Revista Dealer Edição 38

38 October/November 2012

National Federation of Automotive Vehicles Distribution Bimonthly Publication

InOvAr-AUtO

New automotive regime aims to expand productivity and competitiveness of the Brazilian automotive industry

23rd FenABrAve COnGreSS

IntervIew

PrOdUCtIOn LIne

After the 2012 edition success, Fenabrave launches the 23rd edition of the event.

Cledorvino Belini and Flรกvio Padovan comment on both sides of the coin with the arrival of Inovar-Auto.

Y Generation reaches the consumer market and wants more connectivity in vehicles.

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editorial

A year of uncertainties for the industry!

Flávio Meneghetti President of Fenabrave

W

e are almost at the end of 2012, and this year can be considered a year of oscillations for the automotive distribution industry. We started the year projecting a sales increase for cars and light commercial vehicles and wishing for a recovery in the sectors of motorcycles and trucks. However, the market behavior, in face of the small internal growth and the reflection of the successive international crises, linked to the maintenance of high levels of delinquency, caused the sector performance – up to May – to project a negative growth for the year.

That was when the representativeness and participation of Fenabrave were important factors for that scenario reversal. Allied to ANFAVEA and the banking industry we interacted with the Government suggesting measures that could reverse the scenario that unfolded, threatening production and jobs.

The result of our joint efforts were the already known unencumbering measures announced on May 21 by the Government and maintained until the end of this year, including taxes reduction, interest rates, margins and release of compulsories.

As a result, we had a spectacular month of August for cars and light commercial vehicles, but still insignificant for other segments. We returned to the Government and got more incentives, new programs with Caixa Econômica and BNDES for motorcycles and trucks, respectively, and reached a month of October with recovery in all segments, though, in the accumulated, only the industry of cars and light commercial vehicles is out of the red in the licensing numbers of the year.

With prospects of a future evolution, on October 3, the new automotive regime called Inovar-Auto was announced to the Country which will be in effect between 2013 and 2017 and should leverage the technological development, the energy efficiency and help to restore the country industrial competitiveness.

38 October/November 2012

National Federation of Automotive Vehicles Distribution Bimonthly Publication

InOvAr-AUtO

New automotive regime aims to expand productivity and competitiveness of the Brazilian automotive industry

23rd FenABrAve COnGreSS

IntervIew

PrOdUCtIOn LIne

After the 2012 edition success, Fenabrave launches the 23rd edition of the event.

Cledorvino Belini and Flávio Padovan comment on both sides of the coin with the arrival of Inovar-Auto.

Y Generation reaches the consumer market and wants more connectivity in vehicles.

Enrolled in the program, the makes must conduct their developing plans to have access to the granted incentives.

And we believe that however much these measures will impact only in the medium and long term, they will bring benefits to the Brazilian consumers, who already aspire access to vehicles with greater energy efficiency and with an increasing technological innovation, worthy of first world countries.

Recently, I had the opportunity to see this narrowing of development borders by visiting the Paris Auto Show, France, and, a few days later, the 27th São Paulo International Auto Show, Brazil, and noticed how we are approaching world standards. Now we have the prospect of having products here with even more quality, efficiency and innovation. No wonder our Country configures itself as the fourth largest automotive market in the world and, for many assemblers installed here, we are already the second largest market in actual and potential importance.

It is a pity that this evolution of quality is not reflected in the heightened tax burden that penalizes Brazilian consumers. Unfortunately, Brazil plans to equate itself to the international standards in technological development, but we still don’t have a tax system compatible with what is happening in first world countries.

Thus, at the end of this year, we expect 2013 will be more optimistic, for which we project a GDP of 3.5%, with inflation under control and with the expected resumption of industrial production, so necessary for us to guarantee jobs and consumption in the country. Finally, we count on a drop in delinquency and a resumption of performance for all sectors of automotive distribution and the Brazilian economy.

So be it!

Good business, good reading and a great 2013 for all!

Dealer Magazine

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Cover Story matéria de capa

summary

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

Year 5 – Issue 38 – October/November 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

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Created with the purpose of encouraging technological innovation, reducing pollutants, and increasing competitiveness in the Brazilian automotive industry, Inovar-Auto will begin in 2013 and will bring a series of benefits to those manufacturers adapting to the rules.

Fenabrave Radar

6

radar fenabrave

Fenabrave organizes a technical mission to NADA in Partnership with Megadealer.

Discussion

18

debate

Merchandising is an effective tool for promoting vehicles.

Sustainability

sustentabilidade

30

Fenabrave TV promotes roundtable on environment and sustainability and shows how the market can be responsible with small daily attitudes.

Opinion

33

opinião

Consultant and Professor at FGV, Cláudio Tomanini, tells how to retain talents in the automotive industry.

Production Line

linha de produç ão

34

The Y generation reaches the consumer market and changes the way of selling cars.

Mobility

40

mobilidade

Know the work developed at Honda Traffic Education Center.

Economy

44

economia

Interview entrevista

14

Cledorvino Belini and Flávio Padovan comment on the Inovar-Auto program changes and on how it interferes in the operations of manufacturers already located in Brazil, of importers, as well as of the market.

State-owned bands respond to industry leaders request and release attractive credit lines for two-wheeler segment.

Connection

conexão

48

Open Space

66

52

Check out the novelties presented at São Paulo Auto Show

Portals of classifieds of vehicles gain market share.

espaç o aberto

Launches lanç amentos

Alcides Braga, President of Anfir, comments on the mandatory use of ABS in road implements as from 2013.

Commercial DNF Comunicação – Gutenberg Soledade Phones: (11) 2281-8134 and (11) 9169-7485 E-mail: dealer@dnfpropaganda.com.br 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

Download now on your tablet or smartphone – this edition of Dealer Magazine!

Collaborate in this edition:

Cláudio Tomanini and Alcides Braga

Dealer Magazine

5

fenabrave radar

Inbox

Twenty Group

After receiving several letters regarding the XXII Fenabrave Congress and ExpoFenabrave 2012, as published in Edition 37 of Dealer Magazine, Fenabrave is pleased to bring to its valued readers one more positive manifestation of the work of Fenabrave and its team.

Editorial Board

John Deere Chain adheres to the schedule

Dears: First of all I would like to introduce myself.

I am a Standards Services Consultant for Fiat; I develop this work through my company SW Consultoria e Treinamento, based in Porto Alegre/RS, and visit dealerships throughout the Country.

When I had access to a copy of Dealer Magazine of September/2012, with several articles on the XXII Fenabrave Congress, I was impressed by the clarity and objectivity of the guest speakers.

As well asserted the Officer for JM&A BRASIL, Carlos Brant: “In a meeting in which all Dealers knew which was the car daily sales in their stores, none was able to come up with parts marketing monthly figures, for instance. The dealer’s commitment will measure their rate of success. (sic, p. 37).”

Wagner Kmite and Osmar Hidalgo on “Optimal Inventory Turnover and Trade Policies”, as well as, Jon Lancaster on “How to grow during crises”, were assertive in their explanations, as well as other consultants and speakers.

It is rare to visit a dealership where the diagnosis doesn’t go through a lack of a broader vision of wasted opportunities. However, it is hard “to be a prophet in his own country”, therefore, we applaud Fenabrave for the XXII Congress and their choice of participants.

We also congratulate the editors of Dealer Magazine, September/2012.

Finally, we would appreciate more information on how to receive future editions of Dealer Magazine.

Best regards, Alexandre Wigner SW Consultoria e Treinamento S/C Ltda

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Events

Revista Dealer

With three groups, Assodeere - Brazilian Association of John Deere Distributors integrated 100% of its Chain to the Twenty Group offered by Fenabrave as from the agreement established with NADA - National Automobile Dealers Association, in 2010, “The first make group was formed in October and other two will be in January and March 2013. With that we’ve gathered all John Deere Chain in the Twenty Group,” said Diego Alvarez, Fenabrave schedule coordinator.

Alvarez explains that the first group formed is already in progress. “In a first phase, the representatives are drawing the economic and financial situation of the dealerships, which will be sent to NADA - National Automobile Dealers Association, giving rise to Composite – management tool that crosses data among members of the Group,” explains the coordinator.

New members – In addition to the Dealerships that are part of the Assodeere Chain, the Twenty Group is working on the formation of more groups in the Autohonda Chain Brazilian Association of Honda Dealers of National and Imported Motor Vehicles. “We are working now on the analysis of economic and financial situation of the Chain, in order to make it compatible with NADA standard,” explains Alvarez.

Fenabrave TV

Fenabrave organizes technical mission to NADA

2013 Outlooks at AutoData Seminar

Megadealer consulting, in partnership with Fenabrave, is organizing one more Technical Mission to take Brazilian Dealers to NADA Convention, which will be held in Orlando/Florida, on February 8-11, 2013. The edition 2012 gathered approximately 20,000 participants in Las Vegas.

The Technical Mission – consisting of Fenabrave leaders and affiliated interested Dealers – will have exclusive benefits, such as distinguished travel packages, guided technical visits to two North American dealerships, special speech on the American market of vehicles, in addition to participation in the event sponsored by NADA, which also includes talks with translation into Portuguese, thus providing even more convenience for all Brazilian businesspeople. Every year, Megadealer, in partnership with Fenabrave, takes about 100 people to NADA Convention.

Dealers interested in attending the event can register until January 10, 2013; however, those signing up until November 30, 2012 will have the privilege of special payment terms. To join the technical mission simply enter the Megadealer site (http://www. megadealer.com.br/), and click on the banner Fenabrave Official Mission on the right side of the homepage. The application form will open automatically; it must be completed correctly and submitted. After sending it, simply wait for the consulting contact for more details.

For more information on the event, please contact Megadealer at the information below: Fabiane Mendes – E-mail: fabiane@megadealer.com.br Phone.: (11) 3759-1321 or mobile: (11) 99332-1164 www.megadealer.com.br

On October 16, the President of Fenabrave Deliberative Council and Officer of Fenabrave, Flávio Meneghetti was one of the panelists for the AutoData Seminar – Prospects for 2013, held in São Paulo. On the occasion, the President of the organization shared the stage with Cledorvino Belini, President of Anfavea, Gilson Carvalho, Vice-President of Anef and Paulo Butori, President of Sindipeças. At the roundtable, mediated by journalists Marcos Rozen and Alzira Rodrigues, from AutoData, the industry leaders discussed the new Automotive Regime and the prospects for the coming year for each organization.

For Meneghetti, market in 2013 should totalize 3.7 million units, in an economic scenario designed for a 3% to 3.5% GDP. In the assessment of the President of Fenabrave, the New Automotive Regime should benefit the consumers in the medium and long term, as well as bring better conditions of competitiveness and productivity for the automotive industry.

The Courses Begin in December Fenabrave TV broadcasts Fenabrave University classes every Tuesday and Thursday, from 5 p.m. to 7:30 p.m., and in December the highlight is the beginning of classes for the “Personal Development” Course, which will be televised on December 4 at 5 p.m. Another course also starts its classes this month, the “Knowledge Management”, schedule for December 4, at 6:30 p.m. Check the schedule for this month and stay tuned to the timetable!.

December – 5 to 6 p.m.

Day 4 6 11 13

Class 1st 2nd 1st 2nd

Course Personal development Personal development Changes – How to cope with new perspectives Changes – How to cope with new perspectives

Dezembro – 6 to 7:30 p.m.

Day 4 6 11 13

Class 1st 2nd 3rd 4th

Course Knowledge management Knowledge management Knowledge management Knowledge management

Green Fleets & Freights International Seminar Green Fleets & Freights International Seminar will be held on December 11-12, at the Windsor Atlântica Hotel, Rio de Janeiro.

This event is organized by the Institute of Energy Efficiency – INEE and Besc Institute of Humanities and Economics, in partnership with the World Bank.

Fenabrave is one of the event supporters, which show the entity concern with environment and sustainability-related issues. The seminar aims to discuss technologies and practices that improve the performance of freight-carrying trucks, and actions that signal and induce this result.

17th Fenabrave Market Relationship Survey The 17th Fenabrave Market Relationship Survey - closed on October 31 – counted with massive participation of the Vehicle Distribution Chain throughout Brazil. Since September 17 the Dealers received 28 questions developed with the goal of identifying and assessing aspects that need to be corrected or strengthened in the relationship between Dealers and Manufacturers. “The strong and expressive participation of the Chain accredits more weight to the Survey, enhancing its representativeness and corroborating with the technical work of each Make Association at their Assembler and with the political work of Fenabrave at institutions in general,” said Luiz Adelar Scheuer, Survey coordinator.

According to the survey coordinator, the support of each Association, whether by the engagement of their officers or the proactive work of their executives, is of vital importance to the survey representativeness growth. Headquarters of each dealership received e-mails with the access ID (password) to respond – online - to the survey, with total privacy of information sent.

The analysis of Survey results will provide key elements for Make Associations in the exercise of collective representative. “The conduction of a qualified negotiation will facilitate the process of finding the balance between the objectives of the Plant and the Chain,” defines Scheuer.

“In the 16th Survey we overcame the boundary of 1,000 answerers, totaling 1,186 arrays, indicating a response rate superior to 30% of the surveyed public”, celebrates the consultant, stating that this participation rate already exceeds the ones recorded by NADA, in the United States.

The results of the 17th Fenabrave Market Relationship Survey will be presented in the first half of December, date has not been defined yet. As usual, the data are sent to Make Associations, which in turn forward them to the assemblers and their Dealers.

Dealer Magazine

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fenabrave radar

New portal of Fenabrave will air in December Planning on greater flexibility in the distribution of information to over 160,000 users who visit its website on a monthly basis, Fenabrave is working on the design of digital recasting, which will integrate all the organization areas and embrace new strategies geared to social media, such as twitter and Facebook. Carried out in partnership with Agência Click, the new portal of the organization should go on the air in December this year.

According to the President of the organization, Flávio Meneghetti, the new digital space of Fenabrave will gather more dynamic digital content, with new look and fully integrated to the social networks. “The Committee of technological innovation has performed a key work together with Febranave communication area. Thus, the Make Associations, Dealers, press and other users will count on an updated content on a website of easy browsing,” he says.

According to José Carneiro de Carvalho Neto, President of the technological innovation committee, with the reshaping of the new portal Fenabrave becomes part of this new technology scenario, aiming to be market benchmark. “We want to integrate the social networks that grow more and more and, with the new portal, we will have the opportunity to place Fenabrave as leadership in providing a complete and palatable database on the automotive industry,’ he emphasizes.

