Viajante Year III - Edition No. 11 - February | March 2014
Party in Caxias
Marcopolo turns 65 years old and begins its celebrations at the Grape Festival
Business Hours
4. Panorama
Viajante Magazine is a quarterly Marcopolo publication General Coordination: Marcopolo Marketing Editorial Board Andre Luis de Oliveira, José Carlos Secco, Méri Steiner, Paulo Corso, Ricardo Portolan, João Paulo Ledur, Humberto Oselame and Walter Cruz Website www.marcopolo.com.br Addresses Ana Rech Branch Av. Rio Branco, 4889 Ana Rech neighborhood Caxias do Sul - RS - Brazil CEP (ZIP code) 95060-145 Phone numbers: (0800) 702-7070 (Brazil) or +55 54 2101-4000 (other countries) E-mail: contato@marcopolo.com.br Planalto Branch Av. Marcopolo, 280 - Planalto neighborhood Caxias do Sul - RS - Brazil CEP: 95086-200 Phone numbers: (0800) 702-7070 (Brazil) or +55 54. 2101-4000 (other countries) E-mail: contato@marcopolo.com.br
Succession and governance
6. Special
65 years of Marcopolo
8. Tourism
Immigrant heritage
11. Cuisine
Galeto al primo canto
12. Interview
Auto Buses Quirquincho in Bolivia
116. Representative
Orion Buses in Bolivia
17. Article
Journalist Antonio Ferro Coordination, Production and Edition Invox Mais Comunicação Rua Bento Gonçalves, 2221, Room 502 Centro | Caxias do Sul | RS (54) 3028-2868 invox@invoxcomunica.com.br Journalists Responsible Adriana Schio MTB RS 8107 Simoni Schiavo MTB RS 8821 Graphics Invox Mais Comunicação Cover Photo Julio Soares/Objetiva Printing Cromo Gráfica e Editora Free distribution Copies cannot be made without prior written consent. All rights reserved.
18. Management and Leadership Consultant Leticia Costa
21. Award
Viale BRT wins the iF Product Design award
22. Marcopolo World
Debut in Gabon
24. News
New Torino in Caxias
Editorial
Julio Soares/Objetiva
Mais um ano de uma bonita e rica história In August, we will turn 65. We have already begun celebrating this important date by launching the anniversary seal and 2014 calendar. Even for a company that has existed for so long, each new year of life is very important and should be celebrated, because each year brings even bigger challenges to overcome. Keeping our customers loyal, developing and launching new and improved products, focusing on sustainability, people’s well-being, the environment and business, and getting engaged in each of the communities in which we are present are only some of the daily and “yearly” tasks we perform. Reaching 65 years of operation is admirable, not only because of the length of time, but because of everything that has been and will be built by all of us here at Marcopolo. Built for the client, for mobility, for excellence, for the community. How many hours of work and how many hands are necessary to make just one bus come off of our production lines? Can you imagine how many are necessary to produce over 30,000 a year? This is why I strongly believe that we are more than a large worldwide bus frame manufacturer and solution provider for public transportation. We are a nation. A Marcopolo nation, with thousands of individuals united by a common ideal. This common ideal propels us forward to reach new goals, without forgetting and appreciating our rich and beautiful history. In the name of our history we are once again participating in the Grape Festival, which much like Marcopolo, is no longer an event exclusively for Caxias do Sul. It now belongs to Brazil and the world. Thousands of people and tourists will be here visiting and learning about the culture, customs and traditions of the region, which has become a national reference for its beauty, diversity, energy and thriving economy. As the year begins, we have many reasons to celebrate, and I believe we will grow and improve, with important additions and new accomplishments for everyone. I hope you enjoy reading! Have a great 2014!
Mauro Bellini President of the Board of Directors
Panorama
Succession and governance, two significant challenges One of the biggest challenges a company faces is preparing and executing a succession plan. This is a very complicated phase which requires a great deal of attention and skill on the parts of the managers, so the process will not affect the company’s daily operations, client negotiations or the relationship between the executives and the majority shareholders. Carlos Zignani, Investor Relations Director at Marcopolo, comments on the most important aspects and actions that can be crucial to the success and implementation of the succession and governance plan. According to Zignani, this will be a complicated process that must be very well planned. “Companies end up making the mistake of not preparing the entire process, especially in terms of corporate governance and qualifications for everyone involved, from executives to those being succeeded and their successors, who can be family members or third parties.” He emphasizes that succession plans require time and patience, and involve a number of steps. They require preparation for both the successors and their predecessors. “There is also a ‘rite of passage’ in which the succeeded parties pass on their duties and responsibilities to their successors. This process is very difficult, because experience and knowledge are intangible, and often cannot be ‘passed on’ in a direct or feasible way,” explains Zignani. According to the director, it is important to work with those being succeeded to ensure they are slowly passing on all their duties to their successors. “Predecessors can and should coach their successors in order to facilitate the transition to the new position.”
