Revista Dealer Edição 37 - Inglês

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sumário

Bimonthly publication of Fenabrave - National Federation of Automotive Vehicles Distribution.

Year 5 – Issue 37 – September 2012 Board Chairman of Deliberative Council and Board Flávio 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, and Ricardo de Oliveira Lima Ex Officio (Former Presidents) Alencar Burti, Sergio Antonio Reze, and Waldemar Verdi Jr. Editorial Board Flávio 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: rita@mcepress.com.br Editor and Journalist in Charge Rita Mazzuchini (Mtb 22128) Assistant Editor Igor Francisco (Mtb 57082) Collaborator Daniela Figueira, Jô Ribeiro, Luis Yuaso, Márcia Moreno e Marilena Rocha Graphic Design and Art Edition Heraldo Galan and Patricia Tagnin Photos Leo Martins, Marco Venicio, Marcos Alves e Reinaldo Marques Commercial DNF Comunicação – Gutenberg Soledade Phones: (11) 2281-8134 and (11) 9169-7485 E-mail: dealer@dnfpropaganda.com.br

Editorials

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Alarico Assumpção Júnior e Flávio Meneghetti

Opening Ceremony

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Speeches About 40 content events market the success of the XXII Fenabrave Congress. National and international workshops, keynote speeches and round tables filled the agenda during the three days of the event.

Check out the full coverage by area of interest.

General

28

Cars and Light Commercial Vehicles

54

Trucks, Buses and Road Implements

62

Motorcycles

70

Tractors and Agricultural Machines

76

ExpoFenabrave 2012

81

There were 70 exhibitors occupying an area of 15,000 m in the exhibition pavilion of ExpoCenter Norte, in São Paulo. Results, for visitors and exhibitors, were positive and demonstrate that the industry partnerships generate good business. Check out the views of the companies that sponsored, supported and exhibited products and services at the automotive distribution industry trade show in Brazil. Relationship and business generation were the slogans of the exhibition.

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Circulation 10,000 copies Free distribution Correspondence Address Av. Indianópolis, 1967 – Planalto Paulista CEP 04063-003 – São Paulo/ SP Phone: (11) 5582-0000 / Fax: (11) 5582-0001 E-mail: fenabrave@fenabrave.org.br Editorial staff contact E-mail: rita@mcepress.com.br

Autorização para reprodução de textos As matérias assinadas nesta revista são de responsabilidade do autor não representando, necessariamente, a opinião da Fenabrave.

Autorizada a reprodução total ou parcial das matérias sem assinatura, desde que mencionada a fonte. A reprodução de matérias e artigos assinados devem contemplar autorização prévia e por escrito do autor.

Dealer Magazine

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Erratas

Letters Table of ranking leadership Segment

Fenabrave Market Relationship Survey In Edition 35 of Dealer Magazine, “Production Line” editorial, Page 41, in the table of results of the 16th Fenabrave Market Relationship Survey, we listed the makes which showed the best evaluation by their chains. However, the text was published incorrectly and mentions the Greater Adhesion Makes, mistakenly referring to makes which sent more responses to the Survey.

Thus, to avoid misinterpretation, we disclose the following two tables, one related to the Ranking Leadership (best evaluated makes by their chains), and, below, the table that reflects the participation rate, by make, in the mentioned Survey.

We thus hope to have clarified potential information conflicts.

Participation rate

Cars and Light Commercial Vehicles

28,32%

Toyota and Chevrolet

Trucks and Buses

64,97%

Volvo and VW Caminhões

Motorcycles

15,25%

Honda

Tractors

35,27%

John Deere and Agritech

Road Implements

54,78%

NOMA

Makes which recorded major rate of response in Fenabrave Market Relationship Survey Segment

Response Rate Chain (percentage compared to the Chain total of each mentioned Make)

Cars and Light Commercial Vehicles Trucks and Buses

74,03% 100%

Volvo, VW Man and Iveco Abravo, Acav and Ancive

84,21%

Kawasaki - Assokawa

Tractors

72,73%

Case IH do Brasil - Abracase

Road Implements

89,29%

NOMA - Abranoma

In Edition 36, in “Launches” editorial, it was mistakenly published the news on Peugeot 206, which would be sold through the Internet. We apologize for the mistake.

Dealer Magazine

Volkswagen - Assobrav

Motorcycles

Peugeot 206

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Ranking Leadership

In the days following the end of the XXII Fenabrave Congress and ExpoFenabrave, Fenabrave, its officers and employees, received several messages of congratulations and thanks.

With the intention of giving back and thanking all those who were kind enough to express themselves formally about the events held, Fenabrave publishes some messages below, symbolizing all communications received and that could not be reproduced in this edition.

We thank all participants of the XXII Fenabrave Congress and ExpoFenabrave for the presence in the events and invite everyone to schedule for the XXIII Fenabrave Congress and ExpoFenabrave 2013, to be held in the ExpoCenter Norte, in São Paulo, on August 7 to 9.

Editorial Board of Dealer Magazine.

Following are some incoming messages about the 2012 events: “Dear friends: First of all, thank you for the distinction you made me inviting me to participate in this important meeting of FENABRAVE, thank you so much.

I loved Alarico’s prayer in chorus with the audience, “we are the industry”.

He showed courage and determination in the precepts inherent to the true representative of the house fostering with this gesture a clear and unambiguous change of paradigm.

Congratulations, this is how a strong, integrated and conscious chain is built, as from this gesture a voice will be heard and above that, even more respected. I will comment about it with my students at the University.”

Agostinho Turbian, Chairman of the Advisory Council of the National Federation of Associations of Sales and Marketing of Brazil “Dear Flávio: You’ve written, in the Book of the XXII Fenabrave Congress, that learn from others’ rights and wrongs is fantastic because our own experience is long and costly. I came to the Congress together with my team, not only to gain knowledge for managing the day to day of my dealerships, but also to learn from you and your team how to organize a great event.

Congratulations! It was fantastic. We wrote down, photographed, talked, consulted and left with the commitment to do our best possible during the V Fenabrave State Congress – SC, which we have the commitment and the pleasure to organize on November 21 and 23, in São José, in Greater Florianópolis. I take this opportunity to thank the support and encouragement I have received from the management of our Catarinense Regional Office.”

Ademir Antônio Saorin – Fenabrave Regional Office-SC

“I want to thank a lot for the attention and partnership of you all in this XXII Fenabrave Congress!!! Congratulations. The Congress was a tremendous hit!”

Isabel Gomes – Marketing Itaucred Veículos, Consórcio e Microcrédito “Congratulations on the beautiful Congress. Very well organized, with excellent speakers and, expressive presence of members. Congratulations to Fenabrave team. It was all impeccable.”

Tereza Fernandez – Managing Partner of MB Associados “I want to congratulate you for the excellent Congress you’ve held, with high-level speeches, as well as a good representative participation of our Chain. Congratulations and even more success in the 2013 Congress!”

Mauro Saddi – Green Automóveis/ Empresas Rodobens “My sincere thank you for the opportunity to participate and contribute to the success of the XXII Fenabrave Congress, reason of pride for Volvo do Brasil and myself.”

Carlos Pacheco – Volvo do Brasil Veículos Ltda “I’m really impressed with Fenabrave and its dedication to the formation of its dealer members. My wife and I love Brazil and its wonderful hospitality.

Thank you very much.”

David Kain – KainAutomotive “Congratulations to the entire team of Fenabrave and partners who organized this event that is already a milestone in our industry. It was possible to participate in various extremely important speeches, and let us eager to convey to our members.”

Camila Amin – Executive Manager of ABRAHY – Brazilian Association of Hyundai Dealers

Dealer Magazine

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Greeting Speech

Alarico Assumpção Júnior Executive President of Fenabrave Full text of speech delivered at the Opening Ceremony on August 17

A Vasques & Cavinato é uma empresa focada no desenvolvimento de projetos para o mercado automobilístico, consolidada como uma importante empresa na área de implantação e desenvolvimento de novas marcas, expansão de grupos de concessionárias e montadoras. www.vecarquitetura.com.br/vasques

Good morning ladies and gentlemen, aforementioned members of the stage, Dealers, partners, friends of the press and other guests present.

By giving you a warm welcome to our XXII Fenabrave Congress and ExpoFenabrave, I thank you mainly for the interest and commitment of all to our industry.

It would make no sense an event of such magnitude, involving hundreds of people in its organization, if there weren’t for your presence.

We join efforts so that we could organize a Congress and an exhibition which are now the largest events of the industry in Latin America. And an organization of such a size was only possible with the involvement of each and every one of us.

Besides counting with the competent teams of collaborators and advisors of Fenabrave, sharing the organization of these events with us were the employees of the experienced Reed Exhibitions Alcântara Machado, which for the second year supports us in promoting this Congress.

We also counted on renowned speakers and exhibitors interested in relating to our distribution Chains.

And, in this joint investment, I thank the dear Luis Otávio Matias, Vice-President of Banco Itaú, present here, that for the fifth consecutive year is our Master Sponsor, and I thank all the other sponsors, supporters and exhibitors of our ExpoFenabrave, which, this year, is even bigger and better with 70 companies willing to offer us the best products and services of the automotive market, or demonstrating the strength of institutional 6

Dealer Magazine

ARQUITETURA AUTOMOTIVA

Rua Funchal 551 • 2º a • cj 21 • São Paulo • SP • 11 2893 1600 Av. Dom Luis 1200 • 14º a • cj 1405 • Fortaleza • CE • 85 3181 2626

relationships, as in the case of assemblers of vehicles and organizations present here.

And, in this scenario of partnership, of joint efforts and consciousness that it takes more than one voice so that we may be really heard and be strengthened in this industry, I ask you all at this time to join my voice and repeat loudly and clearly that: WE ARE THE INDUSTRY, WE FIGHT FOR THE INDUSTRY AND WE WILL WIN WITH THE INDUSTRY! LET’S REPEAT TOGETHER: WE ARE THE INDUSTRY, WE FIGHT FOR THE INDUSTRY AND WE WILL WIN WITH THE INDUSTRY! That’s why we are here. For us to be heard together, in one voice, the voice of this great industry of immense potential.

Together, we will be here, in the same direction!

Enjoy every moment. Make contacts. Share experiences and go back home and to your business with the spirit of leadership and commitment that our industry needs to continue on the climbing of victory, obstacles overcoming, excellence in management, and good results for all links of this industry.

You are all very welcome!

Have a good event and thank you very much.

Rua Funchal 551 • 2º a. • cj 21 • São Paulo • SP • 11 2893 1600

www.ndconstrutora.com.br

Full Speech of the President of Fenabrave

Flávio Meneghetti in the Opening Ceremony of the XXII Fenabrave Congress Good morning to all! Authorities already mentioned, my dear Peer Distributors, our partners in the automotive industry, partners working in our companies interacting with our employees and who are also participating in the XXI Fenabrave Congress and ExpoFenabrave.

Gentlemen, Tombini, Guilherme Afif, Humberto Luiz and Andrea Calabi, it is worth recalling that our Federation gathers 50 Make Associations representing segments of trucks and buses, road implements, motorcycles, tractors and agricultural machines, and cars and light commercial vehicles.

My dear honorees, friends of the press, ladies and gentlemen…

Together, these Associations bring together nearly 7,000 dealers present in every State in the National Territory.

Why are we here, on a Friday, August 17, far away from our usual chores and, apparently, absent from our companies?

The very straightforward answer is: we are here, for these two and a half days, giving us quality time, leaving temporarily aside the Dealer’s shirt and wearing the Entrepreneur’s outfit.

We are here to think, learn, get informed, share experiences, reunite with mates and make new contacts.

We are here to listen to specialist consultants from Brazil and also from Europe and United States.

Here we will interact with our partners of all segments who work in synergy with us and will meet the industry leaders we represent.

We will listen to governmental authorities who honor us in this event and who lead this Country of ours. And, to them, we will manifest our positions, views and suggestions so that we can resolve impediments in order to obtain the sustainable growth desired by all of us.

Above all, this event is when we have the opportunity to refresh, learn and open ourselves to new technologies and processes.

It is the same way for our successors who will have the chance to gain more knowledge, broad and summarized, of what means to be a vehicle distributor.

Paradoxically, we experience a period of strong market which, however, offers extremely narrow margins and results inconsistent with our investments, mainly in the segment of cars and light commercial vehicles.

For this reason, now, more than ever, besides seeking the recovery of commercial margins, the Excellence in Management – theme of this event – is a survival factor for our business.

So, these days will provide us a tremendous wealth of opportunities.

We belong to an industry for which innovation is the driving force, and the change is constant.

Do not participate in Fenabrave Congress is to miss a unique opportunity of the year to reflect about where is our activity going to and how, all together, with the power we have, can we influence this future awaiting us and that we want to leave to our children.

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We employ 390,000 people directly, and operate 5.7% of Brazil’s GDP. Dealers are, for their entrepreneurial profile, community leaders in their cities.

Proactivity is a striking feature of our personality.

We are at the end of the market and, therefore, we have the sensitivity of behavior and desires of the consumer.

For Meneghetti, a more bearable level of taxation will increase population’s consumption.

In fact, we know, as few do, the Brazilian soil by the vision of our customers.

And it is this vision we share with the makes we represent, so they can conquer, every day, more and more the preference of Brazilians.

And, as our consumers, we, Dealers, also have an emotional relation with the Makes and products we represent.

We are passionate about what we do, defenders of our banners and relentless pursuers of the development of the Country!

For all that, Mister Secretaries, Mister Minister and Mister Vice-Governor, Fenabrave wants to be partners with the government and participate more actively of initiatives that involve our industry, above all, cooperating with our experience in the elaboration and enhancement of public policies that our country needs to have a sustainable development, which maintenance would be made feasible by all of us.

We want to be invited, heard, and give our share of collaboration as legitimate representatives of this legion of entrepreneurs who are typically national!

The globalized world is going through a period of economic downturn, and Brazil cannot be considered immune to what happens in the rest of the globe.

The economists and specialized media indicate that 2012 GDP will be less than 2% and the industry, one of the major drivers of economy, will record an estimated drop of 2%.

We follow attentively the concerns and hard work of President Dilma Rousseff and her Ministers in seeking the resumption of industrial production.

As part of this effort, we were invited to participate, along with Dr. Tombini, with Minister Guido Mantega, with Febraban and Anfavea, of a historic partnership that resulted in stimulus measures last May. Until that moment we were with a sales volume lower than 2011 and our inventories over 40 days, signaling a dangerous scenario.

The result of this joint effort came quickly, and the numbers prove the measures effectiveness.

Cars and light commercial vehicles recovered from negative levels and already exceeded the accumulated of last year by almost 3%.

And, if these conditions are maintained, we estimate that this growth may reach 4%.

However, by the studies and projections conducted by our organization, if measures are, in fact, closed at the end of this month, as it originally planned, prospects are that, on the contrary, we embitter retraction of sales and of growth for 2012.

So, Mister Minister, the reality experienced by the segment of motorcycles and second-hand vehicles remains troubled.

Access to credit and cost of money are factors that drastically reduced sales volume.

The more than 2,000 entrepreneurs, Motorcycle Dealers, as well as some manufacturers, are under severe threat.

In the segment of second-hand vehicles, more than 4,000 stores have closed. And the lack of inventory turnover of second-hand vehicles causes a damming which also reflects on the commercialization of new ones.

Therefore, we ask your attention for these two important segments.

Releasing reserve requirements to create credit lines with cheaper funding for the banks will reduce money cost in the end, putting the monthly installment within the reach of more consumers and, similarly to what happened with cars, we are certain of the recovery in these segments too.

My friends and authorities: I want to draw your attention to this moment of market recovery we have experienced in cars and light commercial vehicles.

This is one more experience that proves the effectiveness of tax relief as a means of inducing consumption and, hence, leverage of industrial production, generation and maintenance of jobs, as well as income for Brazilian families.

Our Country is recognized as being the one that mostly taxes vehicles in the world.

A more bearable level of taxation increases the available income of households that can thus increase their capacity of savings, investment and consumption.

These three factors are essential for sustainable economic growth we spoke about, and what we should fight for and do our share.

Wouldn’t be the time the government asks itself if it wouldn’t be more appropriate than to take ad hoc and temporary measures, have this police on a permanent basis, which would allow the continuation of this availability to consumption, avoiding strong fluctuations in the market?

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The cost of Brazil has been without doubt for decades one of the factors that draws from our industry the competitiveness so needed to produce at costs that allow fairer prices to Brazilian consumers.

Our Country for a long time is asking for structural reforms that can neutralize those costs resulting from our complex, archaic and excessive taxation system, coupled to a stifling labor onus.

We need reforms and investments that provide a road infrastructure of ports and airports compatible with the desired development.

And, on this evolving road we include our desire of improvement of other human development factors, such as quality education and health.

But, only the political will can change this reality!

At this moment of searching new opportunities for Brazil, Fenabrave proposes resuming a topic of vital importance for the sustainable development of the Country.

I want to ask the permission of our dear friend, the Vice-Governor Guilherme Afif, to repeat an expression used by him very appropriately here, last year.

We need to create an Industry of Dismounting Vehicles, an Industry of Recycling Automotive Vehicles.

This initiative would bring a virtuous cycle to the automotive industry, with significant benefits to the Brazilian society, strong appeal to citizenship in protecting the environment for future generations.

Our truck fleet is 25 years old, on average. This means that we have heavy trucks that are over forty years of manufacturing and are still circulating through our roads and streets.

For tractors, it is also estimated an aged fleet, reaching over 20 years.

For cars, the reality is also worrisome because we already have cars with 12 years or more of use.

This aging fleet causes accidents with deaths and injured people, causing extremely high costs due to police mobilizing, paramedics, hospital care, pensions, crashed vehicles removal, serious traffic jams, pollution and huge losses to the government and civil society.

According to the President of Fenabrave, studies conducted by the organization in 2009 indicated that the State of SĂŁo Paulo by itself had a loss of about R$ 5 billion that year, as a result of this scrapped fleet.

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Dealer Magazine

Automotive vehicles, in Brazil, are turned into scrap without environmental care.

They occupy public yards, dumps and encourage illegal chopshops.

Only 1.5% of Brazilian fleet, which leaves circulation, is destined for recycling.

In Europe and in the United States, by virtue of public policies, this rate reaches 95%.

Japan and Argentina are other successful examples of automotive vehicles recycling.

Fenabrave has devoted special attention to the subject, with its own project, and with presence in several forums that deal with the subject.

We need clear and strict rules, reasoned and structured for growth.

We have to think and plan an escape route, putting an end to the circulation of this aging fleet. The same way, we should eliminate once for all the so-called total loss vehicles that, despite the self-explanatory expression, inexplicably return to the market bringing risks and losses to consumers.

And here, too, we need political will to implement this new industry.

Thus, my dear Dr. Belini, we want to invite Anfavea to join forces with Fenabrave, so that, together, the organizations may submit a proposal to the government suggesting the establishment of an interministerial committee, inviting Sindipeças and the various types of industries involved in the productive chain, to reopen this agenda.

Gentlemen!

The subject of vehicle recycling has long ceased to be an alternative to stimulate sales of new vehicles, and has become a vital issue of Public Policy.

Finally, I wish to reiterate our willingness, as an economic category, to partner with the government for this and other initiatives that effectively contribute to build a greater Brazil.

I wish you all have an excellent experience in this XXII Fenabrave Congress and go home with more tools to transform knowledge into value.

I hope to see you soon and invite you all right now to our next Congress, which will take place in this same area, in 2003, but certainly in a new reality for our Industry and for our Country!

Thank you very much!

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UNITED IN THE SAME DIRECTION! Between August 16 and 18, more than 2,500 people gathered to participate in the XXII Fenabrave Congress and ExpoFenabrave 2012, the largest distribution industry events in Latin America.

Held in São Paulo, in the Blue Pavilion of Expo Center Norte, integrated to the calendar of Reed Exhibitions Alcantara Machado – organizing company, the events brought together key vehicle distribution industry leaders, domestic and international, as well as representatives of assemblers, authorities and key suppliers of products and services related to the distribution industry.

As part of the XXII Fenabrave Congress, nearly 40 events were held in three days, Keynote Speeches, National and International Workshops, and Round Tables directed to all segments

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Dealer Magazine

comprised by the industry – cars, light commercial vehicles, trucks, buses, motorcycles, agricultural machinery and road implements. In addition to the speeches focused on economy, industry and vehicle distribution, the Thematic Programming coordinated by Valdner Papa, contemplated themes of interest to dealerships employees, such as Internet, human resources, part, services, and inventory management, among others. Make Associations were also able to gather their chains in rooms specially provided by the event.

ExpoFenabrave 2012, trade show dedicated to the automotive distribution industry, featured more than 70 exhibitors who occupied a pavilion with more than 15,000 m².

For the fifth consecutive year, Banco Itaú was the Master Sponsor of the events.

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WORKING TOGETHER FOR THE DEVELOPMENT OF THE COUNTRY Held on August 17, the Official Opening Ceremony of the XXII Fenabrave Congress gathered attendees, authorities and national and international guests at the plenary of Expo Center Norte.

T

he event, that was attended by the Vice-Governor of the State of São Paulo, Guilherme Afif Domingos, had the solemn stage also formed by the President of Fenabrave, Flávio Meneghetti, the Executive President of the entity and Events Coordinator, Alarico Assumpção Jr., the Secretary of Commerce and Services of the Ministry of Development, Industry and Foreign Trade, Humberto Luiz Ribeiro; the Secretary of the Treasury of the State of São Paulo, Andréa Calabi; the President of Anfavea, Cledorvino Belini; the President of NADA – National Automobile Dealers Association, Bill Underriner; the President of ATD – American Truck Dealers, Dick Witcher; the President of ALADDA – Latin American Automobile Dealers Association, Carlos Dumay Perlwitz; the President of Abraciclo, Marcos Zaven Fermanian; the President of Anfir - National Association of Road Implement Manufacturers, Alcides Braga; the Commercial Officer for Heavy Vehicles of Banco Itaú, Wilmar Carrera; the President of ANEF - National Association of Assemblers Financing Companies; Décio Carbonari and the CEO of Reed Exhibitions Alcantara Machado, Juan Pablo De Vera.

Before the opening pronouncements of the Ceremony, the National Anthem was performed by Miriam Hosokawa and, at the piano, the musician Tânia Silveira, of the Banda Chorus, touched the audience of 2,500 people, including industry leaders, authorities, Dealers and guests attending the event.

Starting the pronouncements, the Executive President of Fenabrave and Coordinator of the XXII Fenabrave Congress and ExpoFenabrave 2012, Alarico Assumpção Jr., warmly welcomed all present and reiterated the appreciation for the

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Dealer Magazine

efforts of all the teams involved in the organization of the events, which today are the largest of the industry in Latin America and include the participation of renowned speakers and exhibitors interested in relating to the Distribution Chains. Assumpção Jr. also thanked the Vice-President of Banco Itaú, Luis Otávio Matias, for the partnership between Fenabrave and Itaú which, for the fifth consecutive year, was the Master Sponsor of the events.

In this atmosphere of partnership and union, the Executive President of Fenabrave continued his pronouncement, noting that it takes more than a voice so that the economic category may be, in fact, heard and be strengthened in this industry.

Thus, Assumpção Jr. called upon all to unite in one voice in his words: “We are the industry, we strive for the industry and we will win with the industry!”. “That’s why we are here. For us to be heard together, in one voice, the voice of this great industry of immense potential. Together, we will be here, in the same direction!”, he added.

Market with promising future – In his speech, the President of Anfavea, Cledorvino Belini, said it was an honor to participate in what he called “forum of the highest relevance in the market”.

According to the representative of the assemblers established in the country, after growing more than 150% between 2004 and 2011, the Brazilian automotive industry goes through an atypical moment, driven by stimulus measures, which reflected in favorable response after a period of fall. For him, the IPI reduction measure “neutralized the fall from last month of May”. But he echoed the President of Fenabrave by stating that the binomial equation of taxes and credit remains

Clockwise: Flávio Meneghetti, President of Fenabrave; Alarico Assumpção Jr., Executive President of Fenabrave and Coordinator of the XXII Fenabrave Congress and ExpoFenabrave 2012; Guilherme Afif Domingos, Vice-Governor of the State of São Paulo; Bill Underriner, President of NADA and; Cledorvino Belini, President of Anfavea.

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Government and automotive industry officials attended the Opening Ceremony of the XXII Fenabrave Congress.

a major challenge. He added that the final industry and the auto parts industry are creating a new array, with investments in innovative products and processes.