Besides the new portal, Dealer Magazine also has a version intended to tablets and smartphones, since edition 35, which can be downloaded in English and Portuguese, directly from Fenabrave portal. To access simply read the QR Code, open the Dealer Magazine and save into you device. For that, the interested reader should install any free reader, available on iOS and Android platforms.

23rd Fenabrave Congress and ExpoFenabrave 2013 After the great success of the 22nd edition of Fenabrave Congress and ExpoFenabrave 2012, the organization, in partnership with Reed Exhibitions Alcantara Machado, event organizer, held on November 7, at Bar des Arts, in São Paulo, the Fenabrave Congress and ExpoFenabrave 2013 launch event will be held on August 7-9 at Expo Center Norte – Blue Pavilion, in São Paulo.

Gathered for breakfast, Make Associations executives and Fenabrave Regional Administrations, partners, expo prospects and exhibitors already veterans at the event were able to learn the news for 2013, in addition to having the opportunity of reserving their space in the largest trade show for Latin America conceived to vehicle Dealers.

The 23rd Fenabrave Congress and ExpoFenabrave is a unique opportunity for dealers to know trends and new tools for managing more profitable operations and have best results in their business. It is the only event in Brazil that accompanies the challenges of automotive distribution industry. For this reason, business people from all automotive segments, from various regions of Brazil participate in the event and also visit ExpoFenabrave.

In the 2013 edition, events will continue to count with the Master Sponsorship of Banco Itaú, the Gold Sponsorship of JM&A Brasil, Usebens and Assurant, and the Silver Sponsorship of Dealernet and F&I Brasil. Some companies have already confirmed their presence at ExpoFenabrave 2013 and the others took advantage of the breakfast to ensure their spaces.

President of Fenabrave, Flávio Meneghetti, commented on the success of the event held in 2012 and said to be pleased with the anticipated demand of some companies to reserve space at ExpoFenabrave. “We are optimistic about the success of these events that, in the coming year, will certainly reach even higher levels, both in presence and approval of its participants.”

Meneghetti emphasized the organization commitment to meet all the exhibitors’ expectations so that everyone can do good businesses. “It is on this sum of convergent intentions and unquestionable skills that we lay down the certainty that ExpoFenabrave 2013 edition will be even more positive for all those who left this meeting with their participation confirmed,” he concluded.

Flávio Meneghetti, President of Fenabrave, presents the 23rd edition of the Fenabrave Congress, which will be held from August 7 to 9, 2013, in São Paulo.

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Revista Dealer

BNDES participates in a meeting at Fenabrave headquarters The Chief Officer of Indirect Operations Area of BNDES Bernardo’s explanatory was proven with data presented by National Bank for Economic and Social Development, Cláudio the sectoral officer of Fenabrave, Marcelo Francciuli, who showed Bernardo, and the Machinery and Equipment Department a jump to more than 12,500 units sold in November from the 8,400 Manager of BNDES, Paulo Sodré, composed the table of debaregistered in October in the trucking industry. “And Finame accountes, alongside the Chairman of the Deliberative Council and ted for more than 70% of all those sales,” he said.

Officer of Fenabrave, Flávio Meneghetti, Executive President According to Bernardo, BNDES is committed to being as transof Fenabrave, Alarico Assumpção Jr., and the Vice President parent as possible with everyone involved in the chain: Dealerships of Fenabrave, Paulo Matias, in a meeting that was attended and banks. For this reason, he listened to industry leaders and by assemblers executives, public and private banks, as well as brought to the government the real difficulties of the segments, Presidents of Make Associations and Dealerships, on November leading to the interest drops. “We think this incentive was positive.

7, at Fenabrave headquarters in São Paulo.

Now we hope to have more stable rules in 2013,” he concluded.

Flávio Meneghetti opened the meeting saying that meeting Paulo Sodré complemented Bernardo’s statements, alerting busiwas a demonstration of the good relationship the distribution inness people present with respect to the bid submission deadline dustry has with BNDES, an institution that contributes significantly for the grant of funding at 2.5% rate: “Due to the high volume of to the development of the market of trucks, buses, road implerequests, it is important that bank agents send requests until the ments and agricultural machinery through the PSI program, which recently cut interest rates to 2.5% in Finame. “We are approaching the end of the year and expect the resumption of growth in the industry of trucks and buses. So, I thank BNDES for coming to the house of vehicles distribution in Brazil to attend this meeting,” said Meneghetti.

According to Alarico Assumpção Jr., the meeting is a way the organization found to approach the key industry Paulo Sodré and Cláudio Bernardo, BNDES, attended the event held at Fenabrave, alongside with executives in search of solutions Presidents Alarico Assumpção Jr, Flávio Meneghetti and the organization Vice President, Paulo Matias. towards growth. Still according to him, “nothing better than gathering all links of this chain to discuss the best way to and what are the next steps for the de14th of December. After this date, we probably won’t be able to velopment of industries.”The Executive President of Fenabrave also accommodate all requests in the PSI 4,” he said. added that the organization has always been very much welcomed During the meeting they discussed the difficulty of financial at BNDES for the conduction of affairs of interest to Dealers and agents and Dealerships to adapt funding application according especially the market. to BNDES standards. Thus, the release of a claim may take longer Cláudio Bernardo thanked Fenabrave for the opportunity to than anticipated, impacting directly the industry results. “As there talk with the entrepreneurs present and commented on the work are still many doubts, I suggest we create a training course for the of BNDES in the truck market. “Finame interest rate reduction Chain and the Banks. So the applications would come to us without to 2.5% helped to recover the segment performance in recent errors, streamlining the process,” suggested Bernardo. months,” he said. According to Bernardo, a number of factors, With this idea, Assumpção Jr. said that Fenabrave would comsuch as the record anticipation of Brazilian crop this year and the mit himself to the qualification of agents by creating a course in increasing sales recorded in October will contribute to a positive partnership with BNDES, which will be broadcast by Fenabrave balance at the end of 2012. “We believe that sales in November TV. “We find it a great idea and will develop the course,” said the will be good, as well as December, where we will have a ‘rush’ for Executive President of Fenabrave, being congratulated by all enpurchases,” he added. trepreneurs present.

Dealer Magazine

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fenabrave radar

Drops: Participation of Fenabrave in Events Fenabrave participates in the AutoMotor Forum 2012 Between September 26 and 27, AMDA - Mexican Association of Automobile Distributors held the AutoMotor Forum 2012, in Mexico. The thematic coordinator of Fenabrave Congress, Valdner Papa, attended the event representing the entity. During the two-day event, issues such as vehicle distribution in Mexico, prospects for this market, sustainability in the industry, among others, were debated by Mexican and international speakers.

ABAC celebrates 45 years In October, Fenabrave attended the dinner in celebration of the 50th anniversary of Consortium System and the 45th anniversary of ABAC - Brazilian Association for Consortia Administrators. The event took place in São Paulo and the Executive President of Fenabrave, Alarico Assumpção Jr., attended honoring the entity that represents all consortia administrators in the Country.

Fenabrave participates in Abrare convention in Paris Fenabrave, represented by the Chairman of the Deliberative Council and Officer, Flávio Meneghetti, attended part of the convention schedule held by Abrare - Brazilian Association of Renault Dealers, held on October 4 in Paris.

At the opportunity, officers of Renault Brazil and French Renault, and more than 80 Dealers of the make attended the event that included visits to Paris Show and Renault Technecentre, headquarters of the French assembler where the main models in circulation in various markets are developed.

Hannover Show The Executive President of Fenabrave, Alarico Assumpção Jr., the Sectoral Officer of the entity, Marcelo Franciulli, together with the Executive Officer of Abravo - Brazilian Association of Volvo Distributors, attended on September 20-25 the 64th Hannover Show, in Germany.

The largest trade fair of heavy vehicles in the world introduced new models novelties in Europe conceived according to the antipollution standards, increased level of competitiveness and technological sophistication of models. “It was a great experience to participate in that event and so we were able to follow closely how this market is doing out of Brazil. Besides, we were able to know the novelties that soon will be in Brazil,” said Assumpção Jr.

Speech at Acara Convention Between September 19 and 22 the province of Mendoza, Argentina, hosted the annual Convention of Acara (Argentinean Association of Automotive Dealers).

With a schedule full of key issues to the industry, during the three-day convention, the event was attended by executives from Argentinean automotive industry and other countries, Dealers, executives of financial entities.

The President of Fenabrave, Flávio Meneghetti was one of the speakers and led the presentation “Leadership at Dealerships” to a hundred executives who attended the event. “It was an honor to participate in this convention held by Acara and be able to share some of my knowledge and experience in the Brazilian market with fellow Argentineans,” stated Meneghetti.

7th Acrefi International Seminar The 7th SIAC - 7th Acrefi International Seminar, which took place on October 17 at Renaissance São Paulo Hotel, was accompanied by the Chief Officer of Fenabrave, Paulo Engler, and the Sectoral Officer of Fenabrave, Marcelo Franciulli. The event theme was “What is the future of consumption and credit in Brazil and in the World?”. A team of experts discussed the trends of this market and their impact on the Brazilian economy.

‘Motorcycle of the Year’ 2013 On October 24, Duas Rodas Magazine gave a party for the award of ‘Motorcycle of the Year 2013’ at the house of events Museum in São Paulo. In its 15th edition, the Award gathered several journalists of the two-wheel segment who elected the best motorcycles. Divided into 13 categories, 48 motorcycles participated in the contest, where the winner – chosen the “Motorcycle of the Year 2013” – was the Honda CB 1000R. When handing the prize to the representative of the great winner of the night, the relationship manager of Duas Rodas Magazine, Cícero Lima, commented that the next edition of the Award will focus on the safety aspects of vehicles, which he considers to be a fundamental issue for the development of new products. “I want to thank everyone for coming, congratulate the winners, the great winner of the Motorcycle of the Year, and take the opportunity to say that next year the watchword for Duas Rodas magazine will be safety.”

The Vice-President of Fenabrave, Antônio Figueiredo Neto, responsible for the industry of motorcycles at the entity, represented the President Flávio Meneghetti at the award ceremony for Street category, up to 150cc, at the delivery of the award to Honda, which won with the CG 150 Fan Flex. The sales manager of Honda, Alexandre Cury, received the trophy on behalf of the Make.

Época Business 360º On the night of September 25, Editora Globo held the award ceremony of the first edition of the Época Business 360º yearbook that awarded the best companies of the Country based on the analysis of six dimensions of business activities – financial results, corporate governance, innovation capacity, human resources policies, socio environmental responsibility and future vision.

In all, 200 companies are in the ranking that indicates the best company of the year, the winners in 26 sectors of the economy and the best ones in each one of the six dimensions of the research.

The communication and press advisor of Fenabrave, Rita Mazzuchini, represented the President of Fenabrave, Flávio Meneghetti, at the awards night, which also counted with the presence of the Governor of the State of São Paulo, Geraldo Alckmin, and also the President of FIESP, Paulo Skaf.

I Seminar on Traffic Safety in MS Fenabrave/MS held, on October 29, the “I Seminar on Traffic Safety - Sign of Life”, in the city of Campo Grande.

The event was held at the Convention Center Architect Rubens Gil de Camillo and had the support of the state government, through the State Traffic Department (Detran-MS) and partnership of the Municipal Agency of Transport and Traffic (Agetran).

The seminar was attended by the Chief Officer of National Fenabrave, Paulo Engler, President of Detran-MS, Carlos Henrique Santos Pereira, Officer for the Municipal Agency of Transport and Traffic (Agetran), Rudel Trindade, as well as representatives of the Independent Company of Traffic (CIPTran), State Council for Traffic (CETRAN), Traffic Integrated Management Department (GGIT), Fire Department, in addition to the traffic managers of the cities of Dourados, Miranda, Corumbá and Naviraí, and the congressman Hugo Leal, author of “Prohibition”.

With the theme: Because problems related to traffic affect the life of the vast majority of the population, the debate was coordinated by the journalist J. Pedro Corrêa, specialist in traffic safety programs and consultant of Volvo Program for Traffic Safety, reference in the industry. “We have to do something to improve the situation on our streets and roads. The product we market in our dealerships cause great social impact, whether on packed roads or in accidents. We want to join forces with government agencies that act directly on this issue and effectively give our contribution,” stated Roberto Mosena, President of Fenabrave-MS. National Fenabrave is willing to encourage this project and intends to take this seminar to the other Regional Executive Boards spread throughout Brazil.

“Fenabrave is very pleased with the pioneering initiative of Fenabrave/MS. This discussion on traffic safety is being encouraged by the entity, as we are able, with public authorities, to fight and raise awareness of vehicle drivers, also aiming the improvement of traffic quality with a single purpose: to reduce accidents, said Engler.

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fenabrave radar

Advisory Board Statutory Meeting Drops Florianópolis hosts a Board and Regional Executive Board meeting The city of Florianópolis, in Santa Catarina, played host for Fenabrave Board and Regional Executive Board meeting last September 28. The meeting was attended by the President of National Fenabrave, Flávio Meneghetti, SC Regional Administration - President of Fenabrave, Ademir Saorin, and executives of several areas of the organization and authorities in the region, such as the State Legislator Renato Hinning, from the Regional Development State Department, who represented the Governor of SC, and Senator Casildo Maldane. Matters such as Brazilian macroeconomic scenario, sector performance, relationship with the government, among others were addressed at the meeting.

On October 25, at Anhembi Convention Center, São Paulo, Fenabrave held a Statutory Meeting which was attended by the Board, Regional Executive Board and Make Associations executives.

Fenabrave will support the “Parada” Campaign

Representatives of Caixa Econômica Federal, Fabio Lenza (Vice President) and Humberto Magalhães (National Chief Officer), Panamericano, José Luiz Acar Pedro (CEO) also attended the meeting, as well as Sergio Antônio Cipovicci (Officer) who spoke about the products offered and already available to Dealers by the CEP/Panamericano, such as: vehicles and motorcycles financing, working capital financing, and investment and discounts financing.

These products fit together as one more alternative from the financing partner, and an opportunity to have cost reduction in their transactions, with competitive rates and contracts formalization streamlined.

On the morning of October 24, official opening day of the 27th São Paulo International Auto Show, Fenabrave met with the Minister of Cities, Aguinaldo Ribeiro, to officially support the “Parada Campaign” – A pact for life.

The project, which is sponsored by the Ministry of Cities, will count on Fenabrave support and will be oriented to traffic education. The goal of this partnership is to support accidents reduction on the streets and roads

Besides the meeting, the guests were able to attend the Consultant Guido Vildozo’s speech on sales prospects of auto and commercial vehicles for Latin America.

of the Country and, thus, raise awareness, mobilize and educate society. “Fenabrave will always support projects

Flávio Meneghetti, President of Fenabrave.

related to traffic education that contribute to the reduction of accidents,” states Meneghetti.

