Year 26 | April 2018 | Edition 343

The FCA is very well by itself. We’re not for sale. Sergio Marchionne

EXCLUSIVE CAOA UNVEILS PLANS TO MAKE A NATIONAL AUTOMAKER

YOUNG PEOPLE DO NOT WANT TO HAVE A . BUT THEY WANT A CAR. ESSAYS 2025

THE ELECTRICAL SUPPLY DILEMMA

TRUCKS: Market already works with projection above the Anfavea. Well above.

4 » INDEX

ESSAYS 2025 INVESTMENTS CONSUMER OF THE FUTURE 14 38 JAC MOTORS

Young people no longer want to own a car, but The Jac Motors factory in Camaçari should have they do not give up the facilities that the car offers. been inaugurated in 2014, but after four years it is Finding out how to rebalance this balance and still not known exactly where, how and when it will giving shelter to the change it will require in the be - Sérgio Habib says that now the address has sales process will be critical to the future of the changed to Goiás, but almost nobody wants to industry mention that subject

ESSAYS 2025 SUPPLIERS ELECTRICAL SUPPLY 20 44 RECOGNITION

The automotive sector is at the forefront of a Hyundai awarded its best suppliers in an event held crossroads, a kind of dilemma of who came first, in the city of Piracicaba, Interior Paulista, the same the egg or the chicken, modern: for the electric land of its plant. The manufacturer says recognition vehicles what comes first: the infrastructure since 2014 has helped improve quality indices, network or the demand for vehicles with this including those that were already the best technology?

MARKET ASSEMBLERS TRUCKS 28 46 FACTORIES

After two extremely negative years finally the truck Mercedes-Benz spent half of its latest investment segment, especially the heavy truck segment, cycle in to create an entirely new truck receives real signs of a resumption of sales. assembly line at the São Bernardo do Campo plant Although the base is very low, it is possible to say at ABC Paulista. It was worth it: it is now the most that the projection of the Anfavea for the year is modern in the world. pessimistic

EVENT ANNIVERSARY AUTODATA SEMINAR 34 48

Presidents of Anfavea, Abeifa, Sindipeças, SAE Volkswagen celebrated its first 65 years in the Brasil and other executives took to the seminar country increasing the expectation for its biggest stage promoted by AutoData Editora to address the offensive in products of history: it showed the new megatrends of the industry. Items of concern were Tiguan, which will be only the third in a list of twenty not lacking: ranging from energy policy to risk of launches scheduled for the national market by missing parts. 2020

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LENSES FROM THE TOP AUTODATA ASKS PEOPLE & BUSINESS END OF CHAT The backstage of the Carlos Alberto We choose a theme Executive moves The most relevant . Oliveira Andrade, monthly and invite a and other news and irrelevant And the situations in the Caoa, tells us all specialist to respond from the Brazilian headlines of the the hornet’s nest that about the agreement automotive industry month, handpicked nobody pokes. he signed with Chery by our editors

April 2018 | AutoData » EDITORIAL 5

ne of these days a disturbing suggestion was sent to our Newsroom: the press officer offered an interview with a lawyer Owhose office had obtained a decision favorable to a conces- sionaire - that the dealer was not in a position to resell passive What solidarity, a piece that should have been sent by the factory and was not. The case caused the client’s vehicle to be stopped for three months in the garage. about the Regardless of the court ruling involving the case, as well as the hard work of the law firm and its helpful press office, it seems that someone has forgotten to ask a question: and the consumer in this story, what about it? customer? Well, the customer, of course, stayed on foot and with a problem to solve, considering that the court ruled that the dealership can By Marcos Rozen, editor not do anything and that the owner of the car can not go directly to the factory to complain, because whoever plays the role to connect the assembler with the buyer is the dealership. Perhaps not knowing about this case, though in a nano sphere within the automotive universe, it serves as an exceptional example of what must change in our industry going forward. While store and car maker struggled to see which one was right the consumer problem itself was minimized. Almost forgotten. This example, combined with so many and so many others, may help to explain the reason for the enormous discouragement of youth in buying . Just a car, that was so swarming the ima- gination and the priorities of those who came to the edge of the 18 years some time ago. This is what one of our main features in this issue is about: the consumer of the future, rather than demanding new technologies, clean or dirty, will change various understandings of the industry about itself - and it will certainly serve them in the name of their own survival. It will be a total inversion of values. We should also point out another scenario construction that we are trying to anticipate towards 2025, as it relates to how elec- tricity would be supplied, after all, a discussion more important and relevant today than the cars themselves, certainly. We also draw your attention to the revealing interview of Carlos Alberto Oliveira Andrade, the Caoa, who told us all about how and what will be Chery. He received us at his house - and had not opened these doors to the press for four years. It’s because of our relevance, my friends. And who knows, also, by our good humor...

www.autodata.com.br AutoDataEditora autodata-editora @autodataeditora

Director Márcio Stéfani, publisher Editorial Board Márcio Stéfani, S Stéfani and Vicente Alessi, filhoNewsroom Leandro Alves, deputy director of writing and new business, Marcos Rozen, editor Collaborated in this edition André Barros, Bruno de Oliveira, Caio Bednarski and Gilmara Santos Graphic Design/Art Romeu Bassi Neto Photos DR and disclosure Photo Cover Disclosure/CAOA/Mercedes-Benz Social Midia Allex Chies Commercial and advertising tel. PABX 11 5189 8900: André Martins, Érika Coleta, Luiz Giadas Subscriptions/customer service tel. PABX 11 5189 8900 Administrative and financial department Isidore Nahoum, counselor, Thelma Melkunas and Hidelbrando C de Oliveira Distribution Correios Pprepress and print Eskenazi Indústria Gráfica Ltda., tel. 11 3531-7900 ISN 1415-7756 AutoData is a publi- cation from AutoData Editora Ltda., Pascal st, 1 693, 04616-005, Campo Belo, São Paulo, SP, Brasil. Reproduction without prior authorization is prohibited, but citation is permitted provided that the source is identified. Responsible Journalist Márcio Stéfani, MTB 16 644

AutoData | April 2018 6 » LENSES

SLOW MOTION SLOW MOTION 2 When I came to the magazine his best fame was that he had burned the carpet in his living room while preparing fondue for his girls. But he soon won an Abril Prize service report that tested the effectiveness of tire pressure gauges. With Robertinho Ferreira he managed to put me in a single of the old South American Formula 2 to prove that a street driver, like me, could tame that beast. The coverage of the TransChaco Rally in Paraguay for him was less important than entering the Morumbi lawn wearing his team’s jersey in the final championship game. Even for 1 short minute.

Archive SLOW MOTION 3 Charleta was the youngest on a team of Quatro Charlinho Marzanasco, sometimes, reminds me of Rodas that almost had only illustrious figures - a version of Dr. Jekyll and Mr. Hide in the universe and was the most rigid of all, of course. When he of journalists dedicated to the automotive sector started getting big he accepted the challenge of in Brazil: amazing creativity, insane mind, plugged becoming ’s press advisor, thanks to his strong in all the time. He left militant journalism aside connection with the best of all, Ayrton Senna. He for many years, even before joining Audi’s very even had fun when Ayrton called him the Foot of first phase in Brazil - and now, 24 and a half years Breque (a Brazilian slang for slow motion) in front later, on March 1, he announced his departure of witnesses. And abused this mercy and his own from the brand he helped build here and that, In creativity - healthy insanity? -, he coordinated a certain way, he set himself up in that solitary memorable events, hung cars on cranes, used battle outside the office of the press office. I unpublished highways for test drives. Even in the, witnessed this process - I witnessed the evolution rare, case of fiasco, it even seemed that everything of Charleta’s career since I joined Quatro Rodas in was fine. Long live the Charleta on the paths he 1980. chooses!

LET IT BE POSSIBLE their numbers and indexes, 4. there In the edition 341 of this AutoData, are numbers considered impossible here too, in the Lenses space, I to obtain. Confusion is therefore wrote without shame about Abac institutional. piloting a black box in the form of confusing data. Cláudio Licciardi’s LET IT BE POSSIBLE 2 press officer was graciously willing What interests me, with the Caixa to guide me through some of the Preta notes, is that, from the world ways of this consortium management of the consortia, data as reliable as company, and he also discovered those of Anfavea and those referring that I had never mentioned his work to Renavam, released by Fenabrave, in a dubious way. The truth is that so that economic information 1. there is a delay of three months becomes the best possible. And that in the release of data from the the consortium sector becomes, after Central Bank, 2. Abac can not make all, its importance and the volumes of it possible to have up-to-date data money it handles, generating a true according to the dynamics of its indicator of economic information. I associates, 3. Bacen, Abac and Bolsa hope that this is possible at the cost Cetip use different filters to present of some good will.

April 2018 | AutoData 7

WHICH CLOTHES? WHICH CLOTHES 6 I hear, and deafen myself, that the future belongs to the autonomous vehicles, There is, of course, certainly driven by some kind of energy - and I believe so too. I believe that another discussion that this is going to happen, another revolution in the way that man has moved can be vital: does the since when he was still running all over the plains of Africa today. Here in these Brazilian society even Brazilian lands there are those require autonomous who anticipate the novelty vehicles for tomorrow? arriving early tomorrow, or so And at the price of briefly that we must prepare what? Probably, say ourselves immediately. some scientist friends, And some say that all the if all goes well with knowledge obtained so far the country - with its can be thrown out: everything technological evolution, has changed, they argue. with the formation Everything is different now, of thousands and

Disclousure/Volvo they say. thousands of engineers and physicists, skilled people, with a fair WHICH CLOTHES? 2 boulevards or alleys, autobahns or distribution of wealth I do not like the idea that the shorty road that arrives in Rio that eliminates poverty accumulated knowledge will be das Pedras, SP. Traffic signs, traffic – something about replaced like this, so suddenly. lights, the white stripes of asphalt two generations we Whoever threw away knowledge play a fundamental role so that the have some condition of was that personal described by the autonomous ones exist, along with being autonomous with film Fahrenheit 451, of 1966, work of sensitive sensors, very powerful respect to mobility. In François Truffaut from the original of trackers and a whole dance of the meantime we’ll use Ray Bradbury. But they say that, in alphabet soups so that a vehicle hybrids with alcohol the light of the wonderful future that leaves from here and arrives there and electric plug-ins unfolds there, we are just ignorant. without human control beyond - and we’ll be pretty in And they say, you see, that the that human control unless the one the parade according to masters of knowledge are those of exercised on our smartphones. our possibilities. youth: they are the ones who now In other words: the necessary hold the keys to the gates of eternity infrastructure corresponds to the and the breath always mentholated same as the first world, the world of at the expense of their consumption... rich countries. habits. WHICH CLOTHES? 5 WHICH CLOTHES? 3 Unofficial calculations expose I prefer less fussy reasoning. that to transform only the state Everything will happen, yes, but the of California into territory of 100% pace of news in countries above autonomous possibilities dollars will the Equator line, except portions of be required at least to the amount of Central and Eastern Europe, Africa a hundred billion. That is to say: the and Asia, will be much faster than in transformation is really expensive, the others - clearly located above the including in the first world. So tell me Equator the rich countries and, below, which clothes we’ll wear to use the By Vicente Alessi, filho the poor ones. Us. autonomous around here? Here, they Suggestions, criticisms, seem to ignore it, just rain so that the comments, offenses WHICH CLOTHES? 4 conventional traffic light on the corner and the like for this column Autonomous vehicles imply the goes down and stay three weeks can be directed to the email radical transformation of the roads, waiting for maintenance. [email protected]

AutoData | April 2018 8 FROM THE TOP » CARLOS ALBERTO OLIVEIRA ANDRADE Interview by Leandro Alves and Marcos Rozen The greatest operation of Doctor Carlos

he doctor Carlos Alberto Oli- The four traced very similar pa- In this interview with AutoDa- veira Andrade, or simply Caoa, ths: they were born in the distribu- ta, granted exclusively in his own an acronym that names his tion and then looked for ways to residence, in the Jardins neigh- own company, is one of the become manufacturers. At some borhood, in São Paulo, something Tmost known and controversial fi- point or somehow all four seriously very rare - the last one in 2014, for gures in the Brazilian automotive pursued the dream of giving birth Exame magazine, of Editora Abril industry. And, no doubt, today he is to a legitimately national assem- - he openly told the whole story of also the most successful entrepre- bler, even from the technology how they unfolded the long and neur in his activity when placed side of global brands. And Caoa gua- tense negotiations with the Chine- by side with other contemporaries, rantees that with the partnership se automaker, revealing how their such as José Luiz Gandini, Eduardo closed with Chery this dream will relations are at the moment with Souza Ramos and Sérgio Habib. be realized. Hyundai and much more.

