About Us
SR is a name synonymous to building super car replicas. SR is a car manufacturer with qualified carbonfibre mixed with kevlar craftsmen who have over thirty years experience in the carbonfibre mixed with kevlar replica industry.
The motto SR a name you can trust is a slogan our staff stands by with dignity. Our professional service and devotion of our staff to make better carbonfibre mixed with kevlar replicas in a shorter time frame gives SR the ability to move ahead in the 21st century. To compete internationally in this new era of modern technology of the carbonfibre mixed with kevlar replica industry, SR has had to advance in quality and efficiency. Today at SR we use some of the world’s most advance technology to recreate a pattern mould of a new model car that was just released into the car market. The high technology we use to produce our replicas gives us the ability to have a wider range of super cars for you to choose from in the SR Catalog.
In 2008 SR announced their new campaign of going global. SR World is now our new name. When SR made the giant step to penetrate the international car market we were faced with new challengers from our competitors. Before SR was building replicas exclusively for the Latin American car market, but now we are expanding our production by including Europe, Asia and North America.
Exporting cheaper replica cars around the world does not mean the quality is compromised in anyway. In fact with low overheads and competitive incomes measured on the economy of Latin America, SRhas more resources available to use in improving our technology, giving us the competitive advantage to expand the range of designs in our replicas. SR uses some of the world’s best engineers and tradesmen in the industry to create our master pattern moulds. SR maintains a quality before quantity standard always even when facing the new challengers of expanding into the global market. Exporting hasn’t inhibited our ability to create high quality Replica kits with the best competitive prices.
Thanks to the NAFTA agreement, building SR kits in Latin America means we can build them at lesser costs. The prices of our SR are measured by the awarded wages paid to our employees. The rates of income are very different to those in Europe and North America. In fact even the lifestyle is cheaper in Latin America than in the Western World. For this reason alone the cost of building replicas in Latin America is very low compared to the high salaries and costs of the average Western World employees The average salary of a Latin American carbonfibre mixed with kevlar worker is US$7.00 a day compared to the hourly rate of an American carbonfibre mixed with kevlar worker of US$20.00 an hour. The average American only works 8 hours a day making an expense of US$140.00 a day. The average Latin American works 10 to 12 hours a day at the expense of US$7.00 a day. This is why SR World faces greater challengers from our competitors.
Below is a list of some of the newest SR releases. Now more than ever SR is expanding their replica development by producing a broader variety of sports-cars. SRs New Releases 2008 Rolls Royce soft top 2008 Reventon LAMBO 2008 LAMBO Gallardo Spyder (soft top optional) 2008 LAMBO Gallardo Superleggera (soft top optional) 2008 LAMBO Murcielago (soft top optional) 2008 Porsche Carrera GT (soft top optional)
Executive
Summary of NAFTA and how it functions.This is a brief overview of the opportunities available in Mexico to firms contemplating overseas production sharing in the form of Mexico's Maquiladora or "in-bond" program. Important factors which make Maquiladoras attractive include: • Low cost labor: Wages range from 15% to 25% of comparable rates in the U.S. Normal work week is 48 hours. Productivity often exceeds the U.S. rates. (U.S. Bureau of Labor) • Favorable duty/tax treatment: Southbound, the Mexican government allows duty-free imports of all materials and machinery needed for the plant. Northbound, many North American sourced products are now duty free under NAFTA. • 100% Ownership of subsidiary: Leaves total control for all operations in the hands of the parent. There are professional services available to handle such matters as personnel, accounting and import/export management. • Proximity to U.S.: Lower turnaround times compared to other low labor rate countries, lower transportation costs, and the ability for managers or skilled technicians to commute on a daily basis to the Mexican facilities is possible in the border areas. • Access to the Mexican Market: Maquilas may currently sell up to 55% of their previous years export output in Mexico's 90 Million person consumer market.
What is a Maquila?
A Maquiladora or Maquila (used interchangeably) is a plant in Mexico
that retains a Maquiladora Permit from the Mexican government to
import raw materials duty free into Mexico for manufacturing,
assembly, repair or other processing. The foreign company must agree
to re-export a majority of its production. Originally known as the
Border Industrialization Program, the Maquiladora or "in bond"
industry was designed to reduce unemployment in the border regions.