3rd edition of 2013 Scenarios Seminar The company Librelato S/A Implementos Rodoviários, held on November 7, at Business Association of Criciúma (ACIC), Criciúma/ SC, the third edition of 2013 Scenarios Seminar, which brought together employees, representatives and leading suppliers of strategic products for the market of road implements.

The economist of the Bank of Brazil, Élcio Gomes Rocha, the Sales Manager for ArcelorMittal, Renato Cançado, Product Marketing Manager for Pirelli Pneus, Ernani Augusto dos Santos Filho, the speaker for the Agrinvest Courses, Marcos Araújo de Oliveira, the Vice-President of Fenabrave – National Federation of Automotive Vehicles Distribution, Glaucio Geara, and the sales manager for Assemblers of Implements and Suspensys Aftermarket, Leandro Correa, attended the Seminar.

The event discussed the expectations for the year 2013 and estimates of market growth.

According to the Ministry, the campaign will consist of three pillars: Education (qualification of public and private agents, involving trainers and instructors examiners, besides including this discipline in elementary and middle school); Oversight (planning and intensification of oversight integrated with actions of education and mobilization in traffic) and Social Mobilization (disseminating on the media aiming the awareness on traffic). editions of Dealer Magazine.

Flávio Meneghetti participates in the Volkswagen Group Media Night On the evening of Sunday, October 21, Volkswagen held the Group Media Night in São Paulo, at the house of events Vila dos Ipês, bringing together specialized journalists and executives from the automotive industry. Flávio Meneghetti, President of Fenabrave, was present and was able to check the novelties presented by the German assembler before the official opening of the 27th São Paulo International Auto Show, as the new Beetle and the new two-door Gol.

Alarico Assumpção Jr. and Joel Jorge Paschoalin, President of Assodeere; Alexandre Melatto, Abcn and Abrare officer; and Sergio Reze, President of Assobrav.

Soon, more details about this campaign in future

Lincoln da Cunha Pereira Filho, President of Abcn; Fábio Lenza, Vice President of Caixa; José Luiz Acar Pedro, CEO of Banco Panamericano.

Flávio Meneghetti, President of Fenabrave, Aguinaldo Ribeiro, Minister of Cities, Alarico Assumpção Jr., Executive President of Fenabrave, Emerson Fittipaldi, former Formula 1 pilot, and Luiz Antônio Fleury Filho, former Governor of the State of São Paulo, gathered to make the “Parada” Campaign feasible.

Francisco Garcia, Abravo officer; Guido Vildozo, speaker; Sérgio Dante Zonta, President of Acav.

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INTERVIEW

Cledorvino Belini and Flávio Padovan

Both sides of the coin Many entrepreneurs in the automotive industry celebrated the arrival of Inovar-Auto, as it establishes rules, standards and goals for the entire automotive industry established in Brazil, as well as for importers. By following these requirements the companies will be entitled to the 30 percentage points discount on the increased IPI, depending on their actions on research and development, new technologies, reduction of pollutants, among other points under the new regime.

If on one hand Brazilian manufacturers celebrate, on the other there are the importers. Some have already announced plants in Brazil as part of the strategy to fit the new rules. In other cases, such as Kia Motors, for instance, the importation limit imposed by a quota of 4,800 vehicles per year hit hard the company plans. According to José Luiz Gandini, CEO of Kia Motors Brasil, the restriction hurt the company operations throughout the country, where the average of licensing in the last three years was 51,900 units. “After nearly a month of the decree announcement, we still have no solutions. The only certainty we have is that we cannot prescind of this asset composed of a Chain of 172 dealerships and more than 8,000 direct jobs. But, above all, we must serve the more than 324,000 owners conquered in the last 20 years of operations in Brazil,” said Gandini, emphasizing that the company has collected more than R$ 2 billion in taxes for the government in 2011.

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Companies are still planning their actions to adapt to Inovar-Auto, which will begin on the first day of 2013.

Nissan do Brasil was the first assembler to be enabled in the program.

The company was enabled as a “new comer”. Thus, the authorization is linked to the construction of their industrial plant in Rio de Janeiro (RJ).

The complete project of investment shall be submitted to the Ministry of Development, Industry and Foreign Trade until February 1, 2013.

The eligibility, originally valid until March 31, may be extended, provided the physical-financial schedule of the investment project is fulfilled.

With the announcement, Nissan starts to immediately enjoy the benefits defined by Inovar-Auto, such as presumed credit of IPI for part of the vehicles submitted in the investment project and earn a monthly import quota of 6,666 units.

The new regulations, necessary for Brazil according to almost all entrepreneurs, still generate many doubts and dissonant opinions regarding the method. Therefore, Dealer Magazine heard Cledorvino Belini, President of Anfavea, and Flávio Padovan, President of Abeiva, to learn a little more about the opinion of both sides of the coin. Check it out.

Dealer Magazine – How Inovar-Auto was received by the entity? What is your opinion about it?

Cledorvino Belini - Inovar-Auto was object of a long dialogue between the federal government and the Brazilian automotive industry, as one of the strengthening pillars of the domestic production.

The broad concept of stimulating the Brazilian industry to join the world level was so well welcomed by the industry for three main reasons: encourages innovation, induces investments and consolidates Brazilian automotive chain. Inovar-Auto will be a transforming industrial policy. It will put the industry in a new cycle of technology and development of the automotive production in the Country.

Flávio Padovan – Abeiva welcomed Inovar-Auto.

Brazil needs an industrial policy geared to the automotive industry able to offer more local developments of engineering and research. However, the entity – regarding the official import industry – was impaired.

motive industry. The downside is that for five years the import sector will be controlled by a maximum quota of 4,800 units per year.

Dealer Magazine – Do you believe that the Country benefits from rules to stimulate investments in technology and innovation in the industry?

Cledorvino Belini – The world encourages investments in technology and innovation. By our calculations, only to comply with the minimum established, it is required investments of R$ 12.8 billion in innovation and engineering during the period of 2013-2017, and may reach R$ 30 billion, with additional effort of the companies. Innovation and engineering are doors to the future of the automotive industry.

Flávio Padovan – No doubt. Any automotive manufacturing hub in the world receives industrial policy encouragements from the government.

Dealer Magazine – The government increased the pool of requirements for the industry. Can you meet them all?

Cledorvino Belini – The compensatory measures imposed to the industry concern, basically, of investments in R&D, innovation and engineering, local and Mercosur procurement, manufacturing activities control, compliance with the Inmetro Vehicle Labeling Program and substantial improvement of energy efficiency of vehicles and their consequent reduction of fuel consumption. Our expectation is that companies affiliated to Anfavea will fully comply with the program.

Flávio Padovan – Program Inovar-Auto will only make sense if the local automotive industry complies with all requirements.

Dealer Magazine – Do you believe that manufacturers and importers are already prepared to meet the demands of the new regime from the first day of 2013?

Cledorvino Belini - Inovar-Auto will be implemented gradually – deriving from its logic – during 2013-2017: phased development – you conquer one and there is another one ahead that depends on the completion of the previous one and so on.

For its cultural and technological development, the companies will have greater or lesser difficulties of fulfilling this or that stage, but we believe that companies will comply fully and strictly with the regime.

Flávio Padovan – We hope so. Especially because the IPI rate reduction contingency is valid for assemblers or importers that are able to meet the requirements of the program Inovar-Auto only.

Dealer Magazine – In your opinion, what are the main advantages and disadvantages for importers and industry?

Cledorvino Belini – We expect that by the end of the Regime period (2013-2017) the automotive production chain in Brazil will emerge stronger and with a new contemporary face in global terms.

We will have a more technological industry, more competitive and with higher value-added products, all benefiting the consumer and, ultimately, the domestic economy and the Country.

Flávio Padovan – In our view, the only advantage is that we have a decree regulating the entire auto-

Dealer Magazine – What can consumers expect for the first months of the new regime regarding products, price, etc.?

Cledorvino Belini - Inovar-Auto is a program for production. The market and the consumer will benefit ahead with more technological, more competitive and sustainable products.

Flávio Padovan – The first few months will constitute a preparation for qualification to the program and to adapt to the new realities of the industry and the market. Over the five years of the program - from 2013 to 2017 – the industry tends to bring about substantial improvements to products maDealer Magazine

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The broad concept of stimulating the Brazilian industry to join the world level was muchwelcomed by the industry for three main reasons: it encourages innovation, induces investments and consolidates Brazilian automotive chain. (Cledorvino Belini)

nufactured here. As for prices, the domestic market will set new standards of competition.

Dealer Magazine – Should the new automotive regime encourage local production of technologies already popular in Europe, such as start/stop, direct fuel injection and hybrids, for instance?

Cledorvino Belini – Overall, the regime induces innovation and aggregation of technologies in all aspects of the vehicles, fuel economy, reduction of emission, safety. Thus, all technologies, existing or to be developed, are reasonable in terms of Inovar-Auto regime. The local production of components integrates Inovar-Auto in its broader goal of consolidating the local automotive chain. Investments are expected not only from vehicle manufacturers, but also from suppliers of parts and components at all levels.

Dealer Magazine – Will there be increase in the production due to the new rules?

Cledorvino Belini – With a domestic market projected between 5 and 6 million vehicles per year in the coming years and an international market increasingly globalized and competitive, the Brazilian automotive industry seeks consolidation of its production chain, with innovation and adoption of technologies, and more competitiveness attracting news investments for the Country. The new automotive regime is a buoyage for the future, at the same time it establishes a wide range of challenges for vehicle manufacturers in the Country, requiring investments and targets for nationalization, innovation, automotive engineering in value-added products and in vehicle energy efficiency, seeking the valuation of domestic production. If we are the 4th largest market in the world, it is natural Brazil also aspires to be one of the largest automotive producers in the world, including empowering themselves as the global center of product development.

Dealer Magazine – Potentially, will there be a reduction in production costs? What is the expectation?

Cledorvino Belini – There are several factors that weigh on the formation of production costs: Internal factors, including company processes and productivity; and external factors, such as costs of materials, cost of capital, of infrastructure, encumbrances of various laws, etc. The national competitiveness must be strengthened to achieve international standards. Not only should the industry competitiveness be improved, but the entire national economy.

Dealer Magazine – What will be the investment volume planned by the industry with Inovar-Auto?

Cledorvino Belini – The planned investments in addition to the minimum investment required by the new regime in innovation and engineering may reach R$ 60 billion in the coming years.

Dealer Magazine – With this new regime, new plants will be implemented and new centers of technology and studies for the industry will be opened.

What are Anfavea prospects? How many new plants are planned and how many development centers will be opened?

Cledorvino Belini – Several companies already established in the Country perform new project of investments in production capacity, new products and innovation, and engineering. Others tend to announce investment to produce vehicles in the Country. The Brazilian market is one of the few that offers a secure market potential in the coming years and this is an attracting factor of new automotive projects, including world automotive platforms, for the Country.

Dealer Magazine – How investments will be supervised?

Cledorvino Belini – The federal government, which is responsible for the supervision, has sophisticated technology to do so, in real time, not forgetting that the regime requires previous

The downside is that for five years the importing sector will be controlled by a maximum quota of 4,800 units per year. (Flávio Padovan)

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Brazil needs an industrial policy geared to the automotive industry able to offer more local developments of engineering and research. However, the entity – regarding the official import industry – was impaired. (Flávio Padovan)

qualification by the companies, in terms of tax compliance, energy efficiency and mastery of basic production process, all pre-requirements, then followed by investments in R&D and innovation, contributions in engineering and gradual compliance to the INMETRO Vehicle Labeling Program, without which there won’t be granted benefits of IPI reduction.

Dealer Magazine – When will government audits occur? What will be Anfavea role in this process?

Cledorvino Belini – Auditing or supervision are continuous, uniform and uninterrupted. Anfavea has no role to play in this regard; the theme concerns the companies qualified to the regime and the federal government.

Dealer Magazine – If an assembler is entitled to receive the IPI credit but it is proven that it has not invested the necessary in engineering, innovation and so on, will it be punished?

Cledorvino Belini – The legal provision works as a bond in special regimes: The company loses the license and exempted taxes become due plus legal charges.

Dealer Magazine – The official speech goes beyond promises to the domestic market. The Federal Government says that Brazil has the potential to become a major world exporter. Would it be really feasible?

Cledorvino Belini – Brazil has the conditions to be an important automotive exporter center: there are 27 assembling companies of vehicles and agricultural machines, with 55 industrial units, a compound of autoparts, bringing 500 companies together and also have fundamental inputs. One aspect of Inovar-Auto certainly is to increase automotive exports in general, not only the assemblers.

For that it is also crucial we raise our competitiveness to international standards.

Dealer Magazine – Considering that the new vehicles will be technologically more advance, is there a plan for assemblers conduct training for dealerships sales, services and after sales teams?

Cledorvino Belini – Industry and Dealership Chains relationships are permanent. With Inovar-Auto won’t be different. To reach consumers the industry needs a trained, motivated, competitive, dynamic and efficient Dealership Chain - whether in sales or after sales.

Dealer Magazine – What are the immediate and long-term benefits for the consumer?

Flávio Padovan – I don’t believe in immediate benefits. However, in a medium and long-term consumer tend to have more refined products from the point of view of energy consumption, emissions and vehicle safety.

Dealer Magazine – What will be the investment volume planned by the importers with Inovar-Auto?

Flávio Padovan – We are not able to answer this question at this moment.

Dealer Magazine – Do you believe that Inovar-Auto serves unanimously to all affiliates of ABEIVA? Flávio Padovan – Absolutely not. As we said in the Auto Show opening ceremony, the maximum ceiling quota of 4,800 units / year or the maximum of the last three years average is a restrictor to the import sector.

Dealer Magazine – What would the ideal volume for the import quota be?

Flávio Padovan – Since the IPI rate increase was announced on September 16, 2011, Abeiva has always defended the quota system as a temporary solution; it should be the average of the last three years, but in a proportionate manner to the companies affiliated to the entity.

We will have a more technological industry, more competitive and with higher value-added products, all benefiting the consumer and, ultimately, the domestic economy and the Country. (Cledorvino Belini)

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discussion

A

s it happens with the car and football, soap operas can be considered national passions. It is not uncommon to hear conversations of friends making comments about previous chapters, the characters’ way of dressing, not counting the mottos that the consuming public loves so much. The great success of these programs in the lives of Brazilians caused the vehicle assemblers to hitchhike in the great exposure, presenting their products strategically placed in the plot.

