Auto Essay

OEM autopart trade between Mexico and Brazil
? All estimated figures are based on Brazilian Association of Autoparts Manufacturers (SINDIPECAS) data. SINDIPECAS provides only aggregate imports and exports of autoparts and does not break down imports and exports by OEMs and the aftermarket.
? Debido a que en la mayor parte de los Tratados de Libre Comercio firmados entre Mxico y los pases de Amrica Latina se ha excluido al sector automotor, sta situacin no ha favorecido al sector de autopartes, afirm Oscar Vjar de INA.

? consider que Brasil es un mercado que tiene elevados aranceles y los modifica de acuerdo con una poltica totalmente unilateral, por lo tanto, la confiabilidad de los acuerdos parciales es bastante cuestionable.

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? La ronda de negociaciones en la capital brasilea ocurri pocos das despus de que Brasil y Argentina alcanzaron un acuerdo automotor hasta el 31 de diciembre de 2005 y se comprometieron a liberalizar plenamente el comercio de autos en el Mercosur, a partir del 1 de enero de 2006.

? Consider que esta nueva negociacin sera un paso muy bueno para en el futuro no muy lejano contemplar ya un Tratado de Libre Comercio
? Explic que el Acuerdo de Alcance Parcial o de preferencias arancelarias que se negocia no tiene como objetivo la liberalizacin de todo el comercio, sino un acuerdo modesto; es decir, otorgar preferencias o descuentos arancelarios a los productos que se acuerdo incluir. Por el corto alcance, los temas que se discuten son un captulo de normas tcnicas, uno normas fitosanitarias, uno de salvaguardas y otro de solucin de controversias.

? Mientras tanto, la industria automotriz de Mxico ha iniciado negociaciones con Brasil para abrir el sector a un comercio libre de aranceles. Mxico espera destetarse de su dependencia con Estados Unidos, destino de 93% de sus exportaciones.

? Mientras Brasil est buscando una salida para sus exportaciones tras una devaluacin de su moneda en enero pasado y un deteriorado intercambio comercial con Argentina.

ANFAVEA records (1998 estimates in US$ millions)
? In 1977, 72.8% (2.4 billion) of industry revenue came from the OEM auto industry while in 1998 it had dropped to 58% (8.4 billion). During the same time, exports of autoparts as a % of total industry revenue rose from 3.1% (0.1 billion) to 16% (2.3 billion). The replacement market was about the same. (full detail is below).

YearTOTALAuto industryReplacement mktExportsOther cosTotal% of revenue
Best import prospects (1998, US dept of state)
Best U.S Export Prospects Piston rings Pistons Engine valves Engine bearings Valve commands Parts for electric ignition Parts for electronic ignition Suspension parts Gear parts Bearings Lights Horns
Sound systems Fuel additives Cleaning products Watches Alarm systems
According to the Brazilian Association of Autoparts Manufacturers (SINDIPE+AS), there are currently 800 autoparts producers in Brazil, compared to 1,500 in 1990. In 1993, 86% of the autoparts manufacturers were Brazilian-owned companies, a level which dropped to 75.1% in 1996. As of 1997, 30.7% of the autoparts producers in Brazil were German-owned companies and 29.6% were U.S u owned.
? The autoparts industry in Brazil is expected to further shrink, as a large number of international producers enter Brazil through joint-ventures and acquisitions or by establishing local manufacturing facilities to supply the automobile plants. The automobile manufacturers in Brazil are achieving the same performance levels as other branches abroad, investing in new plants with modern production technologies and reducing the number of suppliers. OEMs require autoparts manufacturers to have a heavier involvement in the automobile project and final assembly and; therefore must have the financial resources and technological capabilities for the necessary investments.

? A declining number of autoparts companies produce exclusively for the aftermarket segment. Most of these companies produce lower price products for older vehicles. Industry experts expect that a number of these companies will disappear as the Brazilian fleet becomes younger and consumers demand either original autoparts or higher quality products.

? Actualmente 23 por ciento de las importaciones brasileas de vehculos y 11.6 por ciento de las de autopartes povienen de Argentina. Por su parte, Argentina compra en Brasil 33.5 por ciento de los autos que importa y 2 por ciento de las autopartes. (secretario brasileo de Poltica Industrial, Helio Mattar, 12/99)
? About 90% of the autoparts aftermarket in Brazil is supplied by local production. However imports of autoparts aftermarket should increase by 10% per year in the next two years as the fleet of imported vehicles and world cars increases. According to the Brazilian Association of Autoparts Producers (SINDIPECAS), major international suppliers of autoparts to Brazil for OEMs and aftermarket are: Germany which holds 21.3% of the import market, followed by Argentina with 16.5%, Italy with 14.4% and the United States with 12.5%.
Import duty on a sample selection of main autoparts was about 20% in 1998. Various other fees (Manufactured Products Tax (16%), Value added tax, etc) make it much higher in effect.