How did the conversations with Chery we talked to Foton, which also wanted begin? to do business with us. I’ve been looking for a Chinese brand to join me since 2010, 2011, when Hyundai And why was there no deal with Great decided to build a factory here in Brazil Wall? and I realized that business would be The business has evolved a lot, but then divided. I had to prepare myself for the they had problems in Europe and had future. The first conversations were with to back down. In China they were well BYD, and we came to very advanced ne- accepted, so they focused more on gotiations. I met the owner of BYD, I went the domestic market itself. Then I went to his house in China. He is a fantastic to BAIC, which has a with comrade, he really liked me and I really Hyundai in China. They wanted to make liked him, but they are very connected a factory in Brazil with us, 50% - 50%, with to the issue and it was not joint development, would be very good. the time, they were more expensive cars, But when we talked to Hyundai about it it did not work. Then I talked to Great they answered ‘no way’. Wall and we also evolved a lot in the conversations, they were small but they And did Hyundai offer something in re- were growing, setting up two factories turn? of 800 thousand cars each, side by side, Yes, it was when I made a stronger agre- part of the plan to reach 2,5 million units ement with them, to raise the volume of produced in 2015. And at the same time production in Annapolis. They said they

April 2018 | AutoData 9

AT HOME For the first time Caoa revealed to a press agency the whole history of the Chery deal. Four more Chinese factories were in the game.

AutoData | April 2018 Disclousure/CAOAFotos: Divulgação 10 FROM THE TOP » CARLOS ALBERTO OLIVEIRA ANDRADE

wanted to grow with us. The original plan was to do a joint venture with us, but at “I read the contract in depth and said ‘No one point they said ‘you have to conti- nue with your business and we have to I do not sign it, no’. Chery’s people went do ours’. That’s when they decided to build their factory [the Hyundai unit in crazy because they never leave China and Piracicaba, SP], but at the same time they wanted to strengthen my factory as well. they came from there to do business.”

In this original plan CAOA would produce the HB20 model? In theory, yes. Things were moving but, as time went on, they did not go the way How was the process of signing the con- I expected. Hyundai wanted to be the tract with Chery? third brand in the Brazilian market and At the time I still wanted to think a little they asked me how many units would more. In October of 2016 I went to China be necessary for that. I answered that if and also scheduled a meeting in Korea CAOA reached 150 thousand/year and with Hyundai. Chery started wanting Hyundai 250 thousand/year we would to do business anyway, 50% - 50%. We quietly be the second or third. They said, got the presidency and they got the ‘That’s what we want and that’s what money, or we could trade. All executives we’re going to do’. I was very excited, would be chosen by mutual agreement, but nothing happened in practice. it was a very interesting business model with no chance of friction. In March 2017 Was it where Chery got into the story? Chery’s people came to Brazil to close Yes. We had talked before, they had the deal. But when I read the contract come to me once because they wanted there were a number of things I did not me to distribute the products from their agree to. I read it all and said, ‘No, I do factory [Jacareí, São Paulo], but it did not not sign it, no’.And Chery’s people went happen. I was already upset about the crazy because they never leave Chi- whole thing with Hyundai, and they came na, they came from there and I did not here quite willing to negotiate, offering sign it. There was a huge stress. They society. They said ‘We accept everything, still gave in a lot at the moment, but if you want to send in the factory can, if not everything I wanted. The next day you want to be major, we accept’ etc. we scheduled a meeting at CAOA and The conversations were evolving and they did not show up. I went to the hotel the subject became very serious. So I where they were and we talked. They told Hyundai I’d do business with them. said they understood my arguments, but that the terms should have been And how was the reaction? seen before. I said, ‘Look, I’m willing to It was good, it was not bad, they said do business with Chery but not under ‘Alright’. At first they reasoned that with these conditions’, and they said, ‘If we this they could take care of everything do not do business now, we will never of the operation here, but as the thing do it again’. Then I just said, ‘Then we went on they realized the reality, they will never do it, that’s the end of it’. discovered what Chery was developing... then they made a letter authorizing me What bothered you on the terms of that to do the business, because they did not contract? had another way out, but with various I wanted to strengthen my factory in An- restrictions. napolis with products, and at the same

April 2018 | AutoData 11

time strengthen the one in Jacareí. The did not contain that term. The cars will two factories have to be strengthened, be developed together, and they will be and in this model initially proposed was very interesting cars. The engineers will not like that, it did not strengthen Anna- work together in both factories. This only polis, ther was only one product planned happened because Xi Jinping [president there. of China, recently re-elected] wants to support and develop the BRICs. He re- And how did business happen even on alized that the United States is holding that terms? China, and so this is the model he wants, Some time later Chery came to me in support of developing countries. It is again, I reaffirmed that I would close making a 100% national factory viable. It’s the deal only if the business model the thought of him, and if it was not that changed completely. And we came to it would not have happened. That is why a wonderful, spectacular settlement. Chery has opened up so much to CAOA, There was still a deadlock in the end, to the point of making an agreement for I was already in China to sign the con- a factory that is truly national. tract and asked to include one more clause. It was a tremendous rush of la- But still it is a 50% - 50% agreement, wyers there and here, with time zone isn’t it? and everything, and in the end they ad- In Jacareí, yes. But in Anápolis it is 100% ded it. The contract was ready one hour CAOA. And they’re giving everything for before the scheduled closing time for us, to develop cars there, in Goiás. the meeting. Then I went with my heart open, signed it and that was it. It was And the distribution of CAOA-Chery mo- a beautiful reception, very luxurious, dels will be under the responsibility of which I never imagined, all the Chery who? executives were there. We need to be careful about that. We are distributors in theory, the company So that Hyundai list did not contain any that will distribute is another one. I’ll give kind of restrictions on the production of the concession. another brand in Anápolis? No, but it can be done only if it is se- We’re talking about how much time for parated. We are modeling in a way that these CAOA-Chery models developed productive operations do not mix, do not here to hit the market? communicate. People who will produce Around 2019, 2020. The Tiggo 2 already Chery do not have access to Hyundai has a lot of Brazilian things, but not in its and vice versa. It’s all separate. origin, our business with Chery started now. Even in the panting shop? Not in the painting shop. It will be com- mon.

One propaganda of yours says that a gre- at country needs a national automaker. “The business model with Chery will make Why do you believe this business model with Chery really represents that? that everything be developed for Brazil, This business model will make that within Brazil and for Brazil. They’ll be very everythin be developed for Brazil, within Brazil and for Brazil. In the first version interesting cars.” of the contract, the one I did not sign, it

AutoData | April 2018 12 FROM THE TOP » CARLOS ALBERTO OLIVEIRA ANDRADE

How long will the CAOA contract with make Hyundai’. Our contract with them Hyundai go? allowed this, that we had another brand, Our contract is a partnership thing, it has unless they gave me enough cars to fill no deadline, it’s a very strong business, the whole factory. When Hyundai came very solid. to Brazil and changed our model with them, I had the responsibility to produce So you do not want to get rid of the par- another brand and so I started looking tnership with Hyundai? for the Chinese. I believe in this business Never, I want to grow with both brands. model because the factory is not inactive. Hyundai is looking forward to growing with CAOA even after Chery. The com- What will be the main focus of CAOA- pany wants to grow with us, and we Chery in the domestic market in terms will soon have big decisions involving of product? Hyundai. Brazil is SUV, for sure. The sedans are losing market, the SUV is the national In Piracicaba they are already at maxi- preference. There is still room for sedans mum capacity... and hatches, but we see the SUV market Perfectly, and they want to grow. growing. And not only in Brazil, but in the whole world. What is CAOA-Chery’s total production capacity? What is your estimate for the total do- From 150 thousand to 200 thousand mestic market in Brazil in 2018? cars/year, the two factories together. The growth is happening. If nobody Both Jacareí and Anápolis can be ex- commit any foolishness, we can reach panded, but Jacareí can reach 200 thou- 20% in 2018. If the pension reform was sand/year easily, with little investment. approved, I am absolutely sure that the auto market would increase by 25% to Like CAOA, there are companies, inclu- 30% this year. ding global ones, such as FCA, that invest in a multibrand productive model. Do What about Rota 2030? Do you see any you understand that this is the future chance of it being approved? of the automotive industry, industrially I think it needs to be. Marcos Pereira [for- speaking? mer Minister of Industry, Foreign Trade Anápolis can produce cars of any brand, and Services] wanted it, it is important and this did not happen by chance. It because the industry out there is much was a studied thing. I started to think more evolved than ours today. Brazil has that this could happen and wanted us a lot of things that makes the car expen- to be able to manufacture products of sive, if there is no incentive to the industry any brand. When we went to open the we will become an , we will be company there was Mitsubishi, which just importers. Meirelles [Henrique Mei- Eduardo [Souza Ramos] did, but I did relles, Minister of Finance] understood not want it to be that way, I did not want what the automobile industry is, that it it to be a Hyundai Motors. I did not want is a fantastic thing, there is the whole to put their name, I wanted CAOA Auto- chain, it provokes real job opportunities. maker, using license to make any brand, You have to think about it, it’s good for choosing the brand I wanted.I already the country. represented Subaru, and by 2004, 2005, we had very advanced negotiations with CAOA has a research and development them to manufacture the Forester here. center in Anápolis. It will play an impor- I thought, ‘If I can make Subaru I can tant role within the CAOA-Chery?

April 2018 | AutoData 13

No doubt. The P&D center and also the fuel laboratory we have in Goias influen- ced a lot so Chery wanted to do business with us. It showed our seriousness, it generated confidence.

Do you think of producing electric or hybrid cars in Brazil? Electric car is something that we need to look with great affection. We want to bring Nexo [Hyundai’s SUV powered by a fuel cell powered by hydrogen]. The problem is to bring the hydrogen pump to fuel the car, it will depend on that. If we can solve this we will bring it. The Hydrogen, the fuel cell, is the future. More than the electric ones.

Do you see alternatives to Brazil from ethanol? The ideal for Brazil is ethanol, there is no doubt about it. The problem with electricity is how to fuel the vehicles. 1, 2 million cars, fine, but the world produc- tion is 90 million cars per year. How to fuel that? Where’s the electricity? There isn’t. And there are no conditions to get there anytime soon. I am absolutely cer- tain that China will be a pioneer in new technologies in this field.

What is the reason for such certainty? China registered 27 million cars last year, it’s 30% of the world’s total. They have scale, and no one else has it in the world, a market this size. And, moreover, they are a totalitarian country: they sell the car they want there, it is easier to work in that way. When I went to China and saw the team that Chery has there I convinced myself to do business with them. I saw that they have a future, that they are really looking for cutting-edge technology and quality. They hired the best in the world and took them there. They have Belgian, German, “If the pension reform had been approved Portuguese, American, Indian engineer... and they still have the market. That’s why I am absolutely sure that the auto market there are a lot of people worried: they saw would increase by 25% to 30% this year” that I did business with the brand that has the greatest future in the world.

