SUB-REGIONAL INTEGRATION AUTOMOTIVE POLICY

2000 - 2009

MMC AUTOMOTRIZ S.A.

AGREEMENT ON THE PROCEDURES TO IMPLEMENT THE SPECIFIC REQUIREMENT OF ORIGIN (REO) FOR THE AUTOMOTIVE SECTOR
Resolution N.323 of the Cartagena Agreement. Official Gazette of the Cartagena Agreement of 01 /November/ 99.

Which includes :
The categories. The IS formula. IS Minimum goals.

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MMC AUTOMOTRIZ S.A.

CATEGORIES

CATEGORY 1
Vehicles up to 16 passengers, including driver and GVW less or equal to 4.537 Kg (10.000 Lb.)

CATEGORY 2a
Vehicles of more than 16 passengers including the driver.

CATEGORY 2b
All those vehicles not included on category 1 & 2a.

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MMC AUTOMOTRIZ S.A.

I.S.
I.S.: Sub-regional Integration calculated by category. Formula: IS = Where: MO MO + MNO x 100

MO: Sub-regional material.

MNO: Non- subregional Material.

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MMC AUTOMOTRIZ S.A.

MINIMUM GOALS PER CATEGORY

YEAR MINIMUM GOAL

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Cat. 1

24.8 %

25.8 %

26.8 %

27.8 %

28.8 %

30.4 %

31.5 %

32.6 %

33.7 %

34.6 %

Cat. 2a Cat. 2a Chassis

24.7 %

25.7 %

26.7 %

27.7 %

28.9 %

30.1 %

31.3 %

32.5 %

33.7 %

34.9 %

13.5 %

14.0 %

14.5 %

15.0 %

15.5 %

16.0 %

16.5 %

17.0 %

17.5 %

18.0 %

Cat. 2b

13.5 %

14.0 %

14.5 %

15.0 %

15.5 %

16.0 %

16.5 %

17.0 %

17.5 %

18.0 %

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MMC AUTOMOTRIZ S.A.

MMC AUTOMOTRIZ S.A.

SUMMARY I.S. 2000

CAT.

MNO Bs.

MO Bs.

I.S % REQUIRED

I.S % OBTAINED

CAT. 1
CAT. 2b

40.104.708.087
3.721.835.406

16.689.240.972
686.686.441

24.8 %
13.5 %

29.4 %
15.6 %

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MMC AUTOMOTRIZ S.A.

MAJOR ITEM EXPLANATION SUB-REGIONAL INTEGRATION (I.S.) 2001

YEAR 2000
TOTAL PROD.: TOTAL LOC. MAT.: LOCAL COST PER UNIT: I.S. OBTAINED: 11.136 UNITS US $ 24.446.336 US $ 2.195 29.4 %

YEAR 2001
TOTAL PROD.: TOTAL LOC. MAT.: LOCAL COST PER UNIT: I.S. OBTAINED: 3.190 UNITS US $ 6.120.257 US $ 1.919 28.5 %

TOTAL MEIV CIF. COST: US $ 58.828.168

TOTAL MEIV CIF. COST: US $ 15.334.477

LOCAL COST VARIANCE YEAR 2000 Vs. 2001 = US $ 276 PER UNIT