Mexico?

• Automotive Industry in Mexico

• Guidance on main legal issues

• Mexico vs. other LCC countries (legal challenges)

Why Mexico?

Mexico Today

• 9th biggest world economy

• 7th most important commercial trader

• 3RD US trader

• Population: 105.1 million

• 2007 FDI: $23.2bln (+ 20.8% vs. ’06): U.S. 56.3%; Netherlands 10.8%; Spain 10.0%; UK 4.2%; Canada 3.4%; Germany 2.7%;

Japan 2.1% 2007 Inflation: 3.74%.

• Rate: approx $10 pesos per dollar.

Why Mexico?

Most Fortune 500 companies and over 16,000 foreign companies are located in Mexico ENJOYING:

• the benefits of competitive production costs;

• low cost skilled labor force creating top quality products and services (annual cost savings vary, but the typical cost savings are from $25,000 to $35,000 per employee per year);

• intellectual property protection;

cont…Why Mexico?Mexico has a strategic geographic

location:• it connects NAFTA and South America;• lead-times (to the U.S.) of one week or less

with normal ground transportation;• serves as the crossroads between the

Atlantic (to Europe) and the Pacific Oceans (to Asia). Close to the Panama Canal and with highway systems connecting ports on both oceans: close proximity to suppliers and customers;

• well developed communication and utility infrastructure;

cont…Why Mexico?

• a single time zone (generally CST);

• cultural differences easier to transcend;

• Mexico has the largest network of Free Trade Agreements (“FTA”) in the world

and continues expanding its FTA strategy. FTAs with 43 countries provides a unique opportunity: access to a preferential world market of more than one billion consumers at greatly reduced or no import duties.

Mexico is an ideal hub for world-wide production, distribution and trade.

Free Trade Agreements

No other country in the world has signed more FTAs:43 countries and 6 more under negotiation.

Automotive Industry in Mexico

COAHUILA

D.F.

QRO.

HERMOSILLOFORD(PC)

SALTILLOCHRYSLER

(ENGINES & UV)

AGS.

NISSAN(PC & ENGINES)

GTO.

G.M.(UV)

SANTIAGOM.BENZ (PC & UV)

SILAO

AGS.

V.W.(PC & ENGINES)

PUEBLA

HONDA (PC) GUADALAJARA

SONORACHIHUAHUA

G. PALACIO

LINAMAR(ENGINES)

MOR.

NISSAN(PC & UV)

CIVAC

BA

JA C

ALIF

OR

NIA

NO

RTE

BA

JA C

ALIF

OR

NIA

SU

R

SIN

ALO

A

DURANGO

NAYARIT

ZACATECAS

S.L.P.

TAMPS.

VERACRUZ

COLIMA MICHOACAN

GUERRERO

OAXACACHIAPAS

TABASCO

CAMPECHE

YUCATAN

QU

INTAN

A R

OO

HIDALGO

TLAX.MEX.

PUEBLA

NUEVOLEON

RAMOSARIZPE

G.M.(PC & UV)

TOLUCAG.M. (ENGINES)

TOLUCACHRYSLER (PC & UV)

BMW (PC)

CUAUTITLAN

FORD(PC & UV)

CHIHUAHUA

TOLUCA

GARCIA

TULTITLANMASA (TRUCKS)

TOLUCAVOLVO (TRUCKS)

KENWORTH (TRUCKS) MEXICALI

S.L.P.

SCANIA(TRUCKS)

NAVISTAR (TRUCKS)

JALISCO

TIJUANA

TOYOTA

(PICK-UP BOXES OF TRUCKS)

Geographic location of Automotive Industry in Mexico

North

Center

Bajío

ALCOA FUJIKURA FEDERAL MOGUL RAPID DESIGN SERVICE VALEOAUMA GOODYEAR TIE&RUBBER ROBERT BOSCH

VISTEON AVON AUTOMOTIVE HONEYWELL SATURN ELECTRONICS T.R.W BERGEN CABLE ETCHNOLOGIES ITESA SETON

SUMITOMOBREED TECHNOLOGIES ITT AUTOMOTIVE SHELDAHLCAPSONIC AUTOMOTIVE JOHNSON CONTROLS SIEMENSCARLISLE KENWOOD SSI TECHNOLOGIESCOOPER INDUSTRIES LEAR CORPORATION STRATTEC SECURITYCRONI LEONI CABLE STONERIDGE CORP.CUMMINS DIESEL LETTS INDUSTRIES YAZAKI NORTH AMERICADELPHI MANESA SUPERIOR INDUSTRIES EAGLE OTTAWA MORAINE TDK USA CORP.ELECTRISOLA NICHIRIN COUPLER TYCO INTERNATIONAL