Kia Motors is an example of success. In the last five years the make has used the marketing tool as a strategy turning their products into real “celebrities”. The South Korean assembler was present in the soap opera aired by Rede Globo, ‘Brazil Avenue”, big blockbuster, that showed the models Cadenza, Sportage, Sorento, Soul, Picanto, Optima, Carnival, Carens and the light truck Bongo.

The main actor of the plot and the villain, Murílo Benício (“Tufão”) and Adriana Esteves (“Carminha”), respectively, spent the entire soap opera parading with their Kia Sorento and Kia Optima

models, not counting the other characters that always appeared with models of the make. Besides Kia Motors, other manufacturers were also present in the entire television soap opera. “We intend to merchandise our products in soap operas to show technology, design and increase people flow in the stores of the make. With merchandising we attract the viewer, unlike the publicity,” explains José Luiz Gandini, CEO of Kia Motors do Brasil.

The make and also the model credibility count a lot for the success of a “merchandising”, a jargon used in television. With that in mind, Volkswagen relaunched a make icon: the Beetle, named after the Beetle model in Brazil, in the Globo soap opera ‘War of Genders’. The plot is a remake of one of the most remarkable soap operas and blockbuster broadcaster which, according to the make, makes the program to be optimal for the first exhibition

Carminha (Adriana Esteves) and Tufão (Murílio Benício) paraded with Kia vehicles, such as Optima, during the entire plot.

On the hitchhiking tO success

Besides presenting their models in traditional ads in various media, makes use the merchandising as a tool for the association of products to successful characters in soap operas.

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discussion Models of greatest prominence are part of everyday lives of soap opera protagonists.

of the return of this icon. “We are Merchandising in the soap opera War of Genders and the models involved are: New Beetle, Touareg, Tiguan, New Voyage, and Amarok to perform specific actions.

Other models like Jetta, SpaceCross, and SpaceFox will be present in the display format, that is, used by characters without specific references to the products”, says Artur Martins, Marketing Executive Manager.

The executive explains that the make has a history of participation in the Rede Globo soap operas with different formats, visualization and timely action. “Recently, we established as a strategy the effective participation with actions for several models of the make, contextualized in the script of each character. This new strategy began in 2011, when we closed the 7PM time with the ‘That Kiss soap opera. In 2012, we continued with ‘Full of Charm’ – a huge success – and, now, in the remake of ‘War of Genders’,” explains Martins.

For exposing the models in the grid of soap operas a set of factors need to be evaluated by the broadcaster and the make. “To do a ‘merchandising, the company and the soap opera nucleus management meet for a joint analysis, so to decide which model will be in the plot,” explains Gandini.

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For Mauricio Portella, Auto Star store Manager – Kia dealership, the demand for models exhibited in soap operas is constant, associating the product to the character. “The model released in the soap opera generates an enormous curiosity in the customer. They get to the store looking for the model of that character. Usually, the most popular models are those of the main actors in the soap opera, exhibited with more emphasis,” he explains.

In Portella’s opinion, “ the major factor of the products publicity is to awaken the curiosity of the customer and take them to the dealership. After this visit, the purchase completion is another factor that includes the Dealer work offering the best solution for that customer fulfills their dream,” he said.

Makes also pay attention to join the product launch together with a relevant time of the soap opera. In the case of Volkswagen, the Beetle was linked to the soap opera release. “Usually, the launchings are the merchandising stars. This was the case on last October 1, when, at the premiere of ‘War of Genders’, we introduced the New Beetle first hand. Until then, the model had not been

Volkswagen Models are part of the plot in War of Genders.

publicly exposed. The action was really planned and the visibility return was very satisfactory,” said Martins.

“The Beetle is an icon and it is very important for the Make that it receives the appropriate efforts for its return, set in different ways to bring what it represents: technology, performance, design, modernity and recognition. Hence, using a soap opera premiere to introduce firsthand the car was one of the launching actions. Silvio de Abreu’s soap opera is a remake and as the Volkswagen Beetle it does not look to the past with nostalgia,” says Martins.

Another important factor for the make in the model exposure is to evaluate the character that will use the model and which attributes they offer to meet your needs. This is a delicate decision, as the viewer will associate the model directly with them. “We evaluate characteristics such as crossing the profiles of the characters and the cars to highlight the positioning/lifestyle, the relationship of the character context with some item in the vehicle, such as, for instance, an innovative technology for a young/modern character who loves innovation, or the relationship of the character’s behavior with what the car offers in terms of image. With the evaluation of actors/

characters, context of script and product needs we close a proposal,” explains the Volkswagen executive, informing that in the soap opera the New Beetle is used by the actress Glória Pires, the “Roberta” character, modern businesswoman who runs a clothing manufacturing company.

Kia, in the soap opera ‘Living Life’ aired in 2009, introduced the Kia Soul adapted for disabled people. In the plot, the young “Luciana”, played by Aline Moraes - who had been in an accident and became quadriplegic - used the model.

Companies do not disclose the investment figures with these actions, but ensure the financial return is positive and, according to surveys conducted by them, the models became successful to the public viewer. “All merchandising actions of Kia Motors do Brasil are cases of success, as the public comments, assimilates and decides for the purchase,” says Gandini.

For Volkswagen, not only the Beetle, but all models exposed in soap operas are successes. “The soap opera action brought excellent results, both in terms of visibility as the spontaneous media.

We have figures that prove this publicity, but unfortunately we cannot disclose them. What we know is that the car becomes, every day, most talked about and desired,” celebrates Martins.

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cover story

t Inovar-auto: more productIvIty and competItIveness After several actions to boost the internal market, in early October the Government announced the final text of Inovar-Auto - Program of Incentive to Technological Innovation and Consolidation of the Motor Vehicle Productive Chain, which main goal is to create conditions of competitiveness for the Brazilian automotive industry and encourage companies to manufacture safer and more economical vehicles.

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he large supply of credit available in the market, mainly for the purchase of new vehicles, led great part of population to commit themselves with debts beyond their means of payment. As a result, the delinquency rate grew and in the beginning of this year reflected in the market performance. “Even with the sales increase between February and March last year, we’ve noted that the daily average fell just over 6% for cars and light commercial vehicles,” says Flávio Meneghetti, President of Fenabrave.

According to Meneghetti, the growth of delinquency in the automotive sector reached levels higher than those recorded during the 2009 crisis. This high delinquency, according to the President of Fenabrave, made the financial institutions to become stricter with the consumer credit release, which impacted directly on dealership sales. “This record approval restriction generated sales decline, thus, the daily average was less compared to last year. This situation worried us, as it could affect the expect expansion for this year,” says the President of Fenabrave.

Such an effect caused the entity to revise the sector outlook for that year, after falling 16% in the following month.

As a result, in May, the Brazilian government intervened in the market by launching packages of measures to stimulate the national economy and reheat the sector that embittered successive drops in sales. So it was when the Minister of Finance, Guido Mantega, announced the reduction of Tax on Manufactured Products (IPI) on car purchases and on Financial Transaction Tax (IOF) in individual credit operations, as well as the release of compulsories to the banks.

In return, the sector committed itself to promoting additional discounts on their price lists (2.5%) and financial institutions began to revise their offer of credit, with lower interest rates. Thus, the final price of the entrance vehicles dropped about 10%. For models with 1000 cc and 2000 cc engines, the reduction was about 7%.

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cover story

Flávio Meneghetti, Fenabrave, Cledorvino Belini, Anfavea, and Paulo Butori, Sindipeças, discussed the key points of Inovar-Auto for the automotive chain.

This package of measures was a milestone for the creation of the so called New Automotive Regime, announced in early October with the aim of increasing competitiveness in the Brazilian automotive sector and fostering investments in technology, innovation, research and development of new products, to offer consumer safer and more economic vehicles. “It is a transforming regime, a long-term policy that will attract investments in research and technology in the Country,” says Cledorvino Belini, CEO of FIAT and President of National Association of Vehicle Manufacturers (Anfavea), who revised upwards the investment plan of assemblers for the next five years.

Instead of the US$ 22 billion originally planned, it will be US$ 60 billion for the period of 2013 - 2017. The new agreement aims to attract mainly research center of companies that currently only sell their cars in the Brazilian market, motivating them to invest in local intelligence that would be exported to the four corners of the planet in the form of new products and services. In order to adapt the assemblers will have to invest at least 0.5% of their revenues in research and development, and 1% in production engineering. They will also need to reduce gas consumption by 12%, producing cars with autonomy of 17.26 kilometers per liter of gas and 11.96 kilometers per liter of alcohol in 2017.

According to the text, the beneficiaries in the New Regime are the vehicles manufacturers in the Country, those which do not produce but sell and those companies that present projects of investments in the sector. According to Belini, Inovar-Auto will promote investments in the automotive sector companies, aiming the resumption and the competitiveness of the national industry which is ranked the 7th largest producer in the 24

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world. “Brazil is the 4th largest market in the world.

These measures will expand investments causing the sector enters into a new technological cycle.

It is the buoyage for the future,” he commented.

One of the main goals anticipated by the decree for the qualification to Inovar-Auto is the energy efficiency for cars and light commercials vehicles fueled with both gasoline and ethanol. By decree, the sector shall expand gradually the reduction of consumption of vehicles, according to the table presented by the government. The goal is to reach 2017 with 12% reduction in fuel consumption compared to today. “This means a reduction in fuel consumption of 13.6%,” added the President of Anfavea.

“Also, as a stimulus for further investment in energy efficiency, the government established a benefit of up to two percentage points of IPI for manufacturers that exceed the qualification goal set at 12%. Valid for the period of 2017-2020, the discount rate in the IPI will be one percentage point in the case of a consumption reduction of 15.4%, and of two percentage points in the case of a reduction of 18.8%,” detailed Belini.

Autoparts complain During the AutoData Seminar – Prospects for 2013 held in São Paulo, Paulo Butori, President of Sindipeças, questioned some points of the rule, mainly those affecting the autoparts industry.

“The trading law in the countries of Mercosur prevails over Inovar-Auto rules, which mentions regional rather than national content. Thus, bring parts from Argentina, for instance, will be a way to circumvent the local production rule. In other words: we had nothing in our favor, and continue having nothing.”

Sindipeças President further considers that “the autoparts industry had great expectations with the

Regime, but Inovar-Auto does not include our segment as it should. The assemblers count on benefits as the IPI rate of 30 percentage point, which protects the local production and causes investments to come through that taxation”.

The President of Anfavea, present at the debate promoted by AutoData, disagreed with Butori’s view arguing that the new industrial policy will cause leverage of investments and development for autoparts in the Country. “So much that there are assemblers at the limit for not meeting sufficient ratio of nationalization to get rid of the 30 percentage points next year, hence they will have to rely on national manufacturers.

According to Belini, new players are yet to come to Brazil and will demand local supply.

“With production strategy just in time one must buy here,” he argued. And added: “The concern is whether the Brazilian autoparts will endure the new challenges of production, which will demand more technological development.”

However, in a moment of reflection and more measured both executives fully agreed that Inovar-Auto has qualities and defects – liable to corrections – and that its nonexistence would be worse than the way it was conceived. “At least we will have an automotive industrial policy in effect.”

To fit in the New Regime rules companies must meet three mandatory requirements: maintain tax obligations up to date, expand energy efficiency and perform six out of the 12 manufacturing steps required to produce these vehicles in Brazil as from next year. These stages expand gradually, year by year, until the goal of eight stages in 2016 and 2017.

The New Regime also provides for the granting of additional presumed credits of IPI to encourage businesses to extrapolate established goals for qualifying to Inovar-Auto. To encourage increased investments in research and development, companies receive a presumed credit of IPI correspondent to 50% of the amount invested in R&D, limited to 2% of Gross Operating Revenue (GOR) less taxes.

In the case of investments in engineering, basic industrial technology and suppliers’ training, the presumed credit of IPI will correspond to 50% of expenditure for this purpose, limiting the credit to 2.75% of Gross Operating Revenue (GOR) less taxes. Companies, however, will only be entitled to this presumed credit if they outweigh the level of 0.75% of gross operating revenue (less taxes) invested in the area.

Importers point caveats – In the case of companies that do not produce but sell vehicles in Brazil, the qualification to Inovar-Auto is subject to the company commitment to meet the following requirements: import more economical vehicles according to the decree parameters, invest in the country in research and development (R&D); in engineering, basic industrial technology and training of corresponding suppliers; and join the Vehicle Labeling Program defined by the Ministry of Development, Industry and Foreign Trade established by the National Institute of Metrology, Quality and Technology (lnmetro).

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By the New Regime, companies which do not produce in the country and have no plans to install plants may import up to 4,800 vehicles per year without paying the additional tax. The calculation will be based on imports made during the period of 2009 to 2011, limited to 4,800 units/year, provided that the companies invest in suppliers and research in the country. The import limit is shy and benefits much more the companies already established in Brazil and import a small volume”, says the President of Abeiva - Brazilian Association of Importers of Motor Vehicles, Flávio Padovan.

According to the President of the entity, “Inovar-Auto is an immediatist and palliative medicine. The Brazilian consumer is the one

Nissan March, Ford New Fiesta, Fiat 500 and Freemont: Vehicles imported from México which now enter the country through the quotas regime.

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who ends up losing, because importers bring new technologies to the market”, he said, adding that sales recorded by the companies affiliated to Abeiva halved after IPI increase dropping to 6,000 from 12,000 units per month. “We expect to close 2012 with sales of 120,000 units, 40% less than last year,” state Padovan.

According to Anfavea, the measure inclusion for importers was a political issue, an attempt to make a “non-excluding” Regime. The organization admits, however, that the possibility of questionings at WTO (World Trade Organization) also influenced the decision. “The future of importers is hard to predict. Quotas do help, but the volume won’t be enough for the companies,” commented Padovan, stating that with the New Regime the

Luiz Gandini, Kia Motors, Sérgio Habib, JAC Motors, and Flávio Padovan, Abeiva: the limit of 4,800 units imported per year is low.

monthly average of import will be of 12.5 thousand units.

Mexican quotas – The New Automotive Regime brought relief for assemblers that import from Mexico and are now close to exhausting their quotas. Within the program Inovar-Auto there are three ways of bringing products from abroad without paying the IPI additional 30 percentage points. Even with limited volumes, the new rules can save assemblers from having to import paying the increased rate. According to Inovar-Auto, any qualified vehicle manufacturer that has investment planned for a new plant or national product may have presumed credit of IPI. The benefit is limited to 50% of annual production capacity envisaged in the project. Out of the total paid by the assembler, 25% is deducted on a monthly basis during the construction stage, limited to 24 months. The remainder is recovered after the start of production and sales of the national model.