Mexico gains over $3 billion in hard currency each year for its
foreign exchange balance, as much as from tourism. Mexico hopes to
also benefit from the technology transfer and training provided by
foreign companies as they integrate with the local economy. Each
Mexican administration has supported the industry with new laws and
decrees designed to streamline the process and increase foreign
investment. Maquilas may now easily sell to other Maquiladoras. Job
creation south of the border reduces immigration pressure and helps
strengthen and stabilize the Mexican economy. There are many jobs
created in the U.S. to support and supply the industry, since over
95% of Maquiladoras' raw materials and machinery are sourced in the
U.S. Mexico's currency was overvalued before the December 1994
financial crisis. The subsequent free-fall in the value of the peso
is now spurring Maquila growth. NAFTA is also forcing third country
(mostly Asian) manufacturers to establish North American facilities
to gain duty free access to the Mexican Market.
Source: Twin Plant News, U.S. Bureau of Labor Proximity to the
world's largest consumer market, favorable tariff treatment in both
directions, and relative political stability has made Mexico an
especially attractive site for off-shore production and assembly.
The Mexican government allows 100% foreign owned subsidiaries to
operate in Mexico. The Mexican government sees the Maquiladora as a
tool for the diversification of Mexican industry– the first step to
economic self-sufficiency. This is an opportunity that cannot be
ignored by any manufacturer with processes that include a
significant labor content.
Article 27, Section 1 of the Mexican constitution disallows the
foreign ownership of land in the "forbidden zone" – that area of
land within 100 kilometers of the borders or 50 kilometers from the
coasts. Leases were allowed for a maximum period of ten years. This
applied to any company that did not specifically exclude foreign
shareholders. A 1971 law allowed foreigners to purchase land through
a trust called a Fideicomiso with a Mexican bank. The bank holds the
title, while all benefits of ownership are retained by the foreign
owner. The latest Foreign Investment Law passed in December of 1993,
has continued the gradual loosening of restrictions to foreign
ownership. Foreign owned Mexican corporations – even 100% foreign
owned corporations – can now directly purchase commercial and
industrial (non-residential) real estate without requiring a trust.
Foreigners may now directly purchase residential land in the
forbiden zone through a Fideicomiso, with an initial term of 50
years. Under most conditions the Fideicomiso can be extended for a
new 50 year term. Typical costs for finished industrial pads range
from $3.00 to $9.50 per square foot along the U.S. border. Prices
are usually higher than what most foreign companies expect due to
the few sellers and limited land with industrial infrastructure.
Many land lords will only lease, prefering to keep the property as a
patrimony to their decendents.
What Companies use Maquilas?
Almost all of Americas largest and best known companies have some
sort of manufacturing operation or subsidiary in Mexico. These
include the auto industry giants like GM, Ford and Chrysler, and
most of their suppliers, like Champion Sparkplugs and Cooper Tire.
Rockwell International, Baxter Healthcare, IBM, Hughes Aircraft and
Black & Decker also manufacture in Mexico. There are over two
thousand U.S. manufacturers directly operating Maquilas. Japanese
companies like JVC, Sharp, Sony, Sanyo, Casio, Kyocera, Pioneer and
Cannon have plants in Tijuana. Taiwanese and Korean manufacturers
like Ichia Rubber, Samsung and Hyundai are also setting up plants in
Mexico. The motivations of these companies are not only the labor
rates but also low tariff access to the U.S. market. Source: SECOFI
The preceding chart shows the Maquila industry's diversity, which
has been steadily increasing over the last few years. The
percentages shown are for number of employees. The Maquila is now an
open system, whereby companies can buy raw materials, components or
packaging materials from other Maquilas or Mexican companies. As
more companies enter the Maquila market, the diversity of materials,
services and sub-assemblies available in Mexico
increases,facilitating component sourcing. PC board assemblers,
printers, packaging, safety and industrial parts suppliers, and
plastic, metal, and foam fabricators and molders supply maquilas on
a Just-In-Time basis from nearby contract shops. This will be a
major source of cost improvements in the future for those companies
that take advantage of it.
Where are they?