Belini also pointed out the importance of vehicle distributors investments in structures to keep pace with market growth. “It is also necessary to invest in quality service and consumer satisfaction, who is increasingly demanding”, he said. For him, the market has a promising future, and to accomplish this perspective it is necessary to invest in new products and services, cost effective, complemented with the best practices in relationship among Chain, Assemblers and Consumers.

Listening to the industry for the development of the Country – The Secretary of Commerce and Services of the Ministry of Development, Industry and Foreign Trade, Humberto Luiz Ribeiro, began his speech highlighting the government effort to listen to various industries to plan and execute their actions. Ribeiro mentioned, as an example, the Secretary effort regarding the streamlining of the public sector. “I am proud to announce that in Sergipe, specifically in Aracaju, it was possible to reduce the process time of company opening, which now can be performed on the same day of the request”, he said.

Then, the Secretary stressed the importance of the government have had the industry leaders over to listen to the real needs for the development, which resulted in the Greater Brazil Plan. “Fenabrave has helped the Secretary regarding the competitiveness of the market”, he said.

Regarding the fleet renewal, Ribeiro said that this is a concern and that the Secretary is committed to assist in facilitating the process. “This is our scope of work”, he added, arguing the definition of the end of life of a vehicle. “This plan is delayed. We are willing to listen to Fenabrave and all involved in this process. Count on the Ministry”, concluded the Secretary.

Enterprising soul in the public sector – Authority present in the Congresses of Fenabrave for many years, the Vice-Governor of the State of São Paulo, Guilherme Afif Domingos, knows closely the moments of anguish and euphoria experienced by the Brazilian automotive industry. In his speech, Afif noted that the automotive industry is a crisis thermometer, since the economy is closely connected to the development of this industry.

Besides the automotive chain, the Vice-Governor of the State of São Paulo said that the Brazilian agribusiness also plays a key role in national economic environment. “What supports Brazil in the international market? Agricultural and mining commodities”, he said. In his view, the Country is

On the previous page: Humberto Luís Ribeiro, Secretary of Commerce and Services of the Ministry of Development, Industry and Foreign Trade; Décio Carbonari, President of Anef and Juan Pablo De Vera, CEO of Reed Exhibitions Alcântara Machado. Above, clockwise: Andrea Calabi, Secretary of the Treasury of the State of São Paulo; Dick Witcher, President of ATD; Alcides Braga, President of Anfir; Marcos Zaven Fermanian, President of Abraciclo; Vilmar Carreiro, Officer of Direct Sales and Heavy Vehicles of Banco Itaú and Carlos Dumay Perlwitz, President of ALADDA.

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Cledorvino Belini, President of Anfavea, makes his speech to more than 2,500 people attending the event. In the audience, automotive industry officials and leaderships.

disorganized with respect to infrastructure, which creates bottlenecks in the production flow. For him, a solution that could be found by the Federal Government would combine public strategy with the private ability of creating infrastructure, mentioning the example of the Government of São Paulo, which had a similar initiative to privatize the state highways, considered to be the best ones in Brazil.

“It is a must to have an entrepreneurial soul in the public sector”, he emphasized.

According to Afif, the urban mobility issue is a result of little investment in infrastructure. He said that a lot was done for the sector sales capacity and little was invested in the expansion of road networks in cities. “This is a drama lived by the society. Therefore, we must invest more in rail transportation so that more cars come onto the streets”, said the Vice-Governor of the State of São Paulo, referring to the President of Central Bank, Alexandre Tombini, who was in the front row of the audience. “We need to have venture capital for investments by the private sector”.

Guilherme Afif Domingos argued further that the public-private partnership would be the alternative for the first Brazilian plan of the so-called vehicle dismounting industry”, encouraging the fleet renewal. “About 30% of the circulating fleet is irregular. Vehicle inspection was the first great step, but there aren’t enough yards to keep these vehicles. Therefore, there is a large demand to develop a vehicle dismounting industry”, he said.

In defense of permanent measures for the industry – When Flávio Meneghetti, President of Fenabrave, started his speech at the Opening Ceremony, he highlighted the importance of the participation of the more than 2,500 people in the Fenabrave Congress, when the attendees “temporarily leave aside the Dealer’s shirt and wear the entrepreneur’s outfit”.

Meneghetti said that there, in those two days and a half of event, they all would have the chance to learn, be informed, share experiences, reconnect with peers and friends, and make new contacts. “We will listen to governmental official who honor us in this event and who lead this Country of ours. And, to them, we will manifest our positions, views and suggestions so that we can resolve impediments in order to obtain the sustainable growth desired by all of us.

Above all, this event is when we have the opportunity to refresh, learn and open ourselves to new technologies and processes”, he said.

The President of Fenabrave went on with his speech outlining an overview of the Brazilian automotive market, where the Distribution Chain, paradoxically, experienced a period of strong market which, however, offers extremely narrow margins and results inconsistent with investments, mainly in the segment of cars and light commercial vehicles.

“For this reason, now, more than ever, besides seeking the re18

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Sergio Reze and Mauro Stéfani (from right to left) during the ceremony.

Flávio Meneghetti, President of Fenabrave, greets Central Bank President Alexandre Tombini.

Meneghetti asked for incentives for the motorcycle segment.

covery of commercial margins, the excellence in management – theme of this event – is a survival factor for our business”, warned Meneghetti.

After detailing the importance of the distribution industry in Brazilian economy, through more than 390,000 direct jobs and 5.7% industry share in GDP, the President of Fenabrave stressed the importance of the entity to participate more actively in initiatives involving the industry, “cooperating in the elaboration and enhancing of public policies that our Country needs so we have a sustainable development, which maintenance is made possible by us all”, warned Meneghetti, saying that the entity wants to be called upon, listened to and cooperate as a legitimate representative of Dealers.

Flávio Meneghetti also made an alert to the present authorities with respect to the incentive measures, announced in May, by the Government, with the aim of encouraging the consumption of vehicles. According to Fenabrave projections, should the measures be closed at the end of August, the industry could embitter retraction of sales and of growth for 2012, unlike the growth forecast of more than 4% if the incentives were maintained.

Besides the maintenance of the measures announced in May, the President of Fenabrave, Flávio Meneghetti, urged action to assist the motorcycle segment, such as the releasing of reserve requirements, to turn financing cheaper to the banks, in addition to the urgency of fleet renewal. “There wouldn’t be the time the government asks itself if it wouldn’t be more appropriate than to take ad hoc and temporary measures, have this police on a permanent basis, which would allow the continuation of this availability to the consumption, avoiding strong fluctuations in the market?”, he questioned.

While searching alignment for the credit issue and taxes equalization, the industry intends to resume the discussion on the national fleet renewal. Meneghetti exemplified that all 25 year-average trucks, but informed that “there are heavy vehicles in circulation which are over 40 years of manufacturing”. In the division of tractors, the average age now exceeds 20 years and the cars found on the streets and roads of the Country already show an average age of over 12 years.

The fleet aging, alerts the President of Fenabrave, carries a human weight – with life losses and accidents, environmental damage, property damage and also reverses in loss to services and public treasury.

In this context, Meneghetti referred to the idea launched by the Vice-Governor Guilherme Afif Domingos, in favor of the so-called vehicle dismounting industry – dedicated to

recycling. “This initiative would start a virtuous cycle in the automotive industry”, he bets. According to the President of Fenabrave, studies conducted by the entity in 2009 indicated that the State of São Paulo by itself had a loss of about R$ 5 billion that year, as a result of this scrapped fleet. “Only 1.5% of the Brazilian fleet – which leaves circulation, is destined for recycling”, he informed.

Thus, Flávio Meneghetti invited Anfavea to join forces with Fenabrave, so that, together, the entities may submit a proposal to the government suggesting the establishment of an interministerial committee, inviting Sindipeças and the various types of industries involved in the productive chain, to reopen this agenda. “”The vehicle recycling theme has long ceased to be an alternative to stimulate sales of new vehicles, and has become a vital issue of public policy”, he added.

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FENABRAVE HONORS ENTREPRENEURS OF AUTOMOTIVE INDUSTRY

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n recognition to the importance of the entregiven as down payment. “Most dealers had, as a practice, to preneurs for the development of the automotive devalue the used car that would be given as down payment industry, Fenabrave paid tribute to two icons in the purchase of a new car. I, on the contrary, congratulated who lived – along their paths – moments of the owner for the care he had with the car, and said that the overcoming, always in pursuit of a single goal: vehicle worth a lot. With that I didn’t make any money in Win. “An entrepreneur recognizes successes, mistakes, replans targets and conducts their business to the best way seeking the path of success that comes as a result of an intense work and without slippages”, said Flávio Meneghetti, President of Fenabrave.

For this reason, the entity awarded two entrepreneurs recognized in the market, Waldemar de Oliveira Verdi, Chairman of the Shareholders Council of the Empresas Rodobens, representing the Vehicle Distribution Industry, and Raul Randon, CEO of Grupo Randon, who represented the entrepreneurship in the industry. Together they symbolize the perpetuation of entrepreneurship in the industry and prove that strong values and the determination can overcome any obstacle.

When watching the video, broadcast during the Solemnity, produced by Fenabrave and coordinated by MCE - Mazzuchini Comunicação e Eventos, more than 2,500 people attending the Opening Ceremony were touched to know Waldemar de Oliveira Verdi, Chairman of the Board of Shareholders of Empresas Rodobens and Raul Randon, CEO of Grupo Randon. a little more about the history of these two icons of the industry.

From the broom sweatshop (hand-made by him) and coffee roasting, which together were called “Inthe reselling of the used car, but I would sell the Studebaker dústrias Reunidas Aymoré”, Verdi had already decided to be for full price”, recalls Verdi. As a result, in the first three year, big. He had setbacks and went bankrupt in the first three alone, the entrepreneur managed to sell more vehicles than business, but after the third debacle, which came after World the three major competitors.

War II, with the collapse of the cotton crop, Waldemar de From this experience, Waldemar de Oliveira Verdi opened Oliveira Verdi found his calling in the vehicle industry and the Cirasa, dealership representative of Mercedes-Benz trucks, started to sell Studebaker vehicles, in São José do Rio Preto. initiating the conglomerate currently known by Empresas “I was broken, had nothing, but I needed to win”, he says.

Rodobens, with focus on vehicle, financial and real estate “I needed to succeed in life! They didn’t, they were acindustries, and is now among the 100 largest corporate groups commodated”, recalls Verdi in his recorded statement. As a in the Country. strategy, Verdi said that in order to sell the products, which Today, at age of 94, and close to completing what he calls were admittedly worse than competitors and 20% more the remaining 10% of his first stage of life, Mr. Waldemar, as expensive, he adopted the strategy to value the used car is known to all, says that the North of his life was a tripod

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Raul Randon (above) and Waldemar de O. Verdi (below) receive statuette from the President of Fenabrave.

consisting of “work, determination and faith!”. And the results of his journey not only moved the audience – who applauded him standing, as prove that nothing beats this trilogy of success.

Another example of an entrepreneur who does not settle, and is always looking for new challenges, is Raul Randon. The businessman, according to himself, started his entrepreneurial career with a small business of machine reconditioning, destroyed by fire in the 50s. When he resumed the activities, Randon started producing, alongside his older brother, trailer brakes, initiating the business growth, opening capital in 1971, expanding its production capacity and facilities.

“I visited Italy and saw what they produced in Europe and United States. I soon associated the products to Brazil, where transport is essential. So, we set up a factory to produce thousand units per month”, he says.

Raul Randon made an incursion, still in agribusiness,

starting planting apples, which until then was imported only. The company also began producing the Grana Gran Formaggio cheese, spice international renowned and the great pride of the entrepreneur. “We imported cow milk producers from the United States that arrived in Brazil in two Boeings”, recall him with pride.

Still in the food sector, Randon started producing wines, with the initial purpose to serve it in the celebration of his Golden Jubilee, which he reached in four years. Today, he is partner of Vinícola Miolo, in Rio Grande do Sul, which produces RAR wine.

Waldemar de Oliveira Verdi and Raul Randon showed that there aren’t impassable barriers when we aim to thrive. For this reason, as examples of success in the automotive industry, Fenabrave honored them as the highlights of entrepreneurship in the automotive industry.

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MOST DESIRABLE MAKE In a voting conducted by the Internet, Dealers of various makes and all segments elected – in five categories (Cars and Light Commercial Vehicles; Trucks and Buses; Trucks and Agricultural Machinery; Motorcycles; Road Implements), the Most Desired Make 2012.

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n its fourth edition, this traditional award granted by Fenabrave, had a novelty: The trophy awarded to the winners was developed exclusively by the plastic artist Susan Gouveia who, inspired by the new logotipy of Fenabrave, designed the model to be adopted for all awards made by the entity from now on.

The award was decided by secret ballot, via Internet, and is coordinated by Scheuer Consultoria; each Dealer could vote in the segment it represents and all the others, choosing the makes of their preference. “The award ‘The Most Desired Make’ demonstrates which are the assembler the Dealers would like to represent, regardless the segment.

This is an important thermometer of the Chain on each Make”, assessed the President of Fenabrave, Flávio Meneghetti.

The announcement of the winner Makes occurred during the Opening Ceremony of the XXII Fenabrave Congress. Volkswagen has been confirmed as the great winner of the “Car and Light Commercial Vehicles” category, as well as of the “Trucks and Buses” (the latter with the MAN Latin America make). In the “Motorcycles” category, the winner was Honda, for the second consecutive time; Massey Ferguson won in the “Tractors and Agricultural Machinery”; and Randon won in the “Road Implements” category.

Created by plastic artist Suzana Gouveia, the statuette delivered on the award “Most Desired Make”, was inspired by the new logotipy of Fenabrave and developed exclusively for the entity. This model will be adopted for all Fenabrave awards from this year.

The Winners

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Cars and Light Commercial Vehicles

Trucks and Buses

Tractors and Agricultural Machines

Motorcycles

Road Implements

1st place

1st place

1st place

1st place

1st place

Volkswagen

Man

Massey Ferguson

Honda

Randon

2nd place

2nd place

2nd place

2nd place

2nd place

Toyota

Mercedes-Benz

John Deere

Yamaha

Guerra

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1st row: Sergio Reze, President of Assobrav and Thomas Schmall, CEO of Volkswagen; Frank Peter Gunlach, Sales Officer of Toyota and Pedro Schwambach, President of ABRADIT. 2nd row: Roberto Cortes, CEO of MAN and Ênio Sardagna, President of ACAV; Alexandre Ayres, Senior Manager of Mercedes-Benz and João Batista Saadi, President of Assobens. 3rd row: André Müller Carioba, Senior Vice-President of AGCO América do Sul and Marcelo Nogueira Ferreira, CEO of Unimassey; Orion Gonçalves, Manager of Dealership Development of John Deere and Mauro De Stefani, Sales Officer of Assodeere. 4th row: Alexandre Cury, Sales General Manager for Honda and Clemente Sartório, President of Assohonda; Shigeo Hayakawa, CEO of Yamaha e Carlos Porto, President of Abracy. 5th row: David Abramo Randon, CEO of Randon and Daltro Antonio Dal´Acua, Officer of Abradir; Jefferson Gomes Cunha, Sales Officer of Guerra and Rogério Heinrichs Malmann, President of Abradigue.

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NATIONAL PRESS PARTICIPATES IN EVENT

CENTRAL BANK PRESIDENT SPEAKS ABOUT ECONOMIC OUTLOOK Alexandre Tombini, President of Central Bank, delivered a pronouncement after the Opening Ceremony, when he stated the Brazilian economy is in process of recovery and the automotive industry will foster growth in the Country.

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einforcing the announcement of President Dilma Rousseff on the government strategy with the launch of the “Investment Program in Logistic”, which will involve R$ 133 billion in investments for railroads and highways, the President of Central Bank, Alexandre Tombini, stated that Brazilian economy is in the process of recovery and the automotive industry, which represents a large productive chain in the Brazilian economy, will foster others sectors.

“Economy will accelerate in the second half of the year due to recent data released on the labor and retail sales markets and also broader indicators”, he said during the first Keynote Speech of the XXII Fenabrave Congress.

Tombini pointed out that the Country has solid macroeconomic fundamentals, with capitalized financial system and high liquidity; natural conditions for the continuity of high generation of jobs and the increase in household income.

According to him, the economic growth of Brazil will not weigh on inflation. “This scenario will materialize in a pricing environment under control, with inflation converging to the target, although this convergence is not a linear consensus”, he said. For 2012, the central target of inflation is 4.5% with a tolerance range of two percentage points up or down.

“The Brazilian government has a broad agenda to enhance the competitiveness and productivity of economy”, he said, noting that the executive power is aware of the challenges of advancing the economy for years to come and, therefore, is already taking a number of actions in this sense.

During his speech, he also recalled that the economy of the Country, which showed a deceleration process in the second half of last year, has been hit hard by the severe effects of the international economic crisis, which caused Brazil registered a significant reduction in the level activity in the first half of 2012. “The Central Bank adopted timely response to the effects of the crisis over the economy”, he said, referring in particular to the decision to adopt an inflexion in the monetary policy in August last year, when it began a process of cutting interest rates, which led to Selic in this period from

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Alexandre Tombini, President of Central Bank of Brazil.

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ore than 100 media professionals from various locations in Brazil attended the XXII Fenabrave Congress and ExpoFenabrave. Besides the specialized press and advisory services related to Make Associations and Regional offices of Fenabrave, professionals of radio, TV, Internet, newspapers and magazines attended the events, resulting in extensive national media coverage.

On the same day of the Keynote Speech, the Chairman of the Deliberative Council and Board of Fenabrave, Flávio Meneghetti and the Executive President of the entity, Alarico Assumpção Jr., gave a press conference to the journalists.

On the occasion, Fenabrave leaders commented the vehicle sales results in the first useful half of 2012 and prospects for the year.

Press Conference held on August 17.

SPECIAL DINNERS

O 12.50% to 8.00% per year.

Other measures such as the discount in the Tax on Industrialized Products (IPI) for cars, adopted in May this year, had as goal to stimulate the economy. “The effects of stimuli not yet fully manifested on the activities, but the economy is partly responding to them and this response tends to deepen”, assessed Tombini.

In the case of car and light commercial vehicles, a record of sales was registered for the months of June and July.

When talking about credit, the President of Central Bank said the banks have financial capacity to expand the supply of credit. “The national financial system has adequate liquidity”, he said, noting also that the expansion of credit safely concessions depends on a better understanding of the customers’ profile with an enhancement of the system of risk assessment.

As regards the vehicle financing, he called attention to the concessions made since the second half of 2011, which had the lower levels of delinquency. “The Brazilian economy indebtedness is not high compared to other economies, and the debts are shorter-term, at the moment”, he concluded.

n August 17, the President of Fenabrave, Flávio Meneghetti, and the main leaders of the entity, met with foreign delegations that attended the XXII Fenabrave Congress and ExpoFenabrave, at a dinner held at Bar Brahma “O Torcedor”, located on the premises of Pacaembu Stadium in São Paulo, In a relaxed atmosphere guests were able to enjoy the famous house draft beer, and taste several exclusive dishes of Bar Brahma.

As Fenabrave leaders and its guests, São Paulo journalists from other states and press officers were invited to meet with the press and communications team of Fenabrave and Reed Exhibitions Alcântara Machado for a dinner held at Bar Brahma Aeroclube, located on the Campo de Marte, North region of São Paulo city.

At Restaurant “O Torcedor” Fenabrave greets foreign delegations and leaders of organizations.

Dinner at Bar Brahma Aeroclube gathers press.

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GENERAL

J.D. Power presents Brazilian consumer’s voice On the morning of August 16, the Santana room was packed with the high demand of attendees participating in the XXII Fenabrave Congress. At that moment, Dealers were about to learn the customers’ satisfaction survey first result that J.D. Power presented with exclusivity at the event.

J The XXII Fenabrave Congress offered a segmented thematic programming, besides speech intended to all automotive segments. Highlighting the uniqueness of markets researches, there are speeches focused on Human Resources and Internet, F&I and trends for a more assertive management in the automotive distribution

EXCELLENCE IN MANAGEMENT FOR ALL SEGMENTS! 28

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on Senderstrom, Managing Officer for J.D. Power Brazil, began his presentation by showing the importance of this survey to the market and, particularly, for Dealers. “It is very important to listen to the consumer and work with their views. This helps the market in developing new products and also in increasing the customer’s satisfaction – key for the Chain”, he said.

Brazil Vehicle Ownership Satisfaction is the first survey directed specifically to the consumer’s behavior, habits and expectation of light vehicles in Brazil. In addition to evaluating the product the vehicle owners commented about their experience at the dealership. Altogether, over 8,000 people participated in the survey in Brazil. Thirteen makes from various segments were evaluated, totaling 52 models.

Its outcome, according to Senderstrom, brought positive results. Besides the products design concepts, the driving experience, after sales and maintenance costs were also evaluated. “Two aspects are important to note in this event: The after sales and the maintenance costs that are straight connected to the Dealerships activities”, he said.

According to what was obtained by J.D.Power, Brazilians are happy with the services provided by the Chains. On a scale from zero to ten, the number of positive recommendations for the dealership reached 7.4. On a loyalty of sales scale, 40% said they will certainly buy another vehicle from the dealership, and 48% said they would return to the same Dealership to perform some service. “About 50% of the Brazilian satisfaction is in the hands of Dealerships, thanks to their experiences providing services. Results show that 80% of respondents are satisfied with the service scheduling”, he explains. According to Senderstrom, Brazilian consumers are “voicing” more their frustrations and with that come an opportunity for the Chain expand the make loyalty. “This is a chance for Dealers redesign processes and adjust pre-services schedules according to customers’ needs, which usually are in the morning,” he adds.

With respect to post-services, J.D.Power found that 91% of customers surveyed received notice they vehicle were ready, waiting for them. About 80% said the deadlines in the check-ups and maintenances are consistent with the desired and 97% said that the Chain has solved all the problems reported in the vehicle. “Dealerships are communicating better and providing quick servicing. Only 10% return the

vehicle outside the time agreed”, says Senderstrom, who adds: “It is important to explain any difficulties right in the first contact. You have to show the customer that the dealer returns to him”.

“Brazil is in the 5th place in the ranking of consumer’s satisfaction with dealerships; dealerships have to understand that a good customer service, with explaining all technical details, fair price against the competition and on-time delivery increase immensely the chances of referring the dealership to friends, repurchasing at the same place, as well as preferential maintenance”, emphasizes the Managing Officer for J.D.Power.

Favorite Makes – In the ranking of Brazilian consumers’ favorite makes, indicated in J.D.Power study, three out of four of the major assemblers are in the leadership. The surprise is in the placement of Asian Kia and Hyundai, which

Jon Senderstrom,

The Internet as a marketing tool

GERAL

According to Sylvio Alves de Barros Netto, CEO of iCarros portal, now there are stores that present up to 40% of sales volume with contacts initiated by the Internet.

I Finbarr O’Neill, presidente da J.D. Power.

are in the third and fifth place, respectively, in the Brazilian preference. “In the universe studied, 27% of respondents had bought the first car, and the most bought five makes were Fiat, Chevrolet, Kia, Volkswagen and Hyundai. The fact there are some more expensive models on the first purchase of a vehicle seems to demonstrate the steady escalation of social classes”, said Sederstrom.

According to the survey, Brazilian population really fell in love with Asian makes. According to Senderstrom, for the new middle class, Nissan, Hyundai, Kia and Toyota are the consumers’ favorite makes. A total of 48% of the public had replaced the car and 25% bought an extra vehicle. The executive added that Brazilian are very pragmatic and put the reliability of the make and the fuel efficiency ahead of anything else when deciding which car to buy.

The importance of satisfaction – The CEO of J.D.Power, Finbarr O’Neill, wrapped up the presentation reminding the importance of the independent survey, consumer-focused, had for the North-American market for being more reliable than those ordered by individual companies. “What the executives want to hear from those in charge of the survey is not nec30

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essarily the reality. So, we sold our findings and analysis for makes to make educated decisions”.

According to O’Neil, keeping the customer satisfied is synonymous of good business, thanks to the recommendations made by the consumer in relation to their products, their services and, mainly, about their makes. “In the United States, the champions of customer services have 58% of recommendations. Out of that total, 52% would buy again certain product or service from the company that excels in satisfaction”, he says.