AutoData | April 2018 14 ESSAYS 2025 » CONSUMER OF THE FUTURE By Marcos Rozen To have or not to have, that is the question

The consumer and how to buy and sell cars will change more than the vehicles themselves by 2025. Following this movement is a matter of survival for the industry

here is a widespread affliction in the automotive sector every time a young man blows birthday cake candles with the numbers 1 and 8 incandes- Tcent: does he or she now want a car? The answer is, more and more, no. Does this mean the end of the world for the automotive sector until 2025? No. Be- cause at some point he or she will change their response to an affirmative, although perhaps already in adulthood. But a lot in that process until then will be completely different, no doubt.

April 2018 | AutoData 15

João Batista Ciaco, director of commu- these trends still need to be solidified. The nication, marketing and sustainability at Brazilian is a little conservative.” He recalls, FCA Latin America, confirms that “young for example, leasing, financing option with people are taking a driver’s license later.” smaller installments but is not always well He points out, however, that the new ge- accepted only because the vehicle belon- neration “has a different interest in the gs to the bank, not to the buyer. car, not a disinterest”. Of course there is no exact formula, nuvolanevicata/Shutterstock.com Mauricio Greco, direc- he adds - after all Brazil is a huge country tor of marketing at Ford, with extreme variations in several aspects. understands that “the “Initially this trend of detachment, from dream of having a exchange of ownership through use, must car is still strong”. find a larger audience in the big cities and Ciaco agrees and in the upper range of the social pyramid.” adds that the car Caoa is straightforward: “This sharing maintains the status thing is still new, no one knows yet whe- of desire object, but “now ther it will take revenge or not. Anyway, disputes with other items, the car, as a vehicle, continues. The whole such as the mobile.” question revolves around independence. Carlos Alberto Oliveira Andrade, Uber is interesting in São Paulo, for exam- president of CAOA Montadora, sees the ple, it solves some issues, such as parking theme in a similar way. “The car is not just difficulty. But what if the person wants to a means of transportation. It gives the in- travel? In the background this person wants dividuality of each, the freedom to leave, the independence of the car.” to travel. Children grow up, they want fre- The car seems to have a guaranteed edom, and they like to have a car, to drive. future in Brazil, and certainly well beyond This is really starting to change a little, but 2025, in all age groups, for two fundamen- at least for me, it will still be this way for tal reasons: the first is the extreme diffi- a long time.” culty at any angle that involves collective Ciaco sums up the current circums- transportation of some kind, which does tance: “Some time ago every person’s car not even follow the real need of the po- said a lot about that person, the identity, pulation - something that has happened personality. This continues, but now, and for several decades and without any in- likewise, not having a car also says some- dication of change or improvement. And thing about the person, the identity and the second is the continental proportions personality.” of the national territory, an important and The executive, however, understands very different aspect of what happens, for that “the option of not having a car does example, in Europe: there will always be not mean that one hates cars. She just has a need for a more distant or personalized another relationship with them.” displacement, since there are people here In this framework of other relationships, everywhere, after all , either in the capitals naturally, different options come from the or in the Interior. traditional ones, the most linked to ow- nership. And it opens the way to those GADGETS ON WHEELS that involve pure and simple use, such Obviously the automotive industry as a as Uber and similar, sharing, hitchhiking, whole, and also in Brazil, not only watches outsourced fleets, rent for longer periods with the future trends of consumption with and so many others, including applications extreme attention as it does what is ne- of all kinds. cessary to adapt. Greco, of Ford, sees with caution the In this way, and remembering the quote advance power of these news. “For Brazil, from Ciaco, of FCA, about the division of

AutoData | April 2018 16 ESSAYS 2025 » CONSUMER OF THE FUTURE

desires, it is already crystalline that the involved the purchase, directly and indi- industry preferred to bring the smartphone rectly, as insurance and alternative value into the car, almost making it an exten- for a new vehicle, for example. In addition, sion of it with wheels, than to fight for the 0 KM models of five brands were searched preference of the customer by one or the online. other - which would certainly be a deadly This path, of course, shortened the off- blow to the automotive industry. So what -line process in favor of online. “Before the we see today are gadgets on board, how client had to peregrinate from conces-

the cell phone works with the multimedia Disclousure/FCA sionaire to concessionaire, evaluate the center, smartphone battery charging by technical characteristics, discuss price, induction, opening of doors by the cell payment condition etc. Today he already phone and many others to come. arrives at the store with all this practically This demonstrates how much the in- solved”, affirmsCiaco , of the FCA. dustry knows how to adapt and always Ford’s Greco adds that ten years ago a make its product desirable and attractive, customer visited, on average, four dealer- reviving the desire to have a car. Inclusive ships before closing the deal. Today this and especially for the new generation. average fell to 1.65. This is exactly where the greatest revo- What happens now is that online and lution will be by 2025: it will not be in the offline processes are still in very distant car itself, even if new technologies such as worlds - a concessionaire these days hybrids, electric and even autonomous will works practically in the same molds and come to appear, but in the way of buying parameters of 50 years ago. This link will and selling cars . That will be the biggest be the main target of the change. change, for sure. That is what will keep people going, yes, wanting cars, and the- ASTRONAUTRUCK refore buying them. Fenabrave itself, association of dis- Definitely many individuals will still buy tributors, recognizes that the role of the cars in 2025, yes, but mostly because the concessionaire will - and must - change. way they buy and sell cars will change Its president, Alarico Assumpção Jr., belie- brutally. And this will not happen from now ves that “the way of selling will have to be on: it’s already happening. different. Currently the customer already A survey commissioned by Facebook mounts the car he wants in the configurator with 218 Brazilians aged 18 - 65 who ac- of the manufacturer’s website and has it tually intended to buy cars showed their delivered at home.” expectations and preferences in this pro- For the leader, from the moment the- cess. No less than 98% used Facebook or se profound changes actually begin to Instagram in this trajectory, almost always happen the process will be reasonably with the cell phone, and in a third of cases fast. “What we did in a hundred years we these were the only contact platforms with will do in ten. And what we did in ten we’ll the sellers. do in one.” For Facebook the current road to selling He does not see, however, a risk of the cars can be defined as “a short but winding role of the concessionaire simply ceasing road”. The survey concludes that Brazilians to exist, with the factory occupying all spa- use their cell phones all day long - from ces today in the hands of the distributors. the beginning to the end of the purchase “A dentist is a dentist and a butcher is a process, people accessed Facebook and butcher. You can not play the role of the Instagram 488 times, spending 52.5 hours other. The mode of sales will probably on both platforms. change, we should have more direct sa- More: the internet was used by these les and internet. But even if you change people to evaluate several factors that the type of customer the vehicle will be

April 2018 | AutoData 17

placed there and you will need assistance. advisors who are there to assist with some And there we go. We are service providers, technical or buying process. Importantly and factories can not do that.” important, they do not earn commission Even in the matter of service a huge on sales. evolution is ahead, admits Assumpção It is a format very similar to the one Jr., who summarizes: “We had mechanic adopted by Apple for its physical stores, in the workshop before, and now we have respecting, of course, the circumstances mechatronic. Soon we will not have a truck of the difference of the products. driver anymore, we will have a truck driver.” It can be argued, for some reason, that The biggest border to be overcome, this format works for Tesla because of its however, is actually in the showroom. And very specific products with differentiated there are good clues in the exterior of how target audience, production volumes and a dealership should be around here by distribution logic distinct from larger fac- 2025. The change is so brutal that it will tories. That may be true, but Hyundai de- possibly instigate young people to at least cided to take the test. rethink the option of not buying a car. In partnership with the British company Rockar the South Korean automaker ope- ANGELS ned two stores in London malls, one at Tesla, for example, revolutionized not the end of 2014 and another one a year only the propulsion technology of its cars later. In an environment that refers much but also the sales system itself. Their stores more to a modern clothing store than a Shopping mall in London, England: clothing stores, are in malls, there are few cars on display dealership, the customer can purchase cars, beauty products, and sellers are not sellers - they work as a vehicle in three minutes using touch cell phones ... Wait: Did you say cars? Disclousure/Hyundai

AutoData | April 2018 26 ESSAYS 2025 » CONSUMER OF THE FUTURE

terminals. Sellers have been replaced by By analyzing the numbers Hyundai had professionals called ‘angels’, who are just no doubt and earlier this year bought the there to help the client - and only if and entire operation, leaving Rockar in the role in what the client asks. of consultant. And more: it delivered the As in the case of Tesla, the ‘angels’ re- stores to its biggest dealer in that country, ceive no commission. And their previous so he would learn how to do it - service experiences with customer service in com- professionals, the ‘angels’, were kept wi- merce came from electronics stores, clo- thout any change. thing, glasses, watches. In three years the two stores together NATIONAL EXAMPLES received one million visitors. Tony Whi- In Brazil there are still no Tesla or Ro- tehorn, president of local Hyundai, said: ckar houses, but not for that there are no “Stores have brought a new shopping experiments to refresh traditional sales experience and consumer satisfaction as and customer relations. key elements. The main concept was to Ford has a recent and extremely signifi- go to the consumer rather than make it cant sample inside the house that involves come to us.” both the desire for cars and an indication of Practical results: 94% of buyers were the brutal change in the process that comes new to the brand, 54% of them women. around: it has closed commercialization for The average age of clients has dropped 250 units of the Mustang in pre-sale sys- to 39 years. In the regional area of the two tem, which required large R$ 30 thousand malls Hyundai’s market share jumped from reserve - 10% of the value of the car. 1.7% to 12%. And the customer experience All of them were made 100% online, received an average rating of 4.9 stars out including WhatsApp, and involved in some of five possible. cases even newcomers who entered the

April 2018 | AutoData 27

involving models of renewal of the sales process, such as the Store in 2013, in which the customer had a virtual tour in Rivals, BMW and Daimler have teamed up real time on video. “We need to test to see what works. And not always what works to offer mobility services, which for them for Fiat will necessarily work for others.” will help reduce the number of cars on the IT’S THE MODEL streets. Yes, that’s right Obviously the change will not only focus on the form of buying and selling itself: the entire business model will have to adapt to the new reality of 2025, which already knocks on the door. According to a global survey by McKin- sey consulting 73% of automotive manu- facturers’ revenues are concentrated on the straightforward sale of vehicles with internal combustion engines or hybrids to- day, in the traditional format, via distribution network. By 2030, however, this rate should drop to 40%. Worse: the aftermarket, owner of 25% today, will drop to 19%. The difference, of an impressive 41%, is expected to be covered by new businesses such as autonomous and electric vehicles, with 10%, aftermarket for this segment, 1%, sharing services, 7%, fleet operations, 13%, business, valued at dealerships. and digital and correlates, 10%. Today, in In addition at the end of March the addition, all these items represent 2% of manufacturer launched in Brazil the For- total billing. dPass, a mobile application that can be As you see the whole business logic will used even by those who do not have a car have to go through a deep transformation, of the brand. Services such as locating and which McKinsey simply calls disruptive - comparing prices of fuel stations, parking and there does not seem to be a better lots, researching points of interest such definition, in fact. as restaurants, entertainment and health Best example: at the end of March the are offered, and of course, access to the German rivals BMW and Daimler signed brand’s 24-hour assistance and online ser- an agreement to jointly offer mobility ser- vices at distributors scheduling. vices such as sharing, personalized taxi, FCA in turn is not far behind: through parking, recharging and others. Pasme: in the My Fiat site the customer can make a joint statement, they considered that the the entire purchase process through the initiative will “collaborate for a smarter and internet and receive the car at home. In less displaced vehicle on the streets (!!!!!)”. practice, the sale is made by the conces- So, my friend, meeting the yearnings sionaire, but the complete intermediation and wishes of the consumer of the futu- is of the FCA itself, which has an exclusive re will make the question of having a car department dedicated to the digital service or not meaningless. The case is that the to the interested customer. industry will transform so that the car re- Ciaco points out that the manufacturer mains present in people’s lives, including... has already made several experiments young people.

