Automotive Business R&D Activity Brazil Automotive Industry Forecast

Automotive Business R&D Activity Brazil Automotive Industry Forecast

Brazil automotive industry 2016SAO PAULO: Brazil auto production and sales fell in November, but industry representatives said on Thursday they are optimistic that 2019 will be a year of growth, thanks to a new incentive program and expectations about the incoming government. With a strategically crucial acquisition in its Sealing Solutions division, Datwyler is securing enhanced access to the South American automotive supply business, signing a contract to take over the Brazilian company BINS Indústria de Artefatos de Borracha Ltda on 23 August 2018. The deal is due to be concluded on 31 August 2018 topic to the fulfilment of the usual conditions for completion. The parties have agreed not to disclose the obtain value.

Difficulties with the supply chain not only threaten the global competitiveness of the industry, but also the sustainability of the domestic enterprise. In Brazil’s automotive sector, Tier two suppliers are the weakest hyperlink in the automotive supply chain. In response to globalization, Tier 1 suppliers restructured their businesses. Tier two suppliers did not restructure, so they suffer from low profitability, high charges, meager investments, old processes, and poor high quality. These issues could cripple the sector. OEMs can no longer afford to turn a blind eye to them.

Fortunately, all the policy wrangling to bolster Brazil’s industry was trumped by headwinds from the worldwide economic crisis. In May Rousseff’s government enacted tax cuts and reduce interest prices to spur customer spending. The economy bounced back, as did vehicle sales. The stimulus measures have been extended …

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