Most maquilas are located in the Mexican border states of Baja
California and Chihuahua. The cities which have attracted the
overwhelming majority of maquilas are Ciudad Juarez across the Rio
Grande from El Paso and Tijuana, San Diego's southerly neighbour.
The larger maquilas are typically found in the Juarez area, whereas
there is a large number of small Maquilas in Baja California. The
intensity of Union activity decreases as one heads West along the
border – Tamaulipas unions, on the Eastern seaboard, boasts over 90%
control of the maquilas located there, and only 5% of Tijuana's
maquilas are unionized. Some of the other states with significant
Maquila activity include:
The profit associated with moving production to Mexico depends on
the balance between labor cost reduction, tariff and transportation
costs and the fixed cost of the move. There is a continuum of
alternatives available depending on the size and time frame of the
operation needed in Mexico and the specific skills required of the
labor force. The general terminology used for these alternatives is:
1) sub-contract– when the assembler bills on a per unit basis– 2)
shelter – for administrative services with a labor hour billing
scheme, and 3) Wholly owned and operated subsidiary. There are a
continuum of options depending on negotiated contracts. Some wholly
owned subsidiaries contract for certain services such as
import/export and accounting support with traditional 'shelter'
companies. Some shelters pass through many costs . Under the
traditional shelter, the U.S. company supplies capital equipment,
raw materials and technology. The shelter handles start-up permits,
basic facilities, labor, customs, accounting, legal, and
transportation on the Mexican side of the border. Different firms
handle these aspects differently. Some will provide a menu of
services including personnel, import/export management, freight
forwarding, general administrative, accounting services or initial
permit processing from which to chose; others will provide only a
complete turnkey approach. The cost of these services are burdened
to direct labor hours and charged to the U.S. firm. These charges
are typically between $3.00 and $10.00 per direct labor hour,
depending on the number of workers and the contractual obligations
of the shelter. The shelter can be a fast method of entry into
Maquila production because a manufacturer can focus on establishing
the production process, and can let the shelter handle
administrative and start-up issues. After a few months or sometimes
years, the administrative, personnel, import/export and accounting
systems are established and the shelter is no longer needed. Wholly
Owned Subsidiary: This alternative takes the most time, energy and
capital to start-up, but if the commitment is long term or the
number of direct line workers exceeds 100, it is usually the most
cost effective. Fully burdened labor costs in Tijuana range from
$1.00 to $3.50 depending on skills required. Different industries
and shelter operators will experience different cost structures, but
it is generally agreed that it is not worth setting up a shelter or
subsidiary for less than 15 direct laborers – the start-up costs and
overheads associated with management, import/export and
transportation in Mexico are not worth the savings attained with
such a small direct labor force. As the size of the operation grows,
the wholly owned subsidiary becomes the most economically attractive
way to enter into Mexico. The difficulty of starting a subsidiary
has been steadily decreasing as the Mexican government and
institutions have matured. There is now a Maquila window at SECOFI
(Secretary of Commerce and industry) where many of initial permits
can be applied for with just one stop.
Location Decision
The location decision for industrial facilities takes on a special
significance in Mexico. In a macro sense, cities on the border offer
different rewards and problems than interior cities. The border
offers easy access and greater infrastructure but higher labor and
land costs. The interior can be a real bargain for labor and land
but at the price of difficult transportation, infrastructure and
communications. The right choice depends on U.S. market locations,
personnel skills requirements, freight volume, and U.S. based
management intensity. In the micro sense, location within a Mexican
market can be even more critical. Proper location can reduce labor
costs as much as 25% and, more importantly, reduce labor turnover by
as much as 75%. The key variables are proximity to worker housing
and industrial density. Workers who can walk to work will accept
lower wages to avoid a commute. They also exhibit greater loyalty to
a job that allows them more time with families. Other significant
issues of plant location are permit status, zoning, and
infrastructure availability. Not every property marketed in Mexico
for industrial use has industrial zoning and not every property can
be approved for a Maquila permit by SECOFI and SEDESOL.* Reliable
infrastructure availability is location sensitive as well. Most
facilities in Mexico are constructed on a build to suit basis due to
the lack of bank financing for real estate development. Construction
time is generally 4-7 months depending on the season. The
construction period allows time for the permit process and
infrastructure hook-up. Construction costs for a typical 30,000
square foot shell warehouse range around $15 dollars per foot. Rents
in Tijuana range from $0.30-$0.40 per foot on a shell basis. The
quality of construction has improved dramatically in Mexico in
recent years. U.S. style concrete tilt-up buildings are now
available in the major Mexican markets. Prices remain reasonable at
levels slightly below comparable U.S. space. Maquila Properties
Lomelin keeps abreast of all available commercial real estate and
can find the best alternatives based on your site selection
criteria. Once the best sites are selected, Maquila Properties will
negotiate the most favorable terms and lowest total occupancy cost
and flexibility.