Thus, Nissan, for instance, which is building a plant in Resende (RJ) with capacity for 200,000 cars per year, is the first assembler qualified by the government to operate within the new Automotive Regime. The ordinance empowering the assembler, announced in the Official Daily Government Newspaper, determines that Nissan has until February 1 to submit their investment project to the government. According to the rules of the New Regime, the project shall cover the description and technical specification of vehicles to be imported and produced.

Once enabled, Nissan will be able to import 6,666 units per month, totaling almost 80,000 vehicles in 2013 without the incidence of the 30 percentage point increase of Tax on Manufactured Products (IPI). Add to that the import quota within the automotive agreement with Mexico, about

35,000 units that the company can bring without paying import tax of 35%.

According to Reuters news agency, a Nissan representative said the assembler should resume sales to regular levels in Brazil as from November, after its import quota from Mexico ended in late August, reducing the products supply in the Country. The largest volume of vehicles imported by the company come from Mexico, such as hatch March and Versa sedan. The lack of products has caused a decrease of 55% in sales in September (4,500) compared to August 10,000).

Fiat can also benefit from the new rule. Although less dependent on imported models from the partner country, the assembler brings the 500 and Freemont, which record rapid advance in the market. In recent months, with the quota determination, dealerships already were not able to meet consumers’ demands.

As the rule holds good for both a new plant and location for vehicle production, Ford is another one that may have gains. The New Fiesta is imported from Mexico in hatch and sedan versions, but will be produced in the São Bernardo do Campo (SP) plant. Until the national line starts operating, the assembler can extrapolate its quota with Mexico without paying the higher IPI. New manufacturers – Make intending to set up plants in the country will benefit. The rules apply to companies already established which will make new investments as to those intending to invest in new plants. The compensatory measures for purchasing inputs, expenditures in R&D and engineering and manufacturing activities will be more flexible over time, requiring from the new investor the compliance with the Regime initial parameters at the moment he starts up his operations in the country. “Therefore, if the company starts Dealer Magazine

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Announced a new plant its operations in 2015, it will use the requirements for 2013. In 2016 this same company would be in the second year of operation, and soon would use 2014 requirements. In the same line, the factors entitling the presumed credit of IPI, corresponding up to 30 percentage points, are also guided by the year they start their operations,” explained the President of Anfavea.

According to Belini, companies must submit an investment project to the Federal Government, including the estimated production capacity. Once the plan is reviewed an IPI quota-credit equal to 50% of the reported vehicle production capacity may be granted. “This quota will be split in two: the first half (25%) can be used during the plant construction phase, but the credit release will happen according to the project schedule. The other half (25%) provides credit to be used, according to the tax payment during the installation of the plant, as soon as the first vehicle produced in this new plant is marketed,” he said.

JAC Motors Brasil, headed by Sérgio Habib, awaited by government decision to define directions for the company in the country. Since the increase of 30 percentage points of IPI, the company suspended the construction of a new plant, a project that was resumed after Inovar-Auto. “I think that the way Inovar-Auto was conceived is well made and allows the implementation of JAC Motors in Brazil,” comments it’s CEO. According to the executive, JAC will have a quota to import about 25,000 cars per year, starting in November, paying the same amount of IPI as other assemblers.

JAC Motors new plant, in Camaçari, should consume investments of R$ 900 million.

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At the Auto Show, BMW confirmed the construction of their first plant in South America. The plant confirmation was made by the CEO of BMW Brazil, Jorg Henning. Expecting to start production in two years, the unit will be raised in Araquari, in the region of Joinville (SC), will have a production capacity of 30,000 cars per year and will receive an investment of 200 million Euros (R$ 524 million). The location of the new line of production of the German assembler took into account, mainly, the port and logistical infrastructure offered by the region. The first models of BMW to be made in Brazil should be the compacts 1-Series and X-1.

According to the executive, the plant project was already under consideration by the assembler two years ago. With the Inovar-Auto rules announced in October by the government, BMW had to make some adjustments in the plan to submit to the government approval. According to the CEO of the company, the bet on the Brazilian market occurs in view of the potential sales of luxury cars, now estimated at 1% only. “In Germany this percentage is 25%. We still have plenty of room to gain here,” he said.

Habib says that has had several meetings with the Ministry of Development, Industry and Foreign Trade, Fernando Pimentel, who was looking for information on several companies and entities of the industry for the elaboration of Inovar-Auto.

“In other words, this decree was a consensus where no one had everything they wanted, but all had a part of what they wanted,” says the executive.

With a planned investment of R$ 900 million, JAC Motors Brazilian plant will have products with national content in the first three years, lesser than the other manufacturers. “We will start with a ratio of 1.3 in the first year, in 2015,” added Habib.

According to the executive, a quota importation without paying the increased IPI and the lower rate of nationalization enable JAC plant in Brazil, which will have capacity to produce up to 100,000 units per year, and in the first year is expected to produce 40,000 vehicles.

“Unfortunately, the fast pace of our sales was partially interrupted by the IPI increase decree in September last year,” said José Luiz Gandini, CEO of Kia Motors Brasil. According to the executive, the Brazilian subsidiary negotiated with the headquarters, reduced the margins of the importer and the Chain, as well as reduced dramatically the investments in marketing in order to maintain market share. “Because of these actions we’ve seen our sales drop a lot,” said Gandini.

According to the CEO of Kia Motors Brasil, the program Inovar-Auto – which restricts imports to 4,800 units per year, hurt the company operations in the country, where the average

of licensing in the last three years was 51,900 units. “We still do not have solutions. The only certainty we have is that we cannot prescind of this asset composed of a Chain of 172 dealerships and more than 8,000 direct jobs. But, above all, we must serve the more than 324,000 owners we have conquered in the last 20 years of operations in Brazil,” said Gandini, emphasizing that the company has collected more than R$ 2 billion in taxes for the government in 2011.

In the assessment of Gandini, “by instituting the quota for imports without the additional 30 points of IPI, the government took the most logical way, used the average of sales of the last three years, but made a mistake by establishing a limiting quota of 4,800 units per year. It hurts the free competition and throws in the garbage all efforts of Kia Motors in 20 years of work. The decree leveled beneath as if we were an importer with one store only.

The quota should have been based on the previous years, without limits. The figures wouldn’t have remained outside the government goal, it would suffice to have fixed a total number and divided by the makes historical numbers, as has been done in the past,” he added.

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SUSTAINABILITY

i

SuStainable DealerShip iS theme on Fenabrave tv

n early October Fenabrave TV held a roundtable on environment and sustainability, which was broadcast live to all channel reception points throughout Brazil. On that occasion, Dealers were able to participate by sending questions via SMS, e-mail and telephone. Mediated by the Educational Coordinator of Fenabrave University, Valdner Papa, the roundtable was attended by Mauro de Stefani, President of Fenabrave Sustainability Committee, Alvanir Fernando Zuse, Officer of Cordial dealership (Fiat), Concórdia and Erechim/RS, Luiz Henrique Lopes Vilas, Officer of Ouro Verde Meio Ambiente e Sustentabilidade and Eduardo Augusto dos Santos, Manager of Corporate Affairs and Market for Cesvi Brasil.

During the program, Mauro de Stefani highlighted Fenabrave concern to transmit to the distribution Chain the need of working the environmental aspect of the dealership. According to the Chairman of Fenabrave Sustainability Committee, in addition of generating expense savings,

the Dealerships may fit in the environmental law, which requires certain obligations on employers with respect to solid waste disposal, wastewater treatment and separation of used oil from the workshop. “The goal is to provide tools to Dealers, through professionals who understand deeply the solutions, so that entrepreneurs can obtain the environmental license to operate,” said Stefani.

In the opinion of Luiz Henrique Lopes Vilas, Ouro Verde Meio Ambiente, Dealers must demystify the environmental licensing. For that, in the expert’s opinion, it is necessary to create a management system in the company to fit in the legislation. “This is a path without return, because there is a law that must be met. All Dealers will have to adapt themselves,” says Lopes Vilas.

According to Vilas, some measures are necessary to comply with standards, such as the proper disposal of solid waste, the proper disposal of tires and, especially, the separation of oil from water and air-conditioning gas from the workshops. “But, above all, we need to create awareness among Dealers and employees,” adds the expert.

Mauro de Stefani, President of Fenabrave Sustainability Committee, Alvanir Fernando Zuse, Cordial, Luiz Henrique Lopes Vilas, Ouro Verde Meio Ambiente, Eduardo Augusto dos Santos, Cesvi Brasil, and Valdner Papa, Educational Coordinator of Fenabrave University at Dtcom studio in São Paulo, discuss topics of interest for the Chain.

Small steps every day, with the help of skilled professionals, car dealerships can adapt activities and facilities in accordance with environmental law.

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SUSTAINABILITY

According to Alvanir Fernando Zuse, this principle has managed to turn their dealerships in environmentally responsible companies. “The project was based on current legislation and it motivated the teams to conduct cultural changes.

The entrepreneur must be aware and show it to employees. The plant already plays its role in this regard. We have to follow the same steps, as we are the assembler image to our public,” he adds.

opinion

At Cordial, Fiat dealership of Concórdia and Erechim, Rio Grande do Sul, there are water tanks with capacity of up to 100,000 liters, which capture rainwater that is then used to wash the patio and vehicles of the dealership. Moreover, employees make the material recycling, reuse all administrative area paper and use water-based paint in the cars painting. “To complete, we installed taps and economic discharges in the bathrooms, treated all sewage generated and also count on translucent tiles and presence sensor lamps, which generates great energy saving,” said Zuse.

How to implement it? – Law 12.305 establishes a national policy for solid waste, governing guidelines for the integrated management and the management of solid waste, including hazardous waste, to the responsibilities of generators and government and to applicable economic instruments. Subject to inspection, the Dealer must be careful with how it performs disposal.

“A large part of the Chain is unaware of the Law. It is necessary to work a plan for proper disposal of these wastes,” explains Eduardo Augusto dos Santos, Cesvi Brasil.

According to Cesvi representative, it is possible to make changes in dealerships with low investment resources. According to the specialist, the water and oil separator box, for instance, is simple, modern and inexpensive. “The simple replacement of lamps already helps,” he said. According to Santos, some dealerships area already been built with environmentally focused solutions. “This is the idea that must guide the dealership,” he adds.

According to participants, the implementation process should be performed with the assistance of a specialized consulting that will identity all points of waste generation and what are the actions needed to give proper disposal to materials. “The most important is to work with the waste disposal in the foreground, which is not easy. It is necessary to hire a company certified and licensed in environmental agencies that will give the correct destination to the material,” explains Lopes Vilas. Zuse added, informing that some suppliers are required to collect the material, such as tire manufacturers, for example. “This is the law!,” he states.

The panelists concluded that alerting that all vehicle distributor need to complete the Federal Technical Registry (GTR) at IBAMA.

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Passport to a new era

Cláudio Tomanini

We live, today, in an environment surrounded by traps, competitive and highly dynamic. Every moment new facts and different obstacles emerge. The development of strategies to allow us identify new trends becomes indispensable. This is the key-point of the issue: get out ahead and, thus, add competitive edge to your business.

H

ow many times you offered a complete or tailored solution to a certain customer? Know that the essence of your answer may indicate your real degree of familiarity with your customer.

This degree of familiarity goes beyond satisfaction, as it means giving the customer benefits and results of the acquired product/service, and direct all business activities to them, worrying in developing a lasting relationship.

The edge is not the commodity or the price, but the values added to the relation dealership-customer.

Relationship - rather than a noun, is a concept: the human element as a value. Creates two-way, longterm ties. Turns buyers into customers or more than that, causes them to be advocates of the make. For this, you should establish an emotional relationship, turn the sale into a magical moment.

I see many business people say that the turnover of their sales team is high, that the technical assistance staff has no commitment to sell services and worse, they say that so-and-so is pretty bad. But, are them still with the company??? And there come excuses like: “What can we do?” “He is trustworthy.”

Or “bad with him worse without him”. Or yet: “If this goes away, an even worse one will come.” “If I

get a smarter guy and train, invest on him, he will go to the competition.”

And so they continue keeping bad people, who say bad things about the company and, in turn, deliver poor results. Of course you need to invest in training, in qualification development, but clean up first, fire the incompetents. Don’t try to teach an elephant how to fly. It does not fly!

It is a waste of time. Remember: those who keep bad people in the company are discouraging the competent people.

We cannot be lenient to the point of not making decisions and seeking paths. High performance team needs a high performance manager. The time is now!

Competitiveness is to have the customer’s focus (not focus on the customer), have attitude, and anticipate ideas and concepts and, most importantly: win the customer’s heart. Price any company can offer, but that does not guarantee loyalty. A differentiated treatment does it. Start in the next sale and test the efficiency of the proposal. Don’t sell products, sell experiences. And experience is only possible with excellent people. Otherwise, it becomes a nightmare.

Success!

Cláudio Tomanini is MBA Professor at FGV, speaker and specialist in Strategic Planning and Sales Management. www.tomanini.com.br

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PRODUCTION LINE

With the arrival of socalled Y Generation in the consumer market, several manufacturers are adapting their products and their way to operate to serve these young customers who are demanding and make the car an extension of themselves through new technologies.

s

ConneCtivity to serve the y Generation

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martphone, connectivity and earphones. These are the main features found in young people born between 1980 and 2000, who are entering the consumer market.

Known as the Y Generation, these consumers are changing the way of thinking of vehicle manufacturers, shaping trends, both in model design and vehicle integrated systems. “Our make has a great concern of being in line with the trends and, no doubt, from now on, Y Generation is the one who will dictate trends,” says the Product Marketing Officer of GM do Brasil, Hermann Mahnke.

“The youth who belongs to the Y Generation has a lot of attitude. Therefore, for Onix, we adopted a strategy of customization, with a line of more than 100 accessories for cars. This customization allows the young to express what they want and what they are,” says Mahnke, explaining that it is possible to buy a sticker to apply on the dashboard of the vehicle, for instance, where the consumer enters the assembler website by using a password, sends a photo of their choice and receives at home a decal to apply on the car. “This is very much in line with the young,” he added.

The Y Generation is not adept of traditional methods of buying and selling vehicles, with the delivery of gifts and other Chain regular benefits.

They want speed and connectivity at their fingertips. These conclusions were based on a research presented in Folha de São Paulo newspaper, ordered

by GM, United States, to the MTV Scatch, division of the TV station responsible for helping companies to understand the desires of this consumer public.