AutoData | April 2018 20 ESSAY 2025 » ELECTRICAL SUPPLY By Leandro Alves The egg or the chicken, electric version

Electric vehicle manufacturers and loading systems try to solve the dilemma of what comes first: demand or supply infrastructure?

here is no other word: the future is electric vehicles. And period. The arguments are blunt. Automotive companies, traditional or neophyte, Tbet on radical transformation of the world plans of what has been called automotive fleet in the coming years, reaching 2025 electrification. Will there be a structure to in proportion to a purely electric for every supply all these vehicles? six vehicles sold in the world. The turning Other issues such as the need to cre- point will be sometime until 2030, when ate a clean energy matrix, autonomy and sales of 44 million electric vehicles are reliability of electric propulsion technology projected annually. in severe operations, battery and vehicle However this path has many traps - recycling and even the emissions caused and the first one begins to question the by an electric car during its life cycle are

April 2018 | AutoData 21

other obstacles little debated so far, and last decade the biggest challenge in the that may short-circuit such global elec- market was to define who would arrive trification. first, the demand for electric cars or the The most urgent issue, however, is the infrastructure”. necessary infrastructure and the important The century-old Swedish company advances in this area to meet demand uses its knowledge and expertise in a that begins to require its first kilowatts. For number of industries - electrical network experts working on the construction of this infrastructure, for example – and it is in- new business model, linked to the distribu- tensifying the distribution of its portfolio tion and supply structure of electric cars, of chargers, including months ago a major clash that paralyzed portable, fast-charging models. A good the evolution of electrification ended: after example is the loading system installed at all, who came first, the egg or the chicken? a final bus stop in Norway, which started For Reiner Schoenrock, Asea Brown operating in February. Boveri’s vice president of communica- The results so far have reach 6 thou- tion for technology and innovation, better sand 500 loading stations traded in 57 known by the abbreviation ABB, “in the countries, which for ABB shows that the discussion about the egg and the chicken is over and the moment is now the birth of a new business. Or several new ones.

vrx/Shutterstock.com

AutoData | April 2018 22 ESSAY 2025 » ELECTRICAL SUPPLY

Brazil has the opportunity in the next In Brazil, egg The distribution and structure five years to create a public-private initiatives for the supply of electric partnership model capable of meeting the vehicles in Brazil are still shy. Slowly the sale of purely electric cars in the demand of electric vehicles country should boost the business around, repeating models already advanced in other markets. “Comparing with Europe, Brazil STARTING IN 2020 is still at an earlier stage in the In countries with their large cities nee- development of loading points. But ding to drastically reduce CO2 emissions of course the country will be the to meet the prerogatives of the 2015 Paris main market in South America”, says Accord - whose targets for reduction start Paolo Pescali, manager of ABB’s to apply in 2020 - zero-emission mobility Electric Power division in the region. has become Plan A. So, in these regions For him the country has an energy supply companies had time to opportunity in the next five years to adapt their structures while electric cars create a public-private partnership took their first turns through the beautiful model capable of meeting the cities of Europe, the exuberant metropolis demands of a supposedly growing of China and in the United States, espe- electric vehicle market, especially in cially in the state of California. large centers. Now the scenario is one of consoli- The current moment is for sectoral dation, because electric cars are more discussions that involve not only the reliable, have similar sales prices similar regulation of a new business model, to those of internal combustion engine but also projects that may arise in models in many markets, and the main- 2018: “We have been keeping talks tenance and durability of the system no with an investor to create an electric longer appear as rejection points in con- recharge structure.” sumer surveys , according to ABB. The first project is already getting of the paper: Paraná will win the country’s first electro-road, with ten refueling stations along seven hundred kilometers of BR-277, cutting the State from East to West, Paranaguá to Foz do Iguaçu. The initiative is a partnership between Itaipu Binacional and Companhia Paranaense de Energia, Copel. The first electroposto was inaugurated at the end of March in Curitiba, at kilometer three of the highway. The charger was supplied by ABB. Disclousure/Formula E Disclousure/Formula

April 2018 | AutoData AUTODATA NEWS AGENCY

THE MOST COMPLETE AUTOMOTIVE DAILY NEWSLETTER

CALL US TO SIGN: (11) 5189-8900 www.autodata.com.br 24 ESSAY 2025 » ELECTRICAL SUPPLY Disclousure/MBB No need to wait all night, lady: the new high- performance chargers And so the new vehicle refueling busi- In other words: waiting eight hours for can deliver up to 300km ness began to emerge. “We have enough your electric car to become available for in just 12 minutes people using electric mobility to justify all use is, in a sense, the same as piloting a the necessary investment in infrastructure. Formula E dreaming about the performan- This is happening today, and not in the ce and practicality of a Formula 1. future”, said Schoenrock during a visit to The next generation of loaders, called the ABB booth installed in the beautiful high performance, aims to speed things Balmaceda Park in the center of Santiago, up. Systems already available in the ma- , during the local stage of Formula E, rket offer voltage from 400 to 800 Volts the new and main competition category generating power of up to 350 KW, which is of electric vehicles - and of which ABB is enough to charge the battery of an electric now the largest sponsor. car in four minutes for one hundred kilome- ters of autonomy. This means that in twelve COMING SOON minutes it will be possible to charge the It must be recognized: the speed of batteries to run three hundred kilometers. the advance of electric propulsion tech- It is a reasonable waiting time and much nology is similar to that of Formula E cars, lower in the stopwatch to the systems used where the average speed is 135 km/h in today in malls, dedicated stations in cities urban streets and a car exchange occurs or roads, among other initiatives. in the middle of the race on account of the And there is still room to evolve in the charge the battery. As a comparison with short term, warns Schoenrock: Formula 1, with its hybrid engines, runs the “This quick operation depends on the average per race generally around 200 ambient temperature and the vehicle’s km/h on closed lanes. And a pit stop of technology, because during the process just a few seconds is enough to fill the . the battery becomes hot and the software

April 2018 | AutoData 25

that charges the station reduces the load then at the same time increase the electri- from 350 KW to 200 KW.” cal current which, in the end, can generate The near future presents the possibility power from 600 to 700 KW”. of anabolizing the distribution systems ABB’s vice president of communication offering greater support for the passage of for technology and innovation, two areas electric current. In this way the operation involved in building this new momentum of full recharge of the battery could even towards zero-emission mobility, believes take the same time of the supply of the that in the next five years there will be con- traditional vehicles, in the stations of fuels: sumer awareness of the supply of products “This will happen: with the technology and services through technologies more available. There is no problem to increase robust, reliable and adaptable to people’s the battery voltage to 1.2 thousand W and needs. That they are already there.

Ah, the electric induction

Walking through the Formula professionals who have worked E paddock is exciting. Not for years at the cutting edge because of the glamour that of automotive technology, can suggest the transmissions which Formula 1 has always sponsored by the FIA, the been a protagonist, must know International Federation of that participating in the future Automobilism, of this new of mobility is always a good category in the TV. At the business. Santiago, Chile stage, it was During the tour of the pits possible to learn a lot about the it was possible to see an vanguard of electric cars. unsuspecting man who almost There you can find, for example, stepped on a metal plate while that Williams is the supplier of the exuberant BMW i8 Safety the batteries of all forty racing Car of Formula E maneuvered cars used in Formula E. And to position itself just above it - that McLaren will provide a new which made it clear how some generation of these batteries new businesses that Formula

next season, with enough E live with are still unknown to E Disclousure/Formula autonomy to reduce to twenty many. the number of cars used in the The plate was the charging. race - that is, eliminating the Chargemaster Qualcomm, Recently used to power car exchange that currently an induction power transfer smartphones - induction happens because the battery system that makes the Safety chargers are available in some charge lasts only half a GP. Car Hybrid plug-in be charged vehicles like the Chevrolet Yes, they are the same Williams without cables. Just park Equinoxx and Peugeot 3008, and McLaren Formula 1 teams. the car underneath itand the but only for Android systems And with the full support of system does the rest alone. - the Qualcomm prototype Jean Todt, the French president The induction technology shows how much the speed of the FIA, who was happily applied in this system allows has increased in introducing walking on the starting grid 80% of the vehicle’s battery to new solutions to the challenges in Santiago. No wonder, the be available in just one hour of of electrification .

AutoData | April 2018 26 AUTODATA ASKS » GLOBAL LEADERSHIP By Leandro Alves, from Goiana, PE

Sergio Marchionne, of FCA

FCA’s all-powerful Sergio Marchionne was in Brazil at the end of March to inaugurate the third shift of the Jeep factory in Goiana, PE, according to him the most modern of the Group in the world, and that will spend the next twelve months operating in its capacity maximum of 250 thousand units. Humorous, the CEO of FCA since 2009 - started at Fiat in 2004 - is about to complete

DR ten years in the top position of global leadership of his company, which he will leave in 2019 to remain only in Ferrari. And, playfully, he says that after that he intends to dedicate himself to... journalism.

We have heard of possible FCA partnerships with What are your expectations several companies. Is it true? regarding Brazil? What are 1 the main bottlenecks of the I never said that the FCA was for sale. We are 2 Brazilian economy? not after this, we do not want this. We were very clear that GM was not interested, but there were It is easy to come out and rumors about the Germans and the Chinese. The criticize the government. house is not looking to be sold. We have spent We have to remember that a considerable amount of time in the last fifteen we have been participants years and, more importantly, in the last five years, of the local game for more to build a great global business. We are now in the than 40 years. Looking from final stage of a five-year plan that will be closed in the outside, we understand 2018. On June 1 we will announce another plan that the problem. With our will lead us to 2022. I think the combination of all of experience and what we this suggests that we are happy alone. have witnessed, Brazil handled it incredibly well and now we are starting to see at least the beginning of an economic recovery.

What is the role of the region in the growth projected by you until 2022? 3 We continue to believe in the opportunity that exists here in Latin America. Trade flows are now shaping up in relation to the position that has been taken by the United States in terms of free trade agreements. The relationship with Mexico has developed and seems to be a significant change in economic terms. I think there is an opportunity for places like Latin America, particularly Brazil, to fill the void that was created by a kind of lack of international trade.

April 2018 | AutoData 27

Are you worried about the idea of investing 4 here again? I was confident enough to apply more than R$ 20 billion to build Goiana, and Are you preparing the this is not inconsequential company so it can maintain investment. There are many its size, global position reasons to invest here. We and profitability in the face could not have done this of a whole new industry unless we believed in the 5 scenario? long-term process. So I think we should have more faith Yes. There are significant in our own country. We will challenges in the automotive get out of this. Have faith and sector and FCA is not everything will be ok. immune to these changes.

Is the FCA today more Is Stefan Ketter part American or more Italian? of your list of substitutes 7 in 2019? 6 I do not know ... I’m in Brazil: Fiat here is Brazilian. I see Brazilians, locals. The I think everyone is on the Jeep made here is a Brazilian Jeep and list, including you [laughing]! not American. We identify ourselves with We must be fair, the choice the local challenges and that says a lot must be internal. I have no about us. We were able to do that in the predictions about who will United States. Everywhere we try to stay succeed me but I understand loyal to brands. And we are very good at it’s time for a new CEO in adapting to local requirements. 2019. Stefan and I have been together for 15 years, a long time ago. We went through many things, both of us. We Do you intend to step aside saw that we were involved until the end of the year? in the reestablishment of the company in 2004 and we did 8 I plan to end the 2018 plan together with my it again in 2009 at Chrysler. colleagues and present the plan for 2022. Then I will do something else. I am responsible for Ferrari now and intend to continue in 2019. I have been a very busy guy.

What are your retirement plans? 9 I want to become a journalist. I like your work, I like it very much. I do not care about money and I think it’s a lot more fun! After all, you can ask any questions you want ...

