In the world of automobiles, it appears that China isn’t the only fruit ripe for the plucking. Brazil is buzzing. They’re weathering the current economic fragility very well, and companies are looking to invest in there. Down in Brazil, economically speaking, it’s car-naval time!
PSA will invest 1.4b reais (about $780m) to develop and make new vehicles and engines and increase output in Brazil. PSA CEO Philippe Varin came out with the usual “we are the world” spiel: “Latin America and Brazil in particular are essential to our goal of becoming an increasingly global group, and so in planning our future in the continent, we’ve set aside funds to implement a solid product plan for our brands in Brazil.” PSA is the fifth biggest player there, with a 5 percent market share. According to Automotive World, PSA launched a third shift at their factory in Porto Real and took on 700 extra staff to cope with growing demand. So it shouldn’t be that surprising that PSA is focusing a lot on Brazil.
Not only is PSA having a Brazilian, so is Fiat. They’re expanding their Brazilian subsidiary by hiring an extra 1000 workers to ramp up production and increasing production by 6.5 percent. Fiat also invested 3b reais in Brazil, but in a different way.
Don’t think it’s just Europeans who want a piece of that bolo. GM also has announced an investment of 1.4b reais ($778m) in their 2 factories in Brazil. This money will be used to develop cars specific to our Portuguese speaking friends. However, if you’re suspecting that this is North American taxpayers’ money hard at work south of the border, then GM is quick to squash that S.O.B. of an idea. They said that the investment is self financed “with cash generated by Brazilian operations during recent years.” Got that?!
It looks like Brazil is shaping up to be the China of the Southern Hemisphere. Mind you, if TTAC wants me to relocate to Brazil as a correspondent there, I’m already packed with the proper outfits.
Brazil has for decades manufactured cars with one of the worst quality levels in the world. A typical brazilian-made car lasts 3-5 years TOPS. Modernization is also not their thing. Airbags are, to this day, an expensive optional. I am afraid more “investment” there is just going towards meeting the increasing demand for more deathtraps on 4 wheels.
Your airbag comment is correct but you exaggerate in calling Brazilian cars deathtraps. The only one deathtrap being manufactured is the VW Bus. Other cars are ok, even the old Fiat Uno Mille.
Like you, I am brazilian and I visit every year: all brazlian-made cars are deathtraps.
Cammy,
Nice perpetuation of stereotypes! The bunda is still our biggest ASSet.
But Brazil is far from being a Southern China. Here the government works against development and business. We are doing well DESPITE the government. We have the potential of being a China when the government decides it wants to help.
Can someone tell me the current, out-the-door price (in US or BrR) of a new, Made-in-Brazil, Toyota Corolla or Honda Civic (or the comparable Peugeot please)?
The Civic and Corolla retail from about 60 k to 86 k reais. The Civic Si can be yours for a cool 95k reais.
The comparative Peugeot (the 307 in hatch, sedan or SW forms – the Civic and Corrolla can only be had as sedans) can be yours from anywhere from 55k to 70k.
The exchange rate hovers around the 1.8 real to the dollar. So you can do the depressing or amusing math (depending on your POV).
———Brazil has for decades manufactured cars with one of the worst quality levels in the world. A typical brazilian-made car lasts 3-5 years TOPS.————
Well my puny little Fiat Palio made in 2005 and sold as a 2006 model is going pretty strong. In fact it’s doing so well that I’m doing the Steve Lang thing on it and plan to keep it 10+ years.
I’ll write back in 2015 saying if the car is still rolling and if I’m alive (being that it’s a deathtrap and all I just might not make it, please pray for me).
And Miss Corrigan, if you look half as good as Adriana in a thong, then please do wear one. If not, spare us the spectacle!!! (intended as joke, pls.)
And BTW, Autobraz, I surmize you work for GM. What’s your take on the Agile?
I worked for GM. I was involved in the new Corsa and the Meriva. Have had no knowledge of developments in GM do Brazil for a while now. I would guess the Agile is not as good as the Corsa since it was not designed by Opel, the best designers of GM vehicles in the group.
I now drive a Ford Focus and find it to be notably better than the Chevrolet Astras I used to drive before it.
I was expecting GMs downturn since my time working there due to their corporate culture and that is how I came to find TTAC! It seemed to be me discoursing about GM and its demise…
It’s amazing, no? The demise of the Corsa…From such a good car (1st generation), almost revolutionary really (at least here in Brazil), w/ minor problems, they then come out with the Celta! That basically accentuated all of the Corsa’s troubles and solved none! Amazing.
About the Agile, I’m surprised by the success! But I’m waiting for the downfall. I mean a car you can’t put heat sensitive items into the trunk ’cause they’ll melt. Not to mention all the 1.4L engine issues. The VHC problems really hurt the Celta and I’m sure the same will happen to the Agile.
All’s well though. Can’t deny the new Gol is a huge improvement over the old ones (even w/ all the problems). The Fox, too though VW’s option packages will turn them into major depreciation victims. At Ford the new Figgo will kill the Fiesta and they’ll overprice the new Fiesta saying it’s a Polo or Linea fighter (hahahaha). At Fiat things look good w/ the new Tritec engines and redesigns plus the practically all new Unos and Palios. Don’t think they’ll kill the Gol yet, but will come closer than the current versions ever have. Peugeot and renault also rans. And Toyonda won’t become major until the Ethios and such come out. Think the Ethios is tooo conservative for Brazil. Hyundai though may have something w/ the i20.