Speaking of prospects, the CEO of J.D.Power reported that 88 million light vehicles are to be sold worldwide in 2019, and that Brazil should occupy the 4th place in the ranking, with 6.5 million units. “The Chinese will increase their presence in Brazil, which represents more makes operating in the Country, greater capacity, more models and greater Chain. All this contributes to greater competition. The industry entrepreneur should be aware of the new trends and come to the consumer through technology: websites and social networks. Consistency is the key: Understand customer’s needs and exceed expectations”, recommends him.

t is a fact that online commerce in Brazil has not yet reached its peak. But there is also no doubt that it is rare to find anyone who does not use the web to research products before making a purchase. And it is precisely this niche that Dealers should focus on their plans of electronic media. “Automotive portal today is a marketing tool for stores, not a sales tool”, explained Sylvio Alves de Barros Netto, iCarros website CEO, who participated in the talk show format speech, “Internet: best practices and expected results”, conducted by journalist Reginaldo Leme.

“Our business is - through online marketing – lead people who are already researching cars in our content and take them as soon as possible to the salespeople”, defined Barros, who estimates that more than 90% of consumers search vehicles in the Internet in at least one time during the purchasing process – whether in early stages, for the model definition, or more advanced stages, such as price survey. “There are stores that present 30% to 40% of their sales volume with contacts initiated by the Internet.”

Reaching this level, however, requires adjustment, training or even a major sales team renovation, since it is required that social networks e-mails and messages are answered in the shortest time possible, and that the ads contain pictures

of the vehicles and detailed descriptions. Barros Netto also stressed that salespeople should study the models marketed by the dealership and get better prepared to service consumers, who have been researching for a long time and know a lot about the product they want to buy.

Furthermore, it is necessary that the tools available in the major automotive portals – such as the one that provides the average price of a vehicle in the store operating area and those of competitive analysis, for instance – are used and managed by a member of the sales team. Another key point is that the consumer is monitored until he decides to close the deal or gives it up.

“I know it is hard to build and train teams, but this is really a role of the company owner, who actually takes care of the business future”, said Barros, stating that there are already a number of advertisers who are getting great results with this new business model as well as in addition to a higher volume of sales, were able to reduce labor cost - by hiring a younger and smaller team – and advertising – compared to the traditional media, such as newspapers and television. “Internet, due to its volume of traffic (it is estimated that 80 million Brazilians have access to the Web), today is the cheapest way to gain customers”, he concluded.

Reginaldo Leme e Sylvio Alves de Barros Netto

GENERAL

International leaders discuss profit margin

Oliverio Enrique Garcia Basurto, presidente da ANDEMOS Asociación Colombiana de Vehiculos Automotores; Antonio Coutinho, representante da ACAP – Associação Automóvel de Portugal; Valdner Papa, coordenador temático do XXII Congresso Fenabrave e mediador da International Round Table; Edwin Derteano Dyer, representante da AAP - Asociación Automotriz del Peru; Carlos Dumay Perlwitz, presidente da ALADDA; Flávio Meneghetti, presidente da Fenabrave; Bill Underriner, presidente da NADA; Forrest Heathcott, representante da JM&A e; Alejandro Saubidet, vice-presidente da Acara – Asociación de Concesionarios de Automotores de la República Argentina.

Even with the peculiarities of each market, the difficulty is unique: how to reverse the drop of margins, which are increasingly smaller for vehicles distributors?

E

urope has gone through many changes in the automotive market. The crisis and the regulations governing the industry have generated increased competition in territorial bands increasingly tighter. The result is a drop in Dealers margins and the end of some companies. This panorama was presented by Luca Montagner, Advisor and Senior Investigator at Quintégia, at the international round table, which was attended by representatives of entities from other countries in Europe, North America and South America, who together composed the so-called International Round Table, traditionally held in the United States by NADA – National Automobile Dealers Association.

Montagner said the European context is very different from what is seen in emerging markets. According to the Italian representative, Europe is going through a time of stagnation in sales, due to the crisis. Industry entrepreneurs have lived only from fleet replacement, unable to expand sales volume. “We need to have sales volume always higher for the sustainability of resellers”, he says.

The figures presented by Montagner clearly show the difficulties experienced by entrepreneurs in the European distribution industry. Between 2001 and 2011, there was a sharp contraction in the number of dealerships, mainly in France and Italy, which decreased their Chains by 20% and 30%, respectively. “The Chains are decreasing and at the same time, the Dealers have the need to expand their sales volume. We estimate that in 2012 Europeans still record drop in sales”, he said.

A point raised by the Italian discussant was the requirement for standardization of stores. “Due to the crisis, we need more time to recover the investment”, considers Montagner.

According to him, the required standards were quite high to maintain the uniqueness of head offices and corporate names.

“This movement happened especially for Premium makes.

For many entrepreneurs new investments of about 10 million Euros were made, unbearable for a stagnant or contracting market”, he added.

Besides the requirement for new investments, margins in the European market are more and more reduced. From what was presented by Montagner, the basic margin, from the sale

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of the new vehicle has fallen substantially (currently 8% from 12% in 2003), producing margins coming from additional campaigns, such as performance bonuses. “Additional campaigns in Italy, for instance, may represent 70% of all Dealers’ margin, in 2012”, he said.

According to the representative of Quintégia, Italian consumers are used to buying vehicles with big discounts, which decreases the participation basic margin. “The gain through additional campaigns is a strong tendency in the European market, which has been growing since 2008,” he added.

In Portugal, besides the drop in margins, sales are dwindling, according to what was presented by Antonio Coutinho, representative of ACAP – Automobile Association of Portugal.

According to him, the crisis has hit the nail on the Lusitanian market. “An industry that 10 years ago evolved with sales of 410,000 units should end 2012 with 105,000 vehicles sold”, he says. According to Coutinho, a drop of 45% in sales is expected for 2012 in the Portuguese market. “About 2,000 companies will close this year”, he added.

For Montagner, the situation experienced by European Dealers can be improved by a greater participation of Associations, particularly with regard to dialogue, negotiation

Luca Montagner

with industry and government. All this based on research and studies that prove the industry interests.

Leaders from other regions presented their considerations with respect to the markets they represent. President of NADA - National Automobile Dealers Association, which represents North-American Dealers, Bill Underriner, completed Montagner’s words stating that the U.S. entity has an annual budget of more than USD 100 million, which are invested in studies and structures so that dealers can develop their businesses.

According to the President of NADA, Dealers need to differentiate the sales mix also investing in marketing second-hand vehicles and in F&I products. “Customers buy these products! One needs to know how to work beyond the sale of a new vehicle. Differentiating the mix is a way of compensating the squeezed margin”, he recommends.

The representatives of South American market showed a reality different from other regions. According to the President for ALADDA – Latin American Association of Car Dealers, Carlos Dumay Perlwitz, we need laws to rule the industry and control South America Dealers and manufacturers’ relationships. “The lack of rules allows second-hand vehicles to be imported over here, forming a precarious fleet of vehicles that pollute and cause accidents,” he says. Such a situation was presented by the President of Asociación Automotriz del Peru, Edwin Derteano Dyer, who complained

about the opening of the Peruvian market and the Chinese invasion in that country.

For Alejandro Saubidet, President of ACARA, Argentina, sales in the country should end 2012 with 1 million units sold. Yet, he warned, “margins are tight and after taxes payment new vehicles sales profitability are almost nil. We are expanding the participation in services and investing in the consortium portfolio,” he said. According to Saubidet, ACARA is working with the government to reduce the tax burden on Dealers’ margin.

Brazilian margin – Flávio Meneghetti, President of Fenabrave, said the Brazilian situation is paradoxical. According to him, the market is experiencing a time of high volume of sales, but with increasingly tight margins. “Brazilian Dealers’ gross margins are around 8%. “For instance, in São Paulo the average margin is 5%”, he added.

Meneghetti advocated a discussion with manufacturers to negotiate margins coming from new car sales. “We have to go back to making money with new cars. Our business cannot survive with such low margins,” he said.

According to the President of Fenabrave, while an effective equation is not reached Dealers should put their efforts on marketing other products, such as extended warranty, accessories, among others. “But we cannot forget that we are Dealers”, he warned.

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Financial results depend on a full sale Planning for the reconquest of the customer and identification of those that deserve red carpet should be incorporated as innovation.

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he consumer’s bluff as to note prices at the time of purchasing only, the lack of synergy between the seller and the consumer and the difficulty of facing new habits and new buyers are among the stumbling blocks that need to be eliminated in this new market where is the Distribution Chain of Automotive Industry in Brazil.

The vision belongs to the renowned Marketing and Sales Management Consultant, Claudio Tomanini, who managed to fill up the conference room with entrepreneurs during the XXII Fenabrave Congress with his presentation on the topic “High Impact Sales – Profitable Results”.

In a fun and crowded speech, Tomanini challenged listeners to exchange places with consumers in order to understand and build work plans with a focus on customer loyalty. “Many have not yet implemented the concept of evolution in their work, thinking that salespeople are born ready and that all is well. Thanks to the feminine world, companies understood that sales process has to change; it has to be more emotional, more attentive to details and better prepared for the relationship with the customer, as orders takers in a changed market”, he said.

The Consultant drew the entrepreneurs’ attention to review the profitability of departments, from the customer approach to the continued service. “It is no use having one profitable unity and another bad one, customer harvesting,” he said, stressing the need for the integration of managers of all company departments, including the accountant. “Everyone, without exception, must be managers of the business, and this is a way of rethinking and innovating”, he warned.

In a playful way, the Consultant spoke about the need of entrepreneurs invest time in a segmentation of its consumer market, illustrating that for future clients or prospects, one should dedicate less time, whereas for seasonal customers a little more time until identify the best ones and classify them. “You have to understand where and to whom put the red carpet, know the customer who should be treated like a king, as banks do”, he said. For him, treating all customers the same way leads the company to the ruin.

Hunting the customer is key on the high impact sale.

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“There is no certainty that the customer will buy again, but you need to besiege him to reconquest him, as the cost to take in a new client is extremely high. Therefore, it is necessary to leverage all the investments already made”, he said.

“Begin to ask questions, understand the distinctions of the relationship with those customers, as the answers come with the knowledge of the issue”, he advised.

According to him, a different market requires a strategy of results. “If before one sold a good, nowadays one cannot obtain results selling one good only; Now you need to sell the business as a whole, service and parts”, he warned.

Giving more examples about various products and findings on sales of leading brands, Tomanini stated that price doesn’t determine the success. “The customer is a moving target, therefore you need to be effective and innovate. Nowadays it is worthless to have a talented staff; you need to have planning staff. Plan to minimize errors, because only those who have the ability to adapt will survive”, he added.

Claudio Tomanini

GENERAL

F&I is one of the most profitable areas of the dealership With reduced dividends from funding, work other products became crucial for the dealership profitability. Major market players meet around a round table to present the best solutions for dealerships.

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ith increasingly smaller margins and profitability on new vehicles sales, Dealers need to diversify the mix of products and services offered to customers in order to reach optimal levels of earnings. Therefore, as already typically occurs at Fenabrave Congress, a round table was held bringing together the major F&I players that operate in the Brazilian market.

Moderated by the Chief Officer of Fenabrave, Paulo Engler, the issue was debated by Luciano Groch, Officer of Assurant Solutions, Welson Bolognesi, CEO of Resource Automotive, Carlos Brant, Executive of JM&A Brasil, Marcos Moreira, CEO of F&I Brasil, Marcella Verdi, Vice-President of Usebens Seguradora, and Luís Carlos Silva, from MAPFRE, who together discussed the key trend in this industry and the tools the industry companies offer to assist the Chain to expand their revenues. “A survey conducted by the Fenabrave Twenty Group pointed out that if F&I is not the most profitable department of a dealership, it is the second. Therefore, it is important to bring this discussion into the Congress”, stated Paul Engler while opening the debate.

The subject gained weight at dealerships that since the beginning of the year became banking correspondents, and also because the current funding scenario (with interest rates falling and stricter record approval) resulted in lower com-

pensation to Dealers by banks. It was clear that the Dealer total commitment must be above any other effort. It isn’t enough to follow up the daily volume of car sales; you need to be aware of other industries sales revenues.

The marketing of insurance, accessories, extended warranty and other products and services requires highly qualified professionals and should be well integrated to the first sale (to the car itself), forming a continuous process. Moreover, the installment of accessories is a challenge to be taken to the financial institutions, even because the assemblers’ banks do that.

Marcos Moreira, from F&I Brasil, commented that the gain reduction through the financing was predicted long ago. The executive showed that the volume of financing performed by the dealerships represented 52% of sales in 2011 dropped to 43% in 2012. “In return, financing made directly by the customer at the bank increased to 11% from 5% in the period”, he said, stating that the profitability dropped to 2.8% from 5.2% from one year to another. “Dealers are losing R$ 726 per financed contract and R$ 400 per vehicle sold”, he said.

Faced with this reality, the Officer of F&I Brasil teaches that you cannot waste time and that the relationship with banks should also take into account, besides the approval rate, the response time, customer service, interest rates and commissions and the aggregates financing. For this, proposals

should be prepared with quality. And F&I Brasil believes that salespeople should not take care of the credit approval. The dealership took on the credit transaction tasks (as a banking correspondent) and should also take care of the proposals forwarding, including supporting actions to reduce the risk of fraud.

The Vice-President of Usebens Seguradora, Marcella Verdi, believes that having a greater range of products is the only way to regain profitability. Her company specialized in offering extend warranty, but Marcella acknowledges that this product, by itself, is not able to recover the margin we used to have in the financing. “In Brazil there are peculiarities in each region and it requires an optimal package of product for each of them”.

For Welson Bolognesi, from Resource Automotive, F&I has become much more than a brief department structuring.

It should be treated as a set of recurring revenues that requires a department consisting of a competent team, motivated and willing to absorb know-how from who has it, working with existing and new customers. “More than selling products, F&I is customer loyalty. It is possible to make money if you do it well”.

According to the executive, Brazilian market is experiencing a unique moment, because it is still starting in the business of vehicles distribution. “You competitor doesn’t have yet. This is a very complex process, and the sooner you make these changes, the faster you get ahead”, said Bolognesi, who added: “F&I is much more than selling products. With it you can make money today and forever”.

Making an analogy to the movie “Back to the Future”, the Officer of Assurant Solutions, Luciano Groch, presented the so-called “old current complaints”. “People talk about these problems for a long time now. Everyone knows what must be done”, said the executive, listing the current reality of the market and encouraging Dealers to take action. “Look how many F&I companies have booths at ExpoFenabrave. Choose your partner and start now!”, he added.

Then, Groch presented the results of three groups of dealerships, with different makes and sizes, after the implementation of Assurant Solution systems into their operations.

“Within 36 months, the group that sells an average of 1,500 cars per month, earned R$ 3,3 million gross profit with added product sales only”, he said. The other two examples, one of a middle dealership and the other a small size one, the gains were R$ 728,000 (in 18 months) and R$ 198,000 (in 12 months), respectively.

Luís Carlos Silva, MAPFRE and L&Silva Consultoria representative, recalled that the current scenario is composed by the offer of products such as extended warranty, financial protection, accessories sale, car insurance, GAP (briefly, additional coverage insurance), parts and workshop services. Silva believes that dealers need the development of tailored solutions, of a work done side by side with the insurance market.

“Brazil has a well-defined structure in the insurance market, therefore it is necessary to combine the Chain strength with customized solutions for the insurance market”, he said.

The Officer of JM&A Brasil, Carlos Brant, showed that success largely depends on the full commitment of the Dealer.

He mentioned a meeting in which all Dealers knew which the car daily sale in their stores was, but none was able to come up with parts marketing monthly figures, for instance.

“The commitment of the dealer will measure his success rate”, concluded Brant.

The executive explained that it is necessary to promote the sale of products, to have qualified people who contributes to this process. Through system screens provided by JM&A Brasil, the executive showed that it is important to have a well-defined menu of what you will offer in addition to the car. “With the system it is possible to add bundled products and present values to the client already diluted in the financing”. According to the executive, once the car is sold it is the time to sell the menu. “The team training sessions must be practical, and those involved need to understand the customer’s needs”, he concludes.

Paulo Engler, Marcos Moreira, Welson Bolognesi, Luís Carlos Silva, Carlos Brant, Marcella Verdi e Luciano Groch.

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Private investment builds 20% of Brazilian GDP

The manager makes the difference in any dealership

Package announced by President Dilma Rousseff can greatly improve the prospects of Brazilian economy and should be used by the automotive industry entrepreneur, says Mendonça de Barros, a former minister of the economic team of FHC government.

Automotive Consultant defines the manager profile to motivate people and make them productive for the success of any business.

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or the Economist Luiz Carlos Mendonça de Barros, who has chaired the National Bank for Economic and Social Development (BNDES) and was reference in the economic team of Fernando Henrique Cardoso’s administration, the private sector in Brazil builds 20% of the Country GDP. The statement was a hook for compliments to the encouraging measures to the private investment announced

by President Dilma Rousseff in the days before the XXII Fenabrave Congress.

In an event with the central theme “Excellence in Management”, Mendonça de Barros assessed positively the package of government partnerships with the private sector announced by the President, as an exhaustion of the politics of Lula administration. He said that “the President has already begun to realize the importance of encouraging the private investment”.

The Economist urged entrepreneurs to seize the momentum and the good prospects of Brazilian economy, advocating more investment and belief in the country. According to him,

Luiz Carlos Mendonça de Barros.

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the end of Lula’s era doesn’t mark the end of a model based on household consumption. The difference between Lula and Dilma’s administrations would be centered on the search for investments. “The investment rate of economy was relatively low”, he said referring to Lula administration.

Barros also assessed that the reduction in the estimates of national economic growth – 1.5% this year of 2012 from 3.5% - occurred directly due to the fall of private investment rate – 8% in the first quarter, i.e. it was the companies fault, to the detriment of psychological reasons also. “Brasil is doing well, but Europe, USA and Japan are midst a serious crisis, which led to a hysterical environment and contaminated Brazil”.

Considering the household consumption, according to him, it corresponds to two thirds of GDP and consumption growth should be between 6% and 7% this year, this was not the reason for the economy performance forecast reduction.

“The consumer even choked with credit, but retail data in June showed that consumers went back to spending, surprising the market itself ”, he concluded.

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o retain talents and build productive teams, companies must rely on prepared managers. That is how the Automotive Consultant Francisco Nunes summed up the mission of the entrepreneur who wants to succeed during the speech “Building Solutions for Excellence in Management”, at the XXII Fenabrave Congress.

According to Nunes, the “three in one” manager, i.e., who combines three abilities (behavioral, technical and managerial) is outdated and has been replaced by the “Manager 5.0”, the title of a book the Speaker will launch soon. “They have to be facilitators rather than enforces. One must work this and that’s when the Manager 5.0 comes in, the result of 15 years of observation and research”.

Purpose, involvement of people, conscious autonomy, compensation and future perspectives are the five elements identified by the Consultant as fundamental to managerial success. That is, the manager has to have a purpose or a flag, without which there will be no followers. “He will say he wants to sell 50 cars, for instance, for this or that. And will do it so in order to involve the employees, listening with humbleness and taking everybody’s knowledge into account, showing respect for the team”, said Nunes.

Besides the issue of recognition and appreciation, people must be conscious of the autonomy they have to sell. Regarding the compensation, Nunes defends an above average salary. “Compensate fairly and for performance. Sometimes the company has 11 employees, poorly paid. It is preferable to have nine, but well paid”.

Future perspective is what the company offers to those who remain on the job. “People don’t abandon a service just for wages, but also for the lack of perspective for the future.

The issue involves basic needs such as family safety, equity building, career achievement and self-fulfillment. People need to know where they are going to”, he explains.

In order to achieve excellence in management the Consultant defends the following principles: cooperation and appreciation; humbleness and union; justice and dialogue, flexibility and speed. “Dreaming, building goals and results.

Being good is easy, hard is to be fair. Another thing: don’t procrastinate anything, do it fast. Those who delay doing things do not have excellence in management. Break paradigms being flexible and do not consider yourself the true

owner. You must have balance of things because you have to have balanced people”.

The focus of management, according to the Speaker, must be in keeping people motivated and productive, which occurs with the construction of goals with the team. Another critical care is to see that everyone is always aligned with the guidelines. “There is no point hanging a picture on the wall with the company mission. One must keep in mind that alignment must occur all the time, because changes occur all the time”.

The Consultant condemns obliqatoriness and impositions, opposing the legal power, the “expertise power”(technique and knowledge). Reading a lot and always or yet commit itself is highlighted as an important road to excellence. Nunes also draws attention to the need of monitoring results and not people. The manager’s mission is to deliver positive results and if he can’t it is because he is not using human resources. Construction of solutions makes people happy, productive and motivated. That is what needs to be done”, he concludes.

Francisco Nunes

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The market will continue to grow Round table with representatives from various segments of automotive chain is unanimous in stating that there is still room for the development of the industry.

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t the round table “Trends in the business of automotive vehicles distribution”, mediated by the Journalist Mônica Waldvogel, representatives of different segments of the automotive chain discussed the future of the industry and, despite some living contrasting moments in their business, the consensus was encouraging: the market will continue to grow in Brazil.

The meeting was attended by the Economist Celina Ramalho (Fundação Getúlio Vargas), Lélio Ramos (Fiat), Antônio Figueiredo Netto (Moto Fic), Flávio Meneghetti (Chairman of the Deliberative Council and Board of Fenabrave) and Alarico Assumpção Júnior (Executive President of Fenabrave).

“There is the incognito occasional issue of return on investments in some industries, but these difficulties faced by the segment don’t represent insolvency or serious problems.

On the contrary, the automotive industry gets a very attentive eye from the government, since it is very important for Brazil to follow its course of economic development”, said Celina, noting that the recent social rising of a good portion of the population should feed vehicle sales. “Today, 54% of the population is middle class and within their consumption basket there is the car installment”.

If in the long-term the horizon looks encouraging, the short-term is presented as a challenge to some segments. The motorcycle segment, for instance, continues to live with credit problems of their consumers. “The demand for the product exists, but our public suffers too much with the income

commitment”, assessed Figueiredo that, however, expects that the market duplicate in size in less than a decade. “We are projecting to reach 4 million motorcycles in the short-term”, estimated the representative of Moto Fic. Those who sell trucks also undergo a troubled period.

With the anticipation of purchases caused by the Euro V earlier this year, sales shrank considerably. The decline, however, can begin to be reversed with the Finame low interest lines of credit recently released by BNDES. In addition, the investments in infrastructure and the very need of Brazilian fleet renewal do believe that the segment should recover the lost time in the coming years. “There are trucks over 40 years making transportation. So there is a lot of room for growth”, explained Assumpção Júnior.

The segments of tractors and cars, in turn, are up. The former, due to the excellent moment of Brazilian agriculture, which is breaking consecutive records. The latter showed a remarkable recovery after the downturn indicated in May this year. “The sector was down, but with the joining of forces, went up again. The Government reduced the IPI, Central Bank reduced the reserve requirements and the IOF, Assemblers and Chains decreased margins, and the banks reduced spreads. All this has caused the car market to come out from a negative index of 0.5% in May to nearly 5% at the moment”, said Meneghetti. “The market is still thriving; we, the industry, expect it continues to grow and reach 6 million units in five or six years, that is, it will continue growing”, added Ramos, Fiat.

Valdner Papa

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Dealerships need to reinvent themselves

A jornalista Mônica Waldvogel (microfone) foi a mediadora da Mesa Redonda.

Companies must invest in new technologies of communication, efficiency in services and F&I products to stay competitive, says the Consultant.

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ne of the most recurrent themes in business meetings and congresses is the speed with which the world has been transforming in the last decade. With the consolidation of the internet and its social media, the fact is that the companies that let the local and global trends escape may be put way of their industries without even understand what happened. Vehicle dealerships do not escape this scenario. The need for reinvention has become a reality. “The traditional values of our business are in check”, explained Valdner Papa at the speech “Dealership of vehicles: a new business”.

The commercial point, for instance, typically one of the most valuable assets of the vehicle sectors, begins to lose importance. “The Internet is a tool that puts us outside the borders of commercial point”, stated Papa, asking the Dealers to give more attention to online communication through smartphones and the like. “The customers who send mobile and e-mail messages are as important as those inside your store. And it is worrying that 37% of the Dealers’ websites are outdated, with wrong information and, what is worse, with responses over a week late when they respond”.

Besides adapting to meet this new type of consumer, the Speaker warned to the need to work the after sales more effectively. According to him, it is necessary to invest in employee training and increase productivity in the industry to

eliminate the return and rework of services poorly executed.