AutoData | April 2018 28 MARKET » TRUCKS By André Barros Loads of optimism

After a good start to the year the truck industry believes that the crisis in the sector has been left behind: expectation is already growing above the projection of Anfavea.

he black clouds with lightning and storms were left behind. At the front of the booth executives of the Brazi- lian truck market still see some clou- trucks. Isolated, the segment of trucks, Tds in the sky and holes in the road, but they estimates the association, would grow are insufficient to take the optimism of the the same 24.7%, to something around 63 segment regarding the perspectives that thousand units. are created. The comparison of the first two mon- The result of the first two months brou- ths, however, occurs on an extremely low ght encouraging figures: a 54.7% increase base, a point made by all the executives in truck licenses to 8 thousand 600 units, consulted. From January to February last with some segments more than 80% hi- year, 5 thousand 600 trucks were licensed, gher than the sales volumes of the first the lowest volume of the last ten years - two months of last year, such as of heavy according to Anfavea, in this period the goods. sector recorded an average of 16.5 thou- The performance was well above, even, sand trucks sold in the first two months. the Anfavea’s projections for the year, a The result of 2018 is still, therefore, half of 24.7% increase that would take the sector the average index from 2008 to 2017. to 79.5 thousand units sold of commercial In any case, the truck industry had not vehicles in 2018 - added bus chassis and been so optimistic. “Fenatran was a mi-

April 2018 | AutoData 29

“We can say that we will have growth in the range of 30%, provided that the current conditions are maintained” Bernardo Fedalto, of Volvo Disclousure/Volvo

Roberto Leoncini, vice president of sa- les, marketing, parts and services for trucks and buses at Mercedes-Benz, explains that the recovery of the market could be felt just before the fair. According to him last year’s crop, combined with positive eco- nomic factors such as controlled inflation and falling interest rates, have created a scenario of optimism in the fleet. “The businessmen realized that it was not fire of straw. The economy got under control and took off from politics. The su- persafra came and pulled the trigger: it was time to invest and there was the need for it”, argues the executive, adding that Fenatran was the apex of this new trend.

tele52/Shutterstock.com According to José Ricardo Alouche, vice president of sales, marketing and after sales at MAN Latin America, the economic scenario coincided with the moment when the businessman renewed his fleet. He argues that many customers last traded their trucks when there was the domestic market explosion, the Finame’s lestone,” says Oswaldo Ramos, director interest rates were below inflation and of sales, marketing and services for Ford’s the vehicles still did not offer pollutant truck operation, citing the latest edition emission technology equivalent to Euro of the International Freight Transport Fair, 5 standards. held last October. “That’s when we realized the market was motivated. We sell many trucks at Fenatran itself.” Scania’s vice president of commercial operations in Brazil, Roberto Barral, says “There are trucks with six, that Scania’s result at the fair was very po- sitive. “All the negotiations at Fenatran have seven years of operation. It is been confirmed. But since a little before, past time to change them.” in August or September, contacts have been resumed and requests have begun José Ricardo Alouche, from MAN

to arrive.” Disclousure/MAN

AutoData | April 2018 30 MARKET » TRUCKS

“Since August 2017 contacts additional volume of which will increase sales”, Alouche explained, projecting sales have resumed and requests of the MAN and Volkswagen lines above have begun to arrive” the market average. Winning the market is also in the plans Roberto Barral, of Scania of Luis Gambim, commercial director of

Disclousure/Scania DAF Trucks of Brazil. “In January and Fe- bruary we registered 224 trucks, 128% more than the same period of 2017. We aim to “They are trucks with six, seven years of maintain this average, always growing abo- operation. It’s past time to change. Many ve the market and increasing our partici- were waiting for the moment to renew pation”, says the executive, whose brand the fleet and now they can not postpone also has just entered in another segment, it, even because it begins to devalue the off-road, and extend the road application patrimony.” with a new model. “This allows us to gain Before the requests, consultations and even more share in the segment over 40 contacts that help to design the scenario tons”. for the next months, the official projection of Anfavea, released at the beginning of STONES ON THE WAY the year, was small. While executives believe that the still- -troubled Brazilian political landscape has 30% GROWTH finally taken off the economy, the presi- Bernardo Fedalto, Volvo’s commercial dential election in October is a factor that truck director, is already foresees more can make the truck market shake. “We than 30% in the market slices where the are in an election year, with an unforese- manufacturer competes - heavy and light eable political scenario and a sensitive heavy. moment of the Brazilian economy that has “Passado esse primeiro trimestre fica- just emerged from the worst phase of its mos mais otimistas e podemos dizer que crisis”, Gambim said. teremos um crescimento na faixa dos 30% “It is important to maintain the current alto, desde que mantidas as condições economic policy”, says Volvo’s Fedalto. He atuais.” fears the possibility of some radical candi- “After this first trimester we are more date, whether right or left, to win the elec- optimistic and we can say that we will have tion and prejudice the economic stability. growth in the 30% range as long as the For the executive of Volvo whoever wins current conditions are maintained.” the election should be concerned about Barral, of Scania, also believes in a 30% continuing the reforms of the pension and increase in the heavy-duty segment, as tax. “Sweden, some years ago, had to deal well as Mercedes-Benz’s Leoncini - with the difference that the executive of the company of German origin involves all segments, from light to heavy . “Reaching “We registered 128% more seventy thousand trucks sold in the year is not much off the curve.” license plates in the first two Ramos, of Ford, and Alouche, of MAN months. We want to keep still prefer to work with the official Anfavea number - which does not mean they are that average.” less optimistic. “We are with a newly laun- Luis Gambim, of DAF

ched line and entering a new segment, the Disclousure/DAF

April 2018 | AutoData 2018

Closure: May 04, 2018 | Material: May 16, 2018

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Tel.: (11) 5189-8900 | E-mail: [email protected] 32 MARKET » TRUCKS

“It is necessary that the mage of the truck industry during the crisis participation of commercial promises to be better taken care of from banks grow to meet the now on. The executives of the automakers do not want to repeat the mistake of years demand of the segment” ago when they stopped paying attention to foreign markets and had to work hard Roberto Leoncini, of Mercedes-Benz

Disclousure/MBB in recent times to regain the space. In Mercedes-Benz, exports reached only 10% of production in 2012. “In an effort with pensions. The new government will to meet the domestic market, we have have to do this here too”, he explains, ci- closed the door to the outside. Let’s not ting, as an example, the country where repeat that mistake. We put the folder the manufacturer’s headquarters is based. under our arm, we open new doors and Another point of concern, especially for we will not let it close”, Leoncini says. The the vice president of Mercedes-Benz, is the actions were successful last year, when financing. “We need to know if commercial 40% of production went to other countries. banks are hungry, whether they will be “A 30% to 40% level [of export produc- attracted to this segment”, Leoncini says. tion], which is what we have achieved in He estimates that 40% to 50% of the recent years, is good”, estimates Ramos, brand’s truck sales are serviced by Merce- of Ford. Alouche, of MAN, considers a he- des-Benz Bank. The rest is the responsibili- althy level of 15% to 30%. “Latin American ty of commercial banks. “It is necessary that markets, such as , Chile and the participation of the commercial banks Mexico, are demanding many products. grow to meet the demand of the segment. Our projection is to grow substantially in Otherwise the market may get stuck”. exports”, says the company executive with According to the executives, who a plant in Resende, RJ. closely monitor the automakers’ banks, Volvo’s situation is different. Fedal- liquidity exists but there is also a major to says that upon arriving in Brazil, the restriction on the approval of chips due company has committed to export 30% to delinquency. The good news is that the of its production every year. “That’s why rate of payment delays is on a downward we always end up looking a lot at export, trajectory: “With delinquency falling cre- regardless of the situation of the internal dit availability gets bigger and banks are market or the exchange rate. The channel more open to negotiations”, says Alouche, always keeps itself open.” of MAN. In the boom years of the Brazilian ma- rket, pulled by PSI, the Investment Support EXPORTS Program developed by the government The escape valve that reduced the da- with BNDES support, the brand’s average exports reached close to 20%. Last year, however, hit 45%. “This year we should lower slightly in percentage, but we will “We realized the market maintain the volume of 2017.” DAF’s situation is also different: the motivated at Fenatran. We factory in Ponta Grossa, PR, still does not sell lots of trucks at the export. “Our strategy is focused on the local market. But we have already started the event itself.” homologation process of our products in some Mercosur markets”, explains Gam- Oswaldo Ramos, of Ford Trucks

Disclousure/Ford Caminhões Disclousure/Ford bim. Plans for local operation, however,

April 2018 | AutoData 33

are ambitious. “We are preparing to be the “We think that the 150 thousand trucks a major DAF exporter in the region.” year will be repeated, it was not a bubble. Meanwhile, the company concentrates The Brazilian market is bigger than this, just its efforts on the Brazilian market. But what compare with the United States, China and is the size of this market? Does it return to other countries. Combining some factors the 100 thousand house? When? Ramos, such as infrastructure investment, we can of Ford, believes that at the beginning of sell up to 200 thousand trucks in a year”, the next decade. “Maybe those peaks of Alouche believes. the anticipation of purchases of the Euro As it can be seen, the pessimism in 5 do not repeat themselves. But I think our this extremely important truck market is market has a size of 100 thousand to 120 finally diminishing and becoming, at the thousand trucks a year.” beginning of this year, a tiny dot in the re- The MAN executive is more optimistic: arview mirror.

Full package

During the crisis, a trend that maintenance”, he explains. He on Fleetboard, a fleet was already emerging in the says the percentage of new management system. All of the truck sector was strengthened: models sales with the Ford Axor, Atego and Actros trucks the sale of packages added Service, maintenance package come with it installed and the to the vehicles, whether offered to the brand’s trucks, new owners gain a year of scheduled maintenance, has doubled from 2016 to 2018. free testing. “In total there are telemetry or other technologies “This tendency for us is already over 5.6 thousand vehicles that help the day-to-day a reality”, says Roberto Barral with Fleetboard activated operation of the fleet owners. of Scania. The company in Brazil. Only in January to Previously timid, sales figures invested heavily in after-sales, February about six hundred for 0 KM models with these connectivity and flexible vehicles activated the system”, packages currently outnumber maintenance plans. The says Roberto Leoncini, who the two-digit house in most investment extended to the also sees growth in sales of automakers. network: “It was all standardized. maintenance packages: “More “From the basic package to the The customer now saves 70% customers are asking us to take most elaborate 80% of our sales of the time when scheduling over their shop”. come out with some after-sale services at the dealership.” At MAN, scheduled plan”, says Bernado Fedalto, of Luis Gambim, from DAF, maintenance packages Volvo. “In this resumption we explains that the company’s already account for 20 to 30% started to sell the full package. culture plans to make the of sales. The brand also bets The trend is that 100% of our concessionaire a major service on operating leasing - very sales will have some added center - so much so that it common in Europe, but still package.” offers its network of spare parts crawling around here. José Oswaldo Ramos, of Ford, says for multibrands in its network. Ricardo Alouche says that his that plans have gained ground “The customer can take their clients value the profit of every in recent years. “The operators entire fleet out of warranty, from penny. “Many people tell me ‘I are outsourcing the workshop DAF trucks or other brands, to need to win even in the second to the factory. They eliminate do maintenance at one of our house after the comma’. If you cost, risk and can predict dealerships.” do not take care of yourself, the how much they will spend on Mercedes-Benz bets fleet owner will break.”

