{"id":12954,"date":"2022-01-01T10:45:32","date_gmt":"2022-01-01T09:45:32","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=12954"},"modified":"2022-01-01T10:45:32","modified_gmt":"2022-01-01T09:45:32","slug":"fleet-31","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2022\/01\/01\/fleet-31\/","title":{"rendered":"Taking Advantage of International Fleet Opportunities"},"content":{"rendered":"

Getty Images\/Bunhill<\/i><\/span><\/p>\n

As supply chain constraints squeeze the global market, entrepreneurs like Rodriguez continue to find new ways to ship goods over international borders.<\/b><\/span><\/p>\n

A world-changing event. A devastating market fluctuation. International implications, economic pullback amid global uncertainty from major manufacturing industries, and the inevitable economic stutter step that follows.<\/span><\/p>\n

<\/div>\n

These were the conditions Peter Rodriguez encountered in 2001 shortly after 9\/11 when he decided to work for his uncle building low-income housing in Mexico after college.<\/span><\/p>\n

\u201cI drove from Rhode Island to the border in a U-Haul, and a friend and I had to figure out how to get everything across; I couldn\u2019t take the U-Haul. I bought a beat-up 1985 Chevy S10 pickup for $500. We did the permanent importation into Mexico along with the rest of my college stuff.\u201d<\/span><\/p>\n

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Rodriguez says that everywhere he drove that battered old pickup, however, people in Mexico wanted to buy it.<\/span><\/p>\n

\u201cThey\u2019d offer me $2,000! So I started researching importation rules, regulations, the taxes\u2014I figured with the 400% markup, \u2018here\u2019s an interesting opportunity.\u2019 \u201d<\/span><\/p>\n

Thus began the experiment that became Global Motors<\/a>, a logistics and transportation company of mostly consumer and lower-class commercial vehicles. Rodriguez is founder and CEO.<\/span><\/p>\n

Putting the Border Pieces Together<\/strong><\/span><\/h2>\n
\"Global<\/span>
\n

Global Motors is a leading supplier of quality used vehicles to dealerships all over Mexico. <\/span>Rodriguez<\/span><\/p>\n<\/figcaption><\/figure>\n

Mexico is the No. 1 trade partner of the United States. Today, that trade accounts for over $1 trillion per year but importing into Mexico doesn\u2019t quite have the same prospects it used to (at least for used vehicles). Vehicles 10 years or older carry a 10% tax over MSRP, plus a 16% IVA (sales tax), as well as service taxes and fees to the customs broker. When you have a strong dollar to the market \u2014 as the US has had for several years \u2014 it becomes even harder. The exchange rate in 2001 was just under $10 pesos per dollar; in 2010 it slid to $15, and in today\u2019s post-pandemic environment it\u2019s even higher, topping out over $20.<\/span><\/p>\n

Twenty years ago, that was not the case. NAFTA was being phased in and that meant light trucks 10 years or older entering Mexico from the USA would be exempt from taxes and duties.<\/span><\/p>\n

\u201cThe conditions were right for me,\u201d Rodriguez says. At the time, there were about 200,000 vehicles crossing the border every month.<\/span><\/p>\n

\u201cThe first time I went to Texas to get vehicles to export, there was so much demand,<\/em>\u201d he says. \u201cI\u2019d grab a paper about eight in the morning, and by nine every truck would be sold. So I started going to auctions and we finally bought four trucks; I did the importation, and the customs broker did the border crossing.\u201d<\/span><\/p>\n

It was neither easy nor simple. Rodriguez was often stopped by the local polic\u00eda; <\/em>the risk of accidents and breaking down was high; and they were one of hundreds <\/em>of exporters trying to make good south of the border. Customs brokers would even steal parts and radios out of the vehicles in their care.<\/span><\/p>\n

Finally, Mexico City loomed on the horizon during those early seat-of-the-pant trips.<\/span><\/p>\n

\u201cWe finally made it, we sold the cars, we made money. But it was a headache, and before long we started talking about a better way of doing business.\u201d<\/span><\/p>\n

