Youthful exuberance or nihilism? Urban despair or boredom? Lack of repression and punishment or the inevitable result of the marked differences in income and social-economic status in Brazil? All these questions sprang into my mind as I walked back to the car and saw it there, its back hatch window violated by a brick.
The Sao Paulo Auto Salon has just wrapped up, and auto makers had the chance to show off their wares for Brazil, and the broader South American market. While the economy may have slowed in Brazil, OEMs have
It’s pretty amazing how the world spins and moves forward yet people refuse to budge. Fiat consistently scores in or near the top of Euro reliability rankings, besting most if not all of the mainstream Euro makers as well as other competitors from other continents who, somehow, are given a pass in this area. It does likewise in South America. In terms of “fix-ability” it is among the most appreciated, being its corporate policy to share information with mechanics quite openly about its cars’ needs and selling every small bit as a separate part so that people need only change what needs changing, saving its customers money .
The United Auto Workers may soon need to add another transplant to convert as part of its Southern strategy: Jaguar Land Rover is considering setting up shop in the Southeastern United States as part of its global expansion plans.
With an expected attendance of over 750,000 visitors, the biannual São Paulo Auto Salon opens its doors to the public on October 30th and will go on for 11 days. By far the largest of this kind of fair in Latin America, the organization of the show ambitions to turn it into one of the five largest in the world and make it the world’s premier compact car launch platform. In 2012, only with Brazilian tourists going to see the show in the city of São Paulo, that city grossed over R$250 million. This year, expectations are that tourism, and all other businesses involved, will make 30 percent more than they did at the last one.
In my recent reviews of entry-level cars in Brazil (VW up! and Fiat Uno), I spoke of how these new cars are adding technology to confront newer cars sold in the category immediately above, that of the midlevel compact (Ford Ka). Entry-level car participation in the market is under such pressure, that there are few launches aimed directly at that segment, while the midlevel compact has received a plethora of novelties.
Though Christianity is a huge minority in South Korea, it would seem Hyundai has not learned to heed to that biblical injunction. Its long-time partner in Brazil, the CAOA group, has just been fined to the tune of 1 billion reais for non-payment of taxes and fiscal fraud.
Hyundai’s position in Brazil has always been complicated. Back in the 90s, in a bid to bring car makers into Brazil, the federal government extended tax credits and credit lines rather freely and Asia Motors, a mainly light commercial vehicle maker, was one of those contemplated to build a factory in this country. Asia Motors pocketed all it could.
Cars do not exist in a vacuum. Besides all the regulations they must follow, there are market realities and competitors. Some makers are able to rise above the fray and charge more for their products as there is a perception that the cars are somehow superior to others, as is the case for many a German luxury maker. Others rely on their reputation of reliability and robustness to charge a bit more for their wares, such as most Japanese OEMs. In some markets though, it would seem makers overestimate their value and simply overcharge for what they deliver. Such is the case for Honda’s latest offering in Brazil: the Fit-based City sedan.
Launched at a time when the new car market in Brazil is relatively stagnant, the new Fiat Novo Uno is causing less of a stir compared to when the round square themed Uno was launched four years ago. There are no lines at dealers and people’s attentions are divided among upstart competitors like the Ford Ka and Volkswagen up! The Uno had to come hard in order to remain a relevant player, capable of attracting the new Brazilian consumer that demands more in terms of comfort, finishing, content and safety.
Can this Uno face off the competition and remain among the top sellers in Brazil?
João Paulo de Oliveira found it hard to find another job after he was fired by Rapistan, a Michigan-based conveyor belt maker, in 1980. He was detained or arrested another five times until the Brazilian military dictatorship, that had successfully realized a coup d’état in 1964, and returned power to civilians in 1985. Oliveira claims that no other company would hire him after he lost his job, and hge was constantly threatened by police. His crime? Being a union member at a time the military considered strikes as subversive communist movements.
Oliveira declares that he and many other union members suspected that private companies, including many auto makers collaborated with the state’s repressive forces. Apparently, his suspicions have been borne out.