AutoData | April 2018 34 EVENT » AUTODATA SEMINAR By Gilmara Santos All actors on the same stage DR

he automotive sector was meeting in Seminar AutoData Megatrends brought together early March to attend the AutoData Seminar Megatrends of the Automo- presidents of Anfavea, Sindipeças, Abeiva and tive Sector - The Challenges of 2018 SAE Brasil along with several executives in São TWith or Without Rota 2030, held in São Paulo, Capital. The rapid changes in the Paulo. The concern is general - and themes for automotive sector were at the center of that were not lacking. the themes discussed at the event. As was to be expected, the lack of de- finition of Rota 2030 was a fundamental part of the debates. For Anfavea’s presi- dent Antonio Megale, without the definition of a specific industrial policy, the country risks losing investments in the automotive industry, even those already announced. For him,the approval of the program is

April 2018 | AutoData 35

critical for manufacturers to continue in- “Some suppliers, and not all of them, vesting in technology. “Since Inovar-Auto are working within a margin to meet just the automotive industry has done its part that demand for 30% production increase. to reduce the emission of pollutants with But we have the philosophy of staying very investments in technology. But if the ma- close to the suppliers. So we can foresee rket is not open to further advances this those movements.” may lead the parent companies to rethink FCA’s purchasing director, Antonio Filo- their investments here.” sa - now named the presidente of FCA, re- In his presentation, the manager of An- placing Stefan Ketter - who split the panel favea also mentioned the case of the pre- with his colleague of M-B, does not see this mium segment automakers, which without risk: “Our suppliers are already prepared specific rules for low volume production for growth. In any case, if we happen to could also revise their plans with respect notice that there is some risk of shortages, to Brazil. we can help them accelerate some kind According to José Luiz Gandini, presi- of productive investment”. dent of Abeifa, the Brazilian Association of Filosa, who will be replaced by Luís Importers and Manufacturers of Automoti- Santamaria in the manufacturer’s purcha- ve Vehicles, the publication of the regime sing directorate, pointed out that, like M-B, may even be for the next government: “We FCA maintains constant monitoring and believe that it is as short as possible, but relationship with suppliers. There are two I believe it will not be released this year”. programs in the company aimed at impro- Abeifa, according to its leader, definitely ving the competitiveness of partners and, supports the program: “We participated consequently, the company itself: Value in almost 100 meetings in Brasilia on the Optimization Product Center, VOP, and subject, but it is important that it be given Supplier Integration Management, SIM. with an isonomic treatment for all partici- “Our goal is to expand these programs pants in the chain”. to more suppliers and other automotive hubs. We want to take the good things AUTO PARTS in these models to all regions”, said the Another clear concern raised during the executive, adding that in Goiana, PE, at event is the possibility of missing auto parts the Jeep Automotive Hub, 88 suppliers to meet demand, a theme also discus- are already participating in the VOP. sed in the AutoData 342 edition AutoData. At Mercedes-Benz, the practice is simi- Mercedes-Benz’s director of purchases, lar, according to Berbetz: closely monito- Erodes Berbetz, said: “There may be a ring the financial health and management bottleneck in the supply of parts if com- of partners “is a prime work”. mercial vehicle sales increase above the For Sindipeças, the auto parts sector is 30% forecast for this year. According to him, prepared to support the growth of vehicle importing components can be a one-time production this year. According to Sindi- resource to support this volume increase”. peças president, Dan Ioschpe, including

AutoData | April 2018 36 EVENT » AUTODATA SEMINAR

the weakest links in the chain, Tier 3 down, some points already edited this year to have invested in recent years to serve pro- give more predictability to the automotive duction well over three million vehicles. sector. “Points that are already set could be “What can happen is that Tier 3 vendors published earlier, such as energy efficiency may take longer to meet the automakers’ and safety. This is because the market can schedules if orders increase. They have a be invaded by a range of products with longer response time. But I do not see it technology level lower than that deter- as a bottleneck. This deterioration of which mined by Inovar-Auto. But government is some speak does not seem evident to a complex entity.” us. In the year 2017, for example, we saw A theme also intensely debated during more companies coming to Sindipeças the seminar promoted by AutoData Pu- than leaving. We grew 4% in the number blishing was the competitiveness in the of associates.” sector. For Fernando Magri, director of The president of Sindipeças also stres- Thompson Reuters, how to be competitive sed that the proof that the segment is pre- in the future is an issue that all companies pared to meet a probable increase in the involved in the automotive sector must production of vehicles is the use of instal- be faced and discussed. He stressed that led capacity, which now stands at 70%. “We companies will need to adapt to the chan- are on the same level as in 2015, not a high ges that will come in the coming years: number. Auto parts, as well as automakers, “The automotive industry is one of the have also prepared for a production of five few in which the industry is global. A car million to six million vehicles five years ago. receives components that are made in This was the scenario foreseen at that time. many countries of the world, and with that, So for a production of three million units, optimizing the logistics is a question that we are qualified.” will make a difference in the future. But it is necessary to understand how this can REVIEW UP be done.” Sindipeças estimates an 11% growth in According to the speaker in Brazil the- the volume of vehicles manufactured this re are fourteen special customs regimes year in Brazil - this index, however, should that are little explored by companies and be revised up soon. According to Ioschpe that could improve the competitiveness the orders of the automakers were higher of local products abroad. This is the case than estimated in the first months of this of Recof, which allows the importation of year. “The 11% growth forecast was a sce- inputs without tax cost. “There are alrea- nario last year. This number should surely dy mechanisms in Brazil to increase the reach the 20% mark. And we will be ready competitiveness of companies, but many to meet that demand.” do not explore special regimes.” Ioschpe also said that the Rota 2030 program, which was originally schedu- A SHOT IN THE FOOT led for the end of last year, could have Regarding trade barriers Magri unders- tands that they have come to stay and will be more and more present, such as the surcharge for importing steel in the United States. For the speaker, however, this can According to Dan Ioschpe, president of be “a shot in the foot”, because instead of leveraging the US steel industry can Sindipeças, orders from automakers were make the importation of a ready vehicle higher than estimated in the first months is cheaper than local production. Britain’s exit from the EU bloc should also become of this year a trade barrier in the future, he added. “I believe that in the future the compa-

April 2018 | AutoData 37

Marco Silva, president of in Brazil, added that today there is no single For Marco Silva, president of Nissan, answer regarding vehicle propulsion te- chnologies that each region of the world although electric vehicles represent a should develop. The executive believes trend there is no single answer to the issue that electrification is a trend, but it is neces- sary to define the best solution for Brazil: of propulsion technologies “Electric motor is a trend, but we do not know which is the most viable for Brazil. It may be, for example, a hybrid that uses ethanol. There is no single answer for pro- nies that will lead the way will be those that pulsion technologies.” can make the technological innovations accessible to the consumer, without major GLOBAL SEARCH ruptures with their past.” A study carried out by the KPMG con- In a panel named Engines/Electrifi- sultancy and presented during the seminar cation, the topic was the need for Brazil brought clues as to how the industry eva- to define, therefore, its public policies for luates its own future, according to director energy efficiency so as not to lose the -te Ricardo Bacellar: “The opinion of industry chnological tram. The president of Unica, executives has changed in the last three Sugar Cane Industry Union, Elizabeth Fa- years. Most of the respondents now bet rina, recalled that “congress has already on the fuel cell as the flagship of the future approved 43% reduction in CO² levels by of motorization, 33% and, no longer in the 2030. There is a timetable for this. So we electric, 22%.” already know where we want to go. Now In the opinion of the interviewees of the we have to define what will be the energy global survey, the main obstacle to the matrix for land use, electric energy and electric will be the infrastructure, an issue fuels. And ethanol can contribute to these that is little discussed if compared to the three areas. I hope that Brazil can seize subject of the vehicles themselves - and this opportunity: we need to define public that nobody knows for sure how to solve it. policies”. In the view of the interviewees, both exe- The President of CAOA Montadora and cutives and consumers, the automakers SAE Brasil, Mauro Correia, said that pre- should be responsible for the infrastructure dictability and rules in public policies are of recharging stations. necessary for the development of new te- Bacellar points out that the growing chnologies in Brazil. “Brazil needs to choo- confidence in fuel cell engines is an ex- se how it wants to enter this global game. cellent opportunity for Brazil to show that In the process of deciding investments in ethanol can be used instead of hydrogen, research and development, companies with the advantage of the country domi- think of the market as a whole, to gain sca- nating the entire production cycle of the le, not individual solutions for each region.” raw material that will be used. Bosch’s president for Latin America, “We have the solution ready and this will Besaliel Botelho, understands that the be a very good business opportunity for us.” development of electrification technolo- He stated that “in the future all power gy is accelerating in the world but is not technologies will have space, one will not necessarily a viable solution for all regions: kill the other. It’s not a race to bet on a “Brazil has taken an important step in this single horse”. The survey data show that fuel issue. We have to make noise. We by 2040 the annual market will be of 140.5 already have a viable alternative, which million vehicles, 25% fuel cell driven, 26% is ethanol. We need to define what our electric, 24% hybrid and 25% internal com- energy matrix will be.” bustion.

AutoData | April 2018 38 INVESTMENTS » JAC MOTORS By Marcos Rozen, Caio Berdnarski collaborated

Disclousure/Jac Motors Neither a goat nor a baby goat After fifteen changes of plan in seven years the local Jac Motors factory continues to skid in a quagmire of undefinitions

ac Motors plant foundation stone ce- volved in a real imbroglio, a seemingly remony in Camaçari, BA, November, complicated solution. And it all gets more 2012: the mayor defines the event with blurred by its local representative, Grupo the popular local saying “The more Sherpa, by Sérgio Habib, to have changed Jgoat, the more baby goat”, that is: one thing the plans in a representative way no less pulls another, raising the importance of than fifteen times in this period (see table the original fact. on page 42). More than five years later, we have not Those changes have led to the col- seen a single goat’s hair, much less a baby lection of two debts which the amount is goat. And the scenario so far does not point unknown, but certainly large. The Federal to something very different from that. Government and the State of Bahia char- The Jac Motors factory in Brazil is in- ge Jac Motors for the return of incentives

April 2018 | AutoData 39

received and from which the combined Jac Motors: factory effect. counterparts did not occur. Sales of 2017 were only 10% of those of 2011, year of debut The most recent chapter of the story *First two months. Calculation on the first two months of 2017. In units. Source: Abeifa occurred in December last year: Jac Motors announced that the factory will be in Goiás, investing R$ 200 million to produce two SUVs, one of them the T40, within 24 mon- ths. The factory will have, or would have, “eight steps of productive process already in the first year of activities”, according to company statement released at the time. In the same informative Jac stated that the city of Goiás that would receive the plant was not yet chosen “despite great options”. But the protocol of intent signed by Habib and the governor of Goiás pointed to Itumbiara as the headquarters of the unit, more specifically area that had been used by HPE, former MMC, to produce the Suzuki Jimny utility, transferred in 2015 to the company’s unit in Catalão , in the same Goiás. The municipality of Itumbiara published press release celebrating the “arrival of Jac Motors”.

-81% BAHIA CHARGES IT The businessman and the city council of Itumbiara were searched by AutoData to talk about the subject, but did not res- +120% pond to the requests of the report. A source close to the talks said Habib is still talking to HPE about talks involving a possible space lease. There is, therefore, no hammer beaten definitively as to the choice of a place to host the factory. And so it is obvious, much less works or installation of machinery of -47% any kind. The reaction from Bahia to Jac’s an- nouncement in Goias was immediate. In -40% an interview with local newspaper A Tarde, the governor of Bahia said that he would +40% send a statement to the Chinese gover- -46% nment stating that his partner in Brazil is “inidôneo” and that he caused financial losses to the State. +23%* In exchange for building the plant in Camaçari, Jac Motors received, in addition to its own land and its basic infrastructure 38 217 7 248 15 980 8 416 5 026 2 727 3 823 624 works such as earthmoving, exemptions 2011 2012 2013 2014 2015 2016 2017 2018* from the ICMS. The local government pro-

AutoData | April 2018 40 INVESTMENTS » JAC MOTORS

of IPI increased by 30 percentage points. Faced with the changes in Jac Motors’ plans, MDIC did not renew the license for 2014 and canceled it definitively in 2016. It charges, in addition to the increased IPI for each car that entered the country with exemption, fines. Asked by AutoData, the MDIC revea- led in a note that “Jac Motors filed a writ of mandamus with the Superior Court of Justice, STJ, which suspended, until a fi- nal decision, the effects of the Ministry’s decree dealing with the collection of tax benefits received under the Inovar-Auto Program. The final decision has not yet been handed down”.

