45 October/November 2013
National Federation of Automotive Vehicles Distribution Bimonthly Publication
The market fierce competitiveness has changed the way of working of the industry and Chain, not only in the development of new products, but also in how to relate to the consumer, who is increasingly demanding.
Minister of Cities, Aguinaldo Ribeiro, comments on PARADA – a Pact for life program results.
CRM tool makes Marte Veículos to follow up the entire useful life of the customer’s car. Learn the strategies and expand your profitability through this tool.
Innovation and creativity at work increases productivity and motivates staff.
Recycling ideas and ideals! Flavio Meneghetti Chairman of Fenabrave
We are near the end of 2013 and more than ever, we should assess performances, reassess goals, strategies, and plan the future. This year brought good results for the sectors of trucks, buses, road implements, tractors and agricultural machinery, driven by agricultural crop and BNDES (PSI) program. As for cars and light commercial vehicles, the market went sideways, maintaining stability over the sales recorded in 2012, but with tighter margins, both for the industry and for us, Dealers. For motorcycles, unfortunately, credit issues continued, which kept the market in downward curve, having the Consortium System as its main financial agent. With this market X-ray and some uncertainties for 2014, we must look back to the industry and to our companies in order to assess achievements, challenges and plan assertive goals for the future. As a representative of the distribution industry, Fenabrave acted strongly in 2013, both in the political and business worlds. We pleaded, and the Government heard us, for the continuity of the PSI Program by BNDES, which will foster businesses next year at attractive rates. We also made efforts, started in 2012, to resume discussions about a Vehicle Recycling Program, which resulted in successive meetings with government leaders involved and culminated at the last meeting, held during the 19th Fenatran, among 45 Fenabrave, Anfavea, Ministry of Cities and other bodies and entities involved so that from this joint initiative results in a unique proposition of the industry to be taken to the Federal Government. Fenabrave succeeded in generating the political will to, finally, start the so important and strategic program. On our initiative, we were able to sensitize the Civil House, through Minister Gleisi Hoffmann, who is now the government coordinator of the initiative. We also managed to, once more, neutralize initiatives that threaten the Act 6,729, at this time by the Attorney General of the Union, and we established contact with the IBAMA to resolve the dealerships CTF. Likewise, the joint Committee, established by Fenabrave and Anfavea, continues working to solve common problems, such as Direct Sales, among other issues that affect our business. In the business scope, besides Fenabrave projects and direct actions that through the 23rd Fenabrave Congress and ExpoFenabrave, the Twenty Group or Fenabrave University – have led trends and managing tools to Dealerships, we also strengthened our communication with the Chains, through the Make Associations, about our need to focus more on after-sales (services and parts) activities, F&I and second-hand vehicles, in order to increase the absorption rate of our companies expenses to levels equivalent to those obtained in more mature markets, such as the United States, where this ratio exceeds 70%. In 2014, we will certainly have a continuity of the challenges faced in 2013 and new scenarios for which we must be prepared to act. However, either way the economy performance, the political election scenario or the business pace in times of World Cup, we already have elements to plan our daily task of being Dealerships with tools and possibilities that can and should be well worked by us all and with the market. I wish you a great holiday season and that 2014 embraces you with excitement, optimism and commitment of an entrepreneur who operates in an industry that accounts for – alone – approximately 6% of National GDP. Enjoy your reading and have great deals! Remember: in 2014, we will continue together in the same direction! October/November 2013
National Federation of Automotive Vehicles Distribution Bimonthly Publication
The market fierce competitiveness has changed the way of working of the industry and Chain, not only in the development of new products, but also in how to relate to the consumer, who is increasingly demanding.
Minister of Cities, Aguinaldo Ribeiro, comments on PARADA – a Pact for life program results.
CRM tool makes Marte Veículos to follow up the entire useful life of the customer’s car. Learn the strategies and expand your profitability through this tool.
Innovation and creativity at work increases productivity and motivates staff.
Bimonthly publication of Fenabrave - National Federation of Automotive Vehicles Distribution. Year 7 – Issue 45 October/November 2013 Board Chairman of Deliberative Council and Board Flavio Antonio Meneghetti President Alarico Assumpção Jr. Vice Presidents Antonio Figueiredo Netto, Edson Luchini, Elias dos Santos Monteiro, José Alberto Gisondi, Mário Sérgio Moreira Franco, Mauricio de Souza Queiroz, Paulo de Tarso Costa Beber, and Paulo Matias “Ad-hoc” Vice Presidents Gláucio José Geara, José Carneiro de Carvalho Neto, Octávio Leite Vallejo, Melchior Luiz Duarte de Abreu and Luiz Romero C. Farias Ex Officio (Former Presidents) Alencar Burti, Sergio Antonio Reze, and Waldemar Verdi Jr. Editorial Board Flavio Meneghetti, Alarico Assumpção Jr., Paulo Engler, Marcelo Ciardi, Valdner Papa, Rita Mazzuchini Editorial and Production MCE – Mazzuchini Comunicação e Eventos R. Frei Rolim, 59 – CEP 04151-000 – São Paulo, SP Phones: (11) 2577-6533 / 5582-0049 E-mail: firstname.lastname@example.org Editor and Journalist in Charge Rita Mazzuchini (Mtb 22128) Assistant Editor Igor Francisco (Mtb 57082)
Deliberative Council and Officer of Fenabrave hold meetings at the organization headquarters. Segment of Trucks and Road Implements were agenda of Roundtable organized by Fenabrave TV. Moreover: Fenabrave participates in the industry-related events.
Liberty Group distributes sustainable kits to customers who buy automotive insurance at dealerships.
Changes in the rules of leasing can benefit the automotive industry with one more credit option in the market.
Dedicated bus lanes, in São Paulo, prioritize the use of public transportation.
Paulo Engler, Chief Officer of Fenabrave, and Helena Menze Hayashida, entity legal adviser, debate the manufacturer direct sales to the final consumer.
case de sucesso
CRM tool assists Marte Veículos to gain more customers and expand services provided at the shop.
linha de produç ão
Audi announces investments of R$ 500 million for vehicle production in Brazil. The goal is to reach 2015 with the domestic market leadership.
Graphic Design and Art Edition Heraldo Galan and Patricia Tagnin
Photos Marcos Alves, Agência Brasil e iStockphoto
Develop creativity and innovation at work can generate more results to the company and motivate the team to expand productivity.
Commercial DNF Comunicação – Gutenberg Soledade Phones: (11) 2281-8134 and (11) 99169-7485 E-mail: email@example.com Circulation 9,000 copies Free distribution
General Motors Institute celebrates its 20th anniversary with new board.
Correspondence Address Av. Indianópolis, 1967 – Planalto Paulista CEP 04063-003 – São Paulo/ SP Phone: (11) 5582-0000 / Fax: (11) 5582-0001 E-mail: firstname.lastname@example.org Editorial staff contact E-mail: email@example.com
Authorization for text reproductions Signed articles in this magazine are of responsibility of the author, and do not necessarily represent Fenabrave opinion. Authorized a total or partial reproduction of unsigned materials, provided the source is mentioned. Reproduction of signed articles and materials must have the author’s prior written consent.
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Collaborated in this issue: Paulo Engler e Helena Menze Hayashida
Two Wheel Show and FERATRAN present the main novelties for the segment of motorcycles and trucks, respectively. Learn which the main launches in the events were.
matéria de capa
The high competitiveness makes the industry to innovate in designing new products in response to consumers’ expectations, who are increasingly demanding and search complete vehicles at competitive prices.
The Minister of Cities, Aguinaldo Ribeiro, comments on PARADA – a Pact for Life project results and challenges, supported by Fenabrave.
ERRATA In an article published in Dealer Magazine, edition 44, page 64, was informed that the speaker of NTC & Logística, Narciso Figueiroa Junior, commented on his presentation that “the law says that alcoholism is a disease.” However, the speaker only said that “such an understanding has prevailed in labor law, hence the importance of prevention.” Moreover, it was published that among the driver law novelties is “the night additional of 20%, between 11 PM and 5 AM, considering the night time of 52 minutes.” According to the speaker, the information is correct, described in paragraph 5 of art. 235-C, with wording given by Act 12,619/2012, provides that it applies to article 73 of CLT, that is, night shift is that performed between 10 PM of one day to 5 AM of next day, with additional of 20%, at least, over the daytime hour, with
the night time of 52 minutes and 30 seconds. Finally, when the article refers to long distance travels, more than 24 h, it was stated that “The Act does not define the rest time, but we understand that a minimum of 10 minutes is reasonable.” According to him, in that case, a break of thirty (30) at least is required every four (4) hours of uninterrupted driving time; the driving time and rest brake can be fractionated, as long as the driver does not reach four (4) uninterrupted hours of driving (art. 235-D, subparagraph I), being certain that there are identical rule in the article 67-A of the Brazilian Traffic Code, with wording given by the Act 12,619/2012. The team of Dealer Magazine apologizes for the mistake in the published information and corrects it in this edition. Dealer Magazine
Trucks and Road Implements on the agenda On July 16, Fenabrave TV Fenabrave held a roundtable on the theme “Market Trends for Trucks and Road Implements”. Mediated by the Journalist Fátima Turci, the meeting was attended by Alarico Assumpção Jr., Executive President of Fenabrave, Marco Antonio Saltini, Officer of Man Latin America and Vanei Geremia, Commercial Officer of Randon. Two major segments of Brazilian economy divided guest opinions; they talked about the future of the distribution of Trucks and Road Implements, discussed the permanence trend of the current mono-make model or the formation of multi-make economic groups. “I believe that, for a long time, we will work with the mono-make system. Brazilian market is more suited to this type of operation. I think we need to change some junctures in order to change the existing business model, however, it will require a major transformation to switch to a multi-make market,” opined, Saltini. For the Commercial Officer of Randon, multi-makes is a process quite different from what companies have today. “It is too early to talk about multi-makes, because when it comes to distribution with the plant, we see that all strategy and market are very close to their Dealership Chain,” said Geremia. The Executive President of Fenabrave, Alarico Assumpção Júnior, spoke on the subject, giving his vision of all industries. “Today, we see merger and interaction of major industrial economic groups – makes taking over makes. Although our culture is still rooted in one make (mono-make), the change should occur due to companies mergers and acquisitions. Makes are entwining,” he said. On that occasion, Saltini warned, so that the manufacturers may have multi-makes, it is necessary to have the customer’s structure. “It is important the make creates a sales strategy for a product. Customer needs to be sure that they will find the part they need at the site they need and on the time they need. So I guess we have to change a few things before we set off for multimakes,” he explained. Brazil Cost and Outlooks – Another issue discussed at the roundtable was the “Brazil Cost,” especially how the number of structural, red tapes and economic difficulties make investments in the country so expensive, hindering the development and also the segments of Trucks and Road Implements. “The Brazil Cost is too heavy for our segments. As an example, I can use the harvest, which is one of the major items of agribusiness and extremely 6
Marco Antonio Saltini, Vanei Geremia, Alarico Assumpção Jr. and Fátima Turci.
important for Brazil and for our business. Today, the bottleneck starts at the port because truckers cannot unload the products. We have inefficient ports in the country. We have to open more outflow channels for our harvest, which is a wonderful harvest. Currently, the turnover is huge, as all effort made by farmers ends up getting lost in exports. Another very serious problem is the precarious roads of the country where trucks circulate with products,” said Vanei. Both trucks and road implements are capital assets that generate financial return to their owners. Guests gave their opinions about the future of the segments. “In recent years, we went through different periods in the truck segment. In 2000, the market licensed 75,000 plates. Years passed and the market started to grow and in 2008 we had the world economic crisis. In 2012 there was the change of technology to Euro5, from Euro3, which anticipated the major purchases in the previous year (2011),” explained Saltini. The Officer of Man Latin America commented on the make sales in the country. “In 2012, we had an average of 10,000 licensed plate units per month and the interest rate for financing started the year at 10% and finished at 2.5%. However, we notice that, in 2013, the market started to react and we started to license an average of 14,000 plate units per month. We expect MAN grows this year between 7% and 10%, that is, an average of 150,000 units. Therefore, I believe that the industry will improve and grow in the coming years, since 70%-80% of the business are generated by the Investment Maintenance Program (BNDES PSI),“ concluded Saltini. Randon Commercial Officer is also optimistic about the closing of 2013 in the segment of road implements. “We grew 25% in the first half compared to the same period in 2012. We note that in the last years this segment is growing, as well as the agriculture, infrastructure, among others. Therefore, we expect to close 2013 with 62,000 units sold, which could be the best year
Para mais informações sobre a TV e Universidade Fenabrave, basta entrar em contato com a equipe da Universidade Fenabrave/TV Fenabrave, pelo telefone: (11) 5582-0045 (Rosana ou Amanda) ou e-mail: firstname.lastname@example.org
for this segment. The ideal is that all segments move together,” explained Geremia. The Executive President of Fenabrave seized the opportunity to comment on Fenabrave role before the government of always bring improvements to the segments. “We have worked together with the government and class institutions to give attention to the industry. We are always meeting and informing the current conditions of all segments we represent. However, we have a major problem of infrastructure in the country, which hinders part of the cargo transportation, since 70% of the wealth of Brazil are transported by trucks. It is worth mentioning that the economy is doing well, the truck segment is doing well, as both go together,” concluded Assumpção Jr.
Human motivation as a profitability factor Promoted by Fenabrave TV on September 26 and mediated by Journalist Fatima Turci, the roundtable that debated the theme “Human Motivation As A Profitability Factor,” was attended by Paulo Engler, Chief Officer of Fenabrave and the Human Resources Specialist of Thiede Performance, Celso Luiz Thiede. Undoubtedly, the participative management, the teamwork and the motivation directly influence the results of a company, and it is the best process to build on a sound basis, a successful history within any company, regardless the segment of activity and representativeness. Today, it is a fact that the physical and financial capital efficiency start to become much clearer when associated to the good management of human performance. Given that, we can say that the assumptions used so far in the business world, no longer make sense in a context in which the strategy accomplishment became the responsibility of many more people, especially when they are motivated. “And to achieve concrete objectives, it is necessary that companies implement Performance Management Systems, as people get motivated when they know what will be done and what will be received in exchange for the work performed with excellence; this way you can measure how far you can get regarding professional achievements. In this process, discipline has a fundamental role because productivity is not achieved without discipline, and for that it is essential to monitor the actions of each individual,” says Thiede. According to the specialist, the process of organizational excellence will now be high performance teamwork to translate business aspirations into specific objectives of daily operations,
Paulo Engler, Celso Luiz Thiede and Fátima Turci.
with people performing effectively and synchronized their roles. “By setting financial goals, companies must align areas and employees in performance, development and recognition models, otherwise they will not show the necessary and desired level of commitment. The organizational management performance must be highly associated to doing better and always,” says Thiede. For Fenabrave Chief Officer, Paulo Engler, recognition is important for the professional proper performance and helps to reduce the turnover. “The entrepreneur has to communicate well and maintain a good relationship with their employees. The employee must feel that all their daily effort is recognized by the company. Another important factor for profitability and success of all is the turnover decrease in the company. So we work motivation and all succeed,” he said. For Thiede, the clever combination of business intention with management model of human resources is what will differentiate companies in the coming years. It is what we classify as “Integrated and Dynamic Concept of Seeking Profitability.” “Monetizing is to have people engaged to do the right thing the first time around, to serve the customer in a unique way and to process information accurately and quickly. To reach the level of high performance teams, companies need to create meritocracy environments, because only those who are recognized and well treated produce more. We give what we receive,” he adds. According to the motivation expert, it can be stated that the lack of human qualification can interfere, positively or negatively, up to 30% in the results of an organization. Dealer Magazine
“The Most Desired Make” Award is handed out during event in Sweden
Agenda Fenabrave visits Facebook On August 21, Flavio Meneghetti, Fenabrave Deliberative Council Chairman and Officer, Alarico Assumpção Jr., Executive President of Fenabrave, and the Vice Presidents José Carneiro de Carvalho Neto and Elias Monteiro, visited Facebook executives, in São Paulo. The leaders were very welcomed by Fabrício Proti, Business Officer (speaker in the 23rd Fenabrave Congress), Renata Dantas and Renato Domingue.
