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Bella Group's Dealer Network GUIA_COVER 2 3/4/13 10:34:41 AM Father of the automobile mass production GUIA_IFC 1 3/4/13 10:32:25 AM Table of Contents 2 President’s Message 42 Bella Group Profile 4 Mission and Purpose of GUIA 46 Chrysler Profile 6 Puerto Rico Profile 50 Ford Profile 10 The General Economy 54 General Motors Profile 22 Puerto Rico’s Automotive History 58 Hyundai Profile 32 Auto Industry Overview 62 Mitsubishi Profile 36 Industry Statistics 66 Motorambar Profile 38 Finance and Insurance 70 Suzuki Profile Companies are Vital to Puerto Rico’s 74 Toyota Profile Auto Industry 78 Other Industry Players GUIA_1 2 3/4/13 10:33:33 AM WithWi h great enthusiasm,h i we present theh firstfi ever AutomotiveA i IIndustryd RReport off PPuerto Rico.Rico This report is long overdue, and at Grupo Unido de Importadores de Automóviles, oror GUIA,G we have taken on the challenge of producing this important reference, which willwill prove fruitful not only within our industry, both in Puerto Rico and abroad, but alsoalso for government entities, industry stakeholders and the general public. ThisT publication has been possible thanks to the hard work and commitment of our membersmem at GUIA: Bella Group (Honda, Acura and Mazda), Chrysler International (Chrysler,(Ch Jeep, Dodge, Ram and Fiat), Ford International (Ford and Lincoln), General MotorsMot (GMC, Chevrolet, Buick and Cadillac), Hyundai de Puerto Rico (Hyundai), MitsubishiMits Motor Sales of the Caribbean (Mitsubishi), Motorambar (Nissan, Infiniti and Kia),Kia) Suzuki del Caribe (Suzuki) and Toyota de Puerto Rico (Toyota, Lexus and Scion). AroundA the world, the automotive industry is considered an important economic indicator,indi and Puerto Rico hasn’t been the exception. In the following pages, you will bebe ablea to obtain relevant information about the current state of the industry in Puerto Rico,Rico as well as historical views pertaining to different aspects of our industry. However, wwee ccouldn’t bring forth this information without placing it within the framework and contextcont of the territory where we operate, our island, Puerto Rico. Therefore, we have alsoalso provided extensive information regarding the island’s economic situation, our iindustry’sndu role in its economy and Puerto Rico as an investment destination. All in all, wewe haveh strived to bring you the highest-quality publication with a broad range of up-to- datedate information about our industry, the local economy and Puerto Rico’s relevance in tthehe business community. GUIAG is a nonprofit organization, which has represented the automotive industry in PuertoPuer Rico since 2006. Our purpose, among others, is to tend to issues that directly impactimp the industry on the island, as well as its economic recovery and development. OurOur organization consists of nine members, which represent 96% of all new-vehicle sales inin PuertoP Rico. In the following pages, you will also have the opportunity to learn more aboutabou our members’ organizations. WeW trust that you will enjoy browsing through the different sections we have included. JoséJoosé Ordeix Llabaly PresidentPr GUIA_2 2 3/4/13 10:52:34 AM GUIA 2O13 | 3 GUIA_3 3 3/4/13 10:53:50 AM Mission and purpose of GUIA Grupo Unido de Importadores de Other GUIA members are Mark GUIA aims to: Automóviles (United Automobile Buzzell, managing director of Ford •Foster and protect the stability and Importers’ Group, or GUIA International Business Development well-being of the automotive industry by its Spanish acronym) is an in the Caribbean & Central America; in Puerto Rico independent, nonprofit organization Luis Omar Monge, General Motors established in 2006. sales & aftersales district manager •Foster a spirit of cooperation for Puerto Rico; Víctor Quintero, and progress in the Puerto Rico The organization represents president & CEO of Hyundai de automotive industry 96% of exclusive distributors and Puerto Rico; Kimimichi Hirakawa, automobile-brand subsidiaries in president & CEO of Mitsubishi •Stimulate the creativity, progress Puerto Rico. Motor Sales of Caribbean; Irma and professional education of Sotográs Saldaña, senior vice executives, officials and employees The group’s nine members president of Suzuki del Caribe; and of the automotive industry in Puerto represent the following brands: Mario Dávila, president of Toyota de Rico Acura, Buick, Cadillac, Chevrolet, Puerto Rico. Chrysler, Dodge, Fiat, Ford, •Promote and ensure compliance GMC, Honda, Hyundai, Infiniti, of the most strict ethical norms, Jeep, Kia, Lexus, Lincoln, Mazda, GUIA’s mission integrity and professional Mitsubishi, Nissan, RAM, Scion, The group’s mission is to integrate responsibility in all activities and Suzuki and Toyota. auto distributors in order to: development of the Puerto Rico