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Julio Soares/Objetiva
Succession at Marcopolo At Marcopolo, the succession plan began in 2004, eight years before it was executed. “The process began with the definition of who in the group of majority shareholders could be the successor. A preparation and training plan was created for candidates, and afterwards, one was chosen. The second step was to create the Code of Conduct in 2005 to settle disputes and direct the company’s actions and position. The third step took place in 2006, with the preparation and training of the successor, including for the psychological, technical and leadership attributes necessary for the new role. Consultants were also hired to coach him,” explains Zignani. “Over time, the company was prepared for succession. The professionalization of the executive directors and the strengthening of the concepts and structure of governance were important steps. The redefinition of the duties of the Board of Directors and the creation of committees to support them, which will include shareholders, professional members of the Board and the company executives, was also key”. We must create structures so the company can “walk on its own” with
“A succession plan requires time and patience, and involves a number of steps. It requires preparation for both the successors and their predecessors.” At Marcopolo, this process began in 2004, eight years before it was executed.” the different aspects of corporate governance controlling strategic decisions and demanding results from executives. The analysis of the character, skills, vocation and compatibility of potential successors with the positions they will take on is crucial to the success of the process. At Marcopolo, this has also involved the professionalization of the Board of Directors, which has five (of seven) external board members. “Another important detail is removing family issues from the company routine. The positions of president of the Board and the leading executive at the company should be held by different people. Executives should be committed to preparing the successor, so there is integration, agreement and consistency,” explains the director. According to Zignani, the succession process at Marcopolo is in its final stages. “I would like to stress the importance of choosing the right successor, as well as the predecessor’s preparation, the understanding of the process and the completion of the ‘rite of passage’.” Defining new roles for those who will be succeeded has also been crucial (elected president emeritus), along with the cooperation of the executive directors for decision making. This is the time for consolidating decisions and solidifying the new structure,” concludes Zignani.
*Duties of Marcopolo’s president emeritus, Paulo Bellini: work to preserve the Marcopolo culture, through strengthening its values and ethical principles, contribute to enhancing the human resources department in order to guarantee constant employee motivation and act as a mentor to executives in the company.
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Special
1949 - Nicola e Cia, with an office on the corner of 13 de maio and Os 18 do Forte
Marcopolo begins to celebrate its 65th anniversary
1961 - First exportation contract
Throughout this year, the company will hold events in each of its Brazilian factories, with a special focus on its headquarters in Caxias do Sul.
1968 - Marcopolo bus launch
Marcopolo began the festivities for this milestone with the launch of the commemorative 65th anniversary seal and the 2014 calendar. The anniversary will officially be celebrated in August. This year, there will be events in every Brazilian factory to highlight the company’s successful trajectory and how people have been a part of the company’s history. The 2014 Grape Festival is one of the events that will have the 65th anniversary as its theme. The company created a stand
1971 - First technology transfer contract 1998 - Volare Minibus Launch
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1960 - Nicola bus frame
1998 - 100,000th bus produced
Photos from Marcopolo collection Julio Soares/ Objetiva
1957 - Transfer of Nicola e Cia. to new factory in the Planalto neighborhood in Caxias
Beginning of the 1960s, assembly line
with attractions that commemorate the special date, with a photographic exhibit of the most important moments of the last six decades. According to Walter Cruz, Corporate Marketing Manager at Marcopolo, the 65th anniversary celebration (starting at the Grape Festival) is an opportunity to promote interactions with the community, clients and employees. “All of our activities will have the 65th anniversary as the backdrop, from publicity and promotional materials to all of the company’s communications with its various audiences. After all, even for a company that has been operating for so long, each anniversary is very important and should be celebrated,” he says. For employees, the two main celebrations are the Merit Honor Award and Employee Day, which will take place later in the year. Now in its 29th edition, the Merit Honor Award has honored over 20,000 employees all over Brazil. It honors people who have worked at Marcopolo for 5, 10, 15, 20, 25, 30, 35, 40 and 50 years. Employee Day takes place on August 6th, the anniversary of Marcopolo’s foundation, and it focuses on people who work on the company’s daily operations. Special activities are held and special meals are served at the restaurants in the different branches. Live music and a video presentation with congratulatory messages from employees to their coworkers will also be included in the festivities. Each employee will also receive a present in honor of the day.