2nd Fenabrave Journalism Award-SC In its second edition, Fenabrave Journalism Award-SC was released in late August and will be concluded in November. This year, the award will have the theme “Education for a better traffic!”. The initiative aims to encourage the media to raise traffic awareness and education. The contest rewards the journalistic works produced by newspapers, magazines, television, radio and web, based in Santa Catarina, which focused on the care and safety in traffic. The Regional Of ficer of Fena b r av e -S C , A d e m i r S a o r i n , pointed out that “we all know the problems involved in our traffic. Added to the historic lack of investment in transportation logistics and infrastructure, impatience and recklessness of some drivers, the fact we do not have severe penalties to the imprudences caused in traffic and our culture of non-respect for the collective. The result of that is translated into a chaotic and dangerous traffic, often fatal.” The Officer asked the support of the entire Santa Catarina press for this work of awareness stating that it is through education that the State will have more safety on the roads and, thus, reduce accidents.
On September 10 thru 18, Volvo Trucks held an international convention in Sweden and Russia, where make executives met with the President and CEO of Volvo Group, Olof Person.The purpose of the event was to plan the future of the make and know the reality of cargo transport in Russia, emerging country that faces challenges similar to those of Brazil. Volvo was chosen “The Most Desired Make” of trucks and buses through the 18th Market Relationship SurOlof Person and vey, conducted by Fenabrave, with Alarico Assumpção Jr. dealerships of all makes and across the country.During dinner, on August 11, at the Rossared Castle, owned by Volvo World, located at 50 km from Göteborg (Volvo headquarters), Alarico Assumpção Jr., Executive President of Fenabrave, delivered personally to the CEO of Volvo Group, Olof Person, the Fenabrave award “The Most Desired Make” in the category of trucks and buses. “We were highly welcomed and Mr. Person was happy with the award won by the make in Brazil,” said Alarico.
2nd FENAUTO Congress On September 11-13, took place the 2nd FENAUTO (National Federation of Automotive Vehicles Dealers) Congress in Campinas, São Paulo, an event for multi-make retailers of the segment of pre-owned and second-hand vehicles. During the event, where Fenabrave was represented by executives, were debated various aspects of the market of vehicle dealerships in the current economic scenario, bringing together Presidents of all Regional Associations, as well as hundreds of participants, such as owners, dealership executives, authorities and supplier companies to the industry. “The proposal of this new meeting was to encourage dealership owners to seek improvements for the business, through the use of strategic information and operating tools. The number of participants this year in the event surpassed last year, confirming that the market is in need of this type of meeting to discuss its direction and offer improvement opportunities for entrepreneurs and reselling companies,” said Ilídio G. dos Santos, President of FENAUTO.
National Fenabrave was represented by its Vice-President, Gláucio Geara, who praised the initiative of Santa Catarina Regional and stated that the car sales growth is not the villain of a chaotic traffic, but a sum of factors. “The cities developed, but there was no planning to account for the urban mobility,” he argued. The Advisor of institutional communication and press of National Fenabrave, Rita Mazzuchini, will be part of the jury that will choose the award winners.
Fenabrave executives discussedabout the vehicle dealer market in the current economic scenario.
New traffic campaign in DF The Ministry of Cities launched, in Brasília/DF, the new traffic campaign with the theme “Alcohol, other drugs and traffic safety: effects, responsibilities and choices.” The event took place on September 17 and was attended by the Minister of Cities, Aguinaldo Ribeiro, Minister of Social Security, Garibaldi Alves, the then Officer of the National Traffic Department, Antônio Cláudio Portella, and of the Executive President and Chief Officer of Fenabrave, Alarico Assumpção Júnior and Paulo Engler, respectively, as well as other guests. On that occasion, the campaign video was shown; it tells stories of victims of automobile accidents. The action was part of the 2013 National Traffic Week held from September 18 to 25 and also of the National Pact to Reduce Accidents (PARADA: A Pact For Life), a Federal Government initiative that aims to reduce 50% the number of accidents in the period of 2011-2020, and which has Fenabrave support.
Fenabrave participates in ABLA event in SP On last September 18, Alarico Assumpção Júnior, Executive President of Fenabrave, and Paulo Engler, Chief Officer of the organization, attended the Opening Ceremony of the XI Forum and Car Rental Industry National Show representing the Federation. Organized every two years, the Forum and Car Rental Industry National Show is considered the most important event of the industry in Latin America, as it gathers the industry professionals and entrepreneurs with the purpose of debating themes that somehow affect the industry activities and presenting the automotive industry novelties.
Alarico Assumpção Jr., Executive President of Fenabrave, delivered a speech in the opening ceremony of the XI Forum and Car Rental Industry National Show.
The event speeches cycle integrated the called Forum ABLA. In it, participants had access to the latest industry information on issues such as business opportunities, trends, economic environment, legal issues, and professional qualification, among others. Presented by specialists, the themes help to guide the industry companies directions and decision making. In parallel with the Forum, there was ABLA Exhibition, which is the exhibition area where direct contacts occur among entrepreneurs. The fair brings together manufacturers and exhibitors of various products and services, in a sort of “mini” Auto Show. Among the event speakers, there was Valdner Papa, automotive market specialist and consultant of Fenabrave, addressed issues involving the sale of second-hand cars by rental companies, in his speech.
Movimat 2013 Transportation & Logistics and VUC EXPO Fenabrave was represented, on September 17, in São Paulo, at the opening ceremony and inaugural ribbon cutting of the 28th Movimat (International Intra-Logistic Show), Transportation & Logistics and VUC EXPO (Cargo Urban Vehicles International Show) and XVII Logistics National Conference, organized by ABRALOG (Brazilian Association of Logistics). The event took place on September 17-19 and received about 40,000 professionals of transportation and logistics industries. In its 28th edition, Movimat gathered 20 industries representatives leading makes. VUC Expo, which was held for the first time, had 80 exhibitors presenting the novelties to the public.
8th ABRACAF International Convention ABRACAF (Brazilian Association of Fiat Dealers) held on September 11 thru 22, in the cities of Vienna (Austria), Prague (Czech Republic) and Berlin (Germany), the 8th International Convention of the organization. Flavio Meneghetti, Fenabrave Deliberative Council Chairman and Officer, was invited to attend the event, which brought together Dealers, partners and guests. ABRACAF has been working intensely, through the working committees and the executive board, in order to maximize profits, reduce costs and create new sources of revenue for the Chain. “We are in advanced studies for a partnership with a consortium and several prospects have already presented. Including Banco Fiat showed great interest in being with us in this endeavor,” said Guido Benedito Viviani, President of the Association, during his speech. Viviani thanked the presence of Meneghetti in the convention and mentioned his importance to the entity. “I invite Flavio Meneghetti, our eternal Chairman of our conventions, and who even without officially chairing this event, was decisive for all the choices made by the organization of this great meeting.” In his speech, Fenabrave Chairman said that “as the Fenabrave Congress, Conventions such as the ABRACAF are very important to our industry. In these meetings, we meet with partners and longtime friends and so we exchange experiences,” emphasized Meneghetti. During the trip, the Chairman of Fenabrave also visited the Frankfurt Show.
Executives from several entities connected to the automotive industry, and also rental cars, attended the event opening sponsored by ABLA.
Agenda Fenabrave Board and Regional Councils meet in SP Fenabrave held a Board and Regional Councils meeting in its headquarters, in São Paulo/SP, on last September 26, to debate issues of interest of the automotive industry. Under the command of Fenabrave Deliberative Council Chairman and Officer, Flavio Meneghetti, and of Executive President, Alarico Assumpção Jr. During the meeting were discussed the meeting convened by Fenabrave with the Minister and Chief of Civil House, Gleisi Hoffmann, on September 24, on the new threat to the Act 6,729 by the Federal Attorney General’s Office, where the Attorney-General, Roberto Gurgel, forwarded to the Minister a letter requesting the repeal of the Renato Ferrari Act, which protects the market relationships and also benefits the consumer. Another point presented was the meeting of Fenabrave and Anfavea - National Association of Vehicle Manufacturers with the Finance Minister, Guido Mantega, on economic juncture, held on September 17. “The meetings demonstrate Fenabrave importance with the Government and entity involvement in key issues for our industry,” said Flavio Meneghetti. At the meeting, were also addressed issues such as the importance of the Twenty Group and how this tool can help in the performance of Dealerships. On the agenda, Direct Sales and the CTF / APP - Federal Technical Registry of Potentially Polluting and Resource User Activities were also discussed.
Deliberative Council Statutory Meeting On the last October 9, Fenabrave Deliberative Council met at the entity headquarters, in the Capital of São Paulo, to discuss themes of interest to associates. Under the command of the Chairman of Fenabrave Deliberative Council and Board Officer, Flavio Meneghetti, the meeting was attended by the Executive President of Fenabrave, Alarico Assumpção Jr., the former governor of São Paulo, Luiz Antonio Fleury Filho, and Managing Partner of MB Associados, Tereza Fernandez, who discussed important issues related to the domestic and international economic and political situation, respectively. In this meeting, Meneghetti detailed the hearing held with the Minister of Finance, Guido Mantega, besides commenting on the progress of negotiations with the Government about vehicular recycling. “The Senator Katia Abreu has agreed to help us in this project, this subject being processed internally this subject and informing the evolution according to what is happening in Brasília,” said the Chairman of Fenabrave. During the meeting, were also discussed issues related to the Working Group of Fenabrave and Anfavea - National Association of Vehicle Manufacturers, which objective is to discuss issues of interest of the automotive industry. “Issues such as direct sales and the new Convention of Economic Category are in the agenda of the Working Group of these entities. We consider this initiative extremely important, because of the need of partnership and harmony between dealers and assemblers,” said Meneghetti. Another topic presented at the meeting was the reform of the entity Statute, which counts on a lawyers committee, coordinated by the former governor Luiz Antonio Fleury Filho, and by Fenabrave Superintendency. Other topics were addressed by the Chief Officer were the CTF - Federal Technical Registry, at IBAMA, and the status of the Correspondents Certification in the Chain. The organization Executive President, Alarico Assumpção Jr., spoke about the segment of trucks, tractors and agricultural machinery, benefited from the PSI extension, by BNDES, for 2014, even without rates definition yet.
Management Board and Regional Executive Boards meeting at Fenabrave headquarters, in São Paulo/SP.
Valdner Papa, Thematic Coordinator of Fenabrave Congress, presented a final balance of the 23rd Congress, attended by 3.5 thousand people, demonstrating the participation, by make, of the enrolled in the event. The former governor of São Paulo, Luiz Antonio Fleury Filho, talked about political perspectives for 2014, in a scenario of Elections, and the Managing Partner of MB Associados, Tereza Fernandez, presented a global and Brazilian macroeconomic overview, specifically for the automotive industry and its trends for the end of this year and early 2014. According to the assessment made by MB Associados, the year 2014 should be better for the industry than this year, however, moderately and very dependent on National GDP, initially projected for 2.5% to 3%.
Motorcycle of the Year 2014 On the night of October 9, in a ceremony held in the Two Wheel Show (Salão Duas Rodas), the English big trail Triumph Tiger Explorer 1200 won the title of ‘Motorcycle of the Year 2014’. The 16th edition of the election organized by the Duas Rodas Magazine conferred the most prestigious title of the industry after assessments by specialized journalists on testing track. The Tiger Explorer had the highest average score of seven assessed items (Engine, Brakes, Suspensions, Comfort, Agility, Design and Cost-effective), ahead of other 55 competitors. Fenabrave was represented and handed out the award ‘Motorcycle of the Year 2014’ in the Scooter category for Creso Franco, CEO of Dafra Motos.
The winning motorcycles Sport
Ducati 1199 Panigale
Kawasaki Ninja 650
Naked up to 1200cc
Honda CB 1000R
Naked up to 800cc
Triumph Street Triple
Harley-Davidson Night Rod Special
Big Trail up to 1200cc
Triumph Tiger Explorer
Big Trail up to 800cc
BMW F 800 GS
Honda XRE 300 Flex
Street up to 300cc
Kawasaki Ninja 300
Street up to 150cc
Honda CG 150 Titan
Dafra Citycom 300i
Obtuaries Stefan Ritschel Filho Fenabrave mourns the death of the executive of Disal Administradora de Consórcios, Stefan Ritschel Filho, who died on September 4 in São Caetano do Sul. Stefan exercised the position of Board Member at Disal, where he was active for the last 25 years. At ABAC, as Director and Officer, he contributed to transform the entity in one of the most respected Brazilian institutions in the Consortium System. Stefan left his wife, children and grandchildren, to whom he was very attached.
José Carlos Librelato On September 15, José Carlos Librelato, Officer of Anfir (National Association of Road Implement Manufacturers) passed away. Besides acting in the entity, Librelato also headed the Librelato Implementos Agrícolas e Rodoviários Ltda, headquartered in Orleans (SC). The executive was Deputy Mayor of Orleans/SC, Chairman of the Trustee Council of Febave – Barriga Verde Educational Foundation. Librelato maintained active participation in ANFIR for over 10 years, always present in all discussions seeking constant improvement of the road implement productive segment and their association. Entrepreneur, nationally renowned, was born in Orleans, interior of Santa Catarina, and was nicknamed Lussa during childhood and thus became known. The executive left wife and two daughters.
Abrahy promotes event in Punta Cana The 5th ABRAHY Meeting, held by the entity that represents the Hyundai Dealers, this year will have the theme “Together for endless possibilities,” and was held on November 20 thru 24 in Punta Cana, in the Dominican Republic, with exclusive programming directed to all make Dealers in the country. The setting chosen to host the event was the Hard Rock Resort, recognized as one of the most beautiful and pleasant tourist havens of today and one of the places that has attracted more visitors from Latin America. “We chose Punta Cana for being one of the most visited areas in the Caribbean Sea, in addition to Hard Rock Resort offers all infrastructure necessary to conduct our meeting,” says the President of ABRAHY, Daniel Kelemen. The meeting programming was specifically designed to balance work, rest, leisure and a lot socializing among ABRAHY family. “We it comes to events, we think about where we could talk about work, combined with a relaxed atmosphere, favorable to networking and socializing among Dealers, their families and also Hyundai representatives,” details Kelemen, highlighting the visit to Saona Island, one of the most coveted Caribbean havens and visited by the event participants. “We were recognized as “The Most Desired Make” in the awards granted by Fenabrave, and having also ABRAHY been The Best Evaluated Association in the 18th Market Relationship Survey, also conducted by Fenabrave . With the make evolution in the domestic market, we have reasons to celebrate and to plan the future together,” stressed the President of ABRAHY. The 5th ABRAHY Meeting was attended by the Fenabrave Deliberative Council Chairman and Officer, Flávio Meneghetti, and the Executive President of the organization, Alarico Assumpção Júnior, who is also a Hyundai Dealer.