According to what was published in the newspaper, MTV proposed changes in the Dealerships Chain, the cars and the form of communication. “Onix

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PRODUCTION LINE

was thought, planned and designed thinking of this public in all senses: in design, customization and connectivity. And MyLink is a proof of this planning,” says Mahnke.

MyLink is a platform of connectivity that leaves behind the conventional sound system, or “hard”, as defined by the executive of GM do Brasil. According to him, it is a system that works as a gateway to the world. “MyLink assumes that people’s lives are smartphone focused. The files, music, videos and applications are concentrated in these devices. Therefore, the system we developed is an emulator of them all,” added Mahnke, stating that the system stands out for its intuitive interface and easy navigation, which makes use of a seven

inch LCD touch screen. Through it one can control some functional settings of the car, and traditional functions of AM/FM radio with MP3/WMA audio files player.

Applied technology – During the last Auto Show in Paris, the connectivity issue was also among the exhibitors’ agenda. There is a consensus that smartphones replaced the car as a “symbol of adulthood”, unlike what used to be a few years ago. Business people believe that young people are willing to spend more on high-end devices than in cars.

In the French Show, several manufacturers gave great emphasis to features with many auxiliary inputs in the sound system, voice commands and Internet radio reception. “Before, we talked more of drivability, engines and things like that,” states the Quality Vice-President for the European Ford, Gunnar Herrmann, in an interview to Jornal da Tarde newspaper. “This is losing grounds to connectivity,’ he said.

Chevrolet Onix – main launch of the American make – exhibited this year at the Auto Show was

Gustavo Colossi, Chief Marketing Officer of Chevrolet.

Beside, Onix, which comes equipped with the MyLink system.

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entirely developed in Brazil, uses cutting-edge technology, has a modern design and offers plenty of connectivity, in addition to containing in its specification unique items never seen in cars of the category, such as MyLink, mentioned by Mahnke.

“We seek to conceive a car with high levels of design, comfort and technology and harmonically distributed for a product that will suit a large public. This is a compact model, but featuring items only found in vehicles of superior segments.

Consumers will certainly recognize these values and, thus, turn Onix in an effective success of market,” said Gustavo Colossi, Marketing Officer for Chevrolet.

The same occurs with Renault that during São Paulo International Auto Show exhibited the Media Nav, which already equips the Duster and will be one of the optional for Logan and Sandero lines, entrance vehicles of the make. “We are bringing affordable technology to our customers of less expensive cars,” explains Carlos Henrique Ferreira, Press General Manager for Renault, informed that the new equipment will cost R$ 500 only.

Media Nav provides radio functions, Bluetooth and GPS. A seven inch touch screen integrated to the dashboard provides menus of easy identification and configuration.

Fiat, for instance, realized that the modern life in large urban centers causes the drivers to spend more and more time inside the cars. With that in mind, in 2005, the assembler launched Connect, first Bluetooth connection between the mobile phone and the vehicle audio system, where it was possible to make and receive calls. “From that moment on we realized we had to make cars increasingly more like an extension of our lives, our work and our home,” explains Fiat Technical advisor, Ricardo Dilser.

Carlos Henrique Ferreira, Press General Manager of Renault, says the assembler brings technology accessible to all customers.

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PRODUCTION LINE

CatCh the

According to Disler, the technology embedded in the make vehicles went through several stages of evolution. After the Connect system, the Italian assembler launched the Blue and Me and the Blue and Me Nav. The latest system is the EcoDrive, a tool where the central engine records the driver’s drivability, sets up a panorama of the driver’s profile, how much they consumed and gives tips on how they can improve driving. “The system attracts young people because it generates a real convergence among the vehicle, people and social media,” comments Disler.

The latest addition to the company is the Social Drive, a solution that allows access to social networks to receive news from portals while driving, by voice command. It is software that “reads” for the driver the updates from their social networks.

The car owner needs to have a smartphone connected to Internet, which will be connected to the

Fiat Novo Punto is the first make vehicle equipped with Social Drive.

vehicle sound system via Bluetooth. With that it is possible to listen to Facebook friends’ postings, for instance. The access can be done by voice command. The New Punto was the first car to offer this service. “Every new project we carry out in the plant already takes the connectivity issues into consideration,” adds Dilser.

All these trends that integrate connectivity to vehicles seem to have become a path without return in the market. Most companies already have Y Generation oriented-products, however, communication must meet what this public think and need. “All our communication in Brazil already is according to the language of this public,” explains Mahnke, GM do Brazil.

The Chain of Dealerships also should get prepared to welcome this new consumer in their stores. The traditional ways of selling, including the allurement of power and drivability, lost ground to concepts of design, style and connectivity. “Dealer should pay attention to the product use in order to be able to properly explain all this technology in the vehicles today,” says Disler, Fiat.

“Our Dealers are trained to understand this public and interact with them. We’ve developed training on an ongoing basis for the sales team to understand the habits and tastes. With that, we can generate credibility and loyalty of these new customers to the make,” concludes Mahnke.

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Mobility

Two wheels: MobiliTy wiTh sAfeTy With the rising of accidents rates involving motorcycles, it is clear the need for theoretical and practical preparation for motorcyclists; Assemblers initiatives, such as free courses that disseminate knowledge, aim to promote awareness of responsible driving.

A

pioneering study on traffic violence, conducted in May by Sangari Institute by analyzing 1 million death certificates worldwide, revealed that Brazil is the world second country in fatal accidents involving motorcycles, with 7.1 deaths per 100,000 inhabitants. The Map of Violence 2012, published by Veja magazine, shows that just in Paraguay there are more deaths, 7.5 deaths per 100,000 inhabitants.

In the last 15 years, the growth rate of mortality in motorcycle accidents in Brazil rose 846.5% and 40% of victims die on the spot. In 2012, more than 13,000 Brazilians should die on the streets and avenues of the Country in accidents involving two-wheeled vehicles. The year of 2010 recorded 13,452 casualties, against 1,421 recorded in 1996.

Among the victims, 75% are men and 40% are between 21 and 35 years.

One of the reasons for this scenario is the explosion in the two-wheeler market in the last 10 years. The fleet of motorcycles in circulation in the country grew no less than 246% in the last decade, reaching 19 million units.

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But the drivers’ training does not keep up with the fleet growth. And with that in mind, since 1972, Honda Motos develops training for motorcyclists in Brazil. At the time, with instructors from Japan, were conducted preparatory courses, both to develop riding techniques and to teach how to handle the vehicles. “With the increase in imports, in 1974 Honda formed their own group in Brazil to train motorcyclists. Two years later they created a mobile training unit to give courses throughout Brazil,” Says the Instructor of Honda Traffic Education Center (HTEC), Thiago Vasconcelos.

Opened in 1998 in Indaiatuba, São Paulo, the HTEC occupies a total area of 120,000 m2, between administrative headquarters and space for practical training. On the outside, the off-road area has approximately 90,000 m2. “We have a complete training structure for Honda customers, Dealers, and the work done with companies, military forces and government agencies,” details Vasconcelos.

The structure also has riding simulators to enable motorcyclists to experience various traffic situations and learn to react safely. Its use goes from the first contact with the motorcycle until the assimilation of post-training behavior exercises and assessment.

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Moto Check-Up

Mobility

Moto Check-Up, an action developed by Abraciclo - Brazilian Association of Manufacturers of Motorcycles, Mopeds, Scooters, Bicycles and Similar aims to guide and not supervise motorcyclists and their motorcycles, in addition to provide free evaluation of 21 vehicles safety items, helmets inspection, awareness of the importance of defensive riding, and distribute gifts and a voucher for one liter oil change.

Since its creation in 2008 the event has already held 16 editions and served almost 30,000 motorcyclists.

The last edition, held in September, in the city of Brasília, attracted more than 1,500 motorcyclists. During the event, held in celebration of the Traffic National Week, the entity conducted a survey on the items most in need of maintenance and found that rear brakes (25%) and oil level (22.7%) are in first and second, respectively.

In previous editions of the program, the entity found that among the items most in need of maintenance, the rear brake was ranked first, with 45.5% of occurrences. Based on this result, the Moto Check-Up also began to guide drivers about the correct braking procedure. “Motorcyclists need to understand that with the use of both brakes it is possible to reduce by 50% the distance required to a full stop of the vehicle at the time of braking, preventing possible accidents with obstacles or other vehicles ahead,” explains José Eduardo Gonçalves, Executive Officer of Abraciclo

At CETH, with more than 120,000 m², students have theoretical and practical lessons at their disposal on riding techniques.

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With five different types of training, the HTEC in Indaiatuba and in Recife (opened in 2006) have trained more than 400,000 people since they started their activities. “Motorcyclists practice the lessons on HTEC own motorcycles and are accompanied by a team of instructors. The courses of level basic, advanced, off-road and for quadricycles are entirely free and workload has between 8 and 16 hours,” explains.

During the learning process in the basic course, the motorcyclist receives notions of prevention, protection, riding positioning and movement techniques in traffic. In practical classes, students perform routes on the training track and receive guidance regarding cornering and braking. “We teach the correct way and the speed at which the

brake is activated before a curve, for instance. We also show the correct way to use the front brake, aiming to increasingly reduce braking space,” adds Vasconcelos.

According to the instructor, the companies that provided this benefit to the employees had about 40% reduction in the number of accidents. “Hence, companies take courses with us on an annual basis,” details Vasconcelos, informing that 300 people are trained every day at the HTEC. Chain Participation – The Chain of Honda Dealerships plays a vital role in the multiplication of the concepts transmitted at the HTEC. Through a course called “Chain Instructors Training” Honda multiplies, regionally, this knowledge

to motorcyclists in general through dealerships instructors. Courses last 32 hours with several assessments, exercises and tests that qualify them for the multiplication activity.

This work ended up generating the HTECs (Honda Traffic Education Centers of Dealerships), through which each dealership forms classes for theoretical and practical training using their own structure or in partnership. Altogether, more than 100 make dealerships already have qualified instructors. “Some Dealers are seeking certification to perform the moto-freighter mandatory training, whose supervision begins in 2013. Today, only institutions of the “S” System [SESI, SENAI, and SENAC] are authorized to conduct these trainings,” adds Vasconcelos.

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economy

GovernmenT incenTives moTivaTe Two-wheeler indusTry State-owned banks respond to industry leaders request and release attractive credit lines in an attempt to boost two-wheeler segment. It is too early to speak of expressive results, but Fenabrave believes that sales will go up again.

T

he motorcycle sector, after its slow recovery from the economic crisis faced in 2008, had a retraction in sales this year. The main reason, according to Fenabrave, is the licensing restriction in providing credit which, according to Fenabrave, reached the threshold of 17% of records approved. “Banks are very strict, especially for lower-income people, who represent the largest share of the motorcycle market. Over 80% of sales are for motorcycles up to 150 cc, which is the gateway to the motorization of the population,” commented the Executive President of Fenabrave, Alarico Assumpção Jr. According to Fenabrave, between January and October this year, the motorcycle sector achieved sales of 1.37 million units. This figure represents a decrease of 12.82% compared to the same period last year. If compared to October this year and the same month of 2011, the drop reaches almost 8%.

“The rise in delinquencies also contributed to this result, because many people bought high valued motorcycles and weren’t able to pay the installments,” explains Assumpção Jr. Concerned with the sector performance, Fenabrave, through their representatives, requested the government a special attention to this market, asking them to offer incentives so the sales return to growth.

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As a result, after meetings of the sector entities representatives, governments and banks, in early October a partnership between Caixa Econômica Federal and Banco Panamericano was announced, which launched the program “Best on a New Motorcycle” credit line that offers more attractive conditions of credit for those who want to acquire a brand new motorcycle. “The Caixa Econômica Federal liquidity and the retail experience of Paramericano made us believe that the initiative could encourage the credit market for this sector that was weakened. The government and the banks did their part. Now the market has to begin to react and that’s what we hope and expect,” said Paulo Engler, Chief Officer of Fenabrave.

“Delinquency has grown a lot in recent times and the family income commitment affected this sector, preventing the buyer from making more debt. This partnership of banks was critical for the sector that was facing credit difficulties. Caixa and Panamericano opened a fan with affordable and competitive interest rates attractive to the customers. Recovery will be slow, but we are optimistic and believe in improvement,” said Antônio Figueiredo, Vice President of Fenabrave and motorcycle sector representative at Fenabrave.

The program “Best on a New Motorcycle” is aimed to brand new vehicles, from 100 cc. The action allows financing up to 100% of the motorcycle Dealer Magazine

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economy

Flávio Meneghetti, presidente da Fenabrave e Carlos Henrique Carvalho, técnico de planejamento e pesquisa do IPEA.

Sector performance

Leaderships of Caixa Econômica Federal, Panamericano and Fenabrave present the “Best on a New Motorcycle” program.

value, with payment terms up to 36 months. The credit analysis process is simple and service is performed at the dealership. Anyone can benefit from the program.

Fábio Lenza, Vice-President for Individuals of Caixa Econômica Federal, emphasizes the importance of the partnership with Banco Panamericano.

“It is an initiative that is even more comprehensive for the Programa Caixa Melhor Crédito, which goal is precisely to improve the credit access condition for Brazilian families,” he says.

For José Luiz Acar Pedro, CEO of Panamericano, the program has the merit of supporting the sector leveraging sales, which have been less vigorous in recent months.

Alarico Assumpção Jr., Executive President of Fenabrave, this partnership will serve to revive the two-wheeler sector. “This partnership was extremely welcome and timely for the sector, especially now with this continuous sales decline,” explains the Executive President of Fenabrave.

For Abraciclo (Brazilian Association of Manufacturers of Motorcycles, Mopeds, Scooters, Bicycles and Similar), which represents two-wheel vehicles manufacturers, this partnership and the banks support should be followed by other institutions. “We hope these measures motivate other financial institutions to offer financing plans responding to the current needs of consumers and contributing to the resumption of motorcycle business,” says José Eduardo Gonçalves, Executive Officer of Abraciclo.

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According to Abraciclo, even with this support, the sector will close 2012 in retraction.

“We begin 2012 with the prospect of growth of 5% in production and wholesale compared to 2011. However, given the high selectivity in granting finance, we had a downturn in business and should close 2011 with drops of 16% in production, with a projection of 1,788,000 units produced, and 17% in wholesale – about 1,690,000 units delivered. Therefore, we believe that the announcement made by CEF and Banco Panamericano – involving the new credit line for motorcycle consumers – will stimulate sales in the sector,” explains the executive.