Labor
This is the reason companies come to Mexico. Wages are low in dollar
terms. The regular work week is 48 hours. Productivity is high if
management learns how to effectively deal with the Mexican laborer.
It must be recognized that Mexicans come from a very different
cultural background, the types of incentives used in the U.S. may
not be motivating to the typical Mexican laborer. Mexican family
life continues until a relatively advanced age. Many households
include members from three or four generations. Respect for elders
carries to the workplace. Stratification of the different classes of
society is still strong. Titles and position are more important in
Mexican society than in the U.S. Subordinates are not used to being
delegated authority. The use of qualified, experienced Mexican
management is of great help in learning the proper management tools
for effective management of our very different neighbors. There are
proffessional recruiting companies that can help you find just the
right management.
Labor Laws
Mexican Law establishes the minimum wage as well as fringe benefits.
Wage scales are adjusted periodically and vary by region. The rate
is based on a 48 hour work week. In addition to the seven legal
holidays, the worker is entitled to a week vacation paid at a
vacation pay rate of 25% more than his normal pay. After each of the
first five years of service, an additional 2 days paid vacation must
be granted for each year. A Christmas bonus of 15 days pay must be
paid on or before December 20. Overtime pay is twice the regular
rate, and cannot be more than 9 hours per week. Work on Sundays or
holidays are paid at a rate at least 25% higher than the normal
wage. A profit sharing program amounting to at least 10% of pretax
profits must accrue to all employees of 1 year or more. Payroll
taxes include INFONAVIT, a housing tax and mandatory employer
contribution to a retirement plan equal to 5% of the payroll,
education tax of 1%, and Social Security tax that varies between
occupations. The Social Security tax averages around 15% and covers
hospitalization, medical care, surgery, unemployment and old age
compensation. There is also a Baja California state tax on incomes.
The total burden is approximately 35% but call your Mexican
accountant for the latest rates in this dynamic system.
Taxes
Mexican tax is constantly changing. The latest changes are
associated with the 1994 tax treaty between the US and Mexico
Periods of hyper-inflation have strained the governments ability to
formulate equitable rules. A recent method of accelerated cost
recovery allows a company to depreciate 51% of the value of an asset
in its first year of use. This asset can no longer be depreciated
after the use of this deduction. This, along with a five year carry
forward of losses allows companies to shield profits very
effectively. Careful tax planning with a top-notch Mexican
accountant will pay for itself many times in the course of your
Mexican investment. Here are some of the most important Mexican tax
considerations: Asset Tax. The latest in a series of taxes designed
to reduce tax evasion is the 1989 2% Asset tax. This is a minimum
alternative tax that comes into play when a company pays less than
2% of its asset value in income tax. This tax does not apply in the
first two years of operation and is not currently creditable under
the U.S. foreign tax credit. The value of assets includes the
liabilities associated with the assets. Income Tax. Corporate income
tax is progressive up to a maximum of 34%. I.V.A. (Value Added Tax).
A value added tax is imposed on all sales and imports in Mexico.
This tax amounts to 10% of normal sales or imports. Exports are not
taxed. A Maquila can be credited with the IVA that they have paid to
Mexican suppliers when they export. An important aspect of the
Maquila Program is that this allows the Foreign owned company to
avoid the IVA tax upon importation of raw materials and machinery
imported temporarily. The Future The positive factors of the NAFTA
for the Maquiladora industry include a lowering of costs of Mexican
sourced products, reduction in transportation costs, a broader range
of financial and insurance options, and easier access to the Mexican
consumer markets.