Asociación Argentina de Motovehículos Convention On August 12 thru 14, Argentina hosted the 4th Convención Nacional de Concecionarios de Motovehículos (Association that represents the motorcycle dealerships in the country). The fourth edition of the meeting brought together delegations of four countries of Latin America, such as Peru, Chile, Brazil and Argentina, where their representatives delivered speeches on the automotive industry in their countries. Fenabrave was represented by Marcelo Franciulli, Sectoral Officer, who delivered speech on the following theme: Scenario of motorcycle market in Brazil and the Regulation of Ferrari Act in the two-wheel segment. Dealer Magazine
Fenabrave in Action • Fenabrave Chairman, Flavio Meneghetti, was at the Banco J.P.Morgan, on August 29, in São Paulo, and attended a speech on “Expectations for the evolution of fleet of vehicles in Brazil for the next three years.” • Fenabrave was represented at the Workshop 2014 Challenges of Automotive Legislation - Inovar Auto, held by Automotive Business, on September 9, in São Paulo. • Fenabrave was the Institutional supporter of the ‘I Forum of Automotive Quality’, held by Automotive Business, on September 23, in São Paulo. • On October 7, Fenabrave attended the 22nd SAE Brazil Mobility Technology International Congress and Exhibition, held at Expo Center Norte, in São Paulo.
• On October 15, in São Paulo, Sindipeças (National Union of Motor Vehicle Components Industry) held the IX Sustainability Forum. The topic discussed was Sindipeças Program of Disclosure of Sustainability Projects. On that occasion, besides Fenabrave, Government, legal, business and academic authorities also debated about companies solid waste management. • On October 17, the Renaissance Hotel, in São Paulo, hosted the 8th SIAC - Acrefi International Seminar. The theme of the event was “Crisis, Credit and Growth,” relevant issues to the Country and was attended by Fenabrave. Brazilian and foreign specialists gathered and discussed credit trends in the Brazilian and world economy.
• Google Brazil held and event on automotive industry on September 13. Fenabrave was represented by Alarico Assumpção Jr., Fenabrave Executive President, José Carneiro de Carvalho Neto, Vice President, and Marcelo Franciulli – Sectoral Officer of Fenabrave.
• On September 24, Fenabrave, represented by Flavio Meneghetti, Chairman of the entity, Alarico Assumpção Jr., Executive President, Luiz Romero C. Farias, and Melchior Luiz Duarte de Abreu, Vice-Presidents, and Luiz Antonio Fleury Filho, former governor of the State of São Paulo and legal counsel of Fenabrave, attended a hearing in Brasília, with Senator Katia Abreu and the Minister and Chief of Civil House, Gleisi Helena Hoffman. On the agenda, the leaders discussed the 6,729 Act and the Vehicular Recycling.
Flavio Meneghetti, Senator Katia Abreu, and Melchior Luiz Duarte de Abreu in a meeting, in Brasília.
Twenty Group meets with associates
By Francisco Mendes Coordinator of Fenabrave Twenty Group. The profit generation in a suitable level for the volume of investment made is a survival condition for any company, and this is valid for the Vehicle Distribution Industry. Although this concept does not require explanation, it is worth remembering that without profit and without adequate profitability, the ability to reinvest and grow is unfeasible. It is, therefore, a daily task for the manager to seek maximization of profit and return. Besides dealing with the market, the manager needs to know how their business are doing and, especially, be certain that is reaching the best possible outcome. This certainty is only reached if the manager has reliable indicators to compare their own performance – and that when Fenabrave Twenty Group comes in. The program allows the construction and verification of indicators for all dealership business areas, from its total, departments, to the employee level. That is, it is possible to measure the business management performance in a simple, direct and efficient way. Moreover, the ease of a fully online system, with exclusive access, which allows Dealers to analyze their results at any time, with the indicators they choose and compare with all group members, with the average and best results or even with certain Dealers within their group. The results are already starting to show among the participants, such as performance improvement in different areas of the business, increased expenses absorption capacity, profitability improvement, reduction of inventory and expenses. As we all know, the matter of winning or losing lies in the details. Fenabrave Twenty Group is a detail that makes the difference. Join us and welcome.
Fenabrave Twenty Group, coordinated by Francisco Mendes, held two meetings with Make Associations. The first was held with the Twenty Group of ABRACAF-Brazilian Association of Fiat Dealers, in Campinas, São Paulo, on August 26 and 27. On that occasion, in addition to the meeting, the Group participants conducted a technical visit to a Tempo Group dealership. On September 10 and 11, in Campinas, São Paulo, was the meeting with ASSODEERE National Association of John Deere Dealers.
Correspondents: Certification is valid for 2 or 5 years According to the Central Bank Resolution No. 3,954/11, from February 2014 on, each dealership shall mandatorily have at least one employee certified as a Correspondent in the country. Dealerships can choose one of the two types of Certification available, that is, one valid for 2 years – offered by FEBRABAN Federation of Brazilian Banks, or the certification valid for 5 years, conducted by ACREFI - National Association of Credit, Financing and Investment Institutions or by ANEPS - National Association of Credit Promoter Companies and Correspondents in the country. “Due to the little time left to the end of the deadline for the Certification of Correspondents, it is crucial that Dealers
choose the format that best suits their needs, within the term established by Central Bank Resolution, given that after February 2014 those who do not have a Correspondent certificate will not be able to operate with financing in the dealership,” said Paulo Engler, Chief Officer of Fenabrave. According to Engler, Fenabrave suspended the Prep Program Course for Professional Certification, so there is no effort duplication and the entity guides Dealers to have at least two qualified professionals in their staff employees. “We advise Dealers to certify at least two employees, because in the absence of one, the company will continue with the necessary support,” concludes Engler.
Entities debated perspectives for the transportation industry Preceding Fenatran – 19th International Transportation Show, in October, a meeting with the press was held with the purpose of discussing, by the industry leaders, the main perspectives for the truck segment. Attended the meeting Paulo Octávio Pereira de Almeida and Rodrigo Rumi (Vice-President and Portfolio Officer of Reed Exhibitions Alcântara Machado), Flávio Benatti (CEO of NTC&Logística), Luiz Moan (President of ANFAVEA), Alcides Braga (President of ANFIR) and Antônio Carlos Bento de Souza (Director of Sindipeças), who presented the trends, new laws, labor, fleet renewal and the future of heavy vehicle segment. The segment evolution, which aims to end 2013 with 12.1% more in vehicle marketing, was obtained thanks to incentives and policies of interest reduction practiced in PSI throughout the year. Maintaining deflated rates in the Investment Maintenance Program, in 2014, would contribute to the good performance of the market segment. This is a claim made by Fenabrave, in partnership with Anfavea, with the Federal Government, which was met and announced by the Minister Guido Mantega, in an interview to a TV network in early October. “Currently, this is the main financing tool for trucks, buses and agricultural machinery and equipment,” celebrates the Executive President of Fenabrave, Alarico Assumpção Jr. The program was due to be closed on December 31 and will be extended in 2014, financial rates were not disclosed. The interest rate currently charged are 3.5% to 4.5% per year.
Inovar-Machinery (Inovar-Máquinas) is taken to MDIC The National Association of Vehicle Manufacturers (Anfavea) presented to the Ministry of Development, Industry and Foreign Trade (MDIC), on last September 10, in Brasília, the Program for Development of the Auto Propelled Machinery Industry, the Inovar-Machinery. The proposal provides for the improvement of competitiveness of the segment of agricultural, road and construction machinery with incentives for local production. With the program, the President of Anfavea, Luiz Moan, believes in the possibility of modernizing the segment: “If the project of new propulsion technologies, delivered in July, was the first impossible mission accomplished by this management of Anfavea. This, definitely, is the second impossible mission that we accomplish. The proposal for the segment to be able to reindustrialize itself is a consensus among our associates and we also have the formal agreement of Abimaq.” From 2007 to 2012, the share of imports in domestic sales of construction and road machinery registered an annual growth rate of 46% and today represents one third of total marketing. According to estimates made by Anfavea and Abimaq, if this pace was maintained, in 2018 the share would be over 50%. Similar movement of import increase was also noticed in the agricultural machinery segment - wheel tractors – and, added to that, is also the fact that the segment lost competitiveness to export and the investment plans of new companies indicate production trend with CKD. “Brazil today is the second largest market of combines worldwide, but we still need to improve competitiveness ratios to attract new investments and ensure complete local production, which will enable the development of the entire productive chain, not only of the segment,” explains Moan. Inovar-Machinery proposal was based on the InovarAuto and anticipates the acquisition of Brazilian inputs and parts, investment incentives and growth in the purchase of industrial machinery. The segment of agricultural, road and construction machinery invoiced US$ 10.3 billion in 2012, invested around R$ 1.2 billion and had 2% share in the Brazilian industrial GDP. Today, there are 21 production facilities in five federal units, which employ 21.6 thousand employees and trade their products in over 1.1 thousand dealerships across the country.
20% do crédito liberado no Brasil é destinado para ajudar o brasileiro a realizar o sonho do carro novo. A Cetip ajuda a acelerar a análise e a aprovação de financiamentos com agilidade e segurança, graças ao Sistema Nacional de Gravames (SNG), base eletrônica integrada que reúne informações sobre restrições financeiras de veículos. Atualizada em tempo real e acessível a agentes financeiros e órgãos de trânsito de todo o país, o SNG leva Eficiência Operacional para todo o mercado, liberando crédito de um jeito simples e seguro.
Segurança que move o mercado.
Declaração de exoneração de responsabilidade: o presente material foi emitido pela Cetip S.A. – Mercados Organizados (“Cetip”). A Cetip é um mercado de balcão organizado autorizada a funcionar pela CVM (Comissão de Valores Mobiliários) e regulado tanto por esta quanto pelo Banco Central do Brasil. A contratação dos serviços contidos no presente material é de responsabilidade exclusiva dos participantes, não sendo a Cetip responsável, sob qualquer pretexto, por perdas decorrentes do uso direto, indireto ou consequencial do presente material. A Cetip se isenta a qualquer responsabilidade de fornecer qualquer recomendação específica de natureza legal, tributária, regulatória ou outras que não estejam no seu escopo de trabalho. A responsabilidade pela eventual contratação dos serviços contidos no presente material é exclusiva dos clientes, cabendo a este tão somente a função comunicativa de lançamento dos produtos e/ou serviços. Os exemplos aqui porventura presentes simbolizam situações simuladas e hipotéticas, meramente ilustrativas. Seu comportamento pode não representar as situações reais de mercado, não cabendo à Cetip qualquer responsabilidade por tais casos e/ou pelo desfecho de casos reais. Nada constante aqui restringe ou exclui qualquer responsabilidade legal cabida ao cliente, de acordo com a legislação e normas regulatórias. Este material é de propriedade da Cetip, sendo expressamente proibida a reprodução de parte ou da totalidade de seu conteúdo, mediante qualquer forma ou meio, sem prévia e formal autorização, nos termos das Leis sobre Propriedade Intelectual. Conforme previsto na Instrução CVM nº 461, de 23 de outubro de 2007, no Regulamento da Cetip, e demais normas aplicáveis em vigor, em função das características dos mercados que atende, a Cetip não possui fundo garantidor ou outros mecanismos de ressarcimento de perdas, razão pela qual não é cobrada qualquer taxa ou contribuição com esse objetivo.
OS DESAFIOS DA Foto: Marcelo Camargo/Agência Brasil
THE EFFECTS OF COMPETITIVENESS ON THE BRAZILIAN MARKET 16
Foto: Tânia Rêgo/Agência Brasil
With increased competition, the automotive industry had to innovate, bringing consumer products increasingly complete and for competitive prices. Learn what are your customers’ desires, what are the market trends and expand your sales!
little over 20 years, Brazilian consumers did not have the wide range of models and their various versions that are now available in thousands of dealerships located throughout the country. Instead, at that time, Brazil was only the 12th largest automobile market in the world and was far from being a priority for the industry multinationals. In that environment, some industry innovations, such as automatic transmission, took over 30 years to reach the country. With the market opening for the import of vehicles, in the early 90s Brazilians began to realize that in terms of cars they had not come out of the 70s. Things started to improve in the following decades and the great symbol of the national automotive industry was the “popular” car with 1.0 engine and no options, such as air conditioning and power steering. History has shown a great change in the industry, and increased competition in the last decade is transforming the Brazilian market. Twenty years ago, there were six makes in the country. In 2010, the number increased to 15 and is forecast to reach 2017 with 23 assemblers, totaling 6.6 million units produced, corresponding to an average of 183,000 vehicles per make. Today, Brazilians have an array of options that include more than 1,000 models. “If the Country maintains a growth average of 3% per year, we can reach a fleet of nearly 80 million vehicles in 10 years,” says the Managing Partners of MB Associados, Tereza Fernandez. The cycle of investments in the Brazilian automotive industry, initiated in recent years and expected to reach R$ 73.1 billion by 2017, could help to improve the quality of the vehicles marketed here. According to Jorge Mizerani, Quality Manager of Fiat, a marketing integration among countries is occurring in the Brazilian industry. This means that the best practices applied worldwide by companies subsidiaries are unified in favor of higher customer’s satisfaction. “The important thing is to always listen to the consumer. Good products are not enough. The entire cycle, from development
to commercialization processes have to be in accordance with customer’s needs,” said the executive during the Forum for Automotive Quality promoted by IQA - Institute of Automotive Quality, held in late September and had Fenabrave support. In the opinion of Mônica Azzali, Quality Officer of GM, product features, evidenced to the consumer, are essential for loyalty generation. “With the due proportions, it is like buying a shirt. The salesperson shows the product differential and certifies its durability. Absence of defects and longevity are important differentials in the vehicle,” he said. Brazilians are more demanding. According to a survey in the automotive sector, conducted by GfK consulting firm, 93% of the Brazilian consumers prioritize comfort when choosing a car and 71% want a vehicle with innovative technology. Percentages are higher than abroad. The global average shows that 80% have the comfort as a priority and 64% do not give up innovation. Out there, consumers take for granted that their cars will come complete. Therefore, when they think of innovation, they have far away products in mind, such as electric cars or those that drive by themselves. Many things conspired in favor of the development of the Brazilian market. The 2008 crisis, which shook the United States, and the recession that still affects Europe toppled car sales in these markets by 25%. To continue to grow, assemblers have been forced to look harder emerging countries – and for the industry, it is Brazil turn now. Income expansion and credit access made car sales grow 37% in the country in the last five years. The greatest symbol of this new phase is the launch of hatch GN20, from the Korean Hyundai, in October last year. More than 90,000 units were licensed since then: it is the third best-selling car in the category of small hatches, according to what was ascertained by Fenabrave. With air bag, power steering, board computer and other technological items as standard, cars became a phenomenon in the domestic market. “The secret is not to underestimate the consumer. Koreans understand the message,” says Letícia Costa, Dealer Magazine
Managing Partner of Prada Consultoria, specialized in the automotive industry.
Antonio Carnelli, VW Product Development area, Alexandre Guimarães, Electrical Engineering Officer of GM, and Ricardo Reimer, President of the Brazilian Section of the Society of Automotive Engineers - SAE.
Accelerating the consumer’s conquest – Despite the delay in the versions available in Brazil be decreasing compared to cars sold in Europe and United States, the distance may be considered big. While Brazilians are just starting to get used to items taken as basic, in the rest of the world, for decades, North Americans and Europeans have access to extras such as voice control or automatic parking. One of the constraints for the arrival of these technologies in Brazil is the price. Here, the amount of taxes correspond to more than 30% of the final price of a car. Meanwhile, countries such as Mexico (18%), Germany (16%), Japan (9%) and United States (5.7%) experience lower taxes. For this reason, the challenge of the domestic automotive engineering is to integrate the best technologies and solutions to the Brazilian reality. This concept was evident in the 22nd SAE Congress in Brazil, which gathered more than 10,000 people in São Paulo, on October 7 thru 9. Among the topics discussed in the scheduled workshops, the issue of product competitiveness was one the highlights.