In summary, expect a 2010 much like 2009. The big game changer will be the new Palio. But only in 2011. And if what my friends at Fiat tell me comes true…Goodbye Gol!
As to most sold cars here is the top 50 (with the top 10’s totals)for 2009:
1 VW Gol – 303 k
2 Fiat Palio – 204 k
3 Fiat Uno – 169 k
4 GM Celta – 139 k
5 GM Corsa Sedan – 138 k
6 VW Fox/CrossFox – 127 k
7 Fiat Siena – 116 k
8 Fiat Strada – 90 k
9 VW Voyage – 86 k
10 Ford Ka – 83 k
11 Ford Fiesta Hatch
12 GM Prisma
13 Toyota Corolla
14 Honda Civic
15 Renault Sandero
16 Honda Fit
17 Ford Ecosport
18 Fiat Palio Weekend
19 Ford Fiesta Sedan
20 GM S-10
21 GM Corsa Hatch
22 GM Montana
23 Citroen C3
24 GM Meriva
25 VW SpaceFox
26 Toyota Hilux
27 Renault Logan
28 VW Saveiro
29 GM Astra Hatch
30 Peugeot 207 Hatch
31 Hyundai Tucson
32 Fiat Idea
33 VW Kombi
34 Fiat Punto
35 GM Vectra
36 VW Golf
37 Peugeot 207 Passion
38 Mitsubishi L200
39 VW Polo Sedan
40 Fiat Fiorino
41 Ford Focus Hatch
42 Mitsubishi Pajero
43 VW Polo Hatch
44 Fiat Linea
45 Honda City
46 Chevrolet Agile
47 Renault Clio Hatch
48 GM Captiva
49 Hyundai i30
50 Ford Ranger
Ai que saudades! Carro nacional nao presta.
What Mr Djn is saying is roughly, “Oh how I miss Brazil. And Brazilian cars are not worth a damn.”
Well what you have to remember about this country (and by extension its cars) is that everything is relative. It’s a relatively wealthy country, where the people are relatively educated, where workmanship is relative, quality of government is relative etc.
By NAmerican and WEuropean standards things are pretty drab and bad. But by EEuropean and Asian (w/ exception of Japan and SKorea) things are pretty good in some aspects and pretty bad in others. By African and Middle Eastern standards things are definitely rosy. So see, everything is relative!
So our cars are (to a large degree) built on older platforms because they have a longer shelf life here. Fit and finishing vary greatly across the board, though almost always below European levels and sometimes on par w/ NAmerican levels (our Focus is better finished than the American one, but worse than the European). Equipment levels are low relatively, but all are available, but most consumers won’t or one could rather say can’t pay for them. Mechanically and in terms of safety though, they are up to world standards (most of the time w/out things like ABS, air bags, ESP etc.) in a relative way.
What strikes most people who come here is how small the cars are. And small they are. And underpowered. And badly finished and equipped. But relatively adequate to our country and times. They’ll go a long time and won’t kill you. If maintenance is done and the cars limits (not to mention the roads’) are respected.
so since everything is relative, all is fine and dandy.
@Frombrazil
What Mr. djn is trying to say that all these comments on how lousy brasilian cars are reminds me of the time I first lived there. It was universal for the Brazilians to bitch and moan on the poor quality of anything made in Brazil. IMHO, they made some pretty cool cars, the Interlagos, the FNM JK, the Alfa 2300, the Puma and the SP2. Yes, they all rusted badly, but so did a lot of cars in the 60’s, 70’s and 80’s.
Hello Mr. Djn,
Yeah, such comments were and, to a degree, still are common. You see, this kind of comment is a very Brazilian thing to do. We as a people have this characteristic of putting us and anything Brazilian down. Pride is reserved for football (soccer), the only area which we feel we own. Now as to the cars before the 90s, and due to the fact the imports were largely forbidden and the market belonged to the so-called Oldcomers or Big 4 (VW, Ford, GM and Fiat) the cars BTW congrats on your great taste as you picked some of the best.
After the market opened up in the 90s things improved dramatically. New companies came in, the Oldcomers modernized and built new cars and plants. Nowadays even the most pessimistic Brazilian knows things are much improved. And the comment that nothing Brazilian or made in Brazil is worthless is falling by the wayside.
So yeah, in ways that comment was justified. Nowadays its largely not. But as a cultural thing, it still goes on.
thanks for the great insight for all the gringos. You forgot to mention that it snowed once in Santa Catarina. That’s the other Brazilian neurosis. All civilized countries have snow (thanks to Jose Wilker, Bye Bye Brasil).
Also, as I recall, the insane costs of a new car is largely due to taxes on the domestics and import tariffs on the imported. Brazil is had a huge statist government since Getulio.
LOL! So true! How in the world can we be civilized when we don’t have snow???
The guv takes roughly 40% of our GDP in taxes. Everytime you buy a car you’re actually paying 1.6 cars as the “extra” belongs to the government. THe companies all use this excuse and love it, because everybody faults the government, however it known by anyone w/ half a brain that margins are insanely high in BRazil. Thinkg 60s style margins that GM, Ford and Chrysler enjoyed. Or until a while ago pick-up like margins. That’s where we’re at right now.