automotive industry The automotive distributors •Ensure, respond and take care of that are members of GUIA are all issues related to or affecting the •Develop and promote educational represented in the organization by industry, and safeguarding the value and public awareness campaigns their respective top executives. the industry provides to Puerto Rican consumers and the economy. •Compile and distribute information GUIA board of considered of interest for the Puerto •Encourage a respectful, professional Rico automotive industry and the directors and dialogue-oriented environment general community GUIA’s board includes President between industry members and the José Ordeix Llabady, vice president government. of Motorambar Inc.; Vice President Ricardo García, general director of •Promote consumer, government Chrysler Group of Puerto Rico; and and the regulatory agencies’ Treasurer & former President Carlos knowledge about the industry and its López-Lay, president & CEO of contributions to the economy. Bella Group. 4 | GUIA 2O13 GUIA_4 4 3/4/13 10:47:57 AM GUIA-sponsored events Among the visiting speakers at MTAS produces 23 international the professional seminars were Kirk auto shows annually as part of the As a trade organization, GUIA has Manzo and Darren Haywood, from Source Interlink Media Consumer organized and sponsored two Foreign Ziegler Supersystems; Jim Atkinson Automotive Group. Trade Zone (FTZ) seminars (in 2009 and from Assurant Solutions; and Jim 2011), to be repeated in May 2013, for all Skeans from Jim Skeans Consulting As an added attraction, event goers interested industries. Two large-scale auto Group LLC. were able to try out their favorite vehicle shows (in 2008 and 2010), have also been in the “Ride & Drive” designated area successful industry events. Experts from Motor Trend Auto in front of the Convention Center, as Shows, Inc. (MTAS), the largest well as enjoy a weekend of concerts 2008 Auto Show auto-show producer in the U.S., and youth-related activities within the and Inclusive Management Services, three-day event. At a $1 million investment, the supported by local producer Alberto first GUIA-sponsored auto show Pérez Subirá, President of Grupo The 2010 auto show was put together was held in 2008 at the Puerto Rico Pérez Subirá. with a $1.5 million investment. Convention Center. During the four-day event, In the near future, GUIA will continue Titled the Puerto Rico Auto attendees were able to experience organizing industry-wide events. Show-International Series, the event 2009 vehicles, concept and exotic cars sought to position the island on par and motorcycles. with stateside and international auto shows, but also as a pioneer in the 2010 Auto Show Caribbean and Latin America. For GUIA’s second sponsored auto The event consisted of 150,000 show in 2010, the three sections of the square feet of exhibits from more Puerto Rico Convention Center’s main than 15 auto manufacturers present in ballroom once again provided 150,000 the local market. square feet of exhibition space. In addition to the auto exhibits, As in the first auto show, the expertise the event featured a seminar series and brains of the MTAS and the with renowned stateside and local “muscle” of Inclusive Management speakers, which aimed at increasing the Services as general contractor were used. knowledge and expertise of local auto- industry members on several topics such as leadership and sales techniques. GUIA 2O13 | 5 GUIA_5 5 3/4/13 10:48:13 AM Puerto Rico Profi le Population Society According to the 2010 U.S. Census, Puerto Rico has a total Puerto Rico’s population is derived from a mix of cultures population of 3.726 million people, making the island more and ethnic backgrounds. Although the indigenous Taíno populous than 25 U.S. states and countries such as Panama, population disappeared within the first 100 years of the Lebanon and Lithuania, to name a few. arrival of the Spanish, recent genetic studies carried out by Based on its overall size (3,507 square miles) and the University of Puerto Rico have found genetic similarities population, Puerto Rico can be compared with Connecticut, between segments of the local population and remnants of which has a total area of 5,543 square miles and a population Taínos elsewhere in the Caribbean. of 3,405,565. The major component of the ethnic and racial mix on With a population density of 1,088.2 inhabitants per square the island is the Spanish population, most of whose original mile in 2010, Puerto Rico is the third-most densely populated members arrived primarily as immigrants from Spain in state or territory in the U.S., behind the District of Columbia the 19th and early 20th centuries. Spanish immigrants (9,856.5) and New Jersey (1,195.5). controlled the island’s economy until the
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