CHIHUAHUA

AMERICAN RACINGAUTOLIVGONHERKENWORTHNKS SAFETY TECHNOLOGYPARKER HANNIFINPILKINGTONPIONEERTOYOTAWABASH TECHNOLOGIES

BAJA CALIFORNIA

AM MEX PRODUCTSATRONICSBENTELER.CHARLES E. GILLMANCHATA ENTERPRISEEXEMPLAR MANUFACTURING ITT INDUSTRIES LEONI WIRING SYSTEMSMOLEXOXFORD AUOMOTIVE PRESTOLITE WIRE CORP ST. CLAIR TECHNOLOGIES TRWT.S.E BREAKS TYCO YASAKI’S EWD (ACOSA)

SONORA

ALLIED SIGNAL-HONEYWELL BENTELERCASTECH CITATION TOOLS CIFUNSA DELPHIDOUGLAS&LOMASON FEDERAL MOGULFINDLAY INDUSTRIESGENERAL CABLEIRVIN AUTOMOTIVEJOHN DEEREJOHNSON CONTROLSLEAR CORP. MAGNA INTERNATIONAL MAGNA SEATING SYSTEMS MAHLE MANNESMANN-SACHSMASCOTECH OXFORD AUTOMOTIVE PILOT INDUSTRIES PLASTIC OMNIUM RASSINISTABILUSSTEYR-DAIMLER-PUCH TAKATATEKSID FIATTENN-MEX TEXTRON AUTOMOTIVETWB

COAHUILA

ALPINE ELECTRONICS KONGS BERG AUTOMOTIVE AMMEX PRODUCTS MATSUSHITA BBB INDUSTRIES MIKUNI TEXASBREED TECHNOLOGIES MINNESOTA RUBBERBRONCO ELECTRONICS NAFTEKDELPHI VALEO PRECISION CABLE MANUFACTURINGDELPHI AUTOMOTIVE SYSTEMS PULLMEX FEDERAL MOGUL SIEMENS FERMAG STANDARD MOTOR PRODUCTS FUJITSU TEN TELEFLEXGLOBE MOTORS TI GROUPGODAM TROSTELGSW MANUFACTURING TRW HERTZ LEMEZ UNITED TECHNOLOGIES INVENSYS VELVACITT AUTOMOTIVE WELLS MANUFACTURINGKIMKO

TAMAULIPAS

ACCURRIDE HAYES LEMMERS INT. TAKATAAISIN JOHN DEERE LTH TEKNIK ALLIED SIGNAL LEAR THOMAS&BETTSALCOA FUJIKURA METALSA THOMAS BUILT BUSES AUTOCLIMAS MITSUBISH TOKIO ELECTRICACARUSI MITSUBA UNITED TECHNOLOGIESCATERPILLAR NAVISTAR REMSA VISTEONDELPHI NEMAK VITROFLEX DENSO PARKER HANNIFIN YAZAKIDONNELLY PIOLAX ENTRELEC PIONEER FREIGHTLINER RASSINIGONHER SIEMENS

NUEVO LEON

DELPHIMEXICORVOS

SINALOA

COMPAÑIA INDUSTRIAL ARMASLINAMARYAZAKI NORTH AMERICA

DURANGO

TIER ONE in Northern Mexico

Source: ProMexico Auto Division

BARMES GROUP BOSCHCLEMEX EATONDANA CORPORATION FEDERAL MOGULFIRESTONE FPAGOODYEAR GROUP HAYES LEMMERZHENKEL KGAA MANNESMANNJOHNSON CONTROLS KRUPPLEAR CORPORATION VALEOLORD CORPORATION ZF HOLDINGMETALDYNE PARKERPERKINGS TANG INDUSTRIESTOMKINS PLCSARNAMOTIVE BLUE WATERTI GROUP AUTOMOTIVE SYSTEMSMICHELIN CORPORATION MAGNA INTERNATIONALHITCHINER MANUFACTURINGINTERNATIONAL HELLA KG HUECK & CO.