1977 - Shareholders Assembly
1981 - Inauguration of Ana Rech factory
1986 - Trip to Japan to study the Japanese philosophy of management Julio Soares/ Objetiva
2004 Marcopolo is named the Bus Manufacturer of the Year in Europe. Award given by the FBAA.
2013 Release of the book Marcopolo by Paulo Bellini
2010 - SIMPS event, which brought together 7,200 Marcopolo employees in Caxias do Sul
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Tourism
History built by the hands of immigrants The tourist attractions at the 30th Annual Grape Festival include more than just an amusement park. With the theme In the Joy of Diversity, the event emphasizes the stories of those who built the city. In addition to the National Immigrant Monument, the main symbol of its history, there are many places that will take visitors on a trip through tradition, faith and accomplishments.
National Immigrant Monument
Fotos acervo Semtur
Caxias is having party. From Feb 20 to Mar 9, the city will commemorate the 30th Annual National Grape Festival, with the theme: In the Joy of Diversity. Organizers expect the number of visitors will surpass the 805,000 at the 2012 edition. This is the biggest community-run event in the South of the country, and it is held in the second largest metallurgical center in Brazil, and one of the largest in Latin America. It features various attractions that will take your breath away. Colonized by Italian immigrants who began arriving in the region in 1875, the tourist attractions showcase the traditions the residents of the city have preserved from that time. Visiting Caxias do Sul is a way to take a trip back in time to a past of arduous efforts and successes for the immigrants, mostly from the Veneto region in Italy, but with Germans, French, Spanish and Polish immigrants as well. They crossed the ocean and went up the mountains to brave the elements in an area that was nearly untouched. Many other cultures helped build Caxias do Sul, and since 1953, all of them have been honored by the National Immigrant Museum, which turned 60 years old in February.
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National Immigrant Monument Inaugurated by President Getúlio Vargas during the 1954 Grape Festival, the National Immigrant Monument’s 60th anniversary will take place on February 28th. Created by sculptor Antonio Caringi (Pelotas, RS), who won a contest that sought artwork to honor Italian immigrants, the sculpture had its initial objective altered, and since 1953 it has represented all of the ethnicities that have contributed to the growth and progress of Brazil. Thus, it became a national monument. The bronze statue is 4.5 meters tall, and depicts a farming couple with a child in the woman’s arms. Behind the figures, there is an obelisk, and there is a staircase on both sides. The Immigrant Museum is located beneath the sculptures. It is currently showing an exhibit on the women of Caxias do Sul and their contribution to the city’s growth. Grape Festival Pavilions In a great location which offers a panoramic view of the city and is surrounded by nearly 270,000 m2 of green space, the Mário Bernardino Ramos Park is home to the biggest events in Caxias do Sul. Built for the 1975 Grape Festival, which was first celebrated 100 years after the immigrants arrived in the region, the area is still known as the Grape Festival pavilions. In addition to housing infrastructure for many different types of events, it is also home to spaces for the community’s art, traditions, history and faith. On a walk through the park, you will be able to enjoy the 1875 Caxias Replicas, the Sound & Light Show, the Grotto of Our Lady of Caravaggio, the Third Millennium Jesus Monument, the Via Sacra and the Atellier Zambelli Museum.
Saint Peregrine Church Famous for the works of Aldo Locatelli, the Saint Peregrine Church represents the devotion to the saint at the beginning if the Italian immigration. Originally, a capital was created, then the Madeira Chapel and the Madeira Church in 1938. The Matriz Church was inaugurated in 1953, as the Saint Peregrine Parish. In 1951, Locatelli painted the Last Supper mural which is 90 m2 and flanked by renditions of the Apparition of the Sacred Heart of Jesus to Saint Margaret Mary Alecoque and the Apparition of Our Lady of Caravaggio to Gianetta. The murals also cover the entire church ceiling, and illustrate the Creation of the Cosmos, the Creation of Woman, the Expulsion from the Garden of Eden and the Last Judgment, surrounded by coffers with images inspired by the hymn Dies irae. The last works to be finished were the dramatic Via Sacra canvasses in 1960.