AU REVOIR While debating the two debts invol- ving Jac Motors at SHC, this March saw its long-term partnership with PSA Peugeot Citroën end. So, Habib will no longer com- mercialize vehicles of the French brands - he was the first representative of Citroën in Brazil, at the time by his company de- nominated XM. The J3 Time Capsule has According to Grupo SHC, the twelve not understand anything Citroën and two Peugeot stores still in their mises to charge the amount not collected until now: containing hands will receive the Jac Motors flag. several items from 2012 in court. “What he [Habib] got there in Goiás for revelation only in PSA confirmed in a statement that I do not know, but I know he will have a lot 2032, it was unearthed it is analyzing how it will now serve the of work to materialize this announcement”, 15 years before places where the SHC Group was active. the governor warned. According to the manufacturer there is no On that day of 2012, the one of goats intention to reduce the size of the network and baby goats, Jac Motors buried in the after the disruption, “taking into account same area of the Camaçari factory a J3 the recovery of the Brazilian market”. New that would be unearthed as a time capsule stores, therefore, should be delivered to in 2032, twenty years later. Neither did it other groups to occupy the space left by work: given the litigation with the Bahian Habib. government the vehicle was already dug The partnership made by SHC and Ci- up last year. It is still in the company’s pos- troën started in 1991. Sérgio Habib mana- session, but its fate is uncertain. ged to own a third of the manufacturer’s In Parallel Jac Motors still has to deal network in the country and held the with another serious charge, of MDIC, Mi- company’s presidency from 2000 to 2008. nistry of Industry, Foreign Trade and Servi- Faced with this complex picture, the- ces. That’s because in 2013 the company refore, many doubts remain as to where became Inovar-Auto as an investor and and how the grass would be planted which thus received a quota of half the factory’s could feed the goats and baby goats of Jac capacity to import J3 and J2 - using the Motors. The risk is that the time passes so same model platform that would be ma- long that, by then the baby goat may have nufactured here - without the incidence already become a huge goat.

April 2018 | AutoData A COMMUNICATION AGENCY EXPERT IN STRATEGIC SOLUTIONS FOR THE AUTOMOTIVE INDUSTRY Creation and implementation of corporate events, creation and management of relationship and networking campaigns in the automotive industry

[email protected] | www.izzo.com.br 42 INVESTMENTS » JAC MOTORS

Erratic trajectory of the Jac Motors factory in Brazil

August 2011 Habib announces investment of US$ 600 million for the Jac Motors plant in Brazil: 100 thousand units/ year, development center and test track, generating 3.5 thousand direct jobs and 10 thousand indirect jobs. Inauguration in 2014.

November 2011 December 2011 July 2012 Faced with an increase in Habib says that the Habib says that the investment the IPI for imported models investment is maintained with is suspended because of announced by the federal 80% of his responsibility, as a “uncertainties from the government, Habib warns that local partner, and announces government regarding “the plans have unfortunately Camaçari as chosen city. the regulation of the new changed”, because “provisional He adds that the factory will automotive regime, allied to the measure 7 567 does not be even more complete, current business environment”. allow us to continue with the including design center and investment plan previously pollution control laboratories. announced”. Inauguration in 2014 confirmed.

November 2012 Jac Motors holds a foundation stone laying ceremony in the area that would receive the future factory in Camaçari. Habib then announces a change in its corporate structure, which becomes 66% of the SHC Group and 34% of Jac Motors. And warns that the model to be produced there is a new generation of J3, with aesthetic and technical details unique to the Brazilian market. Inauguration planned now for the end of 2014.

January 2013 June 2013 Grupo SHC reveals that the investment was Jac Motors receives definitive authorization raised by US$ 100 million, or US$ 700 million, to from Inovar-Auto as an investor, which allows include light trucks in the project, giving the VUC it to import twenty thousand J2 and J3 vehicles T140 the primacy of production in the unit to the without an increased IPI. detriment of the national J3. Capacity passes to 100 thousand cars and 10 thousand trucks/year.

April 2018 | AutoData 43

August 2013 September 2013 May 2014 Jac Motors announces that Jac Motors announces that Habib announces that the Valeo and Usiminas will it already has seven local investment ratio, now estimated be suppliers of the plant. suppliers with a signed at R$ 1 billion, has reversed, to Inauguration goes to the first contract, who will jointly invest 66% for the Chinese and 34% for trimester of 2015. R$ 120 million in expansion of the SHC Group. Inovar-Auto’s current production lines or new annual license is not renewed plants, generating in all about by the MDIC. 450 jobs.

November 2014 December 2014 April 2015 Inauguration begins in the first Habib gives up the trucks and Inauguration goes to “end of half of 2016. Until then civil announces that the factory 2016 or beginning of 2017”, says works in Camaçari have not will first produce the national Habib. Line to be produced even begun. version of the J3 and then a passes the national J3 and then compact sports utility. two SUVs, T3 and T5.

February 2016 Habib says he will run the factory without the Chinese partners, paying for technology transfer. The product becomes only the T5, mounted in CKD, the productive capacity drops to 20 thousand units/year and investment drops to R$ 200 million. Inauguration begins at the beginning of 2017.

March 2016 April 2016 May 2016 Habib says that the factory will Government of the State of MDIC announces that the no longer be installed on the Bahia resumes the land that authorization of Jac Motors land in Camaçari but in a shed had yielded to Jac Motors has been definitively canceled, already leased in the same city. and transfers it to another which implies in the collection Prediction of commercialization industrial enterprise outside the of the IPI plus 30 percentage of the national T5 for the first automotive sector. points plus a fine. trimester of 2017.

December 2017 Habib announces that the factory will be built in Goiás. Investment kept at R$ 200 million to produce two SUVs, one of them the T40, within 24 months. The government of Bahia says it will collect in court the tax incentives granted.

AutoData | April 2018 44 SUPPLIERS » RECOGNITION By Bruno de Oliveira Hyundai: the best even better. Disclousure/Hyundai

Manufacturer sees evolution in quality of supply over the last few years

yundai Motor awarded the compa- pliers and partner companies, as well as top nies that achieved the best perfor- Hyundai executives. The program included mance in parts supply and services a debate on the Rota 2030 automotive re- in 2017. The Hyundai Suppliers of gime, whose entry into force remains un- Hthe Year event has started taking place defined, and a forum with the participation annually five years ago and in this edition of the automaker’s management and re- seven companies were honored during an presentatives of the commercial partners. event held in Piracicaba, SP, hometown of According to Ivan Carvalho, general HB20 and Creta. manager of purchases, the award is a way The event, held at the Teatro Erotides of remembering established goals with de Campos, hosted more than 200 sup- partners and also, in some cases, cor-

April 2018 | AutoData 45

recting directions: “Performance reports are constantly passed on to our partners throughout the year. We believe that the meeting narrows the relations that the company maintains with its suppliers”. In the manufacturer there is a belief that the annual awards meeting helps in the exchange of information in order to improve processes. So the supply chain can plan, develop and manage its business more efficiently, sharing stability with Hyundai.

SEWING BUSINESS Another objective of the event, ac- cording to the executive, is to create an environment conducive to sewing new business globally and locally. Carvalho Suppliers of the Year Hyundai 2018 points to the event as “important to eli- minate doubts about what is expected of the supply chain in its main indicators, Foreign Trade Services motivating everyone to obtain good results DSE Logistics that, in the end, benefit customers”. Advice and customs clearance Recognition is also working to promo- General Direct Purchases te evolution in terms of parts quality and PPG Industrial other factors: “Quality indicators and pur- Paints and chemicals chased materials, warranty costs, agility Indirect General Purchases in the location of parts and others that Movitec depend on our suppliers have improved Industrial equipment considerably since the first edition of the Quality award in 2014”. Grupo Antolin (Trimtec) This year HMB recognized partners Interior finishes who excelled in the areas of innovation in Logistics and Delivery Management cost reduction, logistics management and TI Automotive deliveries, quality, intelligent increase of Clutch, Fuel and Brake Systems local content, foreign trade services and Increase Local Content also better performance by the supply Sogefi Brasil of direct and indirect items. The winners Suspension systems were Dymos, TI Automotive, Grupo Antolin Innovation in Cost Reduction (Trimtec), Sogefi, DSE Logistics, PPG and Dymos Movitec respectively.

AutoData | April 2018 46 ASSEMBLERS » FACTORIES By Bruno de Oliveira

ercedes-Benz has officially started new assembly line operations at the São Bernardo do Campo plant, São Paulo, fully designed under Mthe precepts of Industry 4.0. The area is considered by Philipp Schie- mer, president of Mercedes-Benz Brazil and CEO of Latin America, as nothing less than the most modern company in the world. And it will help sustain 30% growth in projected production for the year, based on increased domestic demand and exports. For that, the company also hired 250 employees for the São Paulo unit and ei- ghty for the Juiz de Fora, MG unit. The investment required by the new line gives the tone of its importance: it con- sumed no less than half of the company’s last investment cycle in the country - or R$ 500 million of a total of R $ 1 billion applied from 2013 to 2017. For Schiemer “it is natural that every newest line in the Group is the most mo- dern. And this one of São Bernardo de

Disclousure/MBB Campo counted on the collaboration of teams of other units”. He also considered that the new ABC line is a “gigantic and historic step towards the implementation of the concept of Industry 4.0 in Brazil”. It was three years of construction of a FIVE HUNDRED totally new building, where the logistics area used to be. There were concentrated the assembly of all the trucks, from light to heavy, and the logistics of parts. Before the production occurred in two lines, divided TO GET TO by category. According to Mercedes-Benz, the new truck assembly line is 15% more efficient in terms of production than the previous one - the time needed to manufacture a FOUR vehicle fell from one hundred to eighty-five hours - as well as offering another 20% of logistic efficiency gain: the warehouses The Mercedes-Benz factory at ABC, which of parts were reduced from 53 to six. The opened in 1956, now has nothing less than the delivery rate of parts directly on the line increased from 20% to 45% and the com- world’s most modern truck assembly line ponent storage time fell from ten days to a maximum of three.

April 2018 | AutoData 47

“The new ABC line is a gigantic

There are several technological re- and historic step towards the sources, such as a mobile application adoption of the Industry 4.0 that allows to follow 100% of the produc- tion process. The app is still connected to concept in Brazil” other factories, such as Juiz de Fora. MG, and also abroad, as well as several related Philipp Schiemer, president and CEO AL areas in São Bernardo do Campo. With highlight to sixty AGVs, a hundred electronic screwdrivers, forty TV moni- tors that dispense paper in orientation to assemblers at each workstation and 3D printers. It is also planned to adopt aug- mented reality glasses. In the parts logistics there are new forklifts with cameras and the stock shel- rais plants, where Actros is produced and ves have light sensors that monitor the the cab welding and painting operations, entry and exit of materials. operate in a single shift. Together they can Despite the wide adoption of new elec- produce 40 thousand vehicles/year, in a tronic equipment Mercedes-Benz was mix made up of 70% of trucks and 30% of able to reduce energy consumption by bus chassis. 56%: the secret was to use LED bulbs in The hirings began this April and with 100% of the line. them the factory of São Bernardo do Cam- The manufacturer’s investments in te- po becomes the figure of eight thousand chnologies for Industry 4.0 will continue, employees, which add up to seven hun- now consuming a portion of the R$ 2.4 dred in Minas Gerais. In addition to the new billion investment programmed up to 2022. openings, 350 employees who were in lay- The idea is to expand the concept to all -offs in the two factories returned to work. production processes, including what the With the new line M-BB hopes to see company calls aggregates - engines, ex- facilitated rite of passage for the technolo- changes and axles - and manufacture of gy of engines Euro 6 and still stimulate the bus chassis in São Bernardo do Campo, increase of exports. “Investing in modernity besides the unit of Juiz de Fora. raises the standard of vehicle quality”. 40% of production is expected to follow ONE SHIFT the foreign market in 2018, similar to that Although it foresees a bigger volume of registered in 2017. In 2014 the share of ex- sales for the year Schiemer considers that ports in M-B production was 10%. Argentina “in one shift we were able to attend to the is the main destination for the vehicles volume of orders that we have nowadays, produced here, while Germany and the because with the refurbished factory we United States buy Made in Brazil engines. improved the levels of production. Capa- There is an ongoing work to search for city is not a problem. To open a second new markets, which involves regions in shift, you have to wait and see how the Latin America, Asia and the market will behave”. itself: “We need to get back opportunities But he does not totally rule out this abroad, but we must first reduce the sha- possibility: “If you confirm a growth rate re of companies that have been in these that guarantees the projected 30% a new markets for some time , as is the case of turn can happen from July”. Chinese companies in the Middle East, Currently, both the ABC and Minas Ge- for example”.