“This is the greatest outpouring of profit that there is”, he said. One of the suggested solutions is to create reports to monitor and assess the individual performance of each employee, something that is applicable to others sectors of the company. This makes it easier to improve the productivity of the dealership as a whole.

Papa also addressed the second-hand segment that may be a profitable department, as long as at the evaluation of acquisition considers the model demand, sale price, liquidity, market supply volume and, mainly, the correct calculation of costs the vehicle will generate to the dealership. This is because with tighter margins and high competition in the sector, the smart purchasing is key to the transaction generates profit. “There isn’t the possibility of selling a car above the market price”, he said.

Another point that received attention was the need for a better management of the parts sector. According to the Consultant, the ideal is that Dealers increase the number of annual inventory turns and reduce the amount of obsolete items and of low demand stored. Furthermore, it is interesting to invest in new items of F&I, such as extend warranty and tire insurance, for example. “Train you team to sell these products”, suggested Papa.

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The secrets of selling online

Changing to sell

Simplicity, insistence, timely response help to sell with the support of information technology tools, says David Kain.

The time is perfect to duplicate sales in the country, ensures Steve Young, ICDP, but some adjustments are necessary.

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ith two decades of experience in the automotive retail in the United States, David Kain, CEO of Kainautomotive Company, was in Brazil for the first time to attend the XXII Fenabrave Congress, where he spoke about “Success with Sales on the Internet: 05 steps Dealers need to know”. In a good-humored tone, always joking with the audience, Kain showed success stories of the U.S. market and gave some tips for working with effectiveness in the online world. The main point, he said, is to know that people appreciate what is simple and that it can lead to success.

Kain recognizes the differences between the realities of U.S. and Brazil markets, but stressed that the consumer who seeks the virtual channel to acquire a car is the same worldwide. “He seeks comfort and the complete freedom to choose, from home, dressed in pajamas, or from his workplace, and of completing the transaction with a click or by phone”. But reminded that there is one basic rule: To transform the customer’s experience into something pleasurable. “Buying a car is always a date to be celebrated”. He invited those present at the speech to use the smartphones to record what was happening there, to prove how simple actions, supported by information technology can bring success to business.

David Kain

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Kain gave the example of a seller for a dealership in Indiana, USA, which became the best seller of the store for making a 20 second video of the cars the customers were interested in. “He would send the video by e-mail and the customers loved it”, he said. And, he added, we must insist on a good idea. “The response to your actions is equal to the effort you put in them”.

According to Kain, we need to ensure timely responses, accurately interpret the customer’s desire, have knowledge of the product you are selling in order to keep a reliable conduct at the time of sale, know the car inventory – if a second-hand car; be aware of the customer’s trajectory until his arrival to the store, and cordially accompany the test drive, for instance, for then make the sale. He emphasized the need to have speed in the responses. “If you take more than 24 hours to answer the customer’s question, you will have 50% less chance of selling!, he said. “My tip is: answer in 5 minutes.

He also mentioned some healthy practices for the management of online business, including the direct and intense contact with customers and the use of tools such as chats. “Planning how this dialogue will process and preparing a specialized team to coordinate it are essential steps”, said Kain.

According to the Speaker, there is also a need for integration between online communication, by phone and in person. While playing Kainautomotive survey conducted by themselves, the executive showed that 60% of North-American dealerships now operate sales through internet and that sales teams have an average experience of 6 months with operations in the virtual environment.

Kain advised that websites are interesting and easy to navigate. For him, the photos should be well worked on and highlight the cars. Descriptions should be motivating for the client to feel comfortable to go and take a test drive.

He considers it essential that the car dealerships count on management tools that refine as much as possible the relationship with the buyer. A journey that goes from a query to the seller, goes through sale, encompasses the after-sale, aftermarket, and reaches up the stage of vehicle maintenance. Be attemptive to every process. “Communication with the public”, he said, “is optimized with the use of social media and other tools, such as videos and applications to smartphones and tablets”.

With the theme “New Management of Dealership”, the Speaker Steve Young, President of the International Car Distribution Program (ICDP), based on what he saw in Europe, presented his view about what we need to do in the car distribution market in Brazil. ICDP is a European Institute dedicated to studying and researching the best ways and management tools in car dealerships. “We look at the strategies of the models”, explained Young. For him, Europe is in a moment in the automotive market different of Brazil.

“In Europe, market demand decreased 40% in recent years.

The United States are recovering and Brazil experiences a moment where market can double in the coming years”, he said. Young believes that the youngsters are one of the impulses of the Brazilian market as they have attitude and willingness to buy cars. According to him, in Europe is not like that. “Even in Germany, young people prefer to lose a car than a smartphone. Technology comes before the cars”, he exemplified.

Taking advantage of the hook, Young spoke about the digital world. He said that people are increasingly online in Brazil. “This has a sinister side, it brings new communication channels with customers and we should get prepared for this varied communication. Otherwise, it can bring us problems”.

Young believes that Brazilians are getting used to shopping on the Internet and the dealerships are separating the online world from the physical world, where the stores are. “Clients look for a lot of information on the Internet and make a complex trip from the online world to the physical world. So you need to have a good quality Internet”, he says. This issue, he says, should be a focus on the dealerships: we must find a way to manage this link between the virtual world with the real world, without creating competition.

Young said he studies Brazil in his visits to the Country.

He believes that we are entering a new phase, but doesn’t see Brazil immune to the pressures. “The market needs something more balanced, with growth in the after-sales and in the second-hand car, diversifying makes”, he says.

He added that we must ensure the already conquered customers. “You need to focus on customer retention. Think that customers will always buy cars during the whole life”. For him, the new model of business brings with it the need for a new model of organization, with values of customer service.

Steve Young

The Speaker used the example of an organizational model of a hotel group, The Ritz Carlton Gold Standards, which has a refined hospitality service with guests and manages, through simple actions yet important ones, build a strong relationship with customers. “Employees have, as a mission, to understand the customers’ needs, anticipating problems solving and even the unexpressed concerns”, he said. The expert believes that we can learn watching other markets. “The car distribution industry needs to think of a kind of a hospitality relationship between the seller and the consumer, which may be more effective than the classical seller.

He ensures that people should work for people and not for organizations”. Young recommends more cooperation, partnership among employees and employers. More attitudes and more energy”, he said. “Sometimes people are so far from where you want to go, they will never reach.” It is necessary to implement changes in the culture, he states, starting with the leadership that should encourage teamwork. For the speaker, incentives are necessary in order to get the engagement.

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With people, great care is required The good people management is the best way to attract and retain employees of a company. And also brings strong financial results.

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ith the strong competition among the companies and more demanding customers, the scenario of automotive industry needs attention to act in the best way possible. In this context, know to manage people is a strategic factor to yield positive results. The round table “Achieving Best Results through People Management” aimed to foster this discussion and gathered renowned professionals to understand what is happening and provide good practices.

The theme was presented by Ruy Shiozawa, CEO of Great Place to Work (GPTW). The reference cases in people management were presented by Sérgio Maia, Grupo Saga, and Rosana Gedda, Belcar Caminhões. Jefferson Leonardo, from Brazilian Association of Human Resources (ABRH), was in charge of moderation.

Shiozawa presented three points that considers essential for managing people: “people generating results, companies taking care of people, and finally, we taking care of ourselves”. A survey conducted by GPTW in 49 countries, with 6,000 companies – a universe of 11 million respondents – showed that attraction and retention of people is a growing problem. “In the retail sector, for instance, one out of two people that are employed for a company leaves at the end of one year”, he said. He noted that in the companies considered the best ones to work for, the turnover rate drops a lot.

The survey also monitored the performance of companies

Jefferson Leonardo

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Sérgio Maia

in the Stock Exchange, from 2000 to 2011. “If an investor applied R$ 100,000, this amount would have multiplied by three the capital invested. But if he had just applied the same value in companies considered to be the best to work for, the value at the end would be R$ 1,5 million, that is, 15 times more”, he says. Shiozawa states that the survey didn‘t observed companies by segment, only if their management was focused on people.

“Caring for people brings financial results for companies”, says Shiozawa, adding that any company, of any size and industry can become a great company of people management.

“Note that simple actions can generate great impacts”. A good conversation between employee and boss, for instance, is a simple action that can give good results. “Direct your leaders to talk to people”, suggest him. And the “care” should be individual too. “We have to have this concern, we are unique beings and must seek balance through integrated actions”, says Shiozawa.

Maia, Saga Group, presented the model of people management applied in the Group he manages, which assures him to be among the best companies to work for since 2008. He says he needed help from a Consultant in 2003, when the company was going through a crisis. “The management model began to be more efficient when joined with the management of people, since it needed to be shared”, he says. The alternative was to bind budget planning to individual goals. “We realized there was no point remunerating the managers only,

Ruy Shiozawa

it was necessary to remunerate all employees. It was not easy to find a common denominator, but we managed”, he says proudly. “The Profit-Sharing Scheme became a North, a goal for each business unit”.

Another important change was a 360-degree assessment.

“The feedback was given by the boss to the employee, now we created a strategic HR consultant who makes the liaison and monitors management closely”, says Maia. Besides these changes, the company gives 50% scholarship for courses to employees who go through a performance evaluation. Saga University offers courses for the more technical employees to develop and reach a management position.

Rosana, Belcar Caminhões, also presented good people management practices with a recipe she says is “homemade”.

“We operate in a simple way, humbly looking at what we have inside our companies”, she says. One of the actions is to provide food for employees earning up to R$ 1,000. “We offer breakfast, lunch and afternoon snack”. When we noted that employees were getting overweighed, we opted for a healthier afternoon snack with fruits and juices. Scholarships

for technical courses, college and specialization are given to employees who go through a performance evaluation. Birthdays are always celebrated in a simple but festive way. The Christmas party was exchanged for cash bonus, “that always come in handy at the end of the year”, she states. In addition, the company offers workplace exercises, educational speeches, English and computer courses (where half of the students are employees and their family members and the other half are from the local community).

The company made a project together with the Highway Police and the Department of Health to help truck drivers on the roads. “Partnering is great, it is low cost and gives results”. Environmental management is also seen with good eyes. “We manage the waste of our company”, she says. Rosana says that all these simple actions leveraged the corporate image of the company which has received several awards. “Our organizational atmosphere is great, we retain our talent, recruit more easily”, she says.

“My tip is to do things with simplicity, truth, ethics and transparency”, she concludes.

Rosana Gedda

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Change: First step to success

The enemy of great is good

Happy, cheerful, organized and thoughtful people sell more, ensures the Consultant José Carlos Fonseca Ferreira.

For the international consultant of automotive segment, the Brazilian market needs to do an inventory of the generations’ profiles of those to whom they sell and buy in order to get best results.

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ontrolling customers taken in cannot be a seller’s responsibility, it must be observed by the general manager of dealership to optimize resources”, warned the North-American automotive industry Consultant, Jomar Rabello, at the opening of the conference “Coaching 2012 – Optimizing Sales of New and Second-Hand”, during the XXII Fenabrave Congress.

Jomar Rabello, traditional speaker at NADA Conventions, has founded the companies RG Loyalty, Inc / Coaching Academy, Coral Springs – Florida – USA, consultancy internationally renowned by the development of sales organizations, pioneer in coaching sales managers and F&I. The speaker drew the attention of Brazilian entrepreneurs to the importance of making an inventory of the professionals’ skills of each one of the dealerships departments. The measure, according to him, generates the monitoring of changes in the relations of those who sell and those who buy.

According to the speaker, among the factors that generate make loyalty we can highlight, by order of priority, the seller’s attitude, the location of dealership and sales processes.

Rabello provoked the audience to think about how long a customer stays in the dealership showroom with the seller.

He answered his own provocation, saying that if there is not a defined sales process, it is not possible to measure the business potential. “It is important to sell the product, not the price. If the seller speaks about the product, its price will be justified”, he said.

The Consultant also noted that if the seller develops a good relationship with the customer, the chances of returning for a new purchase or yet to complete the purchase increase.

“It necessary sellers monitors potential customers. But for that to happen we need to invest in discipline and commitment”.

In general, Rabello advocates that the dealership seller uses, daily, two and a half hours per working day with the customer only. Therefore, the remaining time could be filled, for instance, with the implementation of a work plan developed by a manager or specific coach to the sales team.

The result of coaching, according to him, occurs with the increase in the conversion rate through the team. “If 15% of customers who enter the store showroom buy, then, there are still 85% of opportunities. So, there is the need for discipline and commitment with the sales team”, said the Consultant.

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With an approach also focused on online sales, Rabello addressed the international experience with his own customers, who can now generate 30% of the web business. “The rapid response to potential Internet customer is crucial for sale in this format”.

Another high point of his conference was the sampling of transformation of marketing channels that affect customers the most. “In the United States today 25% of customers are approached by the Internet and 20% by the newspaper. In 2001, 52% were reached by the newspaper and only 5% by the Internet, which shows a rapid transformation and model for the Brazilian market”.

Rabello ended his participation emphasizing that the future is tablet-thru sales and that entrepreneurs should proceed with learning technology to attract customers to the stores. “Social media have become strategic to the business”, he concluded.

Jomar Rabello

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dopting good habits on a daily basis is a differentiator for salespeople who want to improve results in any segment of vehicle distribution industry. The matter was addressed by Consultant José Carlos Fonseca Ferreira, CEO of RMV Consultores Associados and RMV Sucessão. The speech “The 9 Habits to Help Salespeople Increase Their Sales”, proved possible to eliminate bad habits and take care of yourself in a simple way.

He mentioned the book, “The 7 Habits of Highly Effective People”, by Stephen Covey, which says that there is only one person you can change: yourself. “The best investment, then, is to improve yourself, developing habits that will make you a more active person”, he said.

The first step is to take care of happiness. “The salespeople should cultivate good humor, give lots of laughs at work and in their leisure time. One tip is to watch comedy videos”, he suggests. He advised the film “The Mafia Back to the Couch” where actor Robert de Niro plays a mobster who, upon leaving prison, has to readjust to life outside of jail and try his luck as a car salesman. The movie is funny and ensures joy to all”.

Ferreira believes that listening to upbeat music can also help. “The profession of seller requires a lot from the human being, so joy is fundamental”. Dealership salespeople cannot neglect their health. “I advise you to get up early, practice exercises, not smoke, take care of your diet, sleep well and conduct annual check-ups to see how is your health doing”, he advised.

Having a plan of work and taking care of your skills are also part of good habits. In this item, Ferreira thinks it is fundamental to invest in knowledge, read newspapers, car magazines, visit Association sites, attend conferences in the field, learn another language and, mainly, read books.

“Something simple is staying away from the gossip group in the company”, he believes. According to the Speaker, in order to make a good business plan the seller needs to focus on what he wants. “I think you need to write professional and personal goals to pursue what you desire”, he says. One tip is that the seller has folders to store catalogs and newspaper and magazine clippings. “A pocket book is also interesting to write down useful information at the time of sale”.

Taking care of the work desk is also a key point for Ferreira. “A picture frame, calendar and calculator are important objects”, he said. Another important piece is what the Consultant called “child kit” – drawings, crayons and candies to

Books Recommended by the Consultant “The 7 Habits of Highly Effective People” – Stephen Covey “Happiness: A Guide to Developing Life’s Most Important Skill” – Matthieu Ricard “How to Sell Anything to Anybody”- Joe Girard “How to Win Friends and Influence People”- Dale Carnegie “Clear Your Clutter With Feng Shui” - Karen Kingston “The New Professional Image: Dress Your Best For Every Business Situation” - Susan Bixler “Satisfied Customers Tell Three Friends, Angry Customers Tell 3,000: Running a Business in Today’s Consumer-Driven World”- Pete Blackshaw

entertain children who go to dealerships with their parents. “I think a lot in that old saying ‘who kisses my son, my mouth sweetens’. With this kind of attitude the seller can conquer the parents”, he believes. Ferreira also advises the seller to not neglect his own image. “The first 30 seconds of conversation form a series of impressions of other people. Therefore, the seller should observe his own appearance and be careful with clothes, hair and smile”, he says. The seller should take care of his personal marketing as he is building his personal brand.

“They should improve his skills on the phone and by e-mail, have a mailing list to send direct mail, have a good network and also mark presence in social media”. Being enthusiastic and smiley are two characteristics of a good salesman. “They cannot be ashamed of asking for recommendations to friends, neighbors, barber or hairdresser, etc.”, he believes.

And, of course, taking of the customer is a great habit.

“It is important to write down everything the customer says when he sees the car to be able to discuss the matter later”.

Ferreira says that customers like sincerity, therefore, the seller should always look into the eyes. You can use some tricks, such as to break the ice with a cup of coffee. “You should also be assertive on questions to obtain the right information and conquer the customer”.

For the Consultant, these practices can be adopted by any professional. “The important thing is that you have in mind that you should change your attitudes towards the customer who buys, to win his loyalty and also towards the one that does not close the deal in his first visit to the dealership.

Salespeople must learn to leverage these contacts to generate new sales opportunities.”

José Carlos Fonseca Ferreira

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Leading is to leave the comfort zone Leadership takes practice and doesn’t imply position or privileges, teaches the Consultant Paulo Campos.

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he workshop “Profit through Managerial Leadership”, presented by Consultant Paulo Campo, Educatus Projetos de Comunicação, Educação e Gestão Empresarial, provoked an amusing self-assessment of the participants. Good humored and always joking with the audience, Campos suggested some exercises that involved three themes: Leadership, delegation and feedback.

“Results come from a good leadership”, he stated.

The first question proposed the participants discussed the following question with a colleague next to them: “If we had a better leadership in our company, what would happen?”.

He also asked the participants to grade themselves as a leader, where 1 meant poor leadership and 7 a very good leadership.

The majority gave themselves 6. For the Consultant, it is pointless the leaders know what should be done but do not get on the ball. “To know and not to do is not to know”, he said.

Paulo Campos

Campos explained the important of succession in companies. He believes it is important to teach to transfer the knowledge to create opportunities for the production and construction in the company. “A leader must have some concepts in mind: A genuine interest in people and think about the right person, in the right job and at the right time.

Calibrate your looking for it”, he suggested. The Consultant showed a survey conducted by Korn/Ferry, according to which 50% of the current leadership in companies will retire by 2017, but 52% of them will have to delay retirement for not having successors.

“Is it possible to teach leadership?”, he asked. He says it is a behavioral competence that needs practice, model and fundament. He added that, according to an international expert Peter Drucker, effective leaders must learn four simple things: Leaders have followers, they are able to influence people by credibility; followers do the right thing – popularity is not leadership; results are.

He said that leaders are quite visible, therefore, are examples. Leadership doesn’t mean position, privileges, titles or money, but responsibility. Campos urged everybody to have detachment to delegate. “Get out of the comfort zone, help people to dedicate themselves, to have enthusiasm in the accomplishment of goals”.

The Consultant said that company trainings are important, but learning is a process and not an isolated event. “It starts when the course or training ends”, he says. “What happens before or after is so important as the moment in which they learned. Development is achieved only when applied in practice what has been taught”.

For the Speaker, to be aware of individual characteristics is essential to manage the way you act. “It is a confrontation between what you think and what people think of you”. In this sense, feedback is vital. “Always ask your followers. The feedback is a gift for you”. Campos further reminds us that feedback is only a perception and not an absolute truth. “It is guideline and not punishment nor a threat”, but should be observed how it is done. “Silence reduces performance and generates surprises”. For him, criticism leads to escaping and undermines the relationship. Positive feedback boosts performance and increases motivation; constructive feedback improves trust and elevates performance level. But he warns: “Never give a negative and positive feedback at the same time”.

All roads go through Internet The decision of purchasing a car starts on the web, therefore the sites must be motivating, well made and bring a lot of information.

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he workshop “How to achieve results with the Internet” was attended by the digital strategist Fúlvio Kaminski Massaro, CEO of Massaro Mídia Consultoria and founder of iCarros portal, who coordinate the panel instructing dealers to enter the virtual world. According to him, the Internet is the first resource used for the purchase of vehicles.

Massaro showed a Google survey of 2011, by which more than 90% of consumers with access to the web navigate to decide which model to buy. “Among people who have access to the web, the Internet is the most used media. It overcomes the morning paper and the TV at night”. According to the Speaker, the Internet is already the second means of communication with more sales revenue in the country.

“It is the most used resource used to buy cars”, said the expert, who adds: “Therefore, all your products should be exhibited”. In his analysis, until 2014, mobile Internet will become the primary way to access most used.

The web should be seen as motivating purchase that attracts the customer to the point of sale, says Massaro. “I believe that 60% of the purchase decision in on the Internet”. In this line, well done photographs and bold layouts increase the consumer interest for the site. He mentioned the importance of Internet advertising through sponsored links and visibility optimization of a page in search engines, and played a Google video-case with positive results achieved by the real estate and cultural markets on the Internet.

Massaro said that in order to obtain results with the Internet, you must know how to structure the sales point site, including all information the customer needs to know about the model. “State of art equipment, trained professionals to manage the content and, of course, easy and fast access are essential for doing business from the web and obtain financial return”.

A special guest of Massaro was Fábio Sayeg, Managing-Partner of Wroi Performance Online agency, who emphasized that the main differential on the Internet ad is the ability to monitoring your profitability. “We measure everything: The amount of clicks, phone calls generated and, consequently, sales”. “Ads low cost were another ben-

Fúlvio Kaminski Massaro

efit offered by digital media. But he said that in order to be successful, “the customer must be serviced with such efficiency and speed on the Internet as in your showroom”.

Participate in social networks can also be a good idea, as long as the page is constantly supplied with information relevant to the customers. “Usually people spend about 60% of the purchasing time choosing the vehicle, either new or second-hand, on the Internet. Don’t make them waste time accessing your page on the social network just to find useless information. They will certainly give up the business”, says Sayeg.

According to Massaro, 95% of vehicle advertisements on the Internet are posted by individuals and multi brand stores that do not advertise on radio and TV, and only 5% by Dealers. Another interesting point of the workshop was the presentation of Henri Zetune, Marketing Officer of Grupo Sorana, who presented a case of the company: A restructuring promoted on their site that had excellent results.

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You can unlock the full potential of profitability!

The Twenty Group coordinator spoke about the importance of the project to improve the dealership results. He also told that the secret to professional success is to have competence, speed and confidence.

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ne of the highlights of the XXII Fenabrave Congress programming was on account of the speech on Fenabrave Twenty Group, delivered by the project coordinator in Brazil, Diego Alvarez. Certain that it is possible to unlock all profitability potential of the dealership, Alvarez explained how the Dealer can manage with comparative references, always seeking to optimize results.

With the topics: “What is working?”, “What is not working?” And “What remains to be done?”, Alvarez conducted the speech explaining details of the project adopted in 2011 by Fenabrave, after agreement established with its North-American counterpart NADA. “As long as you have one management tool that points out what are working fine and what needs to be done, the results for the company are positive. And the goal of Twenty Group is provide this tool”, he explains.

The Twenty Group is a program that analyzes the economic and financial situation of the Dealer, in comparison with others of different sizes and regions, and helps to put into practice successful actions to leverage best results. From this analysis, the dealer identifies what is working and what is not working well in his business, and also sees opportunities to improve business. “This way the entrepreneur identifies weaknesses and the best practices that can be applied in places where the performance is not satisfactory and, therefore, the distribution industry can grow, increasing profitability and sales”, he says.

In his presentation the expert shows that there are three main factors of change in the distribution market of Brazilian vehicles: technology, that is more advanced, has decreased the time to repair vehicles and, therefore, generated less profit; increased competition, which means that services are better; and the customers themselves, who – well informed – are more demanding. “In the past customers had a hard time exposing their ideas. Sometimes the customer had difficulty reaching the manager to expose their problems and opinions, today this situation was reversed and the customer is key to growing your business”, he explains.

Alvarez gave tips of how to succeed in business. “There is

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no way to prevent technology to be developed and competitors enter the market. This is impossible. What we can do is to loyal consumers through speed, competence in services and good prices. Those Dealers who want to be competitive have to understand and meet the customers’ needs, monitoring transactions”, he says.

The coordinator of Twenty Group explained that there are three key words for the success of the Dealer and to win customer’s confidence. “To gain customer’s loyalty, we must be prepared to solve any problem, that is, Dealer must have competence and agility to service the customer. Otherwise they will seek another alternative and the entrepreneur loses.