According to Antonio Carnelli, of the Volkswagen product development area, the industry turned its attention to the global market. According to the executive, the idea is not to think only locally, but integrating world expertises and adapt products to particularities. “The future of the industry is pursuing globalized products,” he says. In his opinion, the Inovar-Auto program contributes to the development of new technologies for the benefit of energy efficiency goals, and especially by encouraging investments in R&D. “One example is the standardization of platforms with varying points that can serve in various models, from anywhere in the world. We call it of flexible architecture,” he explains. According to Carnelli, by 2016 VW will invest more than R$ 9 billion in productive capacity increase and in new products worldwide. One example of international integration is in General Motors. According to the electrical engineering Officer of the assembler, Alexandre Guimarães, competitiveness ends up taking engineers’ excellence to the next level, and these engineers, by their turn, need to improve their peers of other countries. “One of our challenges today is to hire good engineers. So we invest a lot in training and exchange programs since the university,” he details.
At Fiat, as well as in other assemblers, listening to customers is crucial for the development of new products.
Guimarães says that the General Motors Brazil engineers have full interaction with colleagues of other three world center of the company in the United States, Germany and South Korea. “One example of adequacy is in the vehicles Spin, Cobalt, Sonic, and Prisma, which are on the same platform, even in other countries, but with details developed by the Korean engineering for each reality. This also happens with vehicles developed in other countries that have details adapted by the Brazilian engineering expertise,” he said. “Brazil is the fourth largest automotive market in the world, therefore, it attracts the world interest of vehicles and components manufacturers. With this scale, it is natural that new technologies are introduced,” assesses Ricardo Reimer, President of the Brazilian section of the Society of Automotive Engineers – SAE. Despite the ups and downs of the Brazilian economy, Reimer is optimistic about the industry development. For him, the increment of added value to the vehicles manufactured in Brazil, through the introduction of technological innovations, will be a short time matter. More importantly, it ensures that the Brazilian community of automotive engineering is prepared to cope with the challenge of developing better equipped cars without excessive increase of costs. “We must remember that the sauce cannot cost more than the meat,” he quips. Reimer assesses that those modern technologies that add autonomous features to cars, such as adaptive autopilot, automatic braking, unmanned steering, will also reach out to Brazilian cars, even
if it takes longer than for the developed countries. For him, the industrial policy designed for the automotive industry, the Inovar-Auto, encourages the introduction of new technologies through mandatory requirements of investment in research, development and engineering. “We have here a body of qualified engineers to do here the innovation the industry needs,” he adds. The President of SAE Brazil says that the auto parts industry should resume following up the growth of assemblers in Brazil, such as new investments. With the dollar on the increase, there is a natural incentive to produce more locally, instead of importing, and seize the opportunity to increase exports. Consumer dictates change – The automotive industry needs to change the focus of their strategies to ensure the construction of a differential. In a highly competitive market, offering only technical features no longer guarantees due prominence. Although the environment-related issues are present in the consumers’ speech, this is still a non-determinant factor at the time of choosing a vehicle. On the other hand, there are opportunities for those makes that offer differentiated experiences and convenience to their public. Engaging the buyer and create emotional ties with them are ways to ensure their preference. In the opinion of the CEO of Volkswagen Brazil, Thomas Schmall, the ratio of consumer confidence is in an uptrend. According to the executive, this is beneficial for the industry. “By 2015, more than 13 million households will emerge for Dealer Magazine
The quality is also present in the inspection carried out before vehicles leave the plant.
consumption, adding an annual purchasing power of approximately R$ 3 billion.” According to Schmall, Brazil has established itself as a major player in the global automotive market. At VW Group, for instance, Brazil is the second largest subsidiary worldwide. Today, consumers are more interested in vehicles that suit their lifestyle and have a connection with their personality. Another point is that the marketing strategies must also take into account not only the drivers, but the passengers as well, as this group may have a great influence on the purchasing decision and in their own experience inside the vehicle. So, what are the changes in attitudes and behaviors of consumers that will influence the choice of vehicles in the future? This answer is given by the GfK Roper Reports Worldwide study, conducted by the GfK consulting firm, which points 12 trend groups: Safety, Eco-Citizenship, Value Redefinition, Experience, House to Home, Satisfaction, Conscious Consumption, Feeling of Well-Being, Present Everywhere, We’re all influencers now, Aerodynamic, and Identity. Worldwide, the consumer wants to pay more for products and services that make them feel safer, not only physically, but also with “peace of mind.” Companies will have to prove ever more that they
can offer this. It shall be safety with convenience, since the fast-paced world makes people reward companies that help them save time. In fact, as a good part of the time is spent in the car, we need to think about how to make it more enjoyable, offering features that reduce the impact of driving on the body and mind, such as massager seats,” says Don Deveaux, Global Leader of Automotive Industry for GfK. “People want to connect with others who have the same passion and an idea is that manufacturers would support the creation of clubs and ‘adventures’, where car owners participate in activities exchanging stories about their loved vehicles, as Jeep did with the Jeep enthusiasts. Moreover, if we can put a different cover on our smartphone everyday, why cannot we do the same with our car? The need the consumer has to co-create is something that companies should take seriously. They want a car that reflects who they are, so we could think of cars adaptable to their moods, number and type of passengers, day and location. This could reflect in changes in lighting, seat firmness, music, smells etc.,” adds Deveaux. Traditionally, manufacturers always allocate all their marketing efforts to conquer the driver: whether they were comfortable in the vehicle, the driving experience was good or not and if all the features
VW engineers are dedicated to continuous improvement of the quality of the products developed, also through miniature models in their laboratories.
were at their fingertips. However, one of the global trends identified by GfK is that more and more the passenger must be in the spotlight of makes. Those who travel in the car usually influence the choice of vehicle with their experience, but these people do not receive much attention from companies. “This is an oversight, because passengers play a key role. Therefore, this is one way to create a competitive differential. Another point is that people want to feel more productive inside the car. Besides connectivity, they may want a stand to place their laptop, for example, or a structure to make a video conference. All this technology and features already exist and are coming to car interiors. However, makes need to work to make them simpler and bring them closer to people,” says Don Deveaux. As people spend increasing amount of time in traffic, the more assemblers make the internal environment comfortable and attractive, the more points they get with users. Better air filtering systems and seat with massage automatic systems are some benefits desired by consumers. “All points connected to comfort, technology and safety are indispensable, basic. Manufacturers should seek differentiation in other ways,” adds Deveaux. How do Brazilians think? – Three trends, among the 12 raised by the world study, have greater weight in Brazil: Eco-Citizenship, Value Redefinition and Satisfaction, explains Meire Waki, Automotive Officer in Brazil and Regional Leader for Latin America at GfK.
According to Meire, Brazilian consumers tend to emphasize their purchasing power and show highly willing to change makes if they are not satisfied with a product or service. Consumers want to be treated as ‘kings’ and reward being loyal to the companies that meet or exceed their expectations. “We know, but we forget, that satisfaction is perception. Brazilians seek new experiences with makes that provide fund and entertainment: 47% of consumers say that are always looking for novelties and amusement, even in products of daily life, a demand above the global average (31%) and North-American (32%). Brazilians want to feel rewarded: 51% agree that ‘it is important to do what pleases them regularly’, versus 40% worldwide average, and 25% North-American average. It is crucial to reward the consumer, not only financially but also providing moments of fulfillment, for instance, generating surprise and delight on the product, at the time of purchase, of delivery, after-sales and the online environment,” said Meire. According to the executive, Brazilian consumers increasingly know the actual cost of products and seek the best return for their spending. They want to exercise their right to choose, have the flexibility to decide on the items of the vehicle and assemble the product they want without having to pay for superfluous. However, consumers are also spending a little more when they perceive value in the product. This view can and should be communicated by the automotive segment, for instance, by offering tires that last longer or that Dealer Magazine
Survey conducted by GfK reveals that 93% of Brazilian consumers prioritize comfort when choosing a car and 71% want a vehicle with innovative technology. Percentages are higher than abroad. The global average shows that 80% have the comfort as a priority and 64% do not give up innovation. As people spend increasing amount of time in traffic, the more assemblers make the internal environment comfortable and attractive, the more points they get with users. “Dealers do not need large investments to differentiate themselves in the market. Although the digital presence has grown, the human factor is still a necessary item to relate to the consumer.”
are resistant to punctures, even if they cost a little more. According to research, the make continues to be important to the Brazilians: while the global average is 20% of respondents, in Brazil is 32% and in the USA 11%. According to Meire, quality is a priority: 45% of Brazilians say yes to the question ‘I would rather have fewer items, but of better quality,’ against 39% global consumers and 34% of North-Americans. The role of the Chain – Dealership Chains have an important position in the consumer’s definition and choice, both at the time of purchasing the vehicle and performing maintenance. To captivate more and more potential consumers, dealership staffs must be prepared to serve the new public. “When buying a car, the first research source is the Internet, so the consumer gets to a dealership much more informed,” says Meire. 22
According to GfK Officer, sales and after-sales teams must be trained and be more knowledgeable not just about the make they represent, but also of the market as a whole. “The salesperson must be abreast of the entire market, especially for arguing with the customer on the main differentials of the make that they represent against competitors,” she says. With the digital presence increasingly common, Meire emphasizes the need to innovate also in the after-sales service. “Dealers do not need large investments to differentiate themselves in the market. Although the digital presence has grown, the human factor is still a necessary item to relate to the consumer,” said Meire, exemplifying the scheduling of maintenance services over the Internet. “Despite being an ease, if no one calls the customer to confirm the schedule, the service falls into discredit. The consumer becomes suspicious that the dealership has not even received the request,” she details. In the opinion of the GfK Officer, thanks to some standardization of products and services, small details can make the difference in customer loyalty. “Show the customer the service that was performed. Do not let them suspect whether their requests were attended or not. Transparency above all!,” concluded Meire. With respect to an item highly valued by Brazilians, the Eco-Citizenship, the GfK Officer says that the Chain must implement actions in their daily lives e show them to the consumer. “Actions related to the topic should be highlighted as a differential to the consumer. This can generate more credibility and loyalty in the Chain,” she concludes.
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At the General Assembly of the United Nations (UN), held in March 2010, Resolution A/64/L 44 was approved, declaring the period of 2011-2020 as the Decade of Global Action for the Safety in Traffic. This UN initiative is the result of the declaration of a pandemic situation worldwide the road casualties, by the World Health Organization, which soon will jump from the ninth to the fifth main cause of humanity death. The resolution was drafted, based on WHO - World Health Organization, estimated, in 2009, approximately 1.3 million deaths from traffic accidents in 179 countries. For member countries, which include Brazil, it was recommended the development of a master plan to guide actions in this area in the decade, aiming to stabilize and reduce up to 50% traffic accidents worldwide. It should be noted that Brazil ranks 5th among record holder countries in traffic casualties, preceded by India, China, USA and Russia. Data from the Ministry of Health and Ministry of Cities recorded, in 2008, the occurrence of approximately 39,000 casualties and 619 non-fatal victims, many with irreversible sequelae deriving from traffic accidents. As part of an ongoing effort to reduce these catastrophic ratios, the Ministry of Cities launched in May 2011 the called National Pact to Reduce Accidents (PARADA â€“ A Pact For Life), which aims, through awareness campaigns and partnerships with the private sector, NGOs, class associations, among other integral members of Brazilian society, reduce casualties and accidents on streets and highways. The program consists of actions in four areas: legislation, education, communication and supervision. Fenabrave supports this project and disseminates to the Chain, through the Make Associations it represents, all government actions that already have positive effects: since the program started, the number of deaths caused by accidents dropped 4%. Thus, Dealer Magazine heard the Minister of Cities, Aguinaldo Ribeiro, for more details of the project, its objectives and results, not only for the reduction of traffic accidents and deaths, but also learning the government initiatives regarding the improvement of mobility. Check out the interview, in full, below.
Ministry of Cities for the end of traffic accidents
Dealer Magazine – The Ministry of Cities launched the Parada Program, a Pact for Life, which aims to reduce traffic accidents. What does this program provide? Aguinaldo Ribeiro – The National Pact to Reduce Accidents (PARADA – a Pact For Life) is the answer to the Brazilian Resolution A/64/L 44 of United Nations (UN), published on March 2, 2010, which established the period of 2011 to 2020 as the “Decade of Actions for Traffic Safety”. The resolution was drawn up based on research conducted by the World Health Organization (WHO), in 178 countries, which estimated that in 2009 there were about 1.3 million casualties due to traffic accidents. The resolution recommends - to member countries – the elaboration of an action plan to guide actions in this area, having, as a goal, to stabilize and reduce the number of traffic deaths worldwide. Since 2011, the Ministry of Cities promoted seasonal advertising campaigns for reducing traffic accidents in the country. However, experts from the Ministry noted the need to develop an ongo26
ing campaign of mobilization so that the figures of fatal victims in traffic do not reduce only during the seasonal campaigns – vacations, holidays and other celebrating dates. For this reason, on September 21, 2012, at the Presidential Palace, the President of the Republic, Dilma Rousseff, and the Minister of Cities, Aguinaldo Ribeiro, launched a constant campaign of awareness in traffic to reduce the number of deaths on roads and streets of the country. PARADA consists of actions in four areas: legislation, education, communication and supervision. Currently, the pact is considered the main Country action to reduce accidents. From 2011 to 2013, 23 campaigns were produced with the following themes: Drinking and driving, motorcyclist, June festivities, prohibition, dangerous overtaking, pedestrians, cyclists, professional drivers, clandestine transport and traffic safety. The last campaign was launched on September 17, with three real cases of people who have suffered accidents, to address the topics of alcohol, other drugs and traffic safety: effects, responsibilities and choices. In addition to the campaigns, three mobile apps were created to reduce two of the main causes of traffic accidents: distraction by mobile use behind the wheel and driving after consuming alcohol. The applications are: “Hands on the Wheel,” “Where can I get a cab here?” and “Friend of Parada.” Dealer Magazine – What are the ratios of traffic accidents on streets, roads and highways in Brazil? Aguinaldo Ribeiro – The data used are from the Ministry of Health. In 2011, 43,256 people died in traffic. The largest growth was in accidents involving motorcycles, which are about 11,423 casualties per year. The number of casualties involving motorcyclists has tripled in the last ten years, increasing 39% over the past five years. The number of casualties involving motor vehicles in 2011 reached 11,154. Spending with health hospitalizations with
“Vehicle Dealers are the point of contact of Brazilians with their consumer dreams or objects of desire. That being so, starting with the approach by a pre-qualified salesperson giving short instructions on defensive driving, giving promotional discounts to drivers who do not have traffic negative point on their licenses, for example, are easy application actions that can assist the reduction of traffic accidents.
motorcyclists were R$ 43 million in 2007, 37% of the total cost of the Country. In 2010, costs have doubled: R$ 85.5 million, 45% of the total. As to the federal highways, according to the Federal Highway Police, from March 2011 to February 2012 occurred 191,117 accidents, 8,577 casualties and 463,047 casualty-free accidents. Dealer Magazine – Who par ticipates in the PARADA? Can private companies contribute? In what way? Aguinaldo Ribeiro – PARADA is open to the entire society participation. Every citizen who complies with the traffic rule is contributing to the Pact for Life. However, it is important that representative bodies, such as NGOs, religious congregations, private companies and associations cooperate with their ability to multiply the awareness messages. Currently, PARADA has a business social network with DETRANs and local bodies. However, it requires the involvement of all governments and the society as a whole. Dealer Magazine – What is the relevance of the actions taken by the government, private entities and NGOs for a safer traffic? Aguinaldo Ribeiro – These actions have the merit of considering the theme appropriated by all. The goal is that this flag symbolizes everyone’s will to reduce the number of traffic accidents, not only of the government. Dealer Magazine – What is the expectation of the National Pact Program for the Reduction of Traffic Accidents? Aguinaldo Ribeiro – The World Health Organization (WHO) has set a target of 50% reduction in traffic accidents in the country. However, no number is ideal when it comes to death and people’s suffering. The Ministry of Cities expectation is to work unceasingly while there are preventable deaths in traffic.
