Tuesday, August 30, 2016
The Brazilian auto part industry needs to be globally competitive!

Maxion Wheels Matter

Iochpe-Maxion’s chairman points out important lessons to be learned from the economic crisis and its impact on the auto part sector

Dan Ioschpe

In an interview with the Brazilian business and financial newspaper Valor International Dan Ioschpe, the chairman of Iochpe-Maxion, highlights that, before the crisis, the growth model of the Brazilian auto part industry relied too much on the domestic market. When the domestic demand fell by half, it had a strong negative effect on the country’s industry. The aim should be to go more global. But for this, the Brazilian auto part industry needs to be more competitive. So it will take time and some important amendments in the country’s politics to make this change of focus happen.

Mr. Ioschpe holds the opinion that there is still a lot of optimism for Brazil’s industry: “There’s a revision of expectations regarding the country’s leadership” the chairman said, “there’s a feeling that fiscal governance will be better cared for and handled in the future, which will bring confidence to economic agents and all over society.” Mr. Ioschpe is sure that “the need to improve processes and develop products will push investments forward.” Still, this will take a lot of time and some important changes.

Because of this, Dan Ioschpe’s focus lies on a government program that is to be started in 2017 when the Inovar-Auto-program ends. This program only focused on cars, but not on parts. For the next program he demands that the auto parts sector should receive the same treatment to be more globally competitive, diminish the trade deficit and help Brazil’s industry not being limited to a single market.

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