The secret for the success is to have: Competence, Speed and Confidence”, he stresses. Alvarez insists that success in business is connected to the performance of their activity. “You must change the way you operate to achieve different and positive results”, he concludes.

Diego Alvarez

Deciphering the automotive industry with Clotaire Rapaille For the specialist, companies need to show the customer that they know them.

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hD in Social Anthropology and Psychology from the University Sorbonne, the French settled in the United States, Clotaire Rapaille, is one of the most renowned and sought after specialists in the field of knowledge, dedicated to decipher cultural codes and peoples behaviors, considering the country in which they live. For all of his work, with a unique marketing approach combined with in-depth analysis of a psychoanalyst on the practical concerns of businessmen, he was invited to come to Brazil exclusively to wrap up the XXII Fenabrave Congress, main event of the Automotive Distribution Industry in Latin America, delivering the Keynote Speech on “How to sell more by knowing the cultural code of the seller”.

Friendly and elegant, the founder of Rapaille Institute, which advises companies like Chrysler, Fiat, GM, Banco Itaú, LG, Procter & Gamble, Nestlé, Boeing, professor at universities in Belgium, Spain, United States, France and Nicaragua, Clotaire Rapaille spoke to an audience packed of businesspeople, representatives of 27 Brazilian States, on the implementation of his ideas in the car distribution market, with a deep knowledge of the automotive market acquired when unraveling the cultural code of the seller and the buyer of cars.

For him, it is necessary to know what the public really wants to awaken the need to purchase, as if the product were essential for life. “People don’t buy cars. They use cars.

Women want to ‘wear’ a car like a coat. The car is a symbol of where you are in life, it means your progress. When a consumer buys a car, he or she is already thinking about the next one, of a higher category, because it is where he or she wants to get”, says Rapaille. According to the specialist, the seller has to have his own archetype or ideal model of “cheerful loser”, a person who does not get depressed with rejection and, in fact, seeks a job in which he has the chance to reverse this situation, which also reveals contributions to people management.

One of the surveys conducted by Rapaille shows that the major motivation in sales is not the money, but the thrill of the hunt. Different sales techniques are used in the automotive industry for marketing the vehicles at dealerships: technological attributes, safety, comfort and even financial arguments are the protagonists of the salespeople at the time of convincing the customer that he must buy that vehicle.

However, rather than emphasize the vehicles attributes at the time of sale, it is necessary to create a relationship between the customer and the make, creating a true community such as, for instance, already happens with Harley-Davidson and Porsche, which created concepts of lifestyle. “Customers

belong to the make”. Dealers must act in the customers’ emotional aspect, producing a sort of projection or target that, in this case, the vehicle would be top of the line, which may be the consumer’s dream. You need to find out what is that the customer really wants”, he said.

Rapaille argued that consumers should never receive a “no” from a company. “Even if the seller does not have the service at that moment, say something like ‘let’s see what we can do for you’. When a customer looks for a company, he wants solutions. If he asks where the coffee is, he wants to be taken there and not only have the way shown to him”, he said.

“A seller needs to know their customers, even having seen them for the first time”, he said, suggesting the attendees read his last book – Cultural Code, translated into 12 languages and 9th in the ranking of the bestsellers of BusinessWeek.

Clotaire Rapaille

CULTURAL CONTEST AWARDED ATTENDEES WITH 5 IPADS Publicized during the event, the Cultural Contest “My iPad on Hand” counted with the participation of more than 1,300 people who deposited their phrases answering the question: “What is the greatest contribution of Fenabrave Congress for the automotive distribution industry?” According to the regulation, the authors of the top five phrases, chosen by a judging panel, would win an iPad 3, 32GB, delivered at the end of the closing Keynote Speech, by Clotaire Rapaille on Saturday, August 18. Check out the winners: Marcos Takeshi Shiga Tocauto, representative of VW cars and trucks from Imperatriz/MA ANSWER AWARDED: “Gathering experience, knowledge and reflection of our ‘Automotive Brazil” on a piece of São Paulo.”

Luciana Madruga M. de Araújo JCarneiro, representative of Renault, from João Pessoa/PB ANSWER AWARDED: “Fenabrave Congress is almost a university of the automotive distribution industry.”

Marcello Macedo Grupo Blokton, representative of Honda Motos, headquartered in Curitiba with branches throughout the State of Paraná ANSWER AWARDED: “Fenabrave Congress is a vessel of knowledge and integration. A reference and meeting point essential for Dealers’ planning.”

Roberto Fonseca Fontenele Filho Auge Motos, representative of Honda Motos, from Fortaleza/CE ANSWER AWARDED: “The assurance that the challenges will be easily overcome while we remain together.”

José Roberto Ventura da Silva Júnior Haikar, representative of Honda Automóveis, from Goiânia/GO ANSWER AWARDED: “The strengthening of the automotive industry, bringing information and strategies of major economic changes, as well as prepare Dealers with new management tools, establishing new partnerships and the common goal of increasing profits.”

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CARS AND LIGHT COMMERCIAL VEHICLES

NEW TECHNOLOGIES AND MANAGEMENT TOOLS

How to grow during the crisis?

Jon Lancaster, Consultant of the North-American Lexus of Madison and Lancaster Toyota, faced the crisis challenge in the United States and defeated the recession investing in the commercialization of second-hand vehicles and working better the aftermarket.

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In the thematic programming of the XXII Fenabrave Congress, attendees of cars and light commercial vehicles had speeches focused on managing their businesses. For that, Brazilian and foreign experts were invited to present the best practices and ways on how Dealers can increase profitability.

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veryone knows the problems faced by North-Americans due to the 2009 crisis: recession, crashing of companies and high household indebtedness. One of the main industries affected by the crisis was automotive, which racked up to 80% decline in vehicle sales in 2009, that is, 10,3 million from the previous 17,4 million units. “Most Americans, in turn, had no credit to spend on a new business. More than 3,200 dealerships failed to overcome the pressure and closed their doors”, said Jon Lancaster, Consultant of Lexus of Madison and Lancaster Toyota.

With the sale of new vehicles shrinking, Lancaster summoned his staff and demanded solutions for companies not to follow the same path of its competitors. “I don’t want excuses for low performance. I want a plan to fix the problems”, said the Speaker, stating that the leader’s role in times like this is essential to business continuity.

Thus, dealerships operations were balanced by taking away the focus exclusively on the sale of new vehicles only. The team led by Lancaster decided to work harder the departments of second-hand and the aftermarket. “We took our focus away from the main issue, which was to market new vehicles, and began to meet our customers’ needs with good second-hand vehicles and providing quicker services, such oil changes and tires”. Lancaster says that in the beginning they repaired about 15 cars per day in the dealership. Now this number exceeds 120 and makes difference in his revenues.

Besides working with second-hand vehicles, Lancaster strengthened customer loyalty building a network of quick services and increased accessories participation in sales. “We improved services by performing the works faster and changed the employees’ culture who were used to sell new vehicles only”, he says.

A new inventory system was implemented, second-hand vehicles started to be advertised on the Internet and the result is an annual turnover of 12 times. “Our inventory of second-hand vehicles used to be of about 80 days. Today, we work with an inventory of 30 days”, says the Speaker. In the

service department, Lancaster warns that it is necessary to work the synergy of products with the consumer. “We sell a lot of alignment and balancing, which reached 90% penetration this year”, he said, stating that the F&I department of dealerships already represents 23% of sales in operations.

“Our conversion rate in the F&I department is between US$ 400 and US$ 850 per vehicle”.

The Speaker says that, to achieve these changes, it took some investments, mainly in staff training, inclusion of new products in the portfolio and the implementation of new systems. “To accomplish these investments, we develop an intense program of cost containment. Our operating costs could not exceed 30.5% of sales”, he says.

Lancaster explains that a theory was developed to increase the profitability and productivity of the team. To do so, he drew up a comparative with the competition, creating a coefficient of production per employee. Thus, he was able to figure out how many employees were productive and how many weren’t. “Therefore, I identified the value of each employee, applying the comparison concept with the market”. After detailing the performance, annual goals were established, agreed with each employee. “If he tells me that this goal is possible, he assumes a compromise with the company”, he explains.

After all these changes, both cultural and of internal processes, the dealerships managed by Lancaster managed to expand the results in comparison with the competition, with fewer employees on staff. “Car business is a formula. If you don’t use the correct formulas, you will not get results”, he concluded.

Jon Lancaster

CARS AND LIGHT COMMERCIAL VEHICLES

CatC Cat C h the

Kakinoff’s view on the assemblerdealership relation According to Audi former CEO, there is nothing yet more effective than the mix of product, price, promotion and selling point for the distribution industry.

experience

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ne of the most expected speakers of the XXII Fenabrave Congress, the former CEO of Audi Brasil and current CEO of Gol Linhas Aéreas, Paulo Sergio Kakinoff, presented an overview of the assembler-dealership relation in the automotive industry for an audience of vehicle distribution industry entrepreneurs.

Kakinoff opened the conference elegantly and humorously, due to having assumed the presidency of one of the most important airlines in the country, after 19 years of work in the automotive industry. According to him, he would present his collection of beliefs of an eternal apprentice of the industry, which drew a laugh from the audience.

According to Kakinoff, no combination of management and the management of the dealership replaces the solidity of the four “Ps” which are product, price, promotion (in the communication and marketing sense) and point of sale for the progress of distribution industry. With this line of reasoning he captured the attention of the most demanding executives avid for the assembler-dealership understanding.

In this sense, he said that his perception of the four items passes, firstly, by the attractiveness of the product, which is the design. Despite the assemblers have spent the 90s trying to impress by the creation of modern and innovative concepts, the last 15 years have shown that there is no greater investment for the assemblers than in the design, also being the main attribute at the time of the consumer’s choice for the vehicle. “An ugly car in a good make will hardly succeed”, he said.

In his view, one of the greatest difficulties in the assembler-dealership relation is the sharing of structured information on the consumers’ desires, which are concentrated in the Distribution Chain. Kakinoff believes that a closer contact of those who actually know the consumers’ desires is necessary.

“Therefore, the Associations can act in coordinating a movement that could help in product development by assemblers,

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structuring the absurd volume of information on consumer desires that are at the dealerships”, he said.

He also explained that due to the distance of perceptions between the assembler and the dealership, every day there are models and launches that demand heavy investments and that sometimes do not have any kind of grip to the market, to what consumers are craving for. “The manufacturer understands wholesale, the Dealership understands of retail”, said Kakinoff, stating that the Dealerships are the ones who truly knows what the consumer thinks, despite the assemblers efforts with surveys on this topic.

Kakinoff defended, with his international experience in the industry, that there are no improvements in terms of sales when the assembler takes the dealership role. “The relationship with the customer belongs to the dealership”, he said. “The market is loyal to the product, not to the make”.

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A gold mine for a good manager Learn to rotate the parts you buy can guarantee more profitability than in any other investment currently negotiated in the Brazilian market.

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arts are a real gold mine for the dealership that knows how to work adequately, and can guarantee a return greater than any other existing investment in the Brazilian market. That was guaranteed by the Consultant Wagner Kmite, in a speech on “Inventory Optimum Turning and Trade Policies”, in the XXII Fenabrave Congress.

With more than 25 years of consulting in the automotive industry, Kmite explained in details what the Dealer has to do to escape losses with the purchase of parts. Purchase right, sell right and store right, are the major factors for those who want a good return. All that, of course, alongside a good treatment for the customers, expense control and satisfied employees.

“The ideal rotation is related to our ability of determine the best trade police, resulting in the highest possible profit”, he defined, explaining that when increasing turnover we obtain more profitability and consequently more return. The issue, according to the Speaker, is finding the balance between assistance inventory and commercial inventory.

Twenty years ago dealerships were selling 40 cars per month, against the 600/month now recorded, what would explain the number of parts stored in women’s restrooms and other premises. “So, the question is whether you want to sell a lot. In this case, you have to have space and that is exactly the size of the physical inventory that will help you determine the turning you should have”.

The operating turnover of inventory, according to Kmite, is determined by the sales cost over the inventory value. “The higher the turnover, the greater the money movement. From 4 to 6 we can say it is good; 8 turnovers are very good, and 12 is fantastic. Below 4 turnovers tell us that we are in a risk zone”.

Kmite recognizes the uncertainties that accompany the parts business, arguing with eventual recalls, for instance.

But he understands the Dealer must have only the necessary number of parts to meet demand. “No more, no less. And for that I need to know the needs of my customers to know what I really need to buy”.

He warns against entrepreneurs who live on bonuses that for hitting targets end up full of obsolete parts. “Beware of this investment, as parts on the shelf don’t pay bills”. The dealership must be aware of the real needs of customers, keeping in mind that there are parts with higher output (plagues, filters, hoses, classified as A), and must rotate 12 times a year. Others, which have a lower demand (B, medium-term),

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turning at least four times a year, and others that are turned annually only, or even longer (C category).

Those who don’t want lose money and bitter with an inventory of obsolete parts have to increase inventory turnover buying more often (frequent orders are smaller and increase cash flow), reduce obsolete parts and increase availability.

Besides the adequacy of inventory turnover, Kmite highlighted the need to consider correct trade policies. The Speaker thinks the encouragement of related sales is valid, but believes that discounts and strategy of competitive prices require great care and good judgment for not leading to breakage.

Wagner Kmite

Professionalize and use good technology is the path to success President of Group 1 Automotive says that Brazilians have good skill in sales and operate at the level of American dealerships.

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ar Brazilian Dealers can afford to leverage their sales professionalizing their teams and making use of new technologies already available. This is the basic recipe of the President and CEO of Group 1 Automotive, Earl J. Hesterberg, presented at the international workshop of the XXII Fenabrave Congress. He anticipated that, despite U.S. and European economic crises, his group should close 2012 as the third largest in the United States, with a growth of 20% to 25% against 2011.

With more than 100,000 vehicles sold last year, the Group 1 has 122 dealerships in the United States and United Kingdom, more than 9,000 employees and 159 franchises. A third of the volume of sales relates to large makes, including Toyota and Lexus, and BMW dominates the 13 dealerships in the United Kingdom. “Every day we work to maximize the investments of our customers”, says the leader of the group that, in 2010, was awarded by PricewaterhouseCoopers for giving 80% return to its shareholders.

Hesterberg remembered the shock of 2008, when the automotive market experienced declines of up to 40% in sales. He ensures that his group came close to losing money, but it wasn’t the only one to really lose at the time. For this, some measures were taken, flexing personnel expenses, which accounted for 60% of costs, and also reducing budgets for marketing.

In order to get prepared for the new times of vehicles with increasingly high level of technology and lower profit margin, the executive defends greater care in building teams that should have a high degree of professionalism and should be trained to be constituted as differential at the time of sale.

The Speaker recalled the disappearance of five great makes over the years, such as Oldsmobile and Pontiac, due to the crisis. “The good news is that in 2012 is market by a sales record for all makes”.

As the trend is rising costs each year (salaries, land prices, energy, etc.), Hesterberg says the Dealer will have to learn to make money in other areas to make more profit and become more efficient. His opinion is that the car sales in Brazil will still be high, also because the Country doesn’t have an efficient public transport service. “And Brazilians have good sales skills. They operate at the same level of dealerships in the United States. The downside is the extreme economic

volatility, high rates/fees, high interest rates, which implies an even greater delinquency”.

Another criticized by the executive refers to the concentration of dealerships. “Located very close to each other is not good for the industry and nor for the own dealership”, he teaches. According to him, those who want to increase their business and get more profits will have to make the best use of the technologies that are already in the market and of others that, he guarantees, soon will be available in the Brazilian market.

Do not use the phone correctly as an instrument of service and customer loyalty has been identified as a serious mistake of the American market. According to Kmite, thousands of customers were lost on answering machines. For this reason, his company already uses a varied range of tools to sell cars on the Internet, besides the e-mails system. “We have the case of a system where people took five years to use. This software ensures the sale of – cheaply – second-hand vehicles before they have to go to auction”, said the Speaker, listing other inexpensive applications that can represent new customers and more business.

Earl J. Hesterberg

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CARS AND LIGHT COMMERCIAL VEHICLES

The importance of recycling within the auto repair shop

Dealerships need to fall in the network

Environment preservation is one of the most highlighted issues by the Speaker Eduardo Santos, Manager of Institutional and Market Affairs for Cesvi Brasil.

A well planned digital presence makes the difference in attracting new customers and maintains consistency with the old ones.

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eaturing a detailed overview of the major social networking and platform of Internet applications available in Brazil and worldwide, the Vice-President of Fenabrave, José Carneiro de Carvalho Neto, opened the conference on “How dealerships can build success stories by using the Internet”, during the XXII Fenabrave Congress, encouraging the audience, made up of a previous generation of entrepreneurs to the e-commerce boom, to share doubts and real difficulties on the Internet as a place to make money, innovate, grow and develop/relate to customers.

According to him, that at age of 45 is one of the oldest Renault Dealers in Brazil and shows a special interest for the technology coupled with marketing, the consistency between the real and virtual world is critical to the success of the automotive industry Chains on the Internet. “New and old customers will always be connected. Therefore, we must build a make on the Internet with the same care the make was built on the real environment”, he warned. “”Internet doesn’t have a U turn, the publication must be consistent, because even if the page is deleted it has already been disseminated by the followers who had access”, he emphasized.

For a strong base of relationship through the Internet, the beginning of the construction is through the website, which must be constantly evaluated and updated. “The site is the action core on the Internet, which leverages all the other tools the dealerships may want to explore, going through search sites and other social networks. However, the deploying process of new tools can be done gradually, but cannot stop”, he said.

For that, he further warned that it is not enough the dealership wants to get in the network; it also must understand the technology and the platform chosen to do this effectively on the Internet. “The current time is one of integration, therefore, when choosing an application be aware whether there is integration with the various existing platforms”.

Highlighting international examples of excellent uses of the Internet, Carvalho Neto pointed out that the Brazilian market still needs to learn to explore keywords to ensure that the business is identified quickly by the consumer.

“Recent data revealed that, in the United States, companies put 500 words related to their businesses, while in

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Eduardo Santos

José Carneiro de Carvalho Neto

Brazil, on average, only 20 words are to be located”, he said.

The fact shows that there is still a strong ignorance in using the Internet for gaining and maintain effective customer relationship; it is important to understand geolocation to attract new consumers.

Another common difficulty noted by the Speaker is the return to the customer when there is a complaint posted on the social network. “We need to see it in a positive way, because if the customer is complaining means he already chose the dealership, therefore, we cannot deny an answer to him”, he explained. “The social networking is a channel to interact with the customer and SAC 2.0 must be respected to better use”, he concluded.

ith the theme “Auto Repair Shop as The Center of Results”, Eduardo Santos, Manager of Institutional and Market Affairs for Cesvi Brasil, spoke to attendees about the best way to act in the auto repair shops and, at the same time, preserve the Environment, in addition to guiding their employees and have the expected financial return.

Cesvi manager approached the possibilities of saving and enhancing in management that dealership auto repair shops can obtain with sustainable processes, from the point of view of the environment. “The importance of recycling within the auto repair shop, besides being a good cause for the Environment, also touches the pocket, as with this action it is possible to make great savings and with this payback invest in more structure”, emphasizes Santos.

Topics as environmental legislation, benefits of environmentally friendly processes and profitability in auto repair shop were discussed in the speech. “It is the responsibility of the auto repair shop to collect and store waste that will subsequently be collected. Wastes that contaminate the environment should never be discarded improperly”, he explains.

A tip taught by the Speaker is that for an auto repair shop with a turnover of 100 vehicles per month, an option would be the HVLP gun, used in painting, besides reducing the dispersion of the ink in the environment, could provide a savings of more than R$ 5,000 per month, compared to a conventional gun. “If an action is well done inside the auto repair shop the payback is certain”.

For Santos, the image is very important for the auto repair shop, as customers note who works in favor of the environment. In his view, at the end the auto repair shop itself wins. “In some cases, if you don’t have an environmentally friendly action inside of the company, the generation of business gets complicated. Image is everything in business and being environmentally friendly helps to excel and grow professionally while improving the image before your customers and suppliers”.

Cesvi Brasil manager explained that example is everything, both at work and at home, i.e., those who learn to recycle will recycle everything anywhere. “If you instruct your employees inside the auto repair shop to recycle, automatically, that person will also do the same at home, with their families; In other words, you educate people and they convey the concept to other people around them”, he says.

At the end, Santos showed attendees some cases of success, where auto repair shops have obtained greater returns after starting to practice recycling. “We have auto repair shops that implemented a system where the used water goes through a cleaning process machine and ends up being used in the washing of patios, restrooms and sidewalks. In another, the owner uses colored drums and instructed his employees to throw waste in the correct locations to be collected later. That made recycling easier”, he concluded.

OPINION “The Congress focused on our moment, raising difficulties that we are experiencing. It was quite consistent, reflecting what is happening in each segment. This is important because I think it is time to condense the ideas, make everything very clear so we know how to act properly. This is my fourth or fifth year in Fenabrave Congress and I will certainly come back for the next.”

Rogério Cunha, Car Dealer in Belo Horizonte (Minas Gerais)

“It is doubtless the most important Automotive Congress in Latin America. It is the tenth time I participate and will bring relevant information to help the expansion of our business in Chile. I can say that we always learn a lot and take invaluable contributions in the business world.”

Augusto Contreras Castro, Manager of National Chamber of Automotive Commerce of Chile.

“Fenabrave Congress renews our ideas. This is the fourth time I come and always learn more about the world and our market.

It’s very valuable to be here.”

Luiza Firmino - Dical Dealership - Mercedes Benz - Cajazeiras - Paraíba

“I find Fenabrave Congress very good. It has lots of information, showing the market trades, since we are living a year full of news. This is the first time I come and am finding it is worth participating. It is also an exchange of experiences with other competitors”.

Eliana Yamamoto Ribeiro Veículos - Volvo - Maringá - Paraná

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TRUCKS, BUSES AND ROAD IMPLEMENTS

Post-sale against the crisis With a return of up to 55%, the auto repair shop may be the solution for retraction periods in vehicle marketing.

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NEW CHALLENGES FOR THE TRANSPORT INDUSTRY The change of technology in trucks, which are now equipped with Euro V engines, in 2012, caused an imbalance between the anticipation of demand in late 2011 by the previous version (EURO3) – 15% cheaper – and the downturn in freight in 2012. For Road Implements, responsible for 60% of cargo transportation in Brazil, the discussion encompasses the Scale Law and the ABS system obligatory in trucks and road implements as from 2013.

During the XXII Fenabrave Congress, these issues came up to the agenda, where renowned experts and industry leaders presented their views and show the industry Dealers what are the expected directions for the Brazilian transportation. Some speeches highlighted in this editorial were directed to the segment of Tractors and Agricultural Machinery.

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he trucking industry is experiencing an inevitable hangover. With the regulation earlier this year of Proconve P7 (Program of Control Air Pollution for Automotive Vehicle), a Brazilian version of Euro V, many consumers anticipated their purchases and exchanged vehicles to escape from the increase of up to 15% of new models. This caused 2011 to break record of sales. But it also led to a sharp drop in sales volume this year. Thus, Dealers of this segment have to seek alternatives to maintain their profitability, and the auto repair shop can be the solution against falling sales cycles. This is Carlos Pacheco’s opinion, after-sales officer for Volvo do Brasil, who delivered the speech on “Auto repair shop as the center of result”.

According to Pacheco, many Dealers prefer to focus their businesses on vehicle marketing only, but they forget that the auto repair shop can be the solution for retraction period in

Carlos Pacheco

their segments. “The aftermarket has sustained the business of various dealerships in Europe and United States in the last industry crises”, he argued, noting that this also a great way to build customer loyalty. “The opportunity is huge, since there is a long-term relationship, not something temporary.”

According to the Speaker, the gross margins estimated in parts sale range between 25% and 35%. Now, the auto services shop can go back to 55% return to the Dealer, numbers well above those found in the sale of new vehicles, which hardly passes one digit and they are still showing downward trend. “The auto repair shop is an area of greater administrative complexity, with larger number of employees, but it shows the best margins”, said Pacheco.

To make the most of this segment, however, the executive warned that Dealers have to develop a clear strategy for business and work to achieve excellence in service delivery.

A suggestion is to target the types of customers for niche activities – such as refrigerators or car parts, for instance – and develop strategies to have greater reach among vehicle owners out of warranty.

“Another important point is to add value. We always forget, for example, to value the genuine labor. We have well-trained technicians with privileged training, then we have to sell it”, said Pacheco, mentioning the importance of the full range of parts and services requested. “It is difficult for parallel auto repair shops to reach full coverage of the vehicle if they are not connected to the assembler distribution system. This is a competitive advantage, if well exploited”.