Fenabrave attitude of pleading for help from the government and banks to improve the sector was well regarded by the President of Assohonda (Brazilian Association of Honda Distributors), Clemente Sartório. “Fenabrave performance was just perfect. The sector really needed that someone reached the government and asked for this help. We, from Assohonda, congratulate Fenabrave for this action,” he said. According to Sartório, even with this movement by Caixa, it is necessary that other financial institutions follow the this example. “I believe that after this incentive the two-wheeler sector will be fine. My expectation is cautiously positive, as these measures are fairly recent. All indicates that in the second half of 2013 the sector will resume its sales,” he says.

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connection

t Vehicles within the mouse reach This is not Internet sales, but portals of classifieds that are increasingly gaining ground in the market as a search tool in the market before making purchasing decision.

The objective is to attract customers – both to purchase brand new or second-hand cars – to the dealerships.

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he search for products in the Internet, before the purchase completion, has become commonplace in all segments.

The practicality and technology evolution contributed to the growth of portals of classifieds of vehicles. In the automotive segment, this trend is growing and more than portals of classifieds of cars, these new tools are decoys of customers to the Dealerships Chain.

Traditionally filled by offers of second-hand cars, the concept of online classified ads has attracted advertisers of zero kilometer vehicles. It is not about the actual sale through Internet, but specialists assure that well-conceived ads, with attractive photos and a large amount of information about vehicles, causes a good portion of customers to go to the dealership to see closely the object of their desire.

An example of this, the iCarros portal, which acts as a classifieds site since 2008 and offers listings of second-hand vehicles ads, launched in October the tool called “Compare 0Km.” This is an exclusive area for brand new vehicles intended to offering customers conditions to compare products, both with respect to the technical features and prices and performance. Additionally, the customer may seek the dealership nearest their residence to see firsthand the desired model. “The iCarros portal is not a site for buying cars but a marketing tool. Where we post the dealerships vehicles to our customers, i.e., it is an advertising space. The Internet user enters the portal and searches for the desired model, with various options among new and second-hand cars,” explains Sylvio Alves de Barros Netto, CEO of iCarros.

The “Compare 0Km” allows the customer to search by category (convertible/coupe, hatchback, minivan, pickup trucks, sedan, SUV, van and wagon), by price, by 47 automotive makes, or even by lifestyle. The tool is free and also meets the needs of the automotive industry as to marketing strategies, for it arrives as a new option of contextualized media, already with the “Compare 0Km”, assemblers will be able to reach the user at the exact moment of purchase consideration. “By using the catalog, the site brings to the consumer a photo gallery, prices, versions available for that model and even a general assessment, based on experts’ opinions and owners of that car, with positive and negative points,” explains Barros Netto.

“Our goal is to help the customer to make the best choice, according to their profiles and needs,”

iCarros and CarClick: portals of classifieds that aim to attract more customers to dealerships.

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How to sell more?

To advertise, the Dealer should simply contact the portals services and check the packages offered for production promotion. “We have monthly packages which entitle to a certain amount of ads per month.

The packages range from R$ 1,000 to R$ 50,000 per month. Our focus is that the dealership sells more cars. We are concerned with giving a decent support so that the dealership obtains return on investment,” explains Barros Netto, iCarros.

Massaro explains that at Carckick the ad form is different and unlimited. “The cost for the dealership is unique. We do not offer packages with value options and also there is no limit of inventory for the ad.

The Dealer announces and releases all their stock,” says Massaro.

Despite the short time in the market, Carclick already has expectations of success for the future. “Our site is still premature and should close 2012 with 500 dealerships and approximately 5,000 ads. For 2013, our goal is to have 1,500 Dealerships advertising on CarClick,” concluded the executive.

Sylvio Alves de Barros Netto, iCarros, and Fúlvio Kaminski Massaro, CarClick: online classifieds bring good deals to Dealers.

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says the CEO of iCarros. For the project, the company has studied consumers of 0Km cars and gathered, in a single environment, all information that impact decision making: photos/videos, versions and prices, technical specifications, reviews from experts and consumers, and search for dealerships. “With the models variety currently in the Brazilian market, we seek to deliver even more convenience to our users,” states Barros Netto.

In the last Fenabrave Congress, held in August, the Internet issue was widely discussed by various speakers. They all affirmed the importance of the web helping search before purchase and sale of vehicles. According to a survey conducted

by Google in 2011, presented by the consultant Fúlvio Kaminski Massaro, responsible for the creation of CarClik site, more than 90% of the consumers who have access to the Internet use this tool at the time of deciding which model to buy.

“Internet is the most used media search at the time of purchase,” explains. “Out of 90% of Internet users who search the model in the Internet before buying, 13% of them already navigate in the mobile. In Brazil, the weekly navigation time reaches 25 hours. It is already proven that Internet is the second investment environment, second only to TV,” adds Massaro.

CarClik was launched seven months ago and offers ads of second-hand vehicles. Like iCarros, the site is also a marketing tool that helps the customer at the time of the survey. “Carclick is a portal of classifieds for second-hand cars exclusive for dealerships, which offers a number of advantages, such as unlimited posting of inventories, smart search for vehicles, 12 photos per ad, integration with other classifieds sites and much more,” explains the creator of CarClick.

The purpose of these portals is to assist the customer during the search, but finalize the purchase in the store. “The function of this marketing tool is not to sell cars online, but accompany the customer’s search in the portal and fulfill its role, which is to bring the customer to the store to close the deal,” emphasizes the Officer of iCarros.

“Note that the way to sell has not changed, as CarClick does not sell cars online. It is a platform, a marketing tool that assists the customer search for the car they want. The sales people are the ones who continue to sell, and the customer closes the deal in the store,” says Massaro.

According to Barros Netto, iCarros has 12 million hits per month, which proves the power of penetration of these media. “The online media is more used by the automotive consumer when it comes to searching, for the consumer will not always find the desired model in the store, unlike the Internet, where the Internet users run the search, clarify their doubts about the model and their competitors at the same time.”

In order the dealership succeeds through classifieds portal, it is necessary to have a very good technological structure and provide appropriate support to assist customers with questions. Keep a close partnership with the classifieds portal is also a way to show always complete and attractive ads. “In the case of CarClick, we have a team that supports our advertisers and provides updates: models advertised, position rule with model complete information, among other details. If the Dealer passes more than a week without updating its ad, we call them to see if there is any trouble and if we can help in some way. It is very important to support the advertiser for a positive result, as well as the customers in the act of search,” explains Massaro.

A site well-fed of information, trained professionals for content management and agile access system are important requirements at the time of the customer’s navigation to find their model.

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Federação Nacional da Distribuição de Veículos Automotores Av. Indianópolis, 1967 – CEP 04063-003 – São Paulo/ SP Tel.: (11) 5582-0000 / Fax: (11) 5582-0001 E-mail: fenabrave@fenabrave.org.br – Site: www.fenabrave.org.br Dealer Magazine

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International Auto Show

Brazil on the roadmap of global platforms

A3

In the last edition of Paris Show it was pretty evident the need assemblers have to create global vehicle platforms and focus most of their effort in the emerging countries, such as Brazil, one of the few that have good prospects in the long-term.

This is partly because the economic crisis in Europe overthrows the market, as occurred in the United States which, since 2008, is recovering from the effects of turbulent times in the economy.

This global trend was clear during the event held in the French capital. For instance, the new EcoSport, Ford world model, was exhibited first hand in Brazil and, months later, landed in Paris. Something similar happened with Peugeot 2008, first shown to the world at the Paris Show and already confirmed to be on Brazilian soil. These are two news that confirm that the Country is now in the assemblers’ priorities list.

According to the CEO of PSA group for Brazil and Latin America, Carlos Gomes, this movement began 10 years ago, but is more visible now after the Brazilian market conquered the 4th position in sales worldwide, overtaking Germany and behind only the United States, China and Japan. “Today, Brazilians have higher incomes, lower interest rates, government stimulus with taxes cuts, as the Excise Tax (IPI), and easier credit. With that, they went on to not only be able to buy a better car, but also to demand better products,” explains the executive.

The same trend was seen during the IAA event, in Hannover, Germany, considered to be the largest show of the commercial vehicle industry worldwide. During the trade show, Iveco confirmed it will produce and sell the Stralis Hi-Way in the Country, most sophisticated model that will go top of the current line range. Also,

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AudI With a booth full of news, at São Paulo Show, Audi presented the A1 Quattro, A3 Sport, S6, S7, S8, and R8 GT Spyder models. “We already grew 13% worldwide; we are leaders in Europe, China and hit record sales in the U.S.A. and Latin America. Our goal is to be the Premium make leader in Brazil,’ stated Leandro Radomile, CEO of Audi in Brazil.

among the extra-heavy ones, Volvo will nationalize the new FH. Now, MAN used the event to tell that will sell a new family of vocational models in the Country. Although not part of Volkswagen Trucks and Buses booth in the event, Roberto Cortes, CEO of MAN Latin America, confirmed to reporters that the company will launch in the Country the Distributor, for beverage distribution, the Constructor, for civil construction, and the Compactor for the garbage collection segment.

Furthermore, there is an option for transportation of valuables.

In São Paulo, many makes used the Auto Show, the largest in Latin America, to world premiere of their models. This was the case of Mercedes-Benz, Ford and Volkswagen. Mercedes presented the anniversary version of SLS GT3 icon, which turns 45 years. There are five units in the world and the one brought to Brazil was already sold. Ford presented for the first time, the New Fiesta sedan, which arrives here in 2013.

At Volkswagen, besides the new Beetle, New two-door Gol and Up! Family, visitors could see – from October 24 to November 4 – the concept cars, including the Taigun SUV, which made its world premiere in São Paulo.

After showing the 49 exhibitors makes and show more than 500 different models, Dealer Magazine selected the models that promise to stir up the Brazilian market.

The main launch of the make at the event was the A3 Sport, which will be marketed starting in January 2013, and will be competing with Mercedes-Benz A-Class and BMW 1-Series. “In Brazil we’ve already grew 5% accumulated this year and we believe very much in this market,” says the executive.

M6

Bmw The German assembler BMW stole the show at São Paulo Show when announced that it will have a plant in Brazil to be located in Araquari/SC. “We’ve already made a decision and yes, we will have a plant in Brazil. We are only awaiting the project approval to submit to the government,” said the make CEO for Brazil, Jörg Henning Dornbusch.

The executive gave few details of the new plant, but added that 30,000 units will be produced on annual basis.

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“We will invest 200 million Euros in this production facility and it will have a productive capacity of about 30,000 units per year,” explained Hewnning. The main assembler launch at the event was the new 6 Series Gran Coupe - four and two doors, which completes the line with the recommended convertible configuration marketed in Brazil. Other models of the German make were also presented, such as M135i Hatch, the M5 sedan, and M6 Coupe.

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cItroën The French Citroën introduced DS complete line with the launch of DS4 and DS5 models, which will join the DS3 compact from the first half of next year. The assembler also showed the public the hybrid version of DS5, which will not be sold in the Country.

The make – which has gone through major transformations over the past 10 years – search in the Brazilian market the image of an innovative organization and manufacturer of sophisticated vehicles. “We started to add more value to the vehicles we design and build all

chevrolet GM do Brasil presented two weighty models to the national market: the compact Onix and the TrailBlazer SUV. The new Onix should shake the hatch segment market. The assembler stated the model will have 10 finishing versions, will go on sale for R$ 29,990 (entrance version price), with 1.0 engine, starting in November. “Brazil is the third largest GM market in the world, the largest in Latin America, and the Country has shown consistent growth. We are doing well here and Onix is important to keep up the good performance in the region. GM new face includes Onix,” said Dan Akerson, GM world CEO. “In the last 12 months, we had nine launches, and the most important of them surely was the Onix, which arrives to change GM history and the segment in Brazil. It is the most important launch since Corsa,’ said Jaime Ardila, GM CEO for South America. According to the executive, the model raises the quality level of compact cars range in the Country, which account for over 70% of domestic sales. “There is no longer that customer who only wants price and space here.

Today, they also want quality, connectivity, comfort and technology, and Onix offers it all,” he explains.

As main competitors, Onix will have Volkswagen Gol, Hyundai HB20, Nissan March, Fiat Palio, Fiat Uno, and Renault Sandero.

The TrailBlazer SUV was also presented in great style and shall be imported from Thailand to Brazil and more than 50 markets. The utility hit the stores in November.

TRAIL BLAZER

DS4

TRAIL BLAZER

ONIX LTZ

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over the world. This attitude includes the operations in developing countries, like Brazil”, commented Frédérik Banzet, CEO of Citroën.

PSA Peugeot Citroën, which brings together the two French makes, will invest R$ 3.7 billion in Brazil between 2010 and 2015. The amount will allow the product line expansion and the production capacity increase at Porto Real (RJ) plant, in facilities dedicated to the assembly of compact vehicles. “We are reaching the limit of production capacity in Porto Real, which requires the unit expansion in the short term, thus, we made that decision,” explained Banzet.

FIAt Fiat that in the past 18 months launched nine products in the market, at the São Paulo International Auto Show launched the Fiat 500 By Gucci, a partnership between the assembler and the Italian make. The vehicle will be sold for R$ 60,800.

Another model that graced the Italian make booth was the Fiat 500 Cabrio. Derived from the Lounge Air version, it is the first convertible of the make sold in Brazil. According to Lélio Ramos, Fiat Sales Officer, out of the total sales of the vehicle Cabrio should account for 5%; soon Cabrio will be available in the make dealerships.

“It is the most affordable convertible in the Brazilian market, as it will cost R$ 57,900,” said Ramos.

In addition to the models, Fiat also took to the São Paulo International Auto Show a red Ferrari 458 Spider with a retractable roof in aluminum, and the Maserati GrandCabrio Sport.

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hondA Ford Presented for the first time in Brazil, the “New Fiesta” was exhibited at the Auto Show in sedan and hatchback versions, which should be produced in Brazil. Planned to get to the domestic market next year, the restyled models in a project that included the participation of Brazilian engineers, it brings the make new global visual identity. The make has not spoken about price yet, but says they will try not to endear the car, despite the increasing technology.

Another model also exhibited for the first time at the Auto Show was the new EcoSport. Other make models also graced the booth of the American assembler, such as Ford Fusion, EcoSport, and Focus, among others.

Ford Vice-President, Jim Farley, said that 2013 will be a very special year for the

assembler in Brazil. “Next year will be special for us, because the new models of EcoSport, Ranger, Focus, and Fusion line will be together in the national market. They are global products that reflect the spirit ‘One Ford’, strategy adopted by the assembler to emerge from the crisis and return with strength to the market worldwide.”

In the event, Honda announced the expansion of its plant with a new structure for production capacity. With an investment estimated in R$ 100 million the production unity and Sumaré (SP) will have a new built-up area.