Dealer Magazine – What is the scope and the first results of “Parada” program? Aguinaldo Ribeiro – Currently, the Ministry of Cities has updated data of Federal Highway Police (PRF) operation s. According to the survey, there are reductions in all holidays comparable with previous years, according to the table shown on these pages. After launching the permanent campaign, in 2012, the PRF recorded an absolute reduction of 4% in road casualties, even with the increase of almost 10% in the country fleet, which reached 75.18 million in 2012, from 70.54 million of vehicles in 2011. The number of motorcyclists nearly tripled in the same period. Dealer Magazine – What is the biggest challenge of the Ministry of Cities to achieve 50% reduction in traffic casualties in Brazil? Aguinaldo Ribeiro – It is necessary that the Federal Government efforts also become a priority for the Brazilian society. I think that only education can change people’s behavior in traffic. Therefore, we are negotiating with the Ministry of Education to add a course on traffic safety in school curriculum. By educating children, we will transform them into responsible drivers. It is urgent to raise the population awareness to bring about a change in attitude at the wheel. We can no longer accept to live with the high number of casualties on the country streets and roads. Dealer Magazine – What is the solution to reduce the number of traffic accidents in the country? Aguinaldo Ribeiro – There is no single solution to the problem. Governments and society must be sensitive to this issue, which goes primarily by the collective awareness. Dealer Magazine – How can vehicle Dealers contribute to reduce accidents ratio? Aguinaldo Ribeiro – Vehicle Dealers are the point of contact of Brazilians with their consumer dreams or objects of desire. That being so, starting with the Dealer Magazine
“It is extremely important that production partners and vehicle distribution are engaged with PARADA. This is the only possibility of interpersonal contact between the driver and the distributor, which transforms Fenabrave in a special partner.
approach by a pre-qualified salesperson giving short instructions on defensive driving, giving promotional discounts to drivers who do not have traffic negative point on their licenses, for example, are easy application actions that can assist the reduction of traffic accidents. In addition, Dealers could include brief tips in terms of audiovisual or printed material on cars delivery. Dealer Magazine – Fenabrave is supportive of PARADA. How important for the Ministry is to make partnerships like this? Aguinaldo Ribeiro – It is extremely important that production partners and vehicle distribution be engaged in the PARADA. This is the only possibility of interpersonal contact between the driver and the distributor, which transforms Fenabrave in a special partner. Dealer Magazine – What are the Ministry action to improve the structure of large cities aiming a better mobility of people? Aguinaldo Ribeiro – Public transport modernization in large cities requires the implementation of transport and mobility infrastructure, as well as local policies of management and operation of implemented systems. The Federal Government has contributed to the implementation of this infrastructure. In addition to the works, we acquired equipment and modernized subway lines aiming to increase transport efficiency and user comfort. Porto Alegre, Belo Horizonte, Natal, João Pessoa, Fortaleza and Recife are examples of cities that are getting modern trains and VLTs (Light Rail Vehicles) for rail transportation. Other contemplated modalities are bus lanes, BRTs (Bus Rapid Transit system), airmobile, subway, monorail and cable cars. The Federal Government funds and transfers funds from the General Budget of the Union to carry out 177 projects of urban mobility implemented by states and municipalities. Besides these, other nine works are directly carried out by the Federal Government, eight are accomplished as consideration for States and Municipalities, 28
and three are carried out by the private sector, totaling 197 projects with a total value of R$ 89.9 billion. Recent selections totalized R$ 41.1 billion in investments: R$ 32.5 billion were selected in April 2012, at Large Cities Mobility PAC and R$ 8.6 billion in March 2013, at Medium Cities Mobility PAC. Out of the mobility portfolio total, 83 projects or 42% are in progress or completed, totaling investments of R$ 42.7 billion or 47% of the resources. An important contribution was the enactment of the Urban Mobility Act (12,587/12) by President Dilma Rousseff, in January 2012. The Act establishes the principles, guidelines and objectives of the National Policy of Urban Mobility and defines the powers of the Union, States and Municipalities. According to the Act, it is up to the municipalities the planning and implementation of the Urban Mobility Policy, which includes the tariff system. However, the Federal Government has already taken measures that affected bus fares by 7.23% and subway and train fares by 13.75%. Exemptions totaled R$ 3 billion a year. In addition to that, it waived the IPI for buses and froze fares for subways and trains run by Federal Government since 2003 (João Pessoa, Maceió, and Natal R$ 0.50 – Belo Horizonte R$ 1.80). Dealer Magazine – Some believe that “cars are villains of mobility and urban pollution”. What is your assessment about the subject? Aguinaldo Ribeiro – Among the guidelines of the National Policy of Urban Mobility, the highlight is the priority of non-motorized modes of transport over the motorized and, the public transportation services over the motorized individual transport. Purchasing a car is a citizen’s right. However, the car use can be regulated by the government to improve the population mobility. Experiences of parking and urban toll control policies proved efficient when we have the option of a quality public transport in municipalities. The Ministry of Cities has invested in the implementation of medium and large capacity urban
Quando a consciência aumenta, os acidentes diminuem.
PROCLAMAÇÃO DA REPÚBLICA
-44% -5% 2012
Dados referentes ao número de óbitos decorrentes de acidentes de trânsito nas rodovias federais. Fonte: PRF. facebook.com/paradapelavida • paradapelavida.com.br face-Mcidades-GRAFICOS.indd 1
public transportation infrastructures. The aim is to offer the citizen a fast, efficient and quality transportation so that population do not rely solely on cars. Routes with higher demand can be done using the public transport, thus avoiding traffic jams. The intent of the investments is to promote social inclusion in the transportation offered by cities.
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billion of selected projects that integrate the Urban Mobility Pact announced by President Dilma Rousseff, in June this year. The total investment comes to R$ 50 billion.
Dealer Magazine – What could mitigate large traffic jams, an intensive traffic education or a vehicle recycling project? Aguinaldo Ribeiro – The major bottlenecks are related to the primary use of cars. To reduce traffic jams, the recommendation is to use management tools, as described in Act 12,587/12, which defines the principles, objectives and guidelines of the National Policy of Urban Mobility with priority to public transportation.
Dealer Magazine – Some cities are innovating in transport, such as Rio de Janeiro, with the Cable Car in ‘Alemão’; Porto Alegre, with the express boats in Guaíba; in Recife, with its planned system of boats/buses; and in São Paulo, with the expansion of bus lane, besides the subway works. Is there any incentive for innovations like those? Aguinaldo Ribeiro – The Ministry of Cities has, as a priority, to select proposals of urban public transport, with high and medium capacity. These proposals should present metropolitan character solutions. However, it is up to the states and municipalities define the best transport solution to be applied in accordance with local realities.
Dealer Magazine – How much fund is available in the Government budget to meet the Brazilian cities mobility plans? Aguinaldo Ribeiro – The Federal Government investments in Urban Mobility amount to about R$ 93 billion for the construction of subways, monorails, airmobiles, VLT, BRTs, bus lanes and cable cars in the main Brazilian cities, large and medium sized cities. This total includes R$ 13.5
Dealer Magazine – Besides trains, subways, BRTs and VLT, is there some funding line for the implementation of bicycle lanes and shared bicycle systems in the cities? Aguinaldo Ribeiro – The bicycle systems can be entirely supported together with the public transportation infrastructure works, such as subway and BRT. Besides, the Ministry has a supporting budget action to non-motorized transport. Dealer Magazine
LIBERTY GROUP EXPANDS OPERATIONS AREA AND TAKES RESPONSIBILITY TO DISTRIBUTION CHANNELS
Customers receive seeds in the welcome kit when contracting their insurance.
iberty Seguros, the Official Insurance Company of 2014 FIFA World Cup™, is in the Brazilian market since 1996, when it acquired the traditional Companhia Paulista de Seguros. With the multichannel strategy, in 2008, the insurance company acquired Indiana Seguros, a pioneer in selling insurance to dealerships with strong presence in Make Associations, including ABRAC, ASSOBRAV, ABRADIF, ABRACAF, Banco PSA (Peugeot – Citroën) and RCI Banque (Renault – Nissan), and other Make dealerships. Currently, Liberty Group is among the five largest insurance groups in the country. Specialist in car insurances, Indiana is also a pioneer in issuing policies with instant printing and digital signature. “Our goal is to strive for excellence in service with a fully dedicated commercial team and offer more competitive insurances,” says Paulo Russo, Dealership Channel Officer for Liberty Insurance. Among the initiatives developed for the Dealership Channel there is the Sustainable Kit,
implemented in 2012 with the goal of reducing the use of paper in the issue of your documents. With that, the client started to receive a printed welcome folder that consists of a 24-hour assistance card, with the policy data, and a seed card that can be planted. Other documents (Policy and Insured Manual) are available in “My Space”, online environment created for the insured to accompany the opening of insured claims, payment status, among others. This action has caused the company to save 54 tons of paper per year. “When the Sustainable Kit was proposed the acceptance was unanimous, since one of the goals of the insurance company is to foster and encourage responsible actions. We have passed on this concern also to our insured so that they become aware and start having initiatives to collaborate with the environment,” said the executive. Official Insurance Company for the Confederations Cup and World Cup In 2011, Liberty Insurance became the official insurance company of 2014 FIFA World Cup™ with the aim of increasing the make awareness in
the country, expand their operations and be closer to their customers and brokers. For starring our campaigns, we chose the former captain of the Brazilian National Team, Cafu, and protagonist of the penta-championship and who personifies the make values. He is responsible, optimistic, charismatic and expert at what he does. He is the player who represents Liberty Group and the Brazilian passion for soccer. During the Confederations Cup, Liberty Group has provided fans and their main stakeholders (brokers, customers, partners, employees and third sector) experiences with the make through playful interactions using the Ambassador Cafu and calling attention to the products and values of the insurance company. One of the experiences with the make were the man riders in the host cities, which traveled around the stadiums and had the function of removing people, clients or otherwise, from hazard situations and place them to a safe zone. There were more than 230 calls. In Belo Horizonte, the Liberty Group provided electric carts used to transport people with limited mobility, pregnant women and the elderly to the
entrance of the Mineirão Stadium. The service has helped almost 8,000 fans. In order to provide a unique experience for customers, employees and brokers, the company prepared a special program of hospitality for the opening games, semifinals and final. Over 500 guests attended a number of tourist attractions in the host cities, and enjoyed exclusive space inside the stadiums, in the presence of Cafu. Furthermore, over 3,000 people, including customers, brokers, employees and NGOs had the opportunity to attend this great event. They were all awarded through numerous promotional campaigns and social actions undertaken by the insurance company. The make actions for the 2013 Confederations Cup are part of a sponsorship campaign of the 2014 FIFA World Cup™ that brings, as a motto, the Brazilians’ responsibility, privilege and pride in being part of the largest and most important sporting event worldwide. “We believe in each one of the people responsible for making the Cup happens. All Brazilians can be captains and collaborate to make this World Cup the best of all times,” concludes the executive.
Paulo Russo, Dealerships Channel Officer of Liberty Seguros.
LEASING CHANGES BENEFIT AUTOMOTIVE INDUSTRY With the amendment of Article 285-B, of the Code of Civil Procedure, which provides for the corporate entity leasing, the debtor or leaseholder is no longer exempted from the obligation to pay more taxes, fines and charges incident on bounded assets. The measure, among others, should stimulate the market.
aced with the financial system selective policy of credit granting, automotive industry entities seek to create mechanisms with the federal government to reactivate sales of vehicles through leasing, especially for corporate entities. Negotiations were presented by Valdner Papa, Officer of Market Affairs of Fenabrave, in the opening of AutoData Perspectives Congress 2014, held in São Paulo. Some results were already observed in the market. One of the first measures already adopted is the inability of the customer do not pay the leasing installment while discussing in court the funding amount or rate. With these measures, the principal amount of installment should be deposited in court so that the good is not repossessed. In early October, the Full Senate approved the Provisional Measure (“PM”) 619/2013, which establishes actions to expand and improve the capacity of grain storage in the country, among other topics. Among the issues addressed in the PM, the amendment of Art. 285-B of the Code of Civil Procedure was added to the Draft Law No. 25/2013, which - in its second paragraph – changes de relationship form between the consumer and the vehicle leaseholder through the financial leasing; such a modality had a significant participation in automobile and light commercial sales credit granting from 2007 and lost substantially its participation in financing volume. “This change eliminates the legal uncertainty on the leaseholder part, preventing the vehicle circulation without paying fees, fines and taxes,” celebrates the President of ABEL – Brazilian Association of Leasing Companies, Osmar Roncolato Pinho. “Once this step is settled, the leasing will again become an
interesting instrument for financing vehicles,” added Valdner Papa. According to the President of ABEL, this financing reached 38% market share in 2008; however, today, according to ANEF - National Association of Assemblers Financing Companies data, the leasing accounted for only 2% of total vehicles funded in the first half of 2013. “Over the years, the financial leasing was gradually losing strength and, one of the factors contributing to this drop was the legal uncertainty with respect to the payment of fees, fines and taxes, which used to be lessor companies responsibility”, details Pinho. “This change will encourage business to market more through leasing,” he adds.
Change in the financial landscape – Luiz Montenegro,
Vice-President ANEF - National Association of Assemblers Financing Companies, highlighted that the current financial system conservative policy has reached its limit and projected around R$ 235 billion for this year total credit portfolio for vehicles, less than the R$ 256 billion in 2012. For 2014, the estimated growth is for R$ 260 billion. As an alternative to offset banks selectivity, assemblers created subsidized campaigns. However, with the rise in interest rates subsidies became expensive, which forced the segment to require the consumer a down payment of 40%. “With this measure, little room was left for lending,” said Montenegro. Valdner Papa noted that, given the selectivity, dealerships had to adopt creative measures to attract consumers. Papa said that the requirement for greater down payment limits industry action and reduces market potential.
ANEF Vice-President recalled that from 2008, when credit became plentiful for the new middle class, default jumped and reached 10% of the total financed amount. “Since it was their first experience with credit, this segment of population fumbled.” The system ways out, according to Montenegro, forced financial institutions to absorb the loss or become more selective, latter option chosen. The executive pointed out that in 2003 loans represented 24% of GDP. This year they will reach 55%. The figures of vehicle financing showed signs of retraction in August (latest ascertained period). With a drop of 0.4%, the sum of CDC and Leasing portfolios reached the total drop of 4.9% in twelve-month period. According to ANEF data, in August 2012 the balance was R$ 245 billion, while in the same month this year it was R$ 233.3 billion. With this scenario, ANEF growth projection for 2013 dropped to 2%, from 6%. For Décio Carbonari de Almeida, the organization President, these are times for uncertainties across the market, but the balance fall in the portfolio is also a result of promotional interest rate campaigns, which implies increased amount of down payment. “Just note that the number of financed goods did not fall. However, the effort of the own manufacturers to keep sales heated up during the past few months had, as main strategy, the use of campaigns, such as those of zero interest rate. This obviously reduces the average ticket of financed vehicles, which impacts directly on the entire portfolio,” assess the executive.