The need to manage effectively the human capital of the company was also addressed. According to the Speaker, Dealers should develop their own policies for HR, with career plans, compensation and promotions, and create internal processes and managing teams and shifts to decrease the amount of idle hours and increase productivity of their technicians and mechanics. “Create indicators of all that”, suggested Pacheco, defending the planning of reports of utilization and efficiency of employees, rates of customers’ satisfaction and contribution to auto shop revenues.

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Brazilian economy and agribusiness industry Losses exhibited by Petrobras with gasoline should boost the Brazilian ethanol business in a foreseeable future.

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he Economist José Roberto Mendonça de Barros, Managing Partner of MB Associados, was very optimistic in his assessment of the Brazilian economy and agribusiness industry for the second half of the year 2013, in analysis made d uring the XXII Congress.

For Mendonça de Barros, despite the industry slow growth in the United States, the European crisis be advancing and the slowdown of Chinese economy, the global economic scenario is promising and with important effects for Brazil.

The Brazilian market growth in 2003, he said, will be anchored by reducing unemployment and rising wages, falling delinquency of individuals and reducing interest rates, compensating indicators in observed downfalls in the automotive industry – worst in motorcycle and truck, for a problem of demand, not supply, and also in the construction industry, due to the lack of manpower and equipment, in addition to taxes collecting that continues to grow more than the Gross Domestic Product (GDP).

For the automotive industry, the Economist foresees positive increases in the national economy, since the Brazilian soybean summer production presents excellent prospects and corn crop, in turn, may be a record. “Brazil is living a moment of greater productivity and should export more”, said Mendonça de Barros, noting that the decline in soybean crop in Southern Brazil occurred due to climate issues.

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The Speaker noted further that the losses shown by Petrobras in its latest balance are associated to the geological risks of pre-salt, dry or noncommercial wells, added to the deficiency in management and increase of project costs, such as Refinery of Pernambuco and of Itaguaí in the State of Rio de Janeiro, besides the imported oil, which were highly expensive for the company. “Petrobras lost R$ 7 billion importing expensive gasoline and selling it cheaper at gasoline stations.

This is a big bill even for Petrobras”, said the Economist. According to him, this means that Brazil has to increase the price of gasoline that, inclusive, should have some resemblance to the international price.

In this context, Brazilian ethanol becomes a good business.

“It will be necessary more ethanol in the system”, he said.

For the automotive industry, this isolated factor is already positive, said Mendonça de Barros, with ethanol being the fuel that will enable agribusiness.

Mendonça de Barros also considered the international agricultural scenario that is highly positive and is currently concentrated in five countries: Brazil, United States, China, India and Russia, which are markets with populations over 80 million inhabitants, with robust domestic income exceeding US$ 1 trillion, and with cropland over 30 million hectares.

“The global agricultural is in these five countries. And this game will continue more and more in a more important way”, he concluded.

More safety in road implements

Production Dept.

Note: This speech was also focused on the segment of Tractors and Agricultural Machinery.

The segment has an eye on the guidelines of Scale Law and inform themselves about the obligatory ABS system against severe accidents.

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he safety for cargo transportation was extensively discussed in the round table that brought together leaders National Association of Road Implement Manufacturers (Anfir), on the last day of the XXII Fenabrave Congress. In addition to various aspects of the so-called Scale Law, participants addressed the obligatory ABS system in trucks and road implements highlighting the segment responsibility for more than 60% of all cargo transportation in the country.

Alcides Braga, President of Anfir, pointed to safety as a longtime banner of the entity, ensuring that whatever the industry produces is appropriate to the standards and specifications of what is best in the world, inclusive in terms of technological evolution. Its revenue last year was nearly R$ 10 billion, with implements produced by 1,837 manufacturers ensuring 70,000 jobs. Besides the almost 2,000 affiliated companies, Anfir counts with 153 members.

Braga has made a primer available to the attendees prepared by the Association on the Scale Law, showing the entire evolution of legislation and confirming the active participation of Anfir members in formulating some current standards. “These are standards that equate the vehicles dimensions with the cargo weight, with the main focus on everyone’s safety”, he said.

Now, Anfir Director, Kimio Mori, detailed the changes the limitations of dimensions and weights of cargo vehicles (including the number of axles and their weights) had from

José Roberto Mendonça de Barros

2007 in view of the new settings of road implements. He argued the new vehicle combinations that took over Brazilian roads responded to the growth of food production, exemplifying the volume of Brazilian grain harvest of 2009, reaching 136 million tons. “By 2020 we will reach 350 million tons of grains. That is, it will be more than double of the expected amount for 2012.”

Yet to ensure the safety of cargo transported throughout the National territory, as well as the implements, trucks and their drivers, the Executive Officer of Anfir, Mário Rinaldi, said the proximity of the mandatory ABS system (Anti-lock Braking System), a system of antilock brake of wheels. “It will not stop accidents, but will certainly reduce the number of incidents and prevent further damage to everyone involved”, he believes.

All CVCs (Load Vehicle Combinations) will have to leave the factory with ABS from January 1, 2013, and this requirement will be extended to road implements from January 1, 2014. Anfir doesn’t know the financial impact of the safety device requirement on the industry, but promises to fight so that it is accessible. “I think it will be somewhere around R$ 2,500 to R$ 3,000 or 2% to 3% of the vehicle value. I am speaking based on the ones who are already using the product by choice. But it is difficult to give the precise value if the manufacturers are still defining the issue”, informed Anfir President, Alcides Braga.

TRUCKS, BUSES AND ROAD IMPLEMENTS

The experience with Euro V in the North-American market ATD President warned about the difficulties the Brazilian market may face and about the maintenance of EURO V that generated additional costs to the U.S. Dealers.

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ike Brazil, which adopted EURO V new technology in trucks since last January 1, the United States also use similar technology in their vehicles, called EPA 10. The President of ATD - American Truck Dealer Association, which gathers truck Dealers in that country, Dick Witcher, delivered a speech on his experience on the North-American market with the new pollutant reduction legislation.

Witcher started the speech talking about the creation of ATD, an entity he presides. Currently, American Truck Dealer Association represents more than 2,000 Dealers franchisees of medium and heavy trucks, which have almost 3,000 franchises. According to the Speaker, through ADT, the voices of truck distributors are heard in the factories and in Washington.

“ATD started a program of base groups for Dealers to meet with Congress members and educate them on the impact of laws passed by them on the trucking business”, said Witcher.

The officer went on explaining what the legislative priorities of the entity are. “We support the proposal to eliminate the Federal tax on industrialized products (FET) on heavy trucks in the country”.

According to Witcher, in the early insertion of trucks new technology in the USA, the problems on maintenance were not discussed openly before the vehicles enter into circulation. “Part of the customers who bought this vehicle” he describes, “was not satisfied with the product, once they were pointed out great difficulties in the maintenance of trucks.

This question has generated costs for the Chain. I remember that at the time US$ 75,000 were invested in a machine of filter cleaning. Each cleaning service costs about US$ 500*, says the President of ATD. Just as in Brazil, with the change in legislation, the local market also received financing incentives for trucks that, according to Witcher, empowered sales. “The adopted incentives were great to help sales, but they are already disappearing and sales are slow”, he adds.

The executive pointed out the difficulties encountered with the increase of vehicle prices. A study presented by him show that in order to reach the emission standards required in the U.S. the increase of trucks cost was from three to five

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times bigger than the previously estimated, which raised the vehicles price in US$ 25,000, average, not including taxes.

The price of trucks increased a lot after this new technology”, he complains.

“I particularly am not against EPA 10, however, I don’t agree with the way this Law was imposed. Several Dealers had to lay off employees on account of losses caused by the drop in sales”, explains ATD President, comparing the current moment of truck market with recent years. “In 2006, we were selling 360,000 units and in 2007 we sold an average of 110,000. There was a huge decline in economy and Dealers stopped buying because they wouldn’t sell what was in the inventory. It was a great suffering for the Chains and, since that time, we never grew back”, he says.

Given this scenario, Witcher makes a sales forecast of up to 180,000 units in 2012, in the United States. “Due to the difficulties in the market, some makes, such as International, Volvo, and Mack, among others, have already announced layoffs and shutdown periods.

About the Brazilian market, the Speaker estimates that is sales continue retreating, this market should close 2012 with 130,000 units sold. “Companies that intend to enter the Brazilian market, such as DAF and International, need to think of a strategy for a declining market. Unfortunately, this is the reality”, he concludes.

Dick Witcher

Truck segment should strengthen in this semester

Marco Antônio Saltini

Despite the current scenario, decline in sales, the Man Latin America executive believes the segment could improve in the second half of the year and that the measures adopted by the government for trucks should continue.

The year 2012 started well for the trucking industry. Many companies anticipated the purchase of vehicles to guarantee models with EURO 3 technology, which could be sold until March 31 at prices between 8% and 15% cheaper compared to vehicles with Euro V technology, which became marketed from January 1. With the change, trucking market went into decline after the first quarter and needed government help to reverse this scenario.

This was one of the issues discussed by Marco Antônio Saltini, Vice-President of Anfavea, one of the Speakers of the XXII Fenabrave Congress, who began its speech talking about the difficulty this market faces and the government action for the segment. “The trucking segment should have improved with the supporting incentives of the government, but the theory is still slow”, he says.

Besides being the Vice-President of Anfavea, Saltini is also the Director of Government and Institutions Relations of MAN Latin America. In his presentation, the executive showed that the monthly average of sales at MAN continue in 10,000 units, a volume that has been registered since April when the government lowered, for the first time, the interest rate applied in FINAME, that went to 7.7% from 10%. “The same average was ascertained in June, when the government once more reduced the interest line to 5.5% from 7.7%, that is, the market is not reacting to the incentive adopted”.

Saltini notes that in 1981, when MAN Latin America entered the truck market, the average of the make annual sales were 45,000 units. Three decades later, in 2011, 172,000 were sold. The executive said that has often gone to Brasília to deal with the government about possible ways to help this market to grow back. “So far, the government has not signaled the maintenance of the rate of 5.5% for Finame PSI, but I believe that there are conditions to keep the rate at that level.

I’ve been trying to show the government that the ‘secret’ to increase sales is to lower interest rates and increase the credit for a longer period, because the truck market works differently from cars”, he explains. (Production Dept. Note: After the XXII Fenabrave Congress, on August 29, the Government lowered FINAME rates to 2.5%).

The executive also presented the importance of this segment for the Country economy. “Truck sales should be considered as an economic index by the government, as this

segment reflects on the economy. If the economy goes well, automatically, the truck market also goes. The truck is a means of work for many”, he says.

Still on Euro V technology, Saltini commented that consumers had difficulties to supply the new fleet of trucks with diesel S50. “Unfortunately, this fuel is ‘expensive and rare’. Currently, out of the 38,000 filling stations operating in the Country, 5,025 units offer S50. According to ANP, the distance between them is a radius of 100 kilometers.

There has been a strong work to improve the distribution of diesel and consumer be satisfied”, he says. “Diesel price discourages the buyer (filling stations owners) by some factors: One is the storage time as the durability is around 30 days, that is, he buys diesel hoping a truck will come by to fill up the tank, but the new technology truck doesn’t come by, then the filling station owner panics and prefers not to have this fuel available in his station”, explains the executive.

Portrait of the current market – “We will soon have the World Cup and the Olympics. Infrastructure works are required for these events. Therefore, we are optimistic that the segment will walk again, because for these constructions trucks will be necessary”, says Saltini.

Although the current scenario still be of fall, the Vice-President of Anfavea is optimistic and believes in a better second half. “There is a great effort of the government to try to resume the economy with stimulus measures, such as the package of logistics concessions in infrastructure, however, they should impact our market from 2013 only”, says Saltini, who adds: “We are cheering so that the segment improves. I believe this year we will close with 130,000 units sold”.

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OPINIÃO “I think the dynamic of the Congress very good. It is a pity that the time is short and the issues cannot be examined carefully. A debate that caught my attention was the discussion of agribusiness in Brazil for years to come, because we do not have the habit of looking at the future of our Country.”

Parts segment can make a difference For the Consultant Osmar Hidalgo, small adjustments in department policy can turn the segment one of the best and most profitable business of the dealership.

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ho wouldn’t like to participate in a market that turns US$ 50 billion per year, employs 220,000 people directly and continues to grow all over Brazil? But know that the opportunity may be in a segment that many Dealers would keep distance from if they could: Parts. The figures were presented by Consultant Osmar Hidalgo, in the speech “Inventory optimum turning and trade policies”, where he argued that improvements in inventory control of dealerships can add a lot to companies profitability.

Hidalgo mentioned data of a Brazilian assembler in which the parts accounted for about 6.5% of dealerships revenues. The interesting factor is that this indicator would rise to 20.5% when its participation in the company operational results were assessed. When you add this number to the steady decline in interest rates to consumer, to the increase segment competition and to the increasingly smaller margins of the new vehicle market, a bigger attention to the segment of parts and services of dealerships become something vital for the maintenance of profitability.

“Dealerships will increasingly rely on the aftermarket and, therefore, on the parts segment”, said Hidalgo, noting that the segment is one of the most promising business, not only because of the rapid growth of national fleet, but also because parts sale is far from saturation point in Brazilian dealerships. “It is a huge universe, in most cases poorly explored and that with minor adjustments becomes an excellent business”.

Among the measures to be adopted, there is the Dealer’s adjustment to the flow of releases of its assembler. That is because, with the constant changes of models, parts have a shorter history and it is harder to calculate the demand for each one of them. The problem can be mitigated through actions the lead to a better communication between the parts manager and the owner and, mainly, through a thorough analysis of the inventory quality, that is, what parts are really needed in the store catalogue. “After six months, you will hardly have more than 2,500 different items”, he said.

Hidalgo argued that based on the indicators of parts necessary and their respective demands, Dealers should de68

crease the total amount of items to a minimum and reduce the interval of orders to the assembler to increase annual inventory turnover. Thus, in addition to the increased control of stored parts, it is possible to fractionate the way the investment is made in the segment because with reduced intervals fewer items are needed for each order. This, however, is only possible if the company adapt itself as a whole to a new philosophy. “When the logistic decision to turn the inventory, the financial loses the veto power to purchase parts”, he concluded.

The Congress was excellent. The speeches covered my needs and I just hope the next edition will be even better.”

José Duqueza Luciano, Jodiesel (VW MAN), Juazeiro do Norte (CE).

Eriodes Battistella - Battistela Veículos Pesados Ltda - Scania - Paraná and Santa Catarina.

“I attend the Congress since 1994. This year, the truck segment received much attention and I found the topics discussed very interesting. With this, we have a good picture of what the business needs to give results.”

“This was the second Fenabrave Congress I enrolled myself for and found it very rewarding because it was undoubtedly a great opportunity to get acquainted with all the industry news. I had contact with concrete facts that showed me the real market prospects. I thought quite appropriate the speech about the safety of implements, but I confess I am a little concerned about the cost increase the ABS system requirement will represent. I have customers who have already opted for the system, even before the requirement, but it is a minority. I myself would like to have the system for the sake of safety, but don’t know what impact it will have on sales, because the customer wants safety, but nobody wants to pay its cost.

Milton Gomes, Vecodil (VW MAN), Curitiba (PR).

Anílton Zambon, Dealer of Road Implements in Minas Gerais.

Carlos Costa, Truck Dealer.

“The Congress is giving a strong demonstration that the segment is strengthened, united, because thousands of people are gathering. In fact, I see this Fenabrave meeting as a watershed for the new cycle of prosperity that starts in 2013 for all of us. It is a very rich exchange of experiences, which strengthens the vehicle industry as a whole in Brazil.

Ultimately, it strengthens the Brazilian economy itself as it stimulates the entry of new manufacturers, which guarantee jobs, investments, creating a new scenario of great prosperity.”

Osmar Hidalgo

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MOTORCYCLES

Leverage the results of the auto repair shop Otílio Rodrigues Neto, Economist and Consultant Specialized in two-wheel segment, showed how Dealers can expand gains from the auto repair shop.

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LACK OF CREDIT STILL AFFECTS SEGMENT The credit restriction for the sale of motorcycles remains an obstacle to the recovery of the segment that since the 2008 crisis has embittered sales drop. Segment representatives discussed, in segment-driven speeches, possible solutions to increase sales, recompose margins and obtain more results with other products, such as accessories.

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he two-wheel market in Brazil has been suffering for years with difficulties in sales, due to the restriction of credit by financial institutions.

According to Fenabrave, only 17% of the total records sent for approval are accept by the banks. Given this scenario, alternatives are necessary to expand profitability and somehow replace the loss of income from the sale of new vehicle. For this, Professor Otílio Rodrigues Neto, Economist and responsible for the development of University Assohonda, showed attendees how it is possible to optimize results through auto repair shops. “Auto repair shops have a special attractive, however, they represent less than 2% of global revenues of dealerships”, said the speaker, reinforcing that this department requires a large volume of investments, and if not worked well they can be a source of losses. “The Dealer doesn’t know the effective results of this area”.

Rodrigues Neto began his presentation listing the importance of auto repair shop for motorcycle distributors.

According to him, to own a motorcycle is an experience for the consumer and it should be worked in the service area of dealerships. “Taking a good experience to customers is essential to loyal them. Once this strategy is applied the possibility of the area being more profitable increases, as it expands the market potential for new vehicles too”, he says.

According to the Speaker, most of dealerships don’t realize that customers appreciate good services. “The managing process of an auto repair shop remains the same for at least 15 years. If you don’t change the management you won’t have results and this department will be an eternal source of problems”, he warned.

The first step to improve the auto repair shop efficiency, according to the Speaker, is to identify any idle capacity in the area. “Are the average ticket of flow rates in accordance with regular standards? Are we leveraging all potential of sales of parts, services and accessories? Is the price charged for the service appropriate? All these points should be verified for better performance”, says Rodrigues Neto. According to him, Dealers need to know their level of current capacity and the level of idleness to find the break-even-point.

Otílio Rodrigues Neto

The Speaker teaches that Dealers should conduct a study of all weighted cost of the auto repair shop, listing all equipment and tools used for the services. In this worksheet it is also necessary to add, besides the fixed cost, all taxes and commissions that compose the variable costs. “With this control it is possible to find the break-even-point, i.e., Dealers will know how much they need to make in this segment to be able to pay its costs and, then, format the price with a profitable margin, compatible with the competitors”, he says.

To increase profitability, Rodrigues Neto teaches that an alternative is to increase the labor price marketed to the customer in detriment of the low price paid by assemblers in inspection services. “In addition to that, we need actions that reverse into the expected results, according to the inventory of costs made by the dealer”, he adds.

This plan of actions, according to the Speaker, includes the investment in some activities that can optimize the movement of people by the auto repair shop, such as, for example, make banners informing the service benefits (a motorcycle with the maintenance up to date generates fuel savings), train all employees involved in the after sales aiming to offer the best solution to the customer; disseminate in the media the service scheduling and the box of fast services (with schedule option via the Internet); implement the check-list of services for all motorcycles that come in to the shop (so you can expand the service offer), implement the pick-up and delivery service, mechanic trailer, express wash and the wheel service auto repair shop. “At this point, communication with the customer is vital. Work the motorcycles sold in your dealership, informing the warranty expiration one month in advance. In the 4 thousand Km maintenance inspection, schedule the 8 thousand Km maintenance inspection”, he teaches.

According to the Speaker, if Dealers are able to equalize their costs, increasing the shop service volume, reducing idling time and providing a more qualified service to the customer, the shop movement - with potential sales in the showroom - may increase. “The entrepreneur just has to do an assertive and well planned job”, he concludes.

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Brazil will have 40 million motorcycles in 2022

MOTORCYCLES

Resumption expected for 2014

Even with the obstacles faced by the two-wheel segment in the credit area, the prospects for the segment point to a future growth.

For the Consultant Francisco Trivellato, the sale of new motorcycles should close 2012 with a fall of 9%, surpassing last year levels in 2014 only.

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hose who expected that 2012 would be a year of consolidation of growth resumption in the sales of new motorcycles, following the downturn that the industry faced in 2009, must be disappointed.

Still having problems with delinquency and a fall estimated at 9% compared to last year, the segment is expected to break the barrier of 2 million units in 2014. The forecast was made by the Consultant Francisco Trivellato, who presented the speech entitled ”What to expect in sales volume and market share of motorcycles?”, when he defended the Dealers dried off their costs and even close non-profitable units.

“You must rational. If you own three stores, see which ones are profitable and close the non-profitable one. Don’t wait. The recovery will happen in 2014 only. It is a lot of time”, advised the Economist, also suggesting a closer relationship with assemblers. “Market will not give the margin and the growth we expected, so, we have to seat down with the manufacturer and go through the commercial strategies and the product, see in which segment we are strong and adjust to that reality”.

For Trivellato, the downturn of 2012 - which should close with something around 1.7 million units sold – is partially due to the weak performance of the Brazilian economy so far, something that restrains investments and postpones projects in several industries, including the service segment, a major consumer of motorcycles in the Country. Furthermore, the large increase in delinquency, which reached 6% in June, continues to be an obstacle, since consumers have struggled for getting credit.

In this scenario, the number of sales through consortia has increased considerably – its total share jumped to 30% from 27% in 2011 – something which, however, is not configured as a solution for the segment. “The consortium contribution is complementary, it doesn’t pull sales growth.

It is an essential product for longevity, but doesn’t solve the problem”, said the Speaker, stating that assemblers’ banks may have a prominent role in this situation. “The participation is bigger. The problem is that, depending on the size, they are not enough to meet demand”.

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Francisco Trivellato

Strategies – A further analysis on the market, however, reveals some opportunities for Dealers. The sale of second-hand motorcycles, for instance, shows an increase of 4% compared to last year. Higher prices models, such as Maxtrail or Touring, registered higher volume and expanded their market share.

Furthermore, it is possible that there has been a growth in motorcycle sales that don’t need to be licensed, such as the ones up to 50 cc.

Trivellato also said the drop in interest rates should revolutionize the Brazilian economy and denied the segment is in crisis. He noted that despite the momentary downturn, the segment should close 2012 with an average growth rate of 7% in the last decade. “It is spectacular. If we analyze from 2000 to 2012, even with the fall of this year, we’ve reached an annual average of 7%. Who can criticize that number? Motorcycle market frustration is due to an exaggerated expectation.

We were on an unreal threshold”, he said.

I

Marcos Zaven Fermanian

n 10 years Brazil will have 40 million motorcycles in circulation. This was the forecast of the President of Abraciclo - Brazilian Association of Motorcycle Manufacturers, Marcos Zaven Fermanian, who spoke about the segment expectations during his speech at the XXII Fenabrave Congress.

“A segment weakened by lack of credit”. With these words Fermanian expressed his concern with the market that is still recovering from the crisis in 2008. However, by his calculations, the motorcycle segment should grow between 7% and 8% this year. “The crisis in 2008 overthrew the financed sale in 30%. From this date on we couldn’t recover this segment any more, but we believe in an improvement in the second half of the year”, he says.

According to a survey conducted by Fenabrave, from January until mid-August, 1,101 motorcycles were licensed.

This volume represents a 10.13% drop compared to the same period last year, when 1.225 million units were sold. For this year, Abraciclo estimates a production of 1.85 million motorcycles, since the first half of the year closed with 1.044 million vehicles produced in Brazil. With these figures, the Country is in fifth place in the production of two-wheel vehicles. “Brazil concentrates nearly 2,600 dealers in just over

five thousand cities. The market generates more than 20,000 jobs”, he explains.

The lack of credit is one of the worrying factors for the motorcycle segment. The segment decline in recent months is linked to funding restriction. “Currently, the financing approval rate in the segment is less than 20%. One of the main arguments of the banks for this scenario is that salespeople often end up convincing customers to take a motorcycle that they cannot pay for and this results in increased delinquencies up ahead and automatically the records disapprovals”, says the President of Abraciclo, who also commented about the classes that buy more motorcycles. “Motorcycle buying public are classes C, D, and E, which represent 85% of customers.

Precisely these people who have the record disapproved at the time of purchase”, explains the executive.

To improve this scenario, the President of Abraciclo highlights that it is necessary the motorcycles gets credibility and attention from the government, in addition to gain more space. “For this it is also necessary to improve the motorcyclists’ image in Brazil, as well as the education of all involved in urban traffic. There is a long way to go and we have to emphasize the importance of respect among motorcycles users”, he concluded.