CD. DE MEXICO Y ESTADO DE MEXICOALFRED ENGLEMANNARVINEDSCHABOSCH CONTINENTAL AGEATON EAGLE-PICTURE INDUSTRIES SAN LUIS RASSINISCANIAVALEO SYLVANIA

SAN LUIS POTOSIBUSSCAR K&SCALSONIC KANTUSCOOPER STANDARD MORESTANACOOPLAST MOTO DIESEL FORJAS Y MAQUINAS NABCOGESTAMP POLO MEXSIEMENS YOROZUINDUSTRIA DE ASIENTO SUPERIOR

AGUASCALIENTES

DELPHIYAZAKI

ZACATECAS

ABC GROUP-CANADA DURA AUTOMOTIVE SYSTEMS MERITORAMERICAN CAR EQUIPMENT FORJAS SPICER NEW HOLLAND ARVIN MERITOR GRAMMER NORANDA ASPERMEX HARADA INDUSTRIES PPG INDUSTRIES AUMA HBA CAST PRODUCTS ROCKWELL BROSE HI-LEX MEXICANA TREMEC SIEMENSCOLLINS&AIKMAN GROUP IRIZAR TENNECODANA CORPORATION JOHNSON CONTROLS VALEO SYLVANIA DELBAR PRODUCTS JOHNSON MATTHEY WOCODELPHI KSB T.R.W VISTEON CLIMATE SYSTEMS

QUERETARO

AMERICAN AXLE GROUP UNIKOARBOMEX HUTCHINSON AVENTEC MERIDIANCELAY LAGERMEXCONDUMEX LEAR CORP.EGANA OXFORD AUTOMOTIVEFERRANTI PACKARD TENNECOFLEX-N-GATE THYSSEN KRUPP AGGKN PLC US MANUFACTURING

GUANAJUATO

ARALMEX S&Z ROLMEXASIENTO SUPERIORATR ROCKWELL AUTOMOTIVEBW SAARGUMMICARBURAT SACHS BOGE CAUSAMEX SIEMENS VDOGRUPO FERRAU SUMIDAHELLA/HEMEX TAKATAMODINE VOGT ELECTRONICSPIONEER STANDARD WEBB DE MEXICO ROLAMEX YAMAVER

JALISCO

BRIDGESTONEFREUDENBERGFIRESTONETEMICVIDRIO SECURIT SAINT

MORELOS

ARCOMEXFORJAS SPICERJOHONSON CONTROLSKEIPER

TLAXCALA

BENTELER KIEKERTBREMBO RASSINI LUK MAGNA INTERNATIONAL TEXTRONHP PELEZER AUTOMOTIVE PARKE HANNIFINSYSTEMS SIEMENS JOHNSO CONTROLS SKF SOMMER ALLIBERT TENNECOFEDERAL MOGUL TRW

PUEBLA

AVON RUBBERSIEMENS

VERACRUZ

CITSA-PPG INDUSTRIESHIDALGO

AIR TEMPAXA YAZAKI

YUCATAN

AXA YAZAKICHIAPAS

TIER ONE in Central and Southern Mexico

U.S. Economy & Auto Industry

Will Mexico’s automotive industry depend on U.S. sales in 2008?

2007 was the worst year for US automakers in a decade and 2008 may not be any better.

• This year will hinge on:

1. The success of NEW models offered in US for the first time, and

2. ENERGY-SAVING models.

NEW MODELS:

• Chrysler (Toluca): $1bln flexible line for PT Cruiser and Dodge Journey, 1st crossover SUV

ENERGY SAVING MODELS:

• Fuel-economy (Aguascalientes): Nissan Versa for North & LA (2007 +274% US sales)

• Hybrids (Ramos Arizpe): new Saturn VUE Luxury (Hermosillo): Lincoln MKZ (Fusion, Mercury Milan), sales tripled in 2007

• Electric (Puebla): VW-M & Pristine Intl: JV to build all-electronic vehicles for shipment within Mexico, LA and India

Automakers will inject $5bln in FDI in the next 3 years, with another $2,5bln in

spending from auto suppliers.

• VW: $1bln to boost Jetta production in Puebla, to ship a substantial portion to Europe.

• FAW Group (China) : $150 million plant to produce 100,000 vehicles. Now selling for $6,000 - $8,000 through 823 retail stores, 20 new Mexico City and stand-alone dealerships in 2008, and national wide dealer network in 5 years. Financing available by Banco Azteca.

• ArvinMeritor: new axle and brake assembly plant in Monterrey.