In addition to this announcement, the Japanese assembler also revealed the return of Honda Civic Si to the national market and showed the new version of Fit, named Fit Twist. Furthermore, starting in 2014 it should include the Acura premium in Brazil. “For 2014, our challenge will be the renewal of the

whole line of small cars of the make,” commented Roberto Akyama, Honda Sales Officer. The CEO of Honda, Masahiro Takedagawa, said that 2012 “is being historical to Honda. By September we will have registered 37,000 units and thereby have grown 89% in the market,” he celebrates.

CIVIC SI

hyundAI NEW FIESTA

ECOSPORT

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One of the most anticipated models for the automotive market, the newly launched HB 20 was featured of Hyundai at the São Paulo Auto Show. The make announced the model will be produced in its new plant, in Piracicaba (SP), and presented the hatch “adventurous” version, scheduled for release in January: HB20X. Exclusive to the Brazilian market, the model starts with the basic version price for R$ 31,990.

HB20 is the first line of products entirely manufactured in Brazil by Hyundai. “We will have three versions of HB20, which will be manufactured in the production facility of Piracicaba/SP and, therefore, will generate 5,000 jobs,” said Luiz Sergio Cazzonatto, After Sales Officer of Hyundai Caoa.

The Korean make also introduced the restyled i30 model which will go on sale in January. “We haven’t defined the price yet or how much more expensive the model will be,” explained the executive. Another launch of the make was the new Santa Fé, with arrival promised to the first half of 2013; up to now there are no speculations about values.

Dealer Magazine

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JAGUAR F-TYPE J2

jAc motorS With continued investments in its plant in Camaçari/ BA, in its booth JAC Motors exhibited a compact car, well equipped, with modern design and extremely agile and fast. According to the assembler, the model will reach the authorized chain in early December.

Already a tradition in the other models of the make, the J2 will also feature standard items of comfort and safety.

The package includes air-conditioning, electrically assisted steering, windows, central locking and mirrors with electric drive, ABS brakes, dual airbag and CD player with MP3. Light alloy wheels (14R), fog lights and rear parking sensors are also part of the package for the J2 series items.

Due to the extension of the Excise Tax (IPI) reduction, JAC Motors announced a price drop for the model. When it reaches the Dealership Chain in the first week of December, the new J2 will be marketed for R$ 30,990. “When we formulated the new J2 price we had considered that the Excise Tax (IPI) would return to the 13% level on October 31.

That is, the moment the car reached the stores, we would not be benefited by that reduction anymore. But the news given

by President Dilma enabled this reduction in its launching

jAguAr e lAnd rover Jaguar Land Rover CEO for Brazil and Latin America, Flávio Padovan, before presenting their main models of the make, announced that the imports are no longer in the hands of the entrepreneur Sérgio Habbib. “The make itself will import the models to Brazil,” said Padovan.

Jaguar took the F-Type to the Show; it will hit the market in 2013 in three versions. The model has already been presented, last September, at the Paris Show. “We want to use this launching to increase our share in Brazil, price, as the new J2 will hit the stores in early December, when the IPI reduction will still be in effect, explains Sergio Habib, CEO of JAC Motors.

kIA motorS Amid the celebration of 20 years of operations in Brazil, Kia Motors introduced three new models to the Brazilian market in their booth at the São Paulo International Auto Show: New Cerato, New Quoris, and Optima Hybrid.

The main launching of the Korean make was Kia Cerato, which should only reach the Brazilian market at the end of the first quarter of 2013. The new Quoris, luxury sedan that will compete with the BMW 7-series, didn’t have its price revealed and should be launched in the first quarter of 2013. “These models we are presenting, including Quoris, are watershed for Kia,” celebrated José Luiz Gandini, Kia Motors CEO for Brazil.

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as well as the success of Ranger Rover model, which we’ve already marketed 4,000 units in less than a year,” explained the executive.

On the other hand, Land Rover presented the new generation of Range Rover Vogue with a modern and relaxed look. “By presenting this model we are breaking all paradigms, keeping us very optimistic about the Brazilian market and the way our models are well accepted,” celebrated the CEO of the make.

RANGE ROVER VOGUE In turn, Optima Hybrid, which is already marketed in Brazil in the gasoline version, was in the Show but is still in the approval process, and its launching is scheduled for 2013, without a date defined.

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nISSAn SLS GT3

The Japanese Nissan announced the Altima Luxury Sedan for 2013. The make, which will invest R$ 2,6 billion to expand the production capacity with a new plant in Resende/RJ, has not disclosed the model value; its direct competitor will be Ford Fusion. “This model is very well accepted in the United States and we expect the same here,” said the CEO of Nissan for Brasil, Christian Meunier.

Besides the luxury sedan, Nissan also introduced the Extrem concept, without a date defined to be launched.

However, as announced by the make, it will be developed in Brazil and will rival Ford EcoSport.

In celebration of the 2016 Olympics, which will take place in Rio de Janeiro, Brazil, Japan also announced a special series of Nissan March, named Rio 16, with a unique look.

ALTIMA

mercedeS-Benz Aiming to return to growth in 2013, Mercedes Benz took the new B-Class to the Auto Show. “Our goal with this model is to take on the first place among luxury makes,” stated the Commercial Vice-President of Mercedes-Benz for Latin America, Joachim Mayer. The car will be available in two versions, B200 Turbo for R$ 115,900 and the B200 Turbo Sport with an estimated value of R$ 129,900. The model is well accepted in Europe and should arrive in Brazil until the end of the year.

According to Mayer, the German assembler will benefit from the Inovar-Auto program on account of investments already made in Brazil and, therefore, will

CLASSE B

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be able to import cars without paying the extra 30 points of Excise Tax (IPI). With that in 2013 the make expects to beat the record of sales achieved in 2011 of just over 10,000 units sold.

Another novelty presented by the make was the Mercedes-Benz SLS GT3 45th, which has only five units worldwide. The model is part of the 45 year-celebrations of AMG make, which was born in 1967 with the sole purpose of designing and testing racing engines. “This limited series has only five units worldwide. And to our delight, the first one was sold in Brazil,” said the CEO of Mercedes-Benz for Brazil and the CEO for Latin America, Juergen Ziegler.

peugeot Having the Chevrolet Onix as its main competitor, Peugeot 208 was presented by the French assembler; however, the model shall not replace the 207 series just yet, which, according to the make, will continue to be available at dealerships as the manufacturer entrance model. Peugeot also did not reveal the price for this new vehicle.

“We have the most modern range of vehicles sold in Brazil. We prioritize so that the same models that are sold

in Europe arrive in Brazil with the same content for the Brazilian market and, thus, have success in all countries,” said Frederic Drouin, Head of the make for Brazil and Latin America.

Besides the 208 model, Peugeot main launch for the Brazilian market, the make also exhibited the 208 Gti Concept, 308 CC, 408, 508, 3008, and RCZ models at the Auto Show.

208

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renAult With a different design and much more modern, the new Renault Clio was presented at the Auto Show as one of the make main attractions. In addition to Clio, the French make exhibited the Renault Fluence Turbo and the Media Nav system, alongside Duster DCross, SUV Captur and the Fluence and Twizzy electric cars.

According to Renault, even restyled, the model remains competing with Chevrolet Celta, Fiat Palio, and Ford Ka. “We are in the best moment of history and our goal is to keep bringing novelties to Brazil,” commented Olivier Murguet, CEO of the make in Brazil.

Analyzing the current trajectory of the company in the Country, the executive considered the development of Renault to be very good, with significant growth in

licensing, which reached 189,373 units by mid-October.

With this result, the French make achieved the fifth place in the ranking of sales of cars and light commercials.

toyotA

NOVO CLIO

volvo This year Volvo bets in a highly technological model.

It is the only car in the world equipped with airbag for pedestrian. The model exhibited by the assembler was the main launch of Volvo at the Auto Show, and should reach the Country next year to compete in grand style with the Premium hatchbacks segment. Another novelty was the introduction of Volvo On Call. It is an application for

PRIUS

Toyota presented to the Brazilian market their sales success in other countries: the Prius. The hybrid model, powered by electricity and gasoline, will be the main competitor of Ford Fusion, which also has an electric version.

“We do not know whether the competition wants just to mark their presence with an image car, or if the intention is to sell it. Toyota intends to sell,” clarified Luiz Carlos Andrade Jr., assembler Senior Vice-President for Mercosur.

With a booth full of news, the make also presented the latest launch of Toyota for the Brazilian market: the compact Etios. According to Andrade Jr., from September (month of the model premiere) until the end of 2012 8,000 units of Etios should be produced. “This volume is pretty much sold.

In fact, to meet Etios demand, we will begin a second shift at Sorocaba (SP) plant in January next year. From 70,000 units per year, our capacity will soon be expanded to 100,000 units,” said the executive.

smartphones and tablets that allows the driver - by means of these devices – to monitor their vehicle at all times. Through the application you can know where the vehicle is – if it is stolen, monitor the doors, the fuel level, and activate the air conditioning and heating. “Volvo is the only assembler that allows the user to have this application,” said Paulo Solti, CEO of Volvo for Brazil.

VOLVO V40 ETIOS

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launches

hB20 IS elected cAr oF the yeAr 2013 volkSwAgen With the exhibition largest booth (over 5,000 m2), Volkswagen exhibited all their line of products available in Brazil. The novelty was on account of the New Beetle that, according to the specialized press, can now apply for the vacancy of “Porsche of the people” because, besides having a TSI 2.0 engine with 200 hp, the new model generation will have the initial price of R$ 76,600, with manual gearbox, and R$ 80,990 for the automatic version.

This year Volkswagen used the São Paulo International Auto Show to make the Taigun world presentation, a concept SUV that could lead to the first assembler compact

crossover in the future. The model follows strictly the current aesthetic identity of the make, with straight and bulky lines, inspired by older brother Tiguan. The platform used by the utility is the same as the subcompact Up!. According to the make the small adventurer is 3.85 m long, 1.72 m wide, 1.57 height and 2.47 for the wheelbase.

As for the model to be produced, in note, the make itself gives a hint: “It is quite likely that the Taigun will appear in the Volkswagen dealerships one day”.

On November 7, Autoesporte magazine held at the Brazilian Museum of Sculpture - MuBE, in São Paulo, the opening ceremony of the Car of the Year 2012, considered the most important and traditional prize of the Brazilian automotive industry. The grand prize winner was HB20, Hyundai model that competed with Chevrolet Sonic, Citroën C3, Peugeot 308 and Toyota Etios. The winning model was chosen by a jury composed of journalists from all over Brazil, as well as the Autoesporte team.

Besides the “Car of the Year”, the main models marketed

in Brazil competed in the following categories: Premium Car of the Year, Pickup of the Year, Utility of the Year, Engine up to 2.0, Engine above 2.0 and Green Car of the Year, Advertising of the Year, Website of the Year and Executive of the Year, and honored personalities from the automotive sector in the Hall of Fame. “Thirty-eight entries were evaluated by judges in key categories, a market heating consequence. Strong competition in the segment also heated up the competition for the prize, “says the editor-in-chief of Autoesporte, Glauco Lucena.

HB20

The winners Car of the Year Premium Car of the Year

Ford Fusion

Pickup of the Year

Ford Ranger

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4

Audi Q3

Utility of the Year

Ford EcoSport

Engine below 2.0

Audi A1 1.4 TSFI

Engine above 2.0

Ford Ranger 3.2 20V Turbodiesel

Green Car of the Year

Ford Fusion Hybrid

Executive of the Year

Jaime Ardila

Website of the Year

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Hyundai HB20

Premium Utility of the Year

FUSCA

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Advertising of the Year

Fiat Honda City

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open space

One more conquest for safety

Alcides Braga

Starting on January 1st, 2013, it is mandatory to use ABS brakes in all Sets of Cargo Vehicles (SCV) with total gross weight equal or superior to 57 tons.

A

s from January, 2013, road cargo transport will be safer. From this date on all Sets of Cargo Vehicles (SCV), with total gross weight (TGW) equal or superior to 57 tons will be manufactured with ABS brakes in Brazil. The standard was published by the National Traffic Council (Contran) and is an important achievement for the Brazilian society; ANFIR- National Association of Road Implement Manufacturers is proud to have taken part.

The other models produced by the industry will – gradually - be compelled to implement the standard. The goal is that on January 1st, 2014 all towed road implements will come out of the production lines with ABS brakes.

The standard contribution for social wellbeing is undeniable. Having ABS brakes on trailers and semitrailers, along with the equipment also required in the mechanical horsepower, widens the dynamic stability of the whole.

For the driver it means to have at their disposal smart systems that increase braking capacity, preventing accidents that take precious lives and disrupt business.

It is important to understand that standards are not a way to restrict producers and transporters activities.

On the contrary, the legislation developed for the cargo transportation industry regulates and guides the actions of all involved. The need of constantly improve cargo transport, increasing operations safety, is what motivates the work of the entities involved. Therefore, in practice, it is an important action that will impact directly on the production of 1,300 manufacturers of road implements spread throughout Brazil.

The presence of ANFIR in the development environment of technical standards goes back to 1998 with the first contacts with ABNT, which resulted in the creation of the CB39. The goal that guides the entity actions is to

keep the industry organized and updated, contributing as a civil entity to the improvement of the Brazilian cargo transportation.

As a representative of the industry that produces road implements, therefore responsible for transporting 60% of all products circulating throughout Brazil, it is natural for ANFIR to play the role of proponent and developer of innovative ideas. Thus, society has its disposal all the vast knowledge accumulated by the entity over the years, bringing together the best practices and techniques to the real needs of the market operations.

It is therefore natural that in recent years, out of all measures implemented by the government in the road implement industry to enhance the safety of cargo transportation the majority of them relied on ANFIR work.

To cope with the growing challenges imposed by society, the entity has the ANFIR Technical Committee (CTA) comprised of representatives of affiliated companies.

The ABS obligatoriness on the SCVs come to meet other standards previously approved, such as Cargo Vehicle Circulation of 57 tons, with 6 x 4 traction drive; assessment of the compliance of the Fifth Wheel; Transport of Blocks and Sawn Plates of Ornamental Rocks; Tolerance Rate for Tanks; Transportation of Dangerous Goods; side protector installation on road implements, among other measures.

Thus, ANFIR contributes to the cargo transportation evolution, conscious that every step taken requires another step. Because in a Country like ours, constantly growing, the challenges are many and every day appears a new one, sometimes driven by an immediate need, sometimes the result of the vision of those who believe in a safe transport for the future. Because every day, alongside with the market entities and companies, we build a better and safer Brazil.

Alcides Braga is President of ANFIR - National Association of Road Implement Manufacturers.

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