“Since this is the tenth Fenabrave Congress in which I participate, I can say that the event has been evolving every year in terms of structure, organization and topics. It updates us and assures us of important experiences and ideas for us to use in our daily lives. It is not something generalized. You choose you focus and dive into the subject, including motorcycles, which it didn’t offer before.

Only an event so important and productive like this can gather people from all over the Country here”.

“I always attend Fenabrave Congresses, even when I worked with tractors. But, since 1988 I’ve been working with motorcycles. I’m very pleased because I see that Fenabrave is embracing the safety cause for those who ride motorcycles. It is important to work on that, seek solutions to increase the safety level of motorcycles pilots. Fenabrave provides this kind of reflection and gives us the certainty that it can improve.”

OPINION “I think that was a very good and relevant meeting to share experiences. Even more important for me because I’ve just entered the market and segment; I’ve learned a lot. There is always a new topic to see and learn. I listen to lots of successful stories that inspire me. I missed one specific topic in the agenda of the Congress, which is succession”.

Roberto Fontenele Auge Motos - Honda - Fortaleza/CE

Hyrailton do Nascimento, Car and Motorcycle Dealer in Pernambuco - Motorac (Honda).

Roberto Esperancine, Motorcycle Dealer.

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TRACTORS AND AGRICULTURAL MACHINES

MANAGEMENT EXCELLENT IN THE FIELD

With themes exclusive to Dealers of tractors and agricultural machinery, the XXII Fenabrave Congress showed how entrepreneurs of these segments can increase sales, improve management and still work with new technologies to increase profitability.

Survey reveals that dealerships are losing money A survey conducted throughout Brazil scares consultant; it indicates great losses in the segment. Francisco Mendes teaches how to reverse this situation.

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ealers of tractors and agricultural machines from all over Brazil are losing money every day, paying wrongly their productive people and charging lower than they should for their services, especially when displacements are involved. This is basically the conclusion of an extensive research paper presented by the Economist and Consultant, Francisco Mendes, in the XXII Fenabrave Congress.

With 25 years of experience in the automotive distribution area, Mendes captured the attention of all those present during the 90 minutes he presented all the conclusions of the survey he conducted to speak about “Formation of Labor Price”. For him, the results about the segment reality in which Dealers’ Chain operates were “even appalling, frightening”.

Started in March, the work went on for three months, involving hundreds of questionnaires. “I had the help of many Associations, which allowed me to have a safe sampling of all makes, where more than 50% of the Chain responded always above the 10% of the questions, which for statistical purposes is absolutely solid”, he said, adding that all data were passed on to him on total reliability terms, which means that he will never reveal who is worse or similar to that.

The Consultant detailed all expenses of a Dealer, listing the fixed and variable expenses, and concluded that one must always target a break-even-point. “The break-even-point isn’t easy to be obtained, as it involves a complex calculation. But it is essential to sell well the time of my productive. I must take into account, also, the fact that a large part of my service is provided on the field, requiring displacement, which reduces my availability, of my productive time. This will let me know how much I have to charge”, he taught.

According to Mendes, the productive capacity has a limit and the loss is irrecoverable. If you don’t sell the productive today, you won’t recover it ever. “We were surprised in the survey because we saw that what was charged doesn’t cover the displacement. Neither is considered the productive cost of what was idle, nor by the displacement itself, but for the time wasted waiting for the cleaning of a machine or the conditions to work in the field”, he said.

The work was done based on average price. In a calculation of personnel cost in relation to the sale on the basis of R$ 100,000, the operational result was a negative balance

of R$ 49,992, or 50% of gross sales, or yet 86.1%, considering the total of personnel/net sales. The negative sum involved R$ 10,350 relating to taxes/labor taxes, R$ 22,038 of costs and variable expenses and R$ 17,604 in costs and fixed expenses. “It is like if for each R$ 1 sold I threw 50 cents away”, he said.

Another dada that caught up the Consultant’s attention: The average amount of labor in the segment is on the basis of R$ 70 per hour or 35% lower than what is charged in car dealerships. To achieve the break-even-point he defends it would require an increase of 74%, what would increase the price to R$ 122/hr. As this wouldn’t be possible, he suggests other alternatives, such as the sale of more hours and the reformulation of displacements collection, respecting the peculiarity that involves the service.

Mendes concluded that if the Dealer sells 100% of his time, he will be at a disadvantage, then requiring other measures, such as sell more, cut expenses and lower costs.

In the opinion of the Speaker, there isn’t a magic solution.

Therefore, we must to see that the team of mechanics always makes correct diagnoses so there is no waste of time, use proper tools and have parts available. In other words, according to Mendes, you must link time management with price management.

Francisco Mendes

TRACTORS AND AGRICULTURAL MACHINES

Future will require a lot innovation For Francesco Pallaro, only those who innovate, aggregate value to products and services will make money in the segment of tractors and agricultural machinery.

I

nnovate is the watchword for those who wants to keep themselves – very well – in the market of tractors and agricultural machinery in the coming decades. When talking about “How should we Plan our Dealerships?”, in the XXII Fenabrave Congress, the member of the Board of Case New Holland, Francesco Pallaro, highlighted the need to be attentive to the needs and requirements of customers in order to become more competitive.

To draw you dealership of the future, the executive did a quick survey of population evolution, which 80 years ago was 2 billion people and now is 7 billion and should exceed 9 billion by 2050. The Speaker outlined a parallel with resources availability, which hasn’t accompanied this vertiginous population growth and also with food production. In this context, he highlighted Brazil as a Country with the greatest potential for cropland.

“Today, in Brazil, only an area of 9% develops food production activities. It is true that population will continue to grow, but at a much slower pace than has happened so far.

Even so, it will be necessary to double food production in order to feed the entire planet. All indicates that in 2050 only the developed countries will have a production level greater than the population”, he warned.

With that, the executive pointed food production as a major challenge for the whole world. “To achieve this, with sustainability, only with a lot of innovation. After all, in 2050 we will have to produce more than we’ve produced during the last ten thousand years”, he argues, pointing out that the Country that produced this year 160 million tons of grains, will raise this volume up to 230 million tons in the next eight years. “Given these numbers, increases the concern about the immediate need to – since now – take measures to accompany this evolution”, clarifies Pallaro.

In addition to improve productivity in the coming 40 years, the Speaker says that should be an overall effort of innovation. Pallaro understands that some industries are already well advanced in this direction, mentioning the area

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of seeds, but recognizes that the machinery segment still lacks progress. “We need to find new solutions to facilitate our customers’ work”.

Pallaro says to make sure that tractors and agricultural machinery dealerships will be able to plan themselves to meet the challenges into the future. “Just remember that there were many changes in 40 years in distribution, for requirement and competence of our customers. It was a side business, but we managed to raise the level and nowadays we have one thousand Dealers among headquarters and branch offices”, he boasts.

In addition to an effective management with innovation and technological advances, agility and speed to meet the changes that occur all the time, the dealership must keep in mind that is a place of solutions. “It is necessary to take into consideration that the new products already do not need much maintenance and customers won’t keep the machines for more than 10 years. Therefore, only innovation allows adding value to products and services. Those who do not do this won’t make money. Status quo doesn’t guarantee anybody’s future. Innovating is necessary, he insists.

The Speaker says that creating as of now a department to offer logistical and operational solutions to the customer is to get prepared to the future. “You have to offer more appropriate solutions at lower costs, optimizing the agriculture machine. Look to your customers, as they will indicate their needs. Producers and farmers are going to demand more technology and innovation from us in order for them to get more competitive in their task”. He concluded.

Francesco Pallaro

TRACTORS AND AGRICULTURAL MACHINES

The watchword is to keep eyes on the customer Specialist suggests the creation of small rituals that are your differential and truly please the consumer, ensuring his return. For Claudia Silveira Vale, the greatest make differential is the Dealer.

“O

nly now the automotive industry companies are worried with what costumers think after purchasing their products”. Information comes from the John Deere project manager for Latin American, Cláudia Silveira Vale, speaking about “Managing the Customer Experience in After Sales as a Tool for Customer Loyalty”, in the XXII Fenabrave Congress.

According to Cláudia, the theme is fairly new in Brazil, with major industry makes waking up only now for its importance and creating the customer experience management-driven first departments. “It is a link for a next sale. In the customer’s mind, the after sale is a pre-purchase. Hence, companies are working the after sales also as a commercial product”, she explains.

The idea is to know everything that happens after the customer makes a purchase, that is, his concerns, satisfaction or not with a product, knowledge of the technology at his disposal, taking into account that 50% of the interaction is technical and 50% purely emotional. “Therefore, one must invest in behavioral tools”, she argues.

In the list of factors that generate positive and negative after sales experiences, the specialist highlights three point to make life easier for the customer: Accessibility (do bet-

Claudia Silveira Vale

ter), quality of interaction (pure human factor) and problem solving (agility). Cláudia suggests the dealership map the positive and negative experiences identified in each stage of the customer’s journey.

The lack of autonomy on the part of employees is seen as a serious obstacle or a great weight item, since it compromises directly the customer’s experience, who wants a solution on the first contact and not just someone who will register his complaint or question. But she warns that in order to have autonomy, the employee needs to be very well prepared. “It is important to identify the customer’s moments of truth and eliminate steps that don’t aggregate value, but generate costs.

The watchword is to simplify”.

To avoid conflicts, Cláudia understand that manufacturer make promise has to be aligned with the Dealer make promise. “When that doesn’t happen the customer even takes advantage of it. Very careful to align everything the manufacturer says. You cannot take this risk. It is not sustainable in the long term. But, remember that maybe the biggest make differential is the Dealer”.

The Speaker thinks it is vital to create rituals, small gestures that indicate all respect you dispense to the customer.

Things that he will always remember with satisfaction of your service, that is, your differential. Cláudia also considers essential to establish performance indicators in the generation of positive experiences on the part of your employees, arguing there are several techniques in this sense. “We must to also worry with people, not with products only. It is necessary to get prepared today for the experience that your company will provide in the future and that certainly will have a technological base much larger than today”, she concluded.

OPINION “It is the first time I come to a Fenabrave Congress, but can assure you that I intend to come back. After attending several speeches, I can say that will take to my city a very large baggage with solutions and alternatives to apply in all areas of my business, either in people, sale of parts or services. It really was worth it.”

Gino Dias, Tractors Dealer in Jaú (São Paulo).

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“I believe it is important to be here at Fenabrave Congress to open horizons, begin to understand the company as a prism of change. The focus is changing, so it is necessary to accompany companies’ behavioral trends. I can bring what I learn here to my company”.

“If I practice at least 10% of what I’ve learned here in these three days, my participation in the event will have been paid off. It is my sixth Fenabrave Congress and the level and themes of speeches pleased me very much. It is getting better.”

Walter Bondignon Filho - Oimasa Orlândia – Dealerships in the interior of São Paulo and Goiás.

Luiz Alberto Gotardo, Tractors Dealer in Tangará da Serra (Mato Grosso).

RELATIONSHIP AND BUSINESS! O

Inaugurando a ExpoFenabrave 2012, Luís Mathias (Itaú), Alarico Assumpção Jr. (Fenabrave), Flávio Meneghetti (Fenabrave) e Juan Pablo De Vera (Reed Exhibitions Alcantara Machado).

ccupying an area of 15,000 m² in the Blue Pavilion of Expo Center Norte, in São Paulo, the ExpoFenabrave 2012, the largest trade show of the automotive distribution industry in Latin America, brought together more than 70 exhibitors presenting products and services for the Chain of Dealers. For the fifth consecutive year, Banco Itaú was the Master Sponsor of the event.

Several segments were represented at the trade show, such as computer, machinery and equipment companies, insurance companies, vehicle manufacturers, F&I and financial institutions of vehicles.

The more than 2,500 visitors who passed through the exhibition between August 16 and 18 could check the news and also socialize with suppliers and other Dealers.

At the official opening ceremony of ExpoFenabrave 2012, held on the evening of August 16, Flávio Meneghetti, President of Fenabrave, Alarico Assumpção Jr, Executive President of Fenabrave and coordinator of the XXII Fenabrave Congress, were accompanied by the Vice President of Banco Itaú, Luís Otávio Matias and the CEO of Reed Exhibitions Alcantara Machado, Juan Pablo De Vera.

In his speech Meneghetti highlighted the growth of the trade show each year, leveraging a turnover of sales that results in the generation of new partnerships, strategic alliances

aimed at economic development and the entire production chain of the automotive industry. “We are here today because we have common interests. On one hand, we, Dealers, and more than that, the industry entrepreneurs, need to learn new management tools, innovative products and services that add value to our business”, he said.

The President of Fenabrave drew a comparison of the success of ExpoFenabrave with similar event organized by NADA – National Automobile Dealers Association, an entity equivalent to Fenabrave in the United States. According to the President, Fenabrave is on the right track and will soon be able to achieve the same dimensions of the event held by the North-Americans, “where Assemblers, Dealers and other partners of the automotive chain are together, united and aware of what is needed to broaden the horizons and partnerships so that all businesses prosper. United, in the same direction, we are traveling the same road in Brazil. And I believe we are on the right track”, he added, noting the large presence of Manufacturers and entities of the industry and F&I companies, which have expanded the participation in the event. “It also makes me proud to see here vehicle assemblers and industry entities that are aware of the importance of relationship between chains and manufacturers”, he said.

Check, hereafter, how was the companies’ participation in the 22nd edition of ExpoFenabrave: Dealer Magazine

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PATROCINADOR MASTER SPONSOR MASTER

Master Sponsor of the Congress and the ExpoFenabrave for five years, Banco Itaú built a broader and more open in the 2012 edition. With the theme of football, reinforced by the fact that Itaú is the official sponsor of the national team and the FIFA World Cup 2014, the area had a large giant soccer ball and tablets scattered throughout the exhibition are of the company exhibition, where visitors had access to iCarros, the largest automotive portal in the Country, and other sites of their interest. “In addition, we brought the pilots Christian Fittipaldi, Cacá and Popó Bueno who currently run in the Fiat Cup, also sponsored by Itaú, to autograph caps for participants and take pictures with them”, detailed the Vice-President of Banco Itaú, Luís Otávio Matias.

According to the executive, each edition of the event is perceived as an improvement, not only quantitatively – since every year the number of participants increases – but also qualitatively. “People come to the trade show knowing what they want, interact, exchange ideas, give suggestions, question the suppliers. And this is very rich. Moreover, the industry specialists’ speeches are more and more complete.

They show the market trends, offer tips, and, finally, really add value and knowledge to those watching”, he said.

Regarding ExpoFenabrave, Matias evaluates that the exhibition also improves every year. In his analysis, the booths are more sophisticated, exhibitors are investing more surpassing the visitors’ expectations. “This is the most important event of the vehicle distribution industry in Latin America and one of the largest in the world, then, it automatically attracts the main industry suppliers and customers. It is really an event to catch up with the market news, the competitors’ news, present your and, of course, have the opportunity to strengthen relationships with your customers”, said Matias.

For 2013, the Vice-President of Banco Itaú intends to strengthen the partnership established with Fenabrave for the realization of events. He said that the 2012 edition success has already created new expectations for the next year. “Every time we participate in the event we come up with new ideas, create new strategies and it enriches our operation. We evolve every year and this sensation of improving with each event causes us to achieve our expectations”, he added, stating he considers important the company participation in 2013. “The importance of the event for our stakeholders is one of the factors that drives us to be present always”, he concluded.

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General Motors ASSEMBLERS

AUDI “In 2012, Audi Brasil participated for the fifth time in the ExpoFenabrave. The business effectiveness in the event was very positive and we had opportunity to publicize the models recently launched in the Brazilian market, such as Q3 and the R8 GT Spyder.

During the three days we could further enhance the image and attributes of Audi make, besides doing great businesses with corporate groups interested in being Audi dealers. This result is positive as one of the key strategies of Audi Brasil is expanding its territorial coverage in order to reach the sales figures estimated for the coming years. Audi Brasil recognizes the importance of Fenabrave Congress and hopes to participate in future editions of the event. However, its effective participation is conditional upon the marketing situation of the Premium segment”.

“Chevrolet / GM do Brasil has participated annually in the ExpoFenabrave and was present also in the 2012 event, because it is the main Brazilian meeting bringing together all dealerships we have in the country. Besides, we have the possibility to present the novelties of 2012 Chevrolet line, which altogether will be seven new models, a real record of our make in 88 years of operations in Brazil. We also considered an excellent opportunity to present the novelties regarding the customer service and become closer to all members of the Dealership Chain. And, finally, have a closer contact with people and groups who are interested in our Chevrolet make. Therefore, this year’s event fully achieved the objectives we were seeking with our participation.”

Gustavo Colossi, Marketing Officer of General Motors do Brasil.

Leandro Radomile, responsible for Audi Brasil.

MAN America Latina FIAT “A ExpoFenabrave é de grande importância para a Fiat. Durante o evento temos a oportunidade de apresentar/demonstrar os lançamentos; interagir com nossa Rede de Concessionários, além de estabelecer contato com grupos possivelmente interessados em nossa marca.

Sem dúvida o formato – feira/ congresso facilita muitíssimo nossa participação.”

DAF Trucks “DAF Trucks participated for the first time in the ExpoFenabrave. The exhibition was very positive for the company due to the specific public of Dealers’ segment. DAF was able to prospect new business and expose its top of the line truck, the XF 105. The Congress was also quite profitable, with excellent speeches.

I believe that to further optimize the event the Congress participants should have more time to visit the exhibition. Another suggestion would be to change the schedule for the weekdays. DAF Trucks Brazil hopes to attend the next ExpoFenabrave certain to obtain new opportunities to diversify investments and businesses.”

Luiz Caparelli, Dealership Development Officer.

“Since it was created in 2009, from the integration of Volkswagen Trucks and Buses to MAN Group, MAN Latin America has always made a point of attending the ExpoFenabrave. And, as in other years, the results prove the success of the decision.

We took advantage of the exhibition to highlight the MAN TGX “Made in Brazil” released this year, and the receptivity was extraordinary. Throughout the event we achieved a significant number of visitations at our booth, including dealerships of our Chain, where we were able to further narrow the relationship.

Congress also provided an excellent environment to expand knowledge with its agenda and high-level content. To complete our success in the event, we were voted the Most Desired Make of Brazil in the segment of Trucks and Buses. We couldn’t be more pleased!’.

Ricardo Alouche, Chief Sales, Marketing and PostSales Officer for MAN Latin America.

Volkswagen “Over the past four years Volkswagen of Brazil has joined the ExpoFenabrave, an event that, in addition to integration, provides the opportunity to Dealers address their projects and maintain a straightforward relationship with the Assembler. The event also propitiates the Assemblers to publicize their projects and strategies to the market. Volkswagen of Brazil verified the strength of that interaction and had the opportunity to expose and publicize its new Modular Concept of showroom to be implemented by Volkswagen Chain, besides exposing three models produced within the Blue Motion Concept”.

Dieter Strass, Officer of the Chain Development Area.

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GOLD SPONSORS

ASSEMBLERS

Randon “This is the first participation of Randon as an exhibitor at ExpoFenabrave. The event is always very important and, every year, brings relevant topics, besides a very good Dealers participation. For the company, the event highlights were: Organization, speeches contents and networking, as we’ve made good contacts. We created a very simple booth to welcome visitors, but very functional.”

Vanei José Geremia, Sales Officer of Randon S.A.

Case IH

Up to press time, Case IH, Hyundai, and Nissan didn’t send their comments on their participation in ExpoFenabrave. However, Dealer Magazine reports the presence of these assemblers, to which thanks for the participation.

Hyundai

Assurant “ExpoFenabrave is the main reference for those who want to do business. Each year the attention of participants grows in relation to the fair, as well as their allocation of time for visits and discussions in the booths. This year wasn’t different. The event broke attendance record (2,500 exhibitors representing nearly 120 makes).

The themes and discussions presented at the Congress showed well the moment the industry experiences and its respective trends. For this reason, ExpoFenabrave is a great showcase for the latest news in the industry of services for Dealers.

Besides showcase, ExpoFenabrave works as a repeater of concepts and strategies that are known to contribute to the financial health of entrepreneurs who invest in a concession. It’s a virtuous cycle. Participating in the event made us to exercise even more the relationship with our partners and prospects.

The fair gathered the major players of the segment, and a joint effort with the exhibitors, managed to present to Dealers the new concepts and methodologies to leverage F&I operations (financing and insurance). With the recent changes in the economic scenario which resulted in the reduction of financial return do dealers (return paid by banks) it is time that we from the F&I industry always announced: now is the time the insurance companies will contribute more significantly to the profitability of Dealers. There is no more room for Dealers to relinquish this recipe, giving third parties the possibility of profit in this segment.

However, we also continued to argue that if there isn’t an entrepreneurial mindset a concrete involvement of the Dealer in F&I operations the goals will never be achieved.”

Fabiano Telatin – Officer for Automotive Area, Assurant Brazil.

Nissan

Resource Automotive “Our participation in the ExpoFenabrave 2012 has exceeded all our expectations, as we had a larger number of visitors compared to 2011, which gave us the opportunity to foster a closer relationship with Dealers and also present our portfolio of solutions for the automotive industry. Besides the Extended Warranty Insurance, product responsible for leveraging the company to the position of world leader in after-sales solutions for the automotive market, in our booth we presented a full portfolio of F&I products, such as: Financial protection insurance, personal accidents, tires and wheels protection, Q-certified, certification program for second-hand vehicles, GAP, which protect the consumer in purchases financed, in addition to the 24-Hour Vehicular Assistance and the DriverPlus, maintenance program and customers retention. We’ve made various business contacts which will be worked on throughout 2012 and 2013, and strengthened relationships with our current customers from all over the country who attended the event. We understand that the major challenge of automotive industry is recovering profitability because besides suffering a stiff competition, Dealers’ margins decreased. Our most important role is to help them in this matter. We, at Resource Automotive, offer all these solutions in a single company meeting all needs and taking care of the F&I implementation in your dealership end-to-end. Fenabrave Congress, as well as ExpoFenabrave, fosters the experience exchanging among different publics that make up the national automotive industry. Participating in these two events allows a rich exchange of experiences, bringing the industry latest news and expectations through professional experts on the subject. So, in 2013 Resource Automotive will be the Gold Sponsor of the event for the sixth consecutive year.

Welson Bolognesi, CEO of Resource Automotive Brasil.

CarClick

SILVER SPONSORS

“With less than a year of existence, CarClick® began its successful journey in a big way. Proof of this was the outstanding participation in the most important exhibition of the automotive industry in Latin America, the ExpoFenabrave 2012. The event fostered the approximation, a closer relationship and exchange of experiences with Make Associations, Dealers and Assemblers; in our booth we welcomed authorities, journalists and executives of the most renowned companies that effectively participate in this industry. The public had the opportunity to find out what is CarClick®, a different portal of classifieds for second-hand cars exclusive for dealerships that publishes unlimited inventories, offers a smart search for vehicles, 12 photos per ad, integration with other classifieds sites and with dealership management software, and more. Anyway, with so many positive attributes, we could only harvest great results, because in addition to the closing of important deals, many other negotiations were initiated, which justifies the investments made at ExpoFenabrave 2012”.

Cetip and CNseg

César Fabretti, Marketing Manager for CarClick.

F&I Brazil “F&I Brasil participates of Fenabrave Congresses for the last 10 years, in the beginning as speaker on F&I theme, and then, in the last four years, as exhibitor. It is amazing how the Congress has evolved year after year in terms of structure, attendance, content and importance to the distribution industry. In our view, the greatest Congress appeal this year was the central thematic of “Excellence in Management”, where everything whirled around this theme. The event was vibrant and allied the proposal of a programmatic content of high wingspan with an aspect of networking among friends.

Fenabrave booth was in charge of conveying this spirit of networking among friends. F&I Brasil decided to innovate this year bringing to ExpoFenabrave a thematic booth – ‘F&I Cine’,–through which we presented our proposals and innovations in a creative and fun way. The greater attraction of our booth was the SPF product that yields to dealerships R$ 550 per policy, as well as the F&I Software, our superstar. Our booth was a success, we attracted a remarkable interested public. It was certainly our best participation ever. We will work to do even better in 2013”.

Marcos Moreira, Officer of F&I Brasil.