Perspectives – With the changes in legislation and the expected growth of leasing in Brazil, ABEL also focuses on strengthening the Operating Leasing, a common modality in European countries and, mainly,
in the United States. According to the President of the entity, strengthen the economy and reduce the real interest rate are favorable conditions to Operating Leasing. “But it still depends on more stable conditions for the secondary market, i.e., the recovery of the second-hand vehicle market, so that the operators of this type of contract have a better cost-benefit ratio when returning the second-hand vehicle to the market, which takes us back to the end of contracts,” adds Pinho. For Flavio Meneghetti, Fenabrave Deliberative Council Chairman and Board Officer, the changes in the leasing system rules are positive and paves the way for structuring the Operating Leasing in Brazil. According to Meneghetti, through leasing, the consumer is able to pay a smaller installment than the CDC installment, because there is no IOF incidence on the financing cost. “The optimal would be the creation of an Operating Leasing, where the consumer would make a 10% to 15% down payment, and about 60% of the good divided in 36 installments (including periodical maintenance services at dealership Chain, insurance and taxes), with a residual at the end of 30% on average. When consumers reach this phase, they either return the good and renew the contract or pay the residual and becomes the vehicle owner,” he argues. According to the Chairman of Fenabrave, although it is one more modality available to the Chain for the provision of credit, the great challenge will be the residual amount at the end of the contract as the real interest rate is high. “The advantage is that the leasing has a different tax rule, which can benefit companies under the regime of real profit. The installments value are recorded as expenses on their balance sheet,” adds Meneghetti.
Above, Valdner Papa discuss changes in leasing at the opening of 2014 AutoData Perspectives Congress. Below, Decio Carbonari, President of ANEF.
DEDICATED BUS LANES: MOBILITY SOLUTION? According to specialists, emergency actions may even generate results, but in the long run most solid and well prepared projects are necessary to settle the situation of mobility in large cities.
n the same month that the Mobility Week and the World Day without a car were celebrated, São Paulo city was the protagonist of a matter discussed by its entire population. On account of numerous jams, which do not stop breaking records, the City has put in place a project that was a campaign promise of Mayor Fernando Haddad, and indirectly caused great frustration on the part of drivers. It is the implementation of dedicated bus lanes on several streets and avenues of the city that aims to enable, public transportation users, bus travels in less time, with more comfort, less waiting time and increased efficiency of the entire system, generating greater savings. Lanes expansion has been a major strategy of management of the Mayor to improve traffic in the city and, particularly, the displacement of those who use public transportation. CET – Traffic Engineering Company – traffic department of São Paulo, inaugurated new
exclusive lanes on 12 routes in the city of São Paulo. This action is part of the project ‘Excuse Buses Operation‘, which aims to give greater flexibility to the public transport. According to Luiz Vicente Figueira, Professor and Traffic Expert, open new exclusive bus lanes, a priori, is to contribute to the use of public transportation, especially for faster displacement, better safety and reduction of travel time. “Before the bus lanes implementation, it is necessary to understand that the person who uses private transport on a daily basis, that is, a car, needs to perceive an improvement on the quality of public transport conditions and an integration with bus, subway and train, so that, naturally, this population feel discouraged to use private transport, at least during the week,” he explains. According to the CET, there were already implemented in the city of São Paulo 224.6 km of exclusive bus lanes at the right, surpassing the initial
goal of the City that was to implement 220 km by the end of 2013. “The data released by the City of São Paulo show that more than 220 km of exclusive bus lanes were created. “I believe that, initially, response was positive, even of those people who drive their cars every day,” says Figueira. The bus lanes have helped people, who rely on public transport, to gain more time in their home to/from work commute, as the average speed reached by buses broadened considerably, according to the City Hall. However, experts warn that this action should still be well addressed in order to obtain a positive return, both from public transport users and drivers. “”To succeed in this action is necessary at this time to equalize the bus quantity, periodicity and destination, mainly at those bus stops that offer integration with subway and train, otherwise we will have more grievances with the bottlenecks created in the public transportation transfers. For example, knowing the number of
people and the timetable of the subway and train stations, and according to the timetable provide buses in order to avoid long waiting lines, reason why - I believe - the dedicated bus lanes were created,” adds Luiz Vicente Figueira. The dedicated bus lanes are approved by almost all São Paulo population, reveals the IBOPE survey released on Sept 16. According to the survey, ordered by Rede Nossa São Paulo, 93% of the 805 respondents said they were in favor of the mechanism. The survey, conducted between August 20 and 27, also reveals that 69% of São Paulo population consider the traffic in the city poor or very poor. Each person spends on average 2 hours and 15 minutes in traffic daily in the capital of the State of São Paulo. This released data reflect the increased number of people willing to leave the car at home, if there is a good alternative of public transport. The 2012 survey edition on urban mobility showed that 44%
Luiz Vicente Figueira, Professor and Traffic Specialist.
“would certainly leave the private transport.” Now, the percentage rose to 61%. For the traffic expert, the mobility in São Paulo metropolis depends fundamentally on improving public transportation. “There is no doubt that if the public transportation improves, the mobility in the city improves, as more than a citizenship action it contributes to reduce pollution in the city, which WHO (World Health Organization) considers to be the fifth most polluted in the world,” explains Figueira. Good world examples – Other countries also suffer from mobility, however, well-designed projects contribute to the displacement in large cities, avoiding jams. “The city of Bogota, Colombia,
What is the difference between corridors and the dedicated bus Lanes? Bus corridors (at left) – The bus lanes are intended for the exclusive circulation of buses full time, they have more bus stops and are installed at the left of the road, where there is no sharing with vehicles that will make conversion at intersections. The corridor is shared with taxis at any day and time, as long as the vehicle has a passenger. In addition to the taxis, police cars, ambulances, fire engines, maintenance and inspection vehicles of the transport system can also circulate on the lanes. Passenger vehicles can circulate through the corridor from 11 PM to 4 AM on weekdays, Saturdays from 3 PM to Monday 4 AM, and midnight of a holiday to 4 AM of the next day. The activation period of the exclusive lane varies with each location and is regulated with cards installed along each stretch. Dedicated bus lanes (on the right) – The implementation of exclusive lanes, regulated on the right of the roads, is part of the “Excuse me Operation for Buses”, which aims to increase the fluidity of the city public transport. The dedicated lanes activation period varies according to each location, and is regulated with signboards mounted along each section.
was a successful project that in the beginning, in a way, forced people to switch to public transport with the inclusions of double lanes on public roads, but with the population growth people suffer from waiting lines at peak times; even though air quality improved. Another example mentioned by Figueira happens in Tokyo, Japan, where children cannot be taken to school by their parents by car. Japanese can walk, bike or take school bus as alternatives, therefore the school enrollment is in the vicinities of residences. “Also, in the Japanese capital, you can only buy a vehicle if you can prove you have a garage. In Mexico city, another example, the focus was on building the subway, which began together with São Paulo city in the early 70’, however, the subway network of Mexico city has a little more than 200 km, total of 11 lines and 175 stations, while São Paulo city has a little more than 70 kilometers; if we had any similarity with Mexico City on this point, it would contribute even more to the integration with buses,” exemplifies the Professor. For the specialist, if a fleet renewal were effectively performed, mainly in diesel-powered vehicles, pollution and inconvenience caused by trucks, for example, in traffic, would improve considerably. “Vehicles over 20 years old should be withdrawn from circulation. Thus, reducing the risks of accidents and breakdowns along the way, as a vehicle with better fuel consumption and, consequently, lower emissions, would contribute for more fluidity on public roads and with air quality,” said Figueira. According to the Professor, if people were more conscious, left their cars at home, and used more the public transport, mobility problems would reduce a lot. “People need to realize that besides improving the quality of life of São Paulo population, the public transport is also a public health action. In Mexico City, in addition to the investment in public transport with the subways, there was a greater demand for private transport, forcing them to perform a vehicle inspection twice a year so that the vehicle maintenance is updated. In São Paulo, something that mixes up São Paulo citizens is the lack of the time standardization of the dedicated bus lanes, as it is now done in the license plate rotation, for many do not use that lane off hours for fear of being fined. According to the City Hall, around 200 radars will be installed on these dedicated lanes by the end of this year, in order to punish who are not respecting,” explained him.
Manufacturer direct sales to final consumer
Paulo Engler and Helena Menze Hayashida
Much is said about selling directly to final consumers. What are their history and legal support?
n the beginning of the last decade, Assemblers began to develop a sales channel for new cars and light commercials vehicles through the Internet. In general, the individual accessed the manufacturer homepage on the options menu, chose the desired model and version, and even added comfort items, appointed their preferred Authorized Dealer to pick up the vehicle and closed the deal. In spite of this sales mode to be common in the U.S.A., Europe and Japan, there was a fiscal obstacle to implement the systematic in Brazil. The legislation, which supported the ICMS tax replacement, did not contemplate such a possibility, requiring the accomplishment of the retail phase exclusively by the Dealer. For the transaction sales of new vehicles on the Internet to be possible, CONFAZ entered into an ICMS Agreement No. 51 of 2000, which contemplated the assumption in the national legislation. In general, the 51/00 Agreement is an ICMS sharing method between the good producing State and the recipient State of the same good, the measuring way of tax amount to be divided occurs through the aliquot of the IPI payable, which percentages are provided in the normative text itself. There is a mitigating feature under the tax burden aspect: the ICMS tax incident on the direct sales operation, under the 51/00 Agreement, is not the suggested sales price, but the price on the manufacturer invoice to the final consumer. In practice, it is a lower price, hence, a lower ICMS for both States, if we compare with the operation of tax replacement with a suggested sale price.
The 51/100 Agreement establishes that the new vehicle – acquired through direct sales mode – must be delivered by an Authorized Dealer. The Renato Ferrari Act, in Chapter XVII of the First Convention of Economical Categories, provides for vehicle direct sales made by manufacturer, regardless of dealer’s performance or request or of those conducted through the Dealers’ Chain. This Act specifies who are the special buyers, what are the limits of these direct sales, and the delivery of new vehicles object of direct sales are conducted in compliance with the rules set in Make Convention, responsibility for these vehicles warranty and maintenance inspection, among others. By the joint interpretation of provisions of the Ferrari Act and the Agreement in question we conclude that the final consumers referred in the ICMS Agreement No. 51/00 are: (i) an individual or legal entity that acquires the vehicle directly from the manufacturer, solely on the Internet; (ii) the fleet owner, those who conduct economic activities and in order to do so and to comply with relevant corporate purpose, whether owns or leases a minimum number of vehicles or not, acquire or lease – at one time – a minimum number of vehicles of the same make. Direct sales, under the 51/00 Agreement, are equivalent to an average of 25% of total sales in the last five (05) years. In some States, the percentages correspond to the ones of the Authorized Dealers’ Chain. Direct sales transactions under the ICMS Agreement No. 51/00 to individuals (which is not through the Internet) and to rural producers (who are not fleet owners) are illegal and liable to be questioned by the State Tax Administration.
Paulo Carvalho Engler Pinto Júnior is a lawyer, Master of Tax Law from PUC-SP, Substitute Judge of the Court of Taxes and Duties of the State of São Paulo, and Chief Officer of Fenabrave. Helena Menze Hayashida is a lawyer and legal counsel at Fenabrave.
CRM STANDARDIZES PROCESSES AND ATTRACTS CUSTOMERS TO DEALERSHIPS At Marte Veículos, a VW make Dealership in São Paulo, customer management software standardized the processes of sales and after-sales, and has aided in the conquest of consumers, resulting in more sales and services provided.
At Marte Veículos, CRM contributes to the dealership monitor the entire life cycle of the purchased vehicle.The system operates from the first customer’s visit to the store up to the selling of the car.
he same system used to conduct marketing campaigns can be also used to manage – more efficiently – the relationships with customers. In the so-called CRM - Customer Relationship Management, the goal is not just to know the customer better but, mainly, pursue, relentlessly, meet their needs so that their satisfaction turn into company loyalty. “Many companies have invested heavily in CRM systems and have not obtained the expected return because they halted in the first part of the process: they automated processes, obtained information in a systematic way, but did not use this information to generate the most effective value for the customer,” explains the master in business administration from Fundação Getúlio Vargas, Dailton Felipini. In the opinion of Felipini, for an effective CRM, the customer’s knowledge is not an end, but a means to make them satisfied, so that they do not “fly away” to other competitor with a tiny
encouragement. “In the Internet era, the competitor is literally a click away,” he adds. The CRM is specialized software that works with the management of relationship with customers through the knowledge of their habits, preferences, consumer needs and expectations. Based on this, companies get this system to better interact with customer in a personalized way. Thus, all departments can access various detailed information on who is the customer, in which city they reside, their tastes, preferences and requirements, their doubts and complaints, their suggestions, their purchases and other information that are very valuable for any business segment. The CRM key elements are the identification, differentiation and interaction with customer. The ability to work with these elements in a systemic manner enables the closing of the process with personalization, contributing to increased business profitability by strengthening the relationship with the customer. However, it is very important to maintain the relationship loyalty established with the customer, in order to, increasingly, achieve the company goals. “A CRM central issue is to ensure that each contact serves as a learning experience about the customer, in order to know more and more their characteristics and needs,” describes Felipini. At Marte Veículos, a Volkswagen dealership located in the city of São Paulo, was implemented a system that has assisted the sales technicians and the entire customer’s process in the store. From the moment the consumer steps in the showroom, a database is created by the receptionist, who feeds the system and kicks off the entire process. “In this initial contact we already collect all basic information on that customer and then forward it directly to the salesperson. The system helped us to have greater control of the store flow, service, sales cycle,
customer control and, above all, to rescue those who made only one visit,” explains the adviser of projects engaged by Marte Veículos, Daniel Pavanelli Buscariolo. According to the expert, after the customer is serviced by the salesperson, the system flow goes to two variables: the customer either closes the deal or leaves the store. In the first case, the software creates events to various areas, pointing out the actions that should be taken, such as the scheduling of delivery, sale of accessories, search of quality and satisfaction, among other activities carried out between the closing of the deal up to the delivery of the vehicle. “This way, we can manage the work with the customer as the system schedules all activities of each department,” details Buscariolo. If the customer leaves the showroom without closing the purchase, the system alerts the salespeople and the follow-up teams to contact them after two days. “Through this contact we can bring back about 10% of consumers, but we have the potential to reach 25%,” said the adviser. Also in the after-sales area, the CRM benefits – implemented in 2009 – have brought good results to Marte Veículos. According to Buscariolo, all delivery process – from checking and maintenance inspection of the vehicle that reaches the yard, the clearing of documents and financials, in addition to installation of accessories or other items purchased separately - is embedded in the software that organizes the flow and allows the delivery scheduling. “The system allows the entire organization of service flow in the auto shop,” he says. Moreover, the work does not end when the customer leaves the dealership in their new car. “After writing off the delivery, the system
generates a message to the customer thanking and congratulating for the purchase,” said the adviser, explaining that the CRM also creates events in the research area, which contacts the customer, besides the actual delivery person who makes a new contact to know whether remains questions regarding the acquired good. “When the individual leaves the dealership with the new car, they are very much influenced by emotion and often do not hear well the explanations. After some time, questions may arise and that is when we surprise them. With this, we captivate and loyal the customer,” argues Buscariolo. According to the adviser, even after one or two weeks of the vehicle delivery, the system continues sending alerts to the team at Marte Veículos. This time, the CRM activates again the sales team, and they contact the customer to verify whether they have any indication. “All contacts that are made also serve to update data in the system. So we know the mileage, their whereabouts, which route, among other important details for the service area,” he informs. In addition, it is in the area of services that loyalty increases. Based on the information registered, the software warns the responsible that the vehicle of a certain customer is getting close to the scheduled services. With that, the schedule and the service confirmation are made. “After all the processes, the area of quality takes action to measure satisfaction and the result. The process closes, but the work continues,” adds Buscariolo stating that they will always keep contact with that customer. “Even if they sell the car, we will carry out a work to bring them back to the store and, thus, the cycle is renewed.”
Also in the aftersales area, the CRM benefits have brought good results to Marte Veículos.The entire delivery process – from checking and maintenance inspection of the vehicle that reaches the yard, the clearing of documents and financials, in addition to installation of accessories or other items purchased separately, is embedded in the software that organizes the flow and allows the scheduling of delivery.