Automotive Industry

Foreign Companies Mexican Companies

OEM

TIER 1

TIER 2

TIER 3

Current situation Espected grow

8

600

OEM

Suppliers

1994

2010

14

34530 30

150100

11550 200

600

Source: ProMexico Auto Division

Guidance on main legal issues

in Mexico

LEGAL SYSTEMS

USA MEXICO

(Common Law) (Civil Law)

NAFTA

(1994 -2009)

Main Legal Topics

1. TAX

2. INTELLECTUAL PROPERTY

3. CORPORATE

4. INVESTMENT RESTRICTIONS

5. LABOR

6. IMMIGRATION

Tax

Overview of the Mexican Tax System

• Mexican fiscal legislation containsdifferent laws related to each tax:

�Income tax

�Value-Added tax (IVA)

�Single rate tax (IETU)

• Tax laws have 3 levels of governmentAND International Treaties (to AvoidDouble Taxation).

Income Tax

• Mexican residents: are taxed on all income, from whatever source.

• Foreign residents, with a permanentestablishment in Mexico: are taxed on the income attributable to such permanent establishment.

• Foreign residents with no permanentestablishment in Mexico: are taxed on income attributable to Mexican sources.

Value-Added Tax

• The general VAT rate is 15% (except in the border area 10%)

• VAT (IVA) is levied on the transfer of goods, rendering of independent services, granting of temporary right to use goods, and import of goods and services. Exports and some other specified items are subject to the zero-rate, such as basic foodstuffs and medicines.

Single Rate Tax

• The ASSET TAX has been repealed as ofJanuary 1, 2008 and replaced by a “single rate tax” (IETU) that will tax all revenue less certain deductions at a 17.5% rate (16.5 in 2008 and 17% in 2009)

• Main Characteristics of the new flatrate tax: To be determined on cash basis, prohibition of deduction ofinterests, related party royalty payments, and non taxable payments to employees.

Intellectual Property Rights

Want to Keep or Increase Quality and Stay on the Edge of New Technologies?

1. Vietnam

3. China

6. Russia

10. Kenya

But Frightened about Sharing

your Technology

and/or Patents?

Source:

Business Software Alliance (BSA), 2007

Intellectual Property Protection

IP is governed in Mexico by:

• Copyright Law (CL) 07/23/2003

• Industrial Property Law (IPL) as amended on 01/25/2006

• NAFTA: entire chapter on IP providing cross-border enforcement procedures.

• International Treaties: If © protected in the US then also protected in Mexico. (UCC)

IP ProtectionCopyrights (INDAutor)

• CL recognizes several types of works, like computer software.

• When work is made as a result of a labor relation, it belongs to the employer.

• The employer can disclose the work without authorization of employee, but not on the contrary.

• Foreign authors or entities are subject to equal protection than that offered to nationals.

Industrial Rights (IMPI)• Right granted to an

individual or assignee to exclusively exploit an invention for a 20 year, non-renewable period.

• Licenses or assignment of rights must be registered with IMPI. If not, such licenses will not be effective against third parties.

• The date of filing in the U.S., is treated as the date of filing in Mexico.

IP Rights Enforcement

• Severe administrative, civil and criminal penalties are provided for those violating copyright and industrial (e.g. patents, trademarks) related rights.

• Penalties may include imprisonment, closure of commercial offices, seizure of infringing material and imposition of substantial fines.

Corporate

Determining Factors for SettingUp a Business in Mexico

• Close to customers and/or suppliers

• Raw material(s) and/or components

• Labor force

• Infrastructure

• Incentives

• Legal structure

Most Common Type ofCompanies

MEXICO

• Sociedad Anónima (S.A.)

• Sociedad de Responsabilidad Limitada (S. de R.L.)

USA

• C Corporation

• Limited Liability Company

Major differences between:S. de R.L.

• For tax purposes, start-up losses can be deducted in the U.S.

• Partners do not have to pay taxes on dividends a second time in the U.S.

• Each partner may only have one share.

• Minimum capital is $3,000 pesos.

• At least 50% of the capital must be paid upon incorporation.

• Min. of 2 and a max. of 50 partners.

• Not required by law to have a Statutory Auditor.

S.A.

• For tax purposes, start-up losses can NOT be deducted in the U.S.

• Shareholders may have to pay taxes on dividends a second time in the U.S.

• Each shareholder may have more than one share.

• Min. capital is $50,000 pesos.