Usebens Seguradora “Usebens Seguradora is one of the Gold Sponsors of the event. We have participated in ExpoFenabrave for eight years now and, as in previous years, in 2012 the trade show has evolved and the number of exhibitors and participants too. For futures editions, it is very important to maintain a rigid posture of independence among the thematic content and the chosen speakers. This is the only guarantee of credibility to the addressed themes. If a Sponsor can add value, it should be chosen by the ethical sense of its relevant role. Fenabrave should remain strict in the practice of Governance with the relationship with their Sponsors and their involvement in the thematic aspect of the Congress. With respect to the trade show, the event reached our expectations and we’ve made various contacts during the exhibition days. We can highlight the strategic partnership signed with BMG that will offer – to their portfolio of customers and partners - a platform of insurances of Usebens Seguradora, which aggregates products and services created exclusively for the Brazilian market. This partnership is strategic for Usebens, however, it is important to emphasize that we will keep our identity and hegemony in this market, where we are born and have tradition. Usebens will always maintain its way of operating, based on the basic principle of brutal simplicity in insurance within dealerships”.

“ExpoFenabrave gathers several similar institutions with which Cetip and CNseg are related, since every day thousands of people in Brazil acquire a vehicle through a financing and are benefited by the National System of Encumbrances (SNG) and the Registration System of Vehicle Financing Contracts (SIRCOF). The solutions offered by Cetip in partnership with CNseg foster safety and agility in the whole process of vehicle financing. At the booth of Cetip and CNseg Fenabrave participants could learn more about the systems that control the vehicle financing and also get to know some services offered by CNseg, such as the Borders Project (Projeto Fronteiras), the SIBLOQ and the initiatives to preventing against insurance fraud. The Borders Project is a public-private partnership between the Federal Government and CNseg that allows the identification of moving vehicles by reading the plate (which is done by means of high-resolution cameras), allowing the verification in real time the regularity of vehicles against the database to detect any irregularities. The SIBLOQ is a service that helps companies to comply with the ‘do not disturb’ law, since it consolidates – in a single database – the telephones of all consumers who do not want to be disturbed by active telemarketing calls (selling products), registered by the own consumers in the state and municipal PROCONs that have already implemented the mentioned law. And, believing that fighting fraud is to act in favor of the consumer and the society, CNseg has initiatives to prevent insurance fraud, which also could be known by ExpoFenabrave visitors. The participation for the second consecutive year in ExpoFenabrave provides a greater performance among CNseg and the institutions with which it interacts on a consistent basis.”

Ricardo Romeiro – Chief Officer of CNSeg Banks and Financial institutions.

JM&A Brasil “This was our second year JM&A Brasil participated in ExpoFenabrave and we noticed that the public attendance was clearly higher against the previous year. The booths had more elaborated designs and the number of exhibitor increased, again strongly influenced by the F&I providers.

We had a larger booth filled with all our products released, unlike last year when we only announced our entry in the market. We focused on showing the Dealers how an office of F&I should be, from the setting up to the process simulation, in order to establish a friendly relationship with the customer and present the flow of sales.

The event reached our expectations, our booth had a good traffic, Dealers made good questions and we guaranteed sales meetings with prospective clients interested in creating an F&I office to increase their profits. We are already doing plans for next year event, we want a larger booth, a better location and to expand our sponsorship to Gold in order to supporting Fenabrave and dealerships. We know this is an excellent Marketing opportunity, the ideal place to meet and establish new relationships with dealerships and other industry professionals.

The Congress is a great channel for Dealers learn about new market trends, visit partners that can help them and, of course, attend the many speeches that are offered. Overall, our evaluation grade for the event is 8 and, to continue to grow, it would be great if we could see more activities in the trade show as opposed to focus mainly on the seminars. There are many partners, tools and resources of interest to the Dealers, besides the seminars.

The main attractions of the event for the Dealers are the seminars, professional updating and the chance of learning about the current trends and market opportunities. It is important for the Dealers to be ahead of industry happenings and this event provides that.

Travis Mazza, Commercial Vice-President of JM&A Brasil.

Marcella Verdi is the Vice President of USEBENS Seguradora Solução em F&I. 88

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Indiana Seguros “Liberty Seguros, through its Indiana make, participates in ExpoFenabrave for 12 years now (since 1999). Every year the event participants, exhibitors or visitors, are surprised by an event attended by a highly qualified public, interested in the business which Indiana intends to present or develop. Each year, the organization and conversations, speeches, round tables and presentations are more and more constructive.

ExpoFenabrave is an excellent opportunity to be closer to our partners, enabling better knowledge of the segment, which includes sales, growth outlook, and impacts, among others.

The Congress has been improving with edition, every year. The organization raises important issues and proposes interesting and key speeches for the Dealer segment.

Indiana invested in a visually attractive booth to the participants.

Indiana booth location, near the trade show entrance, favored the make, enabling contacts with our partners right at the entrance to the pavilion. We are very pleased with our participation. It was possible to learn the segment trends and also talk to partners and customers.

The make handed out informative folders about their products, pens and interactive activities through a game available in tablet. The activity participants competed for kits with football mini-balls, promotional T-shirt and bag. Liberty Seguros and Indiana were positively impacted by the event. For us, participate in ExpoFenabrave is strategic e essential, since it is the Dealer channel to the main point of contact between Indiana and their market. For this reason, the trade show presents itself as the ideal event for us to interact with the industry, learn the market trends and what the market players consider essential, and apply this information to our processes and products”.

Paulo Russo, Dealerships Channel Officer of Indiana Seguros.

EXHIBITORS

2Process “Three years ago as an exhibitor at ExpoFenabrave, 2Process, pioneer and market leader with a specific system for F&I management, has expanded significantly its customer base and national coverage after the first exhibition. For this and other reasons, we continue to believe in the importance of participating in the event which is a national reference in the automotive market. We had more room in our booth, as well as a better service and communication interactivity, new technological solutions and we also presented cases of success in our consulting. Based on this year experience, we’ve noted the increasing importance of dedicating time to quality of booths and their media; therefore, we’ve already booked our space for the next edition.”

Victor Vilanova, CEO of 2Process.

Dealernet “Dealernet participates in ExpoFenabrave for eight years now. In 2012, we made a very positive evaluation of our participation, as the visits to our booth increased and we were very pleased with the feedback from our customers and new contacts. At ExpoFenabrave we have the opportunity to meet customers, partners and friends conquered over our 22 years of history in this industry. We were on a prime location of the Expo and built an island-shape booth to welcome all comfortably. People who visited us enjoyed our traditional acarajé and were given a personalized caricature made by Toni D’Agostinho, which proved to be something interesting and fun to offer to the attendees. In accordance with the central theme of the event, this year we released the new revolutionary system Dealernet Workflow that allows the management of dealership processes to be more effective and profit to Dealers through a better monitoring of their employees activities. Our visitors could watch a demo of Dealernet Workflow performed by one of our consultants and, therefore, see how they can improve their operational performance. This annual meeting is already a trademark of the automotive industry, where everyone can attend speeches, learn market recent news, and make new contacts that can generate new business and partnerships. We will be there next year, surprise us with great news!”.

Paulo Monteiro, Commercial Officer of Dealernet.

ABAC “We participated in ExpoFenabrave between 1998-2005 and this year. For us, the main strengths of the event were the themes of speeches, speakers, location and specific public. We prepared a booth with future sale attractive items to the Chain, customers’ loyalty, higher traffic at dealerships, increase of profitability and the certainty the mechanism is important for stability and sales increase, in addition to having used a reprint of an article published on Dealer Magazine as a booklet inside our Sistema de Consórcios (Consortia System) magazine. With that we understand to have reinforced the consortium concept as future sale, customers’ loyalty, traffic at dealerships, and profitability increase, among others.

We intend to participate in the next edition, as this year the event reached our expectations, particularly in the aspect of relationship with Dealers from all over the Country, when the consortium one more was indicated as an important range of services rendered to their customers. We’ve made good contacts and, in the case of press office, we strengthened relationships with various journalists who cover the consortium segment and also the automotive industry. ABAC participation in ExpoFenabrave, as representative entity of Sistema de Consórcios magazine, turns the mechanism increasingly present and important to those who use it as a marketing tool for their vehicles”. Paulo Roberto Rossi, President of ABAC.

Audatex “Audatex participates in ExpoFenabrave for three years now. In our view, the event was very good, better than last year.

However, as to the date chosen (Thursday-Saturday) we prefer the previous edition logistics (Wednesday-Friday). This year we took to our booth the new units of business of Grupo Solera (in addition to Audatex we presented the Inpart and the AUTOonline solutions to the expo visitors). Our objective this year was to expose the company to the market, strengthen the brand through strategic partnerships and attend the workshops. We’ve made contacts, closed some deals in the event and intend to participate in the next edition in 2013”.

Luiz Nassif – CEO Grupo Solera / Brazil.

BNDES TOTVS Up to press time, TOTVS didn’t send their comments about their participations in ExpoFenabrave. However, Dealer Magazine reports the presence of these Supporters to which thanks for the participation.

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“BNDES has participated in the Fenabrave Congress and Expo since 2011. This year we highlight the 2012 edition theme – Excellence in Management - as essential in face of the current challenges of the industry. The knowledge and debates provided during the speeches are undoubtedly a strong point of the event and its widening and deepening should be considered in future editions. The presence of the Bank aims to promote its financing lines, notably the BNDES PSI (acquisition of vehicles, machinery and equipment) and the BNDES Card (for acquisition of inputs for the production chain), clarify and support the work of exhibitors and buyers in their use. And, also, to observe trends and opportunities aiming a better suitability of the Bank financial products to the industry reality. The event as a whole was successful and BNDES intends to be present in future editions.

Juliana Santos da Cruz , Head of the Department of Relationship with Financial Agents and other Institutions – AOI/DERAI.

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EXHIBITORS

Construtora Tempo “This is our second year at ExpoFenabrave. This year the trade show was better businesswise, with the presence of our management every day. Booths were roomy and better designed. The space had more comfort for visitors. The speeches, dealership group representative visits and coffee-breaks were pleasant and tasty, as well as the restaurant which accommodated all without turmoil. Reed organization was always ready to help us with all details, as well as Fenabrave staff present. This year Construtora Tempo booth was practically twice the size of last year. Sometimes we had to meet our visitors on the corridors and took advantage of the crowd to distribute giveaways, flyers, folders, without mentioning the delightful happy-hour that we offered. At ExpoFenabrave we rediscovered people with whom we closed deal in the show trade of 2011 and they were extremely pleased with the work provided by Tempo in their works. We started new relationships with the industry entrepreneurs and are already scheduling visits to them for their coming undertakings. We always participate in the event for the opportunities we have to open new markets, mainly North-Northeast, in the widespread dissemination of Tempo as the largest construction company of dealerships of light and heavy vehicles in the Country, besides the good relationship and closeness with the board of Fenabrave and other Associations. For 2013 we have already booked the same space and physical location at ExpoFenabrave.”

Mauro Mendes, New Business and Commercial Manager for Construtora Tempo.

Continental Pneus “We participate for the second time in ExpoFenabrave, an event that we understand as an optimum channel to initiate or narrow up relationships, as well as to present our modus operandi in the aftermarket to prospect Dealer-partners interested in incorporating our extensive line of tires in their portfolio of products and services offered to their customers. Our booth visitors – that reflected the Continental environment concern using only environmentally friendly materials in its construction – got to know our line of ride and cargo tires and also, firsthand, our line for motorcycles, a new segment that the company is now operating in Brazil. Our portfolio – integrated by eight models imported from Germany – was welcomed.

Renato Sarzano, Sales Managing Officer for Continental Tires in Latin America.

“In this edition of ExpoFenabrave, Leone presented two products to visitors: Nitrogen Generator and Calibrator Equipment for Light and Heavy Vehicles. This equipment is a standalone unit for calibration of 4 tires simultaneously, a new service to offer to customers and get their loyalty, due to the return for recalibration. For the customer, the benefit is the best use of the tires and the best effectiveness of fuels. Besides that, we also presented the LEONE Double Scissor Lift, equipment with excellent productivity gain for the auto repair shop, once it saves floor space in the facility. This unit is also built-in the floor, what make it easier and reduces leeway. We assess the event as very good and well organized.

However, it is necessary to organize better the visitation flow thru the trade show, in order to generate better contacts and results and give more prominence to exhibitors with small spaces. A suggestion is to place these suppliers on an island in the central area, with the sponsors in the surroundings. However, we made contact with new customers with whom we hope to make business. We’ve participated in this event since the first editions, and the ExpoFenabrave is part of our annual calendar of events. For next year, it should not be different.”

Rafael Álea –Marketing Manager, LEONE Equipamentos.

LINX “This was the second time Linx participated in ExpoFenabrave. In other years we participated through the acquired companies (Dia System, CNP, and Spress). This year we noticed a decrease in movement at ExpoFenabrave. The flow of people was lower than the previous year, but the organization was very good. In general, the evaluation of our participation in the event was positive. We believe that there are more ways to encourage the flow of people at the Expo.

Another point is the lunch. Too expensive for what it was offered. Thus, as last year in the trade show, Linx presented its management solutions to the automotive distribution market. We exhibited the advantages and benefits that our software (called Linx DMS) offers to Dealers, and also showed the Linx DMS Mobile, customized application to use in smart devices, such as tablets and smartphones. We believe in thinking and developing technology to make business more profitable and, in this context, our solutions provide agility and assertiveness to industry professionals, offering increasingly more excellence to management. On occasion, we made important contacts and it was a great opportunity to establish Linx as a leader in the segment. It is time to show our novelties and identify market trends.

Rodrigo de Sena Gouvêa, DMS Market Relations Manager for Linx.

Gedore

Lupus

“The 2012 edition was our second participation as an exhibitor at ExpoFenabrave. In the two editions which we participated what caught our attention was the impressive number of participants. We recognize the event potential, by the quality of its public who visited our booth and the strong demand for our products to equip the dealership auto repair shops. Our participation in the trade show was focused on making their presence known in the automotive market, which we consider to be one of the main segments of success for Gedore in marketing tools for light and heavy vehicles. In this sense, the intention is to demonstrate that our portfolio of products comprises tools commonly used at small shops, tools of specific application for maintenance, assembly and mass production of automotive vehicles, and offers special solutions developed according to customers’ needs. In fact, we can highlight that our differential is the development of highly technical tools, with the certainty of presenting the right product to fit every demand and the peculiarities of each situation.” Luis Abilio Marques, Tools Marketing Coordinator for Gedore.

“This was the first year of Lupus as an exhibitor. In other years we always attended as a visitor. In our first year we left with high expectations, as we made important contacts. At ExpoFenabrave we met a public focused and interested in the products exhibited. As a differential we can highlight the assembly of products for the exhibition, when we presented a model of Bulk Oil Change (with spools, hoses, triggers) and a model of Disposal of Used Oil, (double diaphragm pump and pressurized collector) offering the visitor a vision of how these products would be in their dealerships, gas stations, etc., eliminating, therefore, messes, and letting them in compliance with the environmental rules and a site more clean and neat.

We also brought our new line of air conditioning gas recyclers, gearbox oil exchange, and cooling fluid exchange. This was a very special public-driven event that requires attention, and nothing better than a Congress/Expo to achieve that goal”.

Lupus Equipamentos para Lubrificação e Abastecimento.

L & Silva Consultoria (MAPFRE) “This is our second year of participation in ExpoFenabrave, already with reservation guaranteed for 2013. With respect to 2012, the event was better, richer, gave more prestige to the public and offered more comfort. As strengths we have the excellent infrastructure of Expo Center Norte allied to the captive public, who is always in search of news. Grade 9 to the organization of Fenabrave this year. It was really a very good event. Points to be improved. I say that most people go to the Congress only, not visiting the entire trade show. This should be verified; and, just as there are interesting events and speeches in the Congress, the same should occur regarding the exhibitors: we are certain that the entire public visit the booths, and all booths. This year our booth was modern, with room for presentations, TV, minibar; we held many meetings in that space and it helped our negotiations. On a TV we divulged our services for Dealers, training for salespeople, managers and even for dealers. The event reached our expectations, was productive, we made good contacts and expanded our networking. The event fulfills well what is promises, in this regard. This year we made good contacts, closed some contracts important for our company, conquered new customers. Next year we will there again with full power and ready to prospect new opportunities. We certainly have an area reserved already.”

Luciana Campos, CEO of L & Silva Consultoria (Mapfre).

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IQA “The event evolves every year and, in 2012, this trend was confirmed at ExpoFenabrave. This was the fourth time IQA participates in the trade show, and, once more, there was quality, exhibitors’ relevance and good content in the Congress. This year we brought to the expo possibilities of certification and trainings to Dealers, such as management tool and market differential, in addition to clarifications on recent Inmetro ordinances that establish mandatory certification for automotive components.

ExpoFenabrave reached our expectations and we presented the IQA at the event, as well as the Automotive Quality for publics that were not fully updated. Our goal participating in the trade show was to present and disseminate information on quality in the automotive industry for dealers and their service providers, as well as to honor the main event of Fenabrave, founding entity and member of IQA Board.

Alexandre Xavier, New Business Manager for IQA - Instituto da Qualidade Automotiva.

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EXHIBITORS Isoflex “Isoflex participated for the first time in ExpoFenabrave in 2012. We brought a tool for the visual inspection of work progress in auto repair shops. We had very few visits compared to the number of attendees present. Now we will release the institutional video of the product in Youtube, elaborate the institutional folder and publish in the Dealer magazine”.

Gilberto Antônio Hartmann, Officer of Isoflex.

Magic Brazil “This was the first participation of Magic Brazil in ExpoFenabrave. We are pleased with the organization and high level of public (Companies, CEOs / Presidents, Officers and Managers). We brought our products to exhibit at the trade show, such as shirts, caps, T-shirts, and jackets, among others. Magic Brazil had a first-line collection in the segment for companies that seek to value their brands applied on shirts or any other item within our product line. We were the only company in the business of customized products to participate in this event. For the next editions we intend to bring innovations in our line of products manufacture to reach new customers. Overall, we approved the event and, if we had to give a grade, it would be 10 because everything was great and we attended an event of the highest level, presented our line of products for future and current customers from all over Brazil.” Luiz Carlos Kruger, CEO of Magic Brazil.

MicroWork “MicroWork participated for the fourth time in this very prestigious and renowned event. Each year that goes by the visibility and importance are becoming more evident, which makes participation fundamental, as it provides visibility, new business opening, brand strengthening and opportunity of new strategic relationships. In summary, we rate it 9, since it is increasingly important to strengthen the participation of all markets, such as the motorcycle. During the event we presented the largest portfolio of own developed solutions during 17 years; we have become a solid company and with the best solution for groups of dealerships. Many customers visited us and arouse the interest of various Dealers. Now we just to strengthen these relationships and prepare ourselves for the 2013 edition, with new ideas. Thank you for visiting us and until next time.” Francis Rodrigo Alves – Business Consultant - MicroWork Softwares.

Sindipeças “The National Union of Motor Vehicle Components Industry (Sindipeças) participates in various events of automotive industry. Thus, it represents its members, about five hundred autoparts manufacturers situated in various Brazilians states. The presence of the entity at ExpoFenabrave in 2012 was the second time. Previously Sindipeças had participated in the trade show in 2008 in Paraná. Sindipeças understands that its presence help to strengthen the links of automotive chain and is at disposal”.

Sindipeças - National Union of Motor Vehicle Components Industry.

Syonet “With much more space, more organized and focused on the segment. This is how we describe the ExpoFenabrave 2012. However, more attention should be given to the price of the event itself and have more affordable prices. Next year we are planning on attending about three industry events and decline Fenabrave Congress that is becoming too expensive. As always, this year it also reached our expectations. The event always brings good business opportunities for Syonet. During the event we closed some contracts at our booth and are already closing others.” Aurélio Bardou Martins, CEO of SYONET CRM & GESTÃO DE CLIENTES.

Telecheque “It is the second consecutive year that TeleCheque participates in ExpoFenabrave which provides us great business opportunities. Our goals was to show how the check can be a secure tool for dealerships offer credit to their customers.

TeleCheque drew a lot of attention from the attendees, as the TeleCheque Garantido benefit is a great differential to finance the vehicle down payment. We took advantage to reinforce that the check is the only tool of credit that allows customers choose when they prefer to make the payment, besides offering flexibility of direct negotiation between dealership and customer – whether for acquiring vehicles, parts and accessories or to pay for technical assistance services. The event organization strategy of placing the coffee-break on the booth corridors allowed greater flow of people to the booths, providing the companies with the possibility of greater promotion of their products and services. Another strong point of the event was the number of people registered for the Congress, facilitating to the exhibitor make a well-directed approach of their business”. Flávio Vaz Peralta, Vice-President and Commercial Officer of TeleCheque.

Anfavea and Qlink Up to press time, Anfavea and Qlink didn’t send their comments on their participation in ExpoFenabrave. However, Dealer Magazine reports the presence of these Supporters to which thanks for the participation.

MOC Automotive “MOC Automotive has been in Brazil for almost two years, and participated in the last two editions of this magnificent event that is the ExpoFenabrave, and every year it surprises us with a public fully qualified, market news and excellent moments of interactivity among visitors and exhibitors. We took the opportunity to expand our networking and expose our brand in the automotive market with our differentiated products and programs that maximize profit in the after-sales department without any investment, what allows us to be grateful and await the next partnership MOC x ExpoFenabrave.”

Sônia Canisares, Head of UniMOC Brasil.

NBS Informática “For the fourth time we participated in ExpoFenabrave, the only event in the Country that brings together professionals from the industry. This year we brought to the trade show new products that were well assessed by customers who visited us.These two events are important because we made good contacts and promoted our products, besides keeping us updated with the industry news, as well as the speeches of the Congress.”

Antonio Orione – Commercial Officer – NBS Informática.

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Lifestyle is popular among the attendees Once more, Lifestyle, traditional space in ExpoFenabrave, was a hit among the attendees who circulated through the trade show. This year, the area dedicated to relaxation and leisure, offered special services during the breaks between conferences and booths visiting. Attendees who visited Lifestyle counted on manicure, quick massage and also Thai Reflexology – old technique that focus on specific points of the feet and are connected to the individual’s organs and aims to assist the energy movement in a particular body area, releasing stress as an additional effect.

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EXHIBITORS

Typical dishes and resort atmosphere attract public to Fenabrave booth.

Flávio Meneghetti greets the Randon couple and gives interview to Abracaf TV.

FENABRAVE BRAZIL SPACE IS A SUCCESS AT THE EXPO With a charming and welcoming style, Fenabrave booth at the Expo became a true meeting point for attendees who circulated through the trade show. The Fenabrave Brazil Space had its concept developed with regional touches and consisted of an open and inviting format for visitors to enjoy a regional menu especially prepared for the event.

Waiters, with special costumes for each day of the event, served acarajés, cupuaçu juice, mate, and feijão tropeiro, quibebe with dried meat and pumpkin, and vatapá. Without mentioning the desserts that also followed the same theme: canjica, coconut candy, doce de abóbora, coconut queijadinha, and baba de moça. “We wanted a space that would bring together all regions of Brazil in a single house. This is Fenabrave!”, said its President, Flávio Meneghetti.

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The booth highlight was Fenabrave TV studio mounted in partnership with Dtcom, where the journalist Débora Aguillar interviewed attendees, presidents of Make Associations, authorities, exhibitors and speakers. All material produced will result in a special event coverage video.

In addition to Fenabrave TV, Abracaf TV was capturing images and making interviews during the event for the official launching of the channel, which is scheduled for September and will offer a special programming directed to Fiat Network. Other Fenabrave products, such as the Twenty Group and Market Data, also had specific areas in Fenabrave Brazil Space, and also a service area for the participants of PAC- Cooperative Administration Program.

Dealer Magazine also had a special area in a booth attached to Fenabrave booth, available to receive the event participants and potential advertisers.

Abracaf TV conducted interviews at Fenabrave TV studio.

Executives in a relaxed mood in the Fenabrave booth.

Fenabrave staff and consultants celebrate the event success.

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Buffet França was in charge of the brunch.

CLOSING BRUNCH STIRS THE LAST DAY OF TRADE SHOW At the end of Clotaire Rapaile’s Keynote Speech, attendees who participated in the XXII Fenabrave Congress went to ExpoFenabrave area to join the brunch.

The event, that was a success of public and especially of booth visitation, was a pleasant way to honor the exhibitors who remained with their activities and received visitations until late afternoon, and with the public present, even after the end of speeches cycle.

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10 ANOS DE BRASIL

10 ANOS DE BRASIL

10 ANOS DE BRASIL