WHY ARE CARS FROM CMC SO CHEAP?
The reason why the prices are very competitive and with the special discount we offered you for multi sales is for two main reasons.
Our labor force is very cheap our laborers work for US$6.00 a day. This rate is very low because it is the awarded salary of Mexico. An American laborer is too expensive so it is not viable to make cars in the USA. This is why we make cars in Mexico the workers get paid very cheap salaries.
The two main reasons why the prices of our products are very cheap are because on our parts and our labor costs we have a considerably lower budget, for example the parts of the cars are purchased at manufacturer cost. We purchase parts at manufacturer’s prices not at wholesale prices. There is a big difference buying direct from the manufacturer in bulk than buying in small quantity parts from a dealership. We also have agreements with the companies such as Brembo and car manufacturers to purchase parts at cost value only. We have support from the major companies to promote their products through sponsorship.
Another major reason why our products are cheaper is we have access through the NAFTA agreement which gives us very good tax advantages that allow us to purchase car parts at very low cost. Low tax rates means high savings.
GM, Chrysler and Ford have most of their assembly plants in Mexico and they also all use the NAFTA agreement to produce low cost cars. The Dealerships sell with a very high up market retail price to pay for their overheads and sales commissions.
Using the NAFTA agreement we avoid all those extra costs by cutting out the middle man agencies and going direct.
These NAFTA agreements are binding fixed agreements for 15 years and give us the advantage to produce cars at low costs.
In the carbonfibre mixed with kevlar industry CMC competition are mostly Americans and Europeans. We are based in Third world countries like Mexico. Location makes a big difference in the costs of building carbonfibre mixed with kevlar cars. Our overheads are down and our labor rates are low. This is the main reason why we have the advantage over our competitors and why we can sell our products for far less than the prices in the UK and USA. A typical American carbonfibre mixed with kevlar worker can earn anywhere between US$10.00 to US$20.00 an hour according to the level of trade skills.
In Mexico a carbonfibre mixed with kevlar worker can earn anywhere between US$6.00 a day to US$12.00 a day.
Compare this daily rate to the English carbonfibre mixed with kevlar worker daily rate of 120.00pounds converted to US$240.00 a day.
This is why rival cars built in America or the UK is much more expensive. Compare for instance a carbonfibre mixed with kevlar rival of the Porsche Carrera GT 2007 built in the United States, it will cost anywhere between US$50,000.00 to US$70,000.00. Or a carbonfibre mixed with kevlar rival of the Ferrari 360 Modena built in the UK, it will cost anywhere between 20,000.00pounds to 30,000.00pounds (US dollar conversion) US$40,000.00 to US$60,000.00. Now compare the prices of the same rivals Porsche Carrera GT and the Ferrari 360 Modena built in Mexico, it will cost for each car only US$20,000.00.
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