• At least 20% of the capital must be paid upon incorporation.

• Min. of 2 and no max. of shareholders.

• Required by law to have a Statutory Auditor.

Maquila/IMMEX Program

• The IMMEX Decree (11/01/06) merged and replaced Maquiladora and PITEX Programs.

• IMMEX can import raw materials, machinery and equipment into Mexico with no payment of import duties and VAT, as long as most of the finished goods are exported.

• IMMEX operations are defined as the transformation, manufacture or repair of goods, inventory and other supplies provided by a foreign principal.

cont…Maquila/IMMEX Program

• Requirements for IMMEX Program to be authorized: (i) annual exports exceeding $500,000 USD or at least 10% of its annual invoicing; (ii) Tax ID, and (iii) Advance Electronic Signature.

• Companies with IMMEX Program have to file an electronic annual report with total amount of sales and exports of past year no later than the last day of May.

Mexican Investment Laws

• General Rule: 100% of Foreign Investment is permitted

• Reserved Activities:

– Reserved to Federal Government (e.g. oil)

– Reserved to Mexican Nationals (e.g. gas stations)

– Limited Investment up to 10% (e.g. cooperative), 25% (e.g. national air transportation), and 49% (e.g. Money exchange business)

– Activities in which investment may exceed 49% (e.g. port services, legal services)

• Restricted Zone: 100km (62 miles) from the border and 50km (31 miles) from the costal line.

Acquiring Real Estate in Mexico

• Direct Acquisition (Private Property)

– Anywhere, including residential purpose other than in the restricted zone

• Lease, sublease or commodatum (free lease)

• Indirect Acquisition (Restricted Zone)

– Mexican subsidiary or Trust

– The Trustee is generally a bank

– No time limitation for the Trust

Labor & Employment

Mexican Labor Law Basics• The Federal Labor Law is enforced by State or Federal

Labor Boards

• Labor Law pro-employee

• Burden of proof is on the employer

• Any person rendering services to another individual or entity is considered an employee. The key elements are subordination and dependency. Therefore, by law, a labor relationship exists regardless of the existence of a written labor agreement.

• No at-will employment or firing. All firing must be for cause and severance will be paid.

• Labor Law establishes fringed benefits that can not be waived by the employee.

• In the acquisition of an on-going business, the purchaser becomes a substitute employer for the seller.

Labor & Employment Law

• Employment contracts:

– Mandatory for employers to execute individual employment agreements in writing.

• Wages:

–Approximately US$5 per DAY

– Minimum wage rate by geographical area (A: $52.59; B: $50.96; C: $49.50 pesos per DAY)

Benefits• Paid vacations: After 1 year employment, 6

working days off;

• Christmas bonus (Aguinaldo): Not less than 15 days of salary (paid no later than Dec 20);

• Housing fund (INFONAVIT): Employers contribute 5% of payroll;

• Profit sharing (Reparto de utilidades): Regardless of business size, exceptions apply (paid no later than May 30)

• Health System (Seguro Social): fees paid monthly by employer and the employee (via withholding),

according to employee’s salary (amounts capped).

Unions

– By law, a group of 20 or more employees can form a labor union.

– Employers, when starting operations, may select the Union for their workforce.

– Strikes are recognized and protected by law as a tool for obtaining improved benefits and working conditions.

– Labor authorities try to avoid work Stoppages.

Termination of Employment

• The employer dismissing an employee with justified cause, is bound to deliver him/her a notice in writing stating:

�The grounds of dismissal, and

�The date of termination

• Employees may voluntarily resign their job at any time without any liability and without any obligation to inform the employer in advance.

Justified Termination

Employer may terminate an employee without liability, only if the employee commits acts such as:

• Dishonesty

• Insubordination

• Disobedience

• Disclosure of trade secrets

• More than 3 unjustified absences within a 30-day period

Unjustified TerminationEmployee is entitled to: reinstatement OR severance:

�3 months salary;

�20 days salary per year of service;

�Seniority premium (12 days year of service);

�Accrued Vacations;

�Vacation premium (25%);

�Accrued Christmas Bonus;

�Accrued Overtime, Days Off, etc.;

�Outstanding balance of any earned and unpaid benefits; and

�Back pay (is applicable).

Foreign Employees

• Foreign employees in Mexico:

– At least 90% of a company’s workforce must be Mexican nationals; except for directors, administrators and other managerial-level employees.