AUDI BETS ON BRAZILIAN SOIL
Craving to sell more than two million cars of the make worldwide, and achieve the premium segment leadership by 2020, Audi plans to invest a total of 11 billion Euros in the next two years. In Brazil, the German make will invest more than R$ 500 million by 2015 with the proposal of – in the next seven years – deliver more than 30,000 units to customers in the country. The idea is, in the same year, reach the domestic market leadership.
he winds are blowing in favor of the German make Audi, which formalized in midSeptember an investment of R$ 504 million to resume production of vehicles in the State of Paraná. During an audience with the Governor Beto Richa, at the Iguaçu Place, seat of government of Paraná, in Curitiba, the two top executives of the company, Rupert Stadler, Global CEO and Bernd Martens, Vice President, stressed the importance of the State of Paraná decision company to install a new plant in the country. “Brazil is a very interesting market for us and we chose the city of São José dos Pinhais/PR to make that investment, which is a milestone in our path towards growth and internationalization,” said Rupert Stadler. The State of Paraná was chosen as the best option due to the feasibility study conducted by Audi. The make has a history of making national models
from 1996 to 2006 in this place and Volkswagen maintained its production line to date. “Thus, the plant in São José dos Pinhais is already in full operation, which includes a supplier base available. This is a competitive advantage for us. In addition, the location offers advantages in the outflow of production to the domestic territory,” says Jörg Hofmann, Chairman & CEO of Audi Brazil. After the announcement of the plant installation in Brazilian soil, it was confirmed that the models A3 Sedan and Audi Q3 will be produced on site. Audi plans to expand this premium vehicle market, which is still small in Brazil. Initially, the make will produce the new A3 Sedan starting in September 2015; the production of Audi Q3 will start in the second half of 2016. “The grow projections for this segment are optimistic. Studies indicate that the Brazilian premium market will almost triple in size by 2020. This trend is also expected for
In a meeting with President Dilma Rousseff, Audi board announces investments of more than R$ 500 million in the State of Paraná for the production of vehicles.
the automotive market, which in seven years should reach 100,000 cars sold annually. We are preparing and focusing our investments to attract the largest share of these customers and achieve leadership in the segment,” explains the executive. Other makes offering premium vehicles, such as BMW and Mercedes-Benz, have already announced investments in Brazil. As a strategy, Audi is investing strongly to get more and more customers in this segment and displace competitors. “Our Brazilian customers are increasingly demanding and we want to serve them as best as possible, so we have an aggressive profile towards launching new models. In 2012 and 2013, we brought to our Brazilian portfolio 28 cars and other five releases are planned for 2014. Audi is also working on expanding the Distribution Chain, aiming to double the number of dealerships by 2020. In addition, the company invests high in creating new designs and developing cutting-edge technology to bring customers what is the most modern,” celebrates the CEO. The resumption of production of Audi models in Brazil may encourage local production of parts and accessories. The A3 sedan model will be one of those that could have nationalized parts. “Not only with the arrival of Audi, but with all investments announced for the country. One example is that, for the A3 sedan production, we want to buy various components locally and, therefore, we intend to establish close relationships with Brazilian suppliers already in the initial phase,” argues Hofmann. Although the Brazilian middle class is growing, the make does not intend at this time to produce vehicles for this public. “It is not in our DNA to produce popular cars. Audi operates within the
premium car segment and is based on the sportiness, sophistication and progressiveness pillars. We work with people’s desire and deliver the dream car, which goes beyond the simple task of coming and going,” says the executive. By 2015, the assembler plans to invest 175 million Euros in Brazil for the preparation of the production plant and achieve leadership in the domestic market. “Over the next seven years, we plan to sell more than two million cars of the make worldwide, and achieve the premium segment leadership. To do so, Audi plans to invest a total of 11 billion Euros by 2015 worldwide. Plans for Brazil are not different and the investment plans by 2015 include more than R$ 500 million in local operation, with the proposal – by 2020 – to deliver more than 30,000 units to customers throughout the country. With the plant, we should offer 300 direct jobs and 900 more indirectly with the increase in number of Dealers and sales,” said Hoffman. In his first statement as the new CEO, Hofmann addressed the entire team of Audi Brazil. “Audi will close the period of 2012 and 2013 with 32 new models in the Brazilian portfolio and, thus, will attract more fans every day for the four rings make. I am excited to write the next chapter in the successful history of Audi Brazil, with a strong team and a dedicated Chain of Dealers.” Hofmann also expressed his gratitude to Leandro Radomile, who led the organization on an interim basis for the past year and who will continue as Operations Officer to leverage Audi growth plan.
Jörg Hofmann, President & CEO of Audi Brazil.
CREATIVITY AND INNOVATION AT WORK: PRACTICE THIS IDEA Practicing creativity and transform the company into an environment with innovative climate, which encourages employees and expands business opportunities
A Janine Kieling Monteiro.
well-trimmed technology company is not always the most innovative and efficient. According to the company officer of the Mexico iTunes group, Jesús Cochegrus, the most advanced tools are just a guarantee of process improvement, not of a bigger productivity. “If a company wants to be innovative, it should consider other aspects,” says Cochegrus. For him, it is necessary to understand where the innovation comes from and in which environment it was created. For it to come, the company needs to break down barriers and old processes. “Employees cannot get locked into routines, but rather have contact with a work atmosphere that invites others to give their opinions. Therefore, the boss who does not listen to employees or who does not give them a chance so they offer new suggestions, can be cutting valuable ideas,” warns the expert. In Cochegrus’ assessment, creativity is a precious characteristic for innovation, an asset considered valuable today in most organizations. That is because thinking in an original way to tackle the problems that arise in the daily life of a company requires looking at things from a different viewpoint. It is not making poetry, but rather to make a difference on a daily basis. It is to see difficulties as challenges; it is “to make lemonade from a lemon.”
“We know of a case of subway conductors who had an extremely severe routine. They simply got sick, as the rules under which they worked was very strong and did not allow a minimum of personal initiative,” says Janine Kieling Monteiro, Ph.D. in Developmental Psychology from the Federal University of Rio Grande do Sul and a Professor of Undergraduate Occupational Health at the Unisinos School of Psychology. “These workers were unable to put anything of themselves into their daily lives. The fact that a profession or routine offer space to the application of practical intelligence – its ‘personal brand’ – is very important to develop creativity,” he says. According to the Professor, there is no use having originality and new ideas and do not know how to apply them objectively. Intelligence, of course, counts a lot, but the context can restrict the dissemination and the application of new ideas, as was the case of subway conductors. “Many scholars relate creativity to intelligence because to solve many challenges that achieve success we need both,” says Janine. She, however, makes an exception: “There are people who may have great ideas, but in a context in which they are not accept or understood.” In turn, “the intelligence is not restricted only to creativity, it also covers other issues.” This scope reaches, for example, productivity. According to Janine, creativity is a characteristic that “can help people be more productive, if the person has good ideas that bring good results.” That does not mean only to have different ideas from the standard, but “show plenty of alternatives and some of them will bring success,” says the Professor.
How to innovate?
Great challenges, but fun. In a game, if it is too easy, people get bored; if it is too difficult, they get frustrated. Companies have to offer challenges to their employees, provided they have tools and knowledge to face the obstacles and finally can grow.
We work best when we are driven and it is the company obligation to make the employee feel this way. This dose of satisfaction does not necessarily have to be money, but through a boss who recognizes the employee’s performance and support them in daily activities.
A boss who offers their employees the opportunity to grow has employees who will fight for the company goals and will wear the company colors. Having a training plan is the best way to visualize the future of a company.
Environment with simple rules Not every employee knows the company rules. An innovation environment requires that the team knows the work alignments and the goals of where they are. The employee needs to be able to answer three questions: Where are you standing? What goal should you follow? What is the action plan? Flexibility
A company with strict schedules, where the employee has to spend many hours in the office, is not a good place for innovation. It is necessary to promote schemes with flexible schedules that do not affect production and increase yield. With a less stiff calendar, employees feel less “suffocated” and more encouraged to work better and innovate.
In any situation, the more versed in many areas a person is, the more creative ideas they will have. The company does not need to have Einsteins to innovate, but rather employees who talk to each other and exchange their knowledge. Thus, they will become involved in large project and each one will make their contribution, according to their own area, in the scope of the new idea.
GENERAL MOTORS INSTITUTE CELEBRATES ITS 20TH ANNIVERSARY With numerous projects, including several focused on education, the General Motors Institute, the social arm of GM do Brasil, turns 20 years and elects new board.
n November, the General Motors Institute – IGM, completes 20 years and celebrates this important milestone with new board installed in office in early September. The Maintainers Council is now chaired by Marcos Munhoz and the IGM headed by Pedro Luiz Dias, who was already occupying the position of Vice-President of the Institution. “The IGM is the social arm of General Motors do Brasil in coordinating and encouraging educational, environmental and philanthropic projects in the communities near the company plants and commercial facilities. The institution operates with the aim of rescuing the citizenship of young people and adults in disadvantaged communities through educational area,” said Marcos Munhoz, Vice-President of GM. In these two decades of the Institute, many projects were carried out, among them, most
educational, implemented throughout Brazil. “The largest operation of IGM educational projects took place in the North and Northeast. In those regions, the projects were aimed at youth and illiterate adults and developed in cooperation with AlfaSol (Solidarity In Literacy), with whom we had partnerships for years, adds Pedro Luiz Dias, the new President of IGM. Since the establishment of the Institute, the educational projects and assistance programs have already benefited thousands of people in the localities where GM keeps its operating units, including the Project FOCUS (Training with Competence) performed in São Caetano do Sul, in partnership with the United Steelworkers and the City Hall. “This social project was very successful and also extended to the town of Gravataí. So far, we have had more than 10,000 students professionally trained for the labor market in the two cities,” said Dias.
The President of the Institute explains how project partnerships work. “We receive proposals of projects, which are analyzed and assessing them very well, if approved, we will define where we will act. After that attention the whole process starts,” he explains. The new IGM executive board has also received new goals to boost projects so that they achieve self-sustainability. New projects are being analyzed and, when approved by the Maintainers Council they will be implemented soon. Socio-environmental actions – Sustainability is also part of General Motors activities in Brazil. The company has been dedicated to numerous sustainability initiatives in their units in an intuitive and natural way, where the sum of simultaneous developed actions, in short and long term, bring significant results, anticipating the legal and environmental demands, in order, according with the assembler, to overcome market needs, shareholders’ safety and returns, communication and dialogue with stakeholders, maintaining the integrity and sustainability of natural resources. GM has a department composed of Plant Environmental Engineers (SEEs), based on each production unit, responsible for the Environmental Management Systems maintenance, compliance with the installation licenses, operation and corporate requirements, development of environmental education programs, monitoring of new projects, works of inputs reduction, among others.
“Many of the activities that we do in relation to sustainabilities are engaged with the own GM actions. The proactive attitude on environmental issues goes beyond the benefits from the immediate compliance with the environmental laws and regulations. The sustainable culture gives a competitive advantage to GM do Brasil, as resources are saved (water, energy, inputs, raw materials, etc.), wastes are reduced (waste, emissions and treatment costs) and often legal restrictions are anticipated,” says Dias. Another successful program is the “Factory of Hangers,” held over several years, followed in all business units in Brazil and even in Rosário, GM Argentina. Also known as “Entrepreneurs of the Future” or “Young Entrepreneurs”, it allows students to learn, constitute and administrate a ‘mini-company’, as well as to produce and sell a product, in this case, clothes hangers. The program offers city and state public school students, between 14 and 17 years, the opportunity to learn, in theory and practice, how to constitute a company and how is its day to day life. This project was implemented in 1989, in São Caetano do Sul, and later extended to other plants. Currently, the project is implemented for the employees’ children of the GM unity in São José dos Campos. “All projects are important to IGM, however, the key for us is when we are able to transform people. Our goal is to show young people the importance of education and how it is possible to undertake from an early age. We show every area of a company and let them assemble their fictitious one. Young people aged 15 to 25 years participate in these projects. This transforms and encourages the professional formation of young people,” boasts Dias. Another very interesting action that happens at IGM is the participation of employees who complete 30 years of activities in the company. At the so-called “Club of the 30s“, employees who reach this period of work at the company and wish to volunteer, may participate in IGM organizing events and activities. “The Club of the 30s é a place of joy and relaxation and, together, participants travel, go for a walk, interact and have fun. Currently, we have six thousand members at the Club of the 30s. Part of them are volunteers in the IGM. The coolest thing is that they act with their heart. It is gratifying,” concluded the executive.
Marcos Munhoz is the new Chairman of the Maintainers Council of GM Institute.
orld premieres, test-ride championships, interactive attractions, among other actions that make the imagination of those passionate about motorcycles, were the main attractions of the 12th edition of the Two-Wheel Show, held in São Paulo, on October 8 thru 13, 2013, at the Anhembi Exhibition Pavilion. The event, organized by Reed Exhibitions Alcântara Machado, received approximately 260,000 visitors, who could ‘flirt’ with the 516 motorcycles and launches by 450 participating companies. Fenabrave Executive President, Alarico Assumpção Jr., attended the opening ceremony of the event on October 8 and participated in the inaugural ribbon cutting. This year, the show received a public 30% higher than the last edition, which contributed to the good performance of the business. Besides the passionate ones, the organization estimates at 12,000 professionals the number of accredited buyers, visitors who are part of the productive and commercial chain of the two-wheel industry, out of which 72% participate directly in the purchasing process. Abraciclo (Brazilian Association of Manufacturers of Motorcycles, Mopeds, Scooters, Bicycles and Alike), was the main supporter of the 2013 Two-Wheel Show. According to the entity survey, the two-wheel industry closed September with 150,121 manufactured motorcycles, 14.6% superior to
Modern and highly technological motorcycles stole the spotlight at the 2013 Two-Wheel Show
the recorded in 2012 (130,940). In the same period, wholesale sales rose 10.7%, to 142,871 from 129,011 units. “We can attribute the production growth to the launches of the year. Even in the face of the crisis experienced by the industry since last year, assemblers invest in motorcycle industry innovation, following global trends with regard to design, performance and safety,” said Marcos Fermanian, President of Abraciclo. Brazil is currently among the top five world producers, with a fleet of more than 20 million motorcycles, average of a motorcycle for every 10 inhabitants. The productive chain directly employs more than 20,000 people in the industry throughout the country and more than 100,000 indirectly, according to Abraciclo data. In an area of 110 m2, the largest motorcycle event in the year provided test-rides offered by Honda, Ducati, Yamaha and Keeway, which brought visitors present closer to their consumption dreams on wheels. Another option was the 360º Spin of the Ipiranga Group, where the visitor could experiment the emotions of a looping of approximately five meters high. Those seeking a more contemplative activity could also observe the display of exotic vehicles by the Federation of Motorcycle Clubs in São Paulo. The children had space guaranteed in the Two-Wheel Show with the Kid Cross, among other attractions. Fotos divulgação.
BMW The two main novelties that BMW brought to the event were provided by the C 600 Sport, which marks the company debut in the scooter segment and the F 800 GS Adventure, a more radical version. The BMW maxi scooters are equipped with a 647 cc, twin-cylinder-60 horsepower engine. They have ABS brakes, expansive trunk, rear light in LED, side stand, seat heater and knobs, among other equipment. Models should hit the dealerships only next year. “It has the power of a motorcycle and the use of a scooter,” says Federico Alvarez, Officer of BMQ Motorrad, the motorcycle division of the assembler. The F 800 GS Adventure big trail has a 798 cctwin-cylinder engine that delivers 83 horsepower and is coupled to a six-speed transmission system. The model will arrive in November for R$ 47,900.