A better way<\/em> came in the form of a friend at the former TFM (now KC Southern<\/a>) Railroad Company who said he could help Rodriguez transport the vehicles by rail. The plan was to use an old intermodal yard to unload the cars from the railroad in Laredo, TX, but that became a \u201clogistical nightmare.\u201d Instead, they loaded the vehicles in the US on Union-Pacific railways and planned to interchange with TFM in Laredo and then move the vehicles to a bonded facility in Queretaro, Mexico, a small state about 238 km northwest of Mexico City.<\/span><\/p>\n

\u201cI had guys from California who helped me buy cars,\u201d Rodriguez says, \u201cthey\u2019d go to auctions, especially into the north (Ohio and the Rust Belt); we found good clean cars in the north, we\u2019d buy them, load them onto Union Pacific railroad, do the customs work, and distribute them throughout Mexico from there.\u201d<\/span><\/p>\n

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\"Peter<\/span>
Peter Rodriguez is founder and CEO of Global Motors, a logistics and transportation company.<\/span><\/p>\n

Rodriguez<\/span><\/p>\n<\/figcaption><\/figure>\n

It became easier over time, and the business grew. Rodriguez began working with Adesa, whose only client was Ford at the time and whom had operations in Mexico. They began railing cars to Adesa<\/a> in Mexico City and then Toluca, which led to more contract work with Adesa Corporate. In addition to his own business, Rodriguez found himself doing logistic, customs, and transportation work for Adesa clients looking to export to Mexico.<\/span><\/p>\n

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Over many years, Global Motors has continued to grow and is one of five businesses Rodriguez operates. Since the turn of the millennium (and the start of his adventure), Rodriguez notes that the Mexican government hasn\u2019t made good on its NAFTA policies regarding import and export of vehicles \u2014 a process that was supposed to get easier over time as certain thresholds were met.<\/span><\/p>\n

\u201cThe market is still less open than more open, and the strong dollar against the peso is quite a hurdle,\u201d Rodriguez says.<\/span><\/p>\n

Rodriguez says there are still markets to exploit. Mexico is a volume producer of vehicles, batteries, and many other goods, and the flow of commerce is now coming north, <\/em>creating a cost-saving opportunity for U.S. companies that desire to export into Mexico and who can take advantage of empty back hauls, trucking, railroad, and roll-on\/roll-off (RO\/RO) cargo ships that need to fill as they move empty equipment back to Mexico.<\/span><\/p>\n

\u201cThere is a need to fill for damaged vehicles or vehicles that need work,\u201d Rodriguez says. Mexico is still a country with plenty of cheap labor, and labor-intensive work like vehicle body and mechanical repair are ripe with opportunities for big profits. Collision vehicles can be repaired in Mexico for a fraction of the cost and then introduced back into the U.S. market.<\/span><\/p>\n

Today, Global Motors has turned into a major broker for fleets, so Rodriguez is a familiar face with companies like Avis, National, Dollar, Thrifty, Hertz, and other rental companies, finance companies, and even banks. Mexico dealers also must endure the vehicular global supply shortage they\u2019ve been quick to turn to used vehicle sales to protect their revenue streams. With a network of car haulers, car shops, and distribution centers, Global Motors is a leading supplier of quality used vehicles to dealerships all over Mexico. For Rodriguez, that\u2019s where his pan <\/em>is buttered.<\/span><\/p>\n

\u201cThe demand for used vehicles will be strong long into 2023,\u201d Rodriguez says, as automotive manufacturers, brokers, and other stakeholders look forward to increased production of new vehicles.<\/span><\/p>\n

And as he did over 20 years ago, Rodriguez intends to seize the opportunity.<\/span><\/p>\n

 <\/p>\n

by Jordan Wiklund<\/a><\/p>\n

Source: https:\/\/www.automotive-fleet.com<\/a><\/span><\/p>\n

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KNOW WHO WE ARE<\/strong><\/a><\/h1>\n

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Getty Images\/Bunhill As supply chain constraints squeeze the global market, entrepreneurs like Rodriguez continue to find new ways to ship goods over international borders. A world-changing event. A devastating market fluctuation. International implications, economic pullback amid global uncertainty from major manufacturing industries, and the inevitable economic stutter step that follows. These were the conditions Peter…<\/p>\n","protected":false},"author":3,"featured_media":12955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[163],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/12954"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=12954"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/12954\/revisions"}],"predecessor-version":[{"id":12956,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/12954\/revisions\/12956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/12955"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=12954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=12954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=12954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}