Brazils autoparts total sales market in 1998 was US$ 14.5 billion, a drop of 17% compared to the previous year. Imports decreased from US$ 4.4 billion in 1997 to US$ 4.1 billion in 1998 because of reduced production of automobiles from 2,069,703 units in 1997 to 1,573,128 units in 1998. The performance of Brazilian automotive industry in 1999 will depend greatly on negotiations between the Brazilian Government and the OEMs to reduce taxes and a fleet renewal program which could stimulate a recovery of sales.
Imports of autoparts were US$ 4.2 billion in 1998, a 5% drop compared to 1997. According to the Brazilian Association of Autoparts Manufacturers, imports of autoparts should drop to US$ 3.5 billion in 1999 because of the devaluation of the Brazilian currency in January 1999 which resulted in higher prices for imported products. In order to reduce costs, the automobile manufacturers in Brazil confirmed their intention to replace imported autoparts with locally manufactured products. Major international exporters of autoparts to Brazil are Germany with 18.0% of the import market, Argentina with 16.2%, Italy 15.5% and the United States with 14.1%.Mexico?
? Con planes de utilizar a los 17 ms importantes proveedores ya reunidos para apoyar la fbrica en construccin de Ford Motor Company cerca de Camacari, Loar do Brasil espera establecer unas instalaciones para la manufactura de automviles en lnea con proveedores en Bahia, Brazil. Si tiene xito, la nueva planta ensamblar cinco modelos en la misma plataforma con produccin revista para comenzar en el ao 2002. (Spring 2000) (http://www.revistadelvidrio.com/Backissues/00Primavera/0001lasnoticias.html
? Current producers include: Fiat, Ford, GM, Volkswagen, Honda and Chrysler. By the end of 1999, Audi, Renault, Toyota and Mercedes Benz will have started production and by the end of the year 2000 and Asia Motors will be manufacturing automobiles in Brazil.
Structure of the Brazilian automotive industry as of September 1999
Light commercials (bodies for pick-up Strada)
Industrial Complex Cars, light commercials So Bernardo do Campo – SP
Ipiranga Industrial Complex Light commercials, trucks So Paulo – SP
Taubat Industrial Complex Components, engines, transmissions Taubat – SP
Guarulhos Industrial Complex Plastics, climatization products, electric products, fuel systems Guarulhos SP
So Caetano do Sul Plant Cars So Caetano do Sul – SP
So Jos dos Campos plant Cars, light commercials, trucks (GMC), engines, transmissions, foundry,
CKD kits for export So Jos dos Campos SP
So Bernardo do Campo plant Trucks, bus chassis, engines So Bernardo do Campo SP
Campinas plant Bus platforms Campinas SP
Juiz de Fora plant Cars Juiz de Fora MG
Caxias do Sul plant Trucks Caxias do Sul RS
Ayrton Senna plant Cars So Jos dos Pinhais – PR
So Bernardo do Campo plant Trucks, buses, industrial and marine engines So Bernardo do Campo – SP
So Bernardo do Campo plant Light commercials So Bernardo do Campo – SP
Indaiatuba plant Cars Indaiatuba SP
Anchieta plant Cars, light commercials So Bernardo do Campo – SP
So Carlos plant Engines So Carlos – SP
Resende plant Trucks, buses Resende RJ
So Jos dos Pinhais plant Trucks, buses So Jos dos Pinhais – PR
Volvo Curitiba plant Trucks, bus chassis, engines, truck cabins Curitiba – PR
Pederneiras plant Articuled trucks, loaders (construction equipments) Pederneiras – SP
Pouso Alegre plant Light commercials Pouso Alegre – MG
Land Rover So Bernardo do Campo plant Light commercials So Bernardo do Campo – SP
MMC Automotores (licensedMitsubishi Motors)
Catalo plant Light commercials Catalo GO
Mller Rio de Janeiro plant Wheel tractors Rio de Janeiro – RJ
Foreseen and current plant expansion (old estimates)
Sete Lagoas – MG Comerciais leves (Fiat), Caminhes e motores (Iveco) Ducato (Fiat), Daily (Iveco)
Inaugurao prevista para o 1 semestre/2000
Inaugurao prevista para o final de 2001
? Mogi das Cruzes – SP Componentes
? Inaugurao prevista para outubro/99
? Gravata – RS Automveis (Projeto “Blue Macaw”) ND
? Inaugurao prevista para junho/2000
Peugeot Citron Porto Real – RJ Automveis Peugeot 206, Citron Xsara Picasso
Inaugurao prevista para dezembro/2000
Bibliography:

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