AutoData | April 2018 48 ANNIVERSARY » VOLKSWAGEN By Marcos Rozen

olkswagen celebrated on March 23 the expressive mark of 65 years in Brazil. In an event at the historic Anchieta factory, São Bernardo do AT 65, VCampo, SP, took the anniversary to show the New Tiguan, imported from Mexico with capacity for seven occupants - the first SUV of the brand with such characteristic sold here. WAITING FOR The New Tiguan is just the first of five SUVs that VW will launch in the country by 2020, which will add up to another thirteen new features in the next two years, its big- gest offensive in product terms of these six THE EIGHTEEN and a half decades. Let’s recall now some of the icons of this trajectory.

VW celebrates 65 years in Brazil in its biggest offensive in products: of the twenty launches scheduled for 2020 are Disclousure/VW still missing eighteen.

April 2018 | AutoData 49

Above, on the left, the sporty SP-2, a laughable subject at that time and today adored in Europe. On the right is Kombi, nicknamed the little owl, which is now on its way to Germany. And in the center Gol, the best selling car in the history of VWB

From the old shed rented on Manifesto Street, in São Paulo, on the next page, to the manufacture of Virtus in Anchieta, below: VW has been an example of productive modernity in Brazil for several times.

AutoData | April 2018 50 » PEOPLE&BUSINESS

5008 RANDON 1 Peugeot launches in Brazil the SUV 5008: Griffe and GriffePack Alexandre versions, 1.6 THP engine of 165 hp, seven seats, automatic Randon emergency braking, correction and alert of stay in range, speed Disclousure/Randon was named reader and others. From R$ 153 thousand to R$ 162 thousand. chairman of the board of directors of Randon Implementos e Participações, succeeding founder Raul Anselmo Randon, who died on March 3. On an interim basis, he holds the position of vice president and will have a term until April 2019, when a new president will be elected at an ordinary general meeting. Disclousure/Peugeot RANDON 2 For the position of vice president, Randon chose to seek an MAN IN AR FILED external professional, who will MAN Latin Cade has filed suit against VW, Fiat be submitted to the board of America enters the and Ford for allegedly anti-competitive directors and announced as light truck market practice of abuse of intellectual soon as elected. They complete in Argentina with property rights over industrial designs the composition of the board VW Delivery in the aftermarket auto parts market. Ruy Lopes Filho, Pedro Ferro models 9,170 and The representation was made in 2007 Neto and Derci Alcântara. 11,180. by Anfape, National Association of Manufacturers of Autoparts. RANDON 3 David Randon continues as CEO of Empresas Randon, a position he has held since April 2009, and continues to head the non- statutory executive committee, the main executive decision of Empresas Randon.

RANDON 4 In the same way Daniel Randon remains as vice president of the board, directing the financial, human resources,

purchasing and services areas. Disclousure/Nissan The executive committee is still composed of Alexandre Gazzi, LEAF IN BRAZIL COO of the automotive division, Nissan announced that it will sell in Brazil the new generation and Sérgio de Carvalho, COO of of the electric Leaf. In addition to Brazil, the model will reach the auto parts division. Argentina, Chile, , Costa Rica, Ecuador, and Puerto Rico.

April 2018 | AutoData 51

SINGLE PASSAT EXCLUSIVE VW restructured the Passat’s offer for the In an exclusive interview with Agência AutoData Edson 2018 line: now in a single version, Highline, Brasil, vice president of Arteb, stated that the company’s 2.0 TSI 220 hp engine, programmable debt is equated and that it works with projection of a 10% digital panel, adaptive suspension control, increase in business in 2018. Arteb filed for judicial recovery emergency braking, infotainment system in early 2016 with gesture control and more. For R$ 164.6 thousand, a reduction of R$ 13 thousand against 2017 model.

RENTAL COMPANIES 1 RENTAL COMPANIES 2 Fiat was the top-selling car In second place in the ranking manufacturer to reantal of sales for rental companies companies in 2017: 169 in 2017 was GM, 17.5% of thousand, or nearly 24% of all participation, followed closely business to the segment last by VW, in third with 17.2%. year. Renault with 14.3% and Ford with 12.4% complete the top

five. Disclousure/VW Disclousure/Volvo CE Disclousure/Volvo Holdings Disclousure/Wabco Simão Salomão Disclousure/Rolls-Royce no Brasil Disclousure/KSPG

CHUEIRE FIORONI GANDINI FRITSCHES HEYDEBRECK Afrânio Chueire Wabco Holdings José Luiz Gandini Martin Fritsches Claus von leaves the announced was reelected was named Heydebreck position of Roberto Fioroni president of Rolls-Royce’s took over the president for the position Abeifa, Brazilian vice president presidency of of Volvo of Chief Financial Association of of sales for the KSPG in Brazil. Construction Officer, CFO, from Importers and Americas region, Formerly CEO Equipment Latin June 6. He has 20 Manufacturers the company’s of Motorservice America in April. years of financial of Automotive largest market Brasil, And so he says management Vehicles. Sixth in the world. He aftermarket goodbye to the experience in mandate, for left the sales division that Volvo Group companies such the biennium directorate of deals with the after 18 years, for as Goodyear and 2018-2019. BMW Brazil, commercialization retirement. GE. Paulo Ferreira, which he held of the brands of Via Itália, vice since 2012. Kolbenschmidt president, and Renato Fabrini, -KS, Pierburg and Sara Bonadio, general sales BF. of JLR, financial manager, takes director. over temporarily.

AutoData | April 2018 52 » PEOPLE&BUSINESS

CORCEL 50 YEARS The MIAU - Automotive Press Museum promotes the exhibition Corcel 50 Anos. It tells the story of the Ford icon through photos, magazines, catalogs, press releases and the like. The show involves all variations and evolutions of the family: Corcel, Belina, Corcel II, Del Rey and Pampa. Highlight for vehicle Del Rey Scala 1983 that plays the role of cinema for documentary show that reveals the development of the vehicle, 1968. On Saturdays, Sundays and holidays. Additional information on

Disclousure/MIAU www.miaumuseu.com.br.

MOURA BMW AFTERMARKET AFTER SALES BMW 2 Grupo Moura received the international BMW Group Brazil announced The BMW program will certification Great Place To Work. an additional investment of now be certified by the MBI Conducted earlier this year, a survey that R$ 2.5 million in the global concessionaires of Campinas, examined the work environment was program of certification and SP, Euroville, Belo Horizonte, attended by 86% of the company’s staff. audit in shop and paint in MG, Agulhas Negras, São The result was 82% satisfaction, certifying the dealership network. Total Paulo Capital and São Grupo Moura in the list of the best contribution in the area totals Bernardo do Campo, SP, companies to work for. R$ 7.5 million since 2014. and PG Prime, João Pessoa, Paraíba. Disclousure/CNH Industrial Disclousure/CNH Industrial Disclousure/CNH Cars Disclousure/Volvo Disclousure/Marcopolo Julio Soares

SISTO GOÉS SAMUELSSON PIKUSSA CORSO Carlo Alberto Still at CNH Hakan Rodrigo Otavio Still at Sisto became Industrial Samuelsson, Pikussa assumes Marcopolo, Paulo Chief Financial Heberson, CEO of Volvo the position of Corso left the Officer, CFO, of Góes becomes Cars, was named director of the company after CNH Industrial responsible the Automotive Bus Business of 39 years. He Latin America. for the area Personality of the Marcopolo S.A. was the director Mariano Pizzorno, of Financial Year 2018 by the and becomes the of commercial the new world Services in jury of the World direct responsible operations leader in the Latin America, Car of the Year for the and diretor of financial area which controls Award, won by commercial area marketing for the of the Iveco the operations the Volvo XC60. for the Brazilian domestic market. brand and the of Banco CNH The honors market. Until commercial Industrial in the were given at then executive vehicle segment, region. the Geneva manager of succeeds. Motor Show in International Switzerland. Business of Region Americas.

April 2018 | AutoData 53

BLACK EDITION Audi launches in Brazil special series for the SUV Q3, the Black FILOSA Edition. Aluminum interior finish, panoramic sunroof, electric Antonio Filosa

opening and closing of the trunk, Bose sound and others, added Disclousure/FCA is the new with a sports kit for the body. For R$ 185 thousand. president of FCA Fiat Chrysler Automobiles for Latin America. He succeeds Stefan Ketter, who returns to Europe, where he will continue as FCA Chief Manufacturing Officer and member of GEC, Group Executive Council, the company’s highest executive body. At age 44, born in Naples, ,

Disclousure/Audi Filosa graduated as an engineer from the Polytechnic Institute of Milan and completed training in management at the Dom Cabral Foundation in Minas Gerais. He joined the Fiat Group in 1999 and since then has worked in several areas such as manufacturing, purchasing and supply chain, new products, marketing and project management. He has held positions in Spain, the United States, Italy, Argentina and Brazil. The executive arrived at the Fiat plant in Betim, MG, in 2006,

Disclousure/Mini where he was the manager of internal logistics, strategic HOMAGE OR HERESY? planning and purchasing, Mini presented at the New York Motor Show, in the United and deputy director of States, a classic Cooper model that had its original mechanics manufacturing. He has also replaced by 100% electric motorization. According to the been Purchasing Director for company, it is a single prototype that “demonstrates its desire to Latin America and is currently use purely electric driving as a new approach to an icon”. the Managing Director of FCA Argentina. As a new position, Filosa also FORD CREDIT joins the GEC.of FCA Ford Credit Brasil ranked first in the Great Place to Work Women award, which recognizes companies that offer greater career opportunities and career advancement for women. Ford Credit was honored in the midsize business category by presenting the highest grade in gender management practices.

AutoData | April 2018 54 » END OF CHAT

“Elon Musk is the Henry Ford of the present day. And this is not good.” % Edward Niedermeyer, an American Bloomberg columnist, 40 in an article. 60 It is the percentage days was the deadline decided by Denatran, that Citroën expects National Department of to increase sales of “Uber has decided not to renew its standalone Traffic, to suspend its own the C4 Lounge with resolution determining the car test license with the California Department the launch of its new beginning of the use of of Transportation for understanding that our version in Brazil. Mercosur common vehicular vehicles of this type will not operate on public plates in Brazil as of 1st. roads in the immediate future.” of September this year. Press release from Uber distributed to the press after The deadline can still be the first fatal accident involving a stand-alone vehicle in history, extended by another 60 which occurred in March in the United States with a Volvo XC90 days. operated by the company.

“This accident “Saying no to may have killed the technology may be the entire industry.” wrong answer.” 16 Li Shufu, Hakan Samuelsson, days passed between chairman of Volvo Cars CEO of Volvo Cars the publication of the resolution and its 27 suspension. thousand units was “No one knows yet how we will the total sales of drive in the future - except that the FCA in Latin America in 2017, excluding experience will be radically different Mercosur. from the current one.” Maurice Turrettini, president of the Geneva International Fair. 13 “There are countless automobile days passed for Denatran to revoke another of its accidents caused by cigarette ashes.” own resolutions, which From a federal deputy for Goias who created law project 8709/17, determined changes in the 100 which prohibits drivers from smoking while driving. The PL processes thousand units is the processes of obtaining and conclusively and will be analyzed by the Commissions of Transport and FCA target for 2020 renewing a driver’s license. Transportation and of Constitution and Justice and Citizenship of the This is definitive. in the same analysis. Chamber of Deputies in Brasília, DF.

April 2018 | AutoData