C 600 SPORT
DAFRA Designed for better performance on roads, the Maxsym 400i urban scooter was Dafra main novelty in the 2013 Two-Wheel Show. The new model, manufactured by the Taiwanese Sym, uses 400 cm3 engine and 15 inch and 14 inch front and rear tires, respectively. Price is still to be defined. To complete scooters line, the make has also launched the Cityclass 200i, a model intended for urban use. The motorcycle will be in the stores in May 2014. “Accompanying the category growth, we need more suitable products for our consumers. In this scenario, we have launched two new products, one intermediate and another one for higher performance. With a range of options from 125 cc to 400 cm³, we are in a leading position in the segment,” says Creso Franco, CEO of Dafra Brazil.
DUCATI Exhibiting 16 models, three launches, Ducati presented the 1199 Panigale S Senna. In limited series, the model pays tribute to former F1 driver and triple champion Ayrton Senna, who died in 1994. Only 161 units of the motorcycle will be manufactured – reference to the number of races disputed by Senna during his career. Sales will be exclusive to Brazilian customers from the second half of 2014. Motorcycle price still to be defined. “The 1199 Panigale S Senna is the first version of a high-end model produced exclusively for Brazil, and a release that make us very proud,” said the Global Sales Officer for Ducati, Roberto Righi.
1199 Panigale S Senna
HARLEY DAVIDSON Harley-Davidson introduced the novelties for its 2014 line in Brazil. Among the models is the Touring line, introduced worldwide last August, with the arrival of Ultra Limited, with unprecedented engine that is a mix of liquid- and aircooling. Also in this line, the company showed the renewed Street Glide and Road King Classic. Another highlight is the CVO Limited, described by the Marketing Manager, Julio Vitti, as the best model of the make worldwide. The motorcycle has Bluetooth, navigation and accepts voice commands. Also in the package of launches, there is the new Fat-Bob, which has just been renewed, and the Forty-Eight XL 1200X, unprecedented in Brazil. All novelties will arrive in Brazil between the end of 2013 and beginning of 2014. Harley has also announced that its entire line now has ABS brakes.
HONDA With a booth full of novelties – 29 motorcycles in exhibition, Honda introduced the models of CM500 new family, represented by CB500 F, CB500 R (faired version) and CB500 X (trail version). The only one with defined price is the F version, already available in the Chain of dealerships of the make starting in R$ 22,000, without ABS brakes.
With the technology, prices goes to R$ 23,500. The CB500X is expected to hit stores in the first half of 2014, while the CB500 R can already be purchased in November this year. The new family of the best-selling, Honda CG, was also displayed on the make booth.
KAWASAKI Kawasaki launched Ninja 1000 new version worldwide. The manufacturer said that the model should reach the market in the first half of 2014. According to Kawasaki, the price should not be too different from the current version (R$ 53,990). The 2014 new version of Kawasaki Ninja 1000 comes equipped with a 1,043 cc, tetra-cylinder engine. The motorcycle has not yet received the addition of the sixth gear, which causes the engine speed to fall, but the performance is maintained, bringing fuel savings. The model leaves the production line equipped with traction control system, ABS brakes, windshield manual adjustment, among others.
SUZUKI Suzuki highlight of the event was Inazuma 250. The model aims to compete with Honda CB 300R and Yamaha Fazer 250. Another highlight of the booth was the super sportive Hayabusa with ABS brakes, which will be sold for R$ 59,900, besides the big news, a custom Boulevard M1800R. The expected Inazuma 250, which is known abroad as GW 250, will arrive at the make dealerships in the second half of 2014, still no set price, as well as the Boulevard M1800R model. The mythical Hayabusa with sales scheduled to start in November will cost R$ 59,900 in yellow, white or black.
TRAXX With the Chain of 97 dealerships currently concentrated in the Northeast, North and Midwest, Traxx also intends to expand its network in Southeast and South, and announces the arrival of new motorcycles of the make in Brazil. The launchings to be introduced throughout 2014 should expand the range of options offered by the Chinese manufacturer, currently focused on models of low capacity. The first novelty is the Fly 150, available in the first quarter of next year. Then, there is the Vector 150, a street model that will arrive in the second quarter for R$ 5.2 thousand. In the second half, Traxx will trade the sport TRS 250 and a Fly version of the 230 cc.
TRIUMPH The British Triumph attended the event and presented seven novelties for the Brazilian market. Among the highlights are the unprecedented Thruxton, Trophy and Tiger Explorer XC. At the launches announcement, the company celebrated its first year of operation in Brazil with 2,000 traded motorcycles. “Currently, there are seven dealerships of the make in the country and by the end of the year the number shall rise to 12,” said Fernando Filie, Marketing Manager of Triumph. The assembler has also announced that 12 of its models are nationalized. From November, Tiger Explorer, which is currently imported to Brazil, will be produced in Manaus. Sales of the nationalized motorcycle start in December and the starting price is R$ 54.9 thousand.
YAMAHA Yamaha brought T-Max to Brazil. According to the Japanese make, this was the best-selling scooter in Europe last year. The model has an engine of two parallel twin-cylinders, of 530 cm3, and its maximum power is 46.5 horsepower at 6,750 rpm. It will be sold in the country from December for R$ 42,500. Another launching of the make at the Two-Wheel Show was the V-Max 2014 that has a V4 engine of 1,679 cm³, which generates 200 horsepower. The model will arrive in March for R$ 99,000.
The 19th Fenatran – International Show of Transportation – organized and promoted by Reed Exhibitions Alcântara Machado, and conducted by Anfavea, held between October 28 - November 1, 2013, at the Anhembi Exhibition Park, in São Paulo.
he event, which was the scene of highly technological models, introduced new products and investments that should boost the market of cargo transportation in the coming years. Fenatran proved that there is no doubt that the trucking industry has recovered and assimilated the introduction of Euro 5 technology in heavy vehicles. One of the factors that drove the industry in 2013 was the good performance of agribusiness crop, which made makes sell more heavy vehicles. “The lower interest rates in the BNDES PSI program for the acquisition of trucks contributed to the positive result of the industry. The announcement of maintenance of the conditions leads us to believe that the year 2014 will also be positive. For 2013, we expect an increase of 12.10%,” said the Executive President of Fenabrave, Alarico Assumpção Jr. According to Fenabrave (Automotive Vehicles Distribution National Federation) data, the truck market grew in comparison of accumulated of 2012 and 2013. Until September this year, 115,942 trucks were licensed, against 100,115 units in the same period of 2012 – an increase of 15.81%. When comparing September this year (12,966 units) and September 2012 (8,471 units), the segment grew 53%. This year, the trucking industry is expected to grow 12.10%. During Fenatran opening ceremony, representatives of the Brazilian automotive industry and politicians attended the ceremony and cut the inaugural ribbon. Present at the event were the Governor of São Paulo, Geraldo Alckmin, the Minister of Foreign Affairs, Luiz Alberto Figueiredo Machado, the Secretary for Production Development of the Ministry of Development, Industry and Foreign Trade, Heloisa Menezes, the Secretary for Economic Policy of the Finance Ministry, Márcio Holland, the President of the National Confederation of Transport, Clésio Andrade, the Officer of Denatran, Morvan Cotrim Duarte, the President of Anfavea, Luiz Moan, the CEO of NTC&Logística, Flávio Benatti, the Chairman of Fenabrave, Flavio Meneghetti, accompanied by the Executive President of the entity, Alarico Assumpção Jr., and Juan Pablo De Vera, the
Flavio Meneghetti attended the opening ceremony of Fenatran, which was attended by industry entrepreneurs, such as Roger Alm, CEO of Volvo, in the side picture, between Meneghetti and Alarico Assumpção Jr.
CEO of Reed Exhibitions Alcântara Machado. In speech, Alckmin highlighted important points for the heavy vehicles industry, such as investments in infrastructure and the importance of the event and the participation of all involved in the productive chain. He also informed that 45% of the trucking industry in the country is located in the State of São Paulo and highlighted the commitment of the program to combat cargo theft in the State. “All DIGs (Police Departments of General Investigations) of the State will have a central to investigate larceny, theft and deviation of cargo. We want to reach the recipients,” said Alckmin. According to him, there will be a special action in Campinas due to a higher occurrence of this type of crime in the region. About the Fleet Renovation in this segment, the Governor explained that the program “Renova São Paulo,” held in Santos, was well accept and helped truck drivers to acquire new vehicles, and that the only requirement for participation in the program to achieve zero rate in the acquisition of new vehicles, was the delivery of the old vehicle for recycling. “We intend to expand this program to other cities,” he explained. Luiz Moan, President of Anfavea, seized the opportunity and made an appeal to the Secretary of the Economic Policy of the Finance Ministry, Márcio Holland, for the extension of the Investment Maintenance Program (PSI) beyond 2014. It was due to be closed on December 31; it will be extended in 2014, but still no disclosure of the financial rates. “On the PSI, we want the program to remain not only for 2014 because it is an incentive to the production of capital goods for the country,” said Moan, noting that, with the help of PSI funding, the trucking industry increased by 14% in sales and 50% in production, between January and September 2013, compared to the same period of 2012. Fenabrave acted strongly in the election with the government for the extension of PSI by BNDES, currently, the main financing tool for trucks, buses and agricultural machinery and equipment.
NOMA Noma presented to the public the first open body shell for dry cargo 100% made of aluminum of the Fenix line. The project, which was born two years ago in the Brazilian Association of Aluminum (ABAL), is an attempt to increase and promote the use of the light metal in products for the transportation industry. One of the largest manufacturers of trailers in South America, Noma will reach the end of this year with a significant increase of 37% in sales compared to 2012, placing 7,600 new products in the market. The company revenue will also reach the same percentage of sales increase, ending the year above the R$ 480 million.
IVECO Iveco main attraction at Fenatran was the Hi-Way model, an extra heavy premium that reached the national market in the second half of this year. At the show, Marco Borba, Vice President of the assembler, announced that out of the total of € 1 billion that Iveco plans to invest worldwide during the period of 2012-2014, € 350 million will be allocated to Brazil, focusing on diversification and modernization of portfolio. “The entire Hi-Way production this year, something around 1,000 units, has already been sold in two months. At Fenatran, we have started to build the 2014 sales portfolio,” he said. On the market for 2014, Borba believes in growth, but still has to provide estimates. “We will have economic and political scenario a bit more hectic in 2014, with no chance to continue with very expressive growth ratios. The truck market is expected to remain stable, but we still project growth for our make,” he said. This year, Iveco estimates to grow 12% over the previous year.
SCANIA The four models of StreamLine line with setting R 440 6x2 , R Highline 480 6x4, G 400 6x2 and R 620 6x4 Highline, were the highlight of Scania at Fenatran 2013. In order to sell not just a truck, but also a complete package of services to enable the best possible use to the carrier. According to Eronildo Santos, Vehicle Sales Officer of Scania Brazil, since September, 200 Streamline were sold in the domestic market. “Our goal is to reach 100% of Streamline sales with packages of flexible maintenance, which should be gradually achieved. In 2014, we expect that the new Streamline range will account for 30% of the make road truck sales,” he said.
MERCEDES-BENZ With a wide range of models, Mercedes-Benz displayed its line of trucks and SUVs, from Sprinter to Actros, including the 4160 SLT version, with a traction capacity of 250 tons, pulled by a V8 engine. The model, imported from Germany, performs the work equivalent to three mechanical horses and was acquired by MegaTranz, specialized in super-heavy transport. Aiming to be the sales leading make in Brazil, the German company announced investments of R$ 1 billion
in their Brazilian operations by 2015. “Between 2010 and 2015, our investments in trucks and buses in Brazil will total R$ 2.5 billion,” calculated Stefan Buchner, CEO of MercedesBenz Trucks. From January to September, the make sales exceeded 30,000 units, which puts the Brazilian subsidiary in second place among the countries where Mercedes-Benz has production (Brazil is surpassed only by the parent company in Germany).
MAN LATIN AMERICA With optimism, thanks to the growth outlook for the trucking industry, 10% in 2014, MAN Latin America of the Volkswagen Group presented the extra-heavy MAN TGX 29.480 6x4 at the Show. For the assembler, the good performance of the crop was one of the main factors for expanding the manufacturer portfolio. “The extra-heavy have a large application in agribusiness and projections are even higher than the last crop. Last year, the segment accounted for 23% of sales and now reaches 30%. With forecast of a new crop record, PSI continuation, infrastructure investment resumption, fleet renovation projects, truck sales can increase 10% from the 150,000 this year, which will be the third best in history. I am optimistic,” celebrated Roberto Cortes, President of MAN Latin America. Besides the 14 models exhibited, the VW Constellation 420 truck line was also presented, composed by the 19.420, 25.420 and 26.420 models and the models for urban distribution: VW Delivery 10.160 Plus, VW Worker 17.230 4x2, and 23.230 6x2.
DAF With investment of US$ 320 million, DAF, Paccar group truck make, presented the extra-heavy XF105, produced in Ponta Grossa/PR. The model arrives at dealerships in the country by November, and DAF also announced the opening of 20 more dealerships until the end of this year, eight in the Southern region, sic in the Southeast, two in the Northeastern, three in the Midwest and one in the North region. According to Michael Kuester, Sales Officer, sales of the model this year is estimated in 100,000 units. For 2014, the target is 2,000
trucks marketed, already with the incorporation of the second model, the CF, which will be introduced in May 2104. The Officer said that the assembler has a production strategy for LF in 2016. The price of extra-heavy was not disclosed. For Marco Antonio Davila, CEO of DAF Brazil, over the next five years, the make should gain a 10% market share of extraheavy segment. â€œIn 2018, the make estimates a growth of 5% per year and is betting that the segment will reach between 120,000 and 140,000 units,â€? he added.
VOLVO Already with customer orders, Volvo presented the FH16 model, the new member of the FH extra-heavy family and considered the world most powerful, capable of generating 750 horsepower, even being the most expensive car of the Brazilian market, sold for R$ 1 million. “We already have orders placed by customers in Brazil for this model. For the future, we also have plans to produce FH family models in the country,” said Roger Alm, CEO of Volvo Latin America. While presenting the model, Alm said that Brazil is one of the most important markets for Volvo Trucks. “Besides the fourth generation of VM family, we bring from Europe the most powerful and advanced truck in this segment. The main novelty we have this year is here in the event and will take the cargo transport in Brazil to a new level,” he said. This year, the assembler estimates total sales of 105,000 units against 87,000 sold in 2012. Alm stressed that the make gained significant market share. “In five years, our market share went to 20.2% in 2013 from 12.8 in 2008.
LIGHT COMMERCIAL NOVELTIES Fenatran played host not only to the presentation of trucks and heavy vehicles. The light commercial vehicles also had space and showed that companies are concerned about taking to their public models with low maintenance cost and efficient engines, the major demands of those who use the vehicles as a tool for the job. In the Urban Freight Vehicle and van categories, both models have permission to circulate in cities where cargo vehicle traffic is restricting due to legislation. Hyundai Caoa presented the HD78 4x4 truck, equipped with Euro 5 engine, still in concept form, and was one of the main attractions of the Korean make. Renault, which has a strong presence in the light commercial segment, presented two models: the New Master and the Kangoo. The New Master has four versions (Minibus, Van, Chassis Cabin, and Vitré). Kangoo is available in two versions of the series, with and without side door, and two options of transformations: Simple removal ambulance, with side door, without side door. Fiat displayed the New Uno Van, which was presented in the 2011 edition as a concept vehicle, and the New Fiorino. Another highlight of the make is the newly
launched Fiat Strada, with its innovative third door, which was introduced for the first time to the public. The new Transit 2014 drew attention of those who passed by the booth of Ford Trucks. The assembler also displayed the Cargo 1119, besides the Cargo 816 model. The Ford line of trucks was also represented by the new make stars: the extra-heavy Cargo 2842 and Cargo 2042, newly arrived to the Brazilian market.