– Foreign personnel are subject to the same legal requirements as Mexican employees and are treated equally, both in benefits and sanctions.

ImmigrationRequirements

Visas for performing business in Mexico

• FMN (Business Visitor)

• FM3:

�Business Traveler

�Board Member

�Working Permit

Immigration Entry Forms

• U.S. citizens (among citizens from other countries) do not require a visa to enter and visit Mexico.

• However, a “Forma Migratoria” (FM), an Immigration Form, has to be filled out on every entry into Mexico (regardless of the purpose of the trip).

• The form must be completed at the beginning of each trip and must be cancelled at the end of each trip by returning it to the immigration officer at the time of leaving Mexico, to avoid fines on future trips.

FMN (Business Visitor)

• For occasional traveling for business meetings (E.g. at the Mexican subsidiary/sister company venue or at a customer/supplier location), the “FMT/FMN” Form can be obtained on the airplane, at the port of entry (at the border, if entering by land), by travel agencies or at the nearest Mexican Consulate.

FM3 (Business Traveler)

Valid for up to one year, for multiple entries and renewable for up to 5 years:

• 1. Business: travel for business meetings and with the purpose of acquiring new contacts, sales promotions or to explore new investment opportunities in Mexico.

• 2. Technical Support: travel to provide either verbal or manual technical support assistance, to give conferences, training, business audits, teaching of new techniques, installation, service or repair of equipment repair, installation of software, and any person who undertakes a job or performs any labors relative to the company, design or initiate the operation or construction of a plant or specific investment project.

FM3 (Board Member)• For any foreign individual to serve as a Board

Member for the Mexican legal entity and/or has the capacity to act as the attorney-in-fact for that entity, and in order for the performance of such authority to be valid in Mexico, that individual requires a FM3 that recognizes him/her as Board Member/Legal Representative of the Mexican entity.

• This FM3 must be processed in Mexico at the National Immigration Institute (INM).

• It has up to one year validity and up to four one year renewals for multiple entries may be granted.

FM3 (Working Permit)• If the visa applicant will work in Mexico, that

individual must have a work permit.

• Such permit has to be processed/requested by the employer to the National Immigration Institute (INM).

• It has up to one year validity and up to four one year renewals for multiple entries may be granted.

• The applicant is allowed to temporarily import a vehicle and household goods without paying taxes or importation duties, as long as they are returned abroad upon the expiration of the authorization.

(Legal Challenges) Mexico

vs. other LCC countries

Foreign Investment Challenges

RestrictedZone:

ReservedActivities:

Property:

Free Trade Zones

Foreign investment in certain types or real property

Border & costal line

Banking, telecom, environmental…

Oil, mining, telecom

Oil

•Government owned

•max. 50 years lease

•Private & indirect

•NO time restriction

•Private & indirect

•NO time restriction

CHINABRAZILMEXICO

Corporate Challenges

$280$1000-8000$180Gov fees

$150 millNo minimum$270Capital $

241 Days546-1,473184-671 DaysEnforce

contract

Business Types

Set Up

•RO

•WOFE

•JV

•SA - Corp

•SRL - LLC

•SA – C Corp

•SRL – LLC

•Maquila

48 Days19-152 Days29-58 Days

CHINABRAZILMEXICO

Source: The World Bank

From a U.S. Perspective

CHIINABRAAZILMEXICO

•Want to take advantage of the Free Trade Agreements

•Want to take advantage of the multimodal inland ports and infrastructure

•Few sharing of IP and trade secrets

•No big IP infringement risk

•Have a concern about patents and IP protection in general

•Products for Chinese and/or other Asian markets

•Products for the Brazilian and/or South America market

•Products for the Mexican market and/or North and Central America

•Require additional labor savings

•Mexican labor differential is still significant

•Assemble or manufacture small, labor intensive products

•Assemble or manufacture large products

•Just-in-time, FAR from the US, inventory, logistics, time difference: not an issue

•Just-in-time, FAR from the US, inventory, logistics: not an issue

•Logistic and just-in-time savings NEAR the US

Initial experienced guidance to make the best decisions,

will prevent future setbacks.

Detroit ● New York ● Washington DC ● Lansing ● Ann Arbor ● Bloomfield Hills ● Holland ● Boca Raton ● Palm Beach Mexico City ● Monterrey ● Shanghai ● Beijing

Marie A. Galindo

313-225 7057

galindo@butzel.com