Caxias do Sul Replica in 1875, in the Grape Festival Pavilions
Luiz Chaves
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Tourism
Casa de Pedra (House of Stone)
Luiz Chaves
House of Stone Ambience Museum Built at the end of the 19th century, the House of Stone was converted into a museum in 1975. It aims to depict what domestic life was like at the beginning of the Italian colonization of the city. It has a collection of pieces donated by the community that includes furniture, domestic utensils, clothing, handcrafted items and agricultural equipment. The main attraction, however, is the historical building. It has two floors, and was built almost entirely out of jointed basalt with clay. The doors and windows are made of pine and framed by handmade bricks. The living room and kitchen were on the first floor, along with the external bread oven. The single bedroom is located on the second floor.
Cantina Tonet At Cantina Tonet, visitors will have an authentic colonial experience. Located on the Immigrant Road tourism route, rustic architectural features are preserved in the building’s structure. Built from stone, it allows visitors to experience the past and the Italian culture brought by the first colonizers. During the grape harvest from January to March, the Cantina offers special programming: tourists are welcomed by the Tonet family for a special tour to the sound of typical Italian and Rio Grande do Sul music. They will walk through the vines and see the different varieties of grapes as well as the growing process, and are even able to taste the fresh fruit. Cantina Tonet Publicity
Cantina Tonet
More information: www.caxias.rs.gov.br/turismo +55 54 3222-1875
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Cuisine
A symbol of celebration The symbol of Caxias do Sul and Rio Grande do Sul cuisine, galeto al primo canto, was born over six decades ago. LauthĂŠrio Peccini, an experienced merchant, wanted to offer his clients lunches and dinners that were a reminder of colonial times. He wanted to serve meals that Italian immigrants would make on special occasions. Based on his impressions from his childhood in the countryside, LauthĂŠrio created the dish, which includes chickens slaughtered when they are between 25 and
28 days old and weigh about half a kilo. Accompanied by pasta, polenta, radicchio and potato salad, galeto has become a symbol for the region. It was served commercially for the first time in 1950, which created a term that is in not in the dictionary: galeterĂa (a restaurant that serves galeto). In Caxias do Sul, one of the most traditional galetos al primo canto is served at Galeteria Alvorada, which has been serving this dish for nearly 60 years. Below is the secret to its success: the recipe. Julio Soares/Objetiva
Galeto al primo canto Ingredients 10 galetos (600g each) 150g of medium salt 100g of chopped sage 10g of black pepper 2 medium cloves of garlic 10g chopped yellow malagueta pepper 500ml of dry white wine (preferably moscato)
Directions Mix the garlic with a small amount of water in the blender until it becomes a paste. Mix in salt and black pepper until the mix is homogeneous. Slice the galetos in half and cover the bottom of a dish. Spread a layer of salt seasoned with chopped sage and chopped malagueta peppers. Repeat the process, creating layers until you have used all the halves and seasoning. Add the white wine and mix it all until every piece is well seasoned. Let it sit for a few minutes and then skewer and barbecue it right away.
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Interview
Modernity, excellence and benefits for clients Operating in the international passenger transportation market since 2008, Auto Buses Quirquincho in Bolivia is committed to quality and excellence. Equipped with modern vehicles and the latest trends, the company founded and run by husband and wife Rene Caceres Choque and Asunta de Caceres operates routes that link Bolivia and Argentina. They plan to expand to destinations in other countries in South America, including Brazil. In order to better serve their customers, Quirquincho is using a fleet that is made up of 100% Marcopolo Double Decker buses. The company has recently acquired four 1800 DD Paradisos with 8x2 frames. These will be the first of this model in Bolivia. By the end of the year, they intend to invest in six more units, for a total of 40 buses. The Caceres’ goal is to offer their passengers long distance travel in the most modern, comfortable, convenient and safe way possible. According to regional manager, Erik Caceres, excellent service is the company’s mission, in addition to modern buses and a qualified team. VJ: How did Auto Buses Quirquincho begin in 2008? Erik Caceres: Our company began operating through a great deal of effort and sacrifice from the entire Caceres family. We had just one bus, a Marcopolo Paradiso, and only one route, from Santa Cruz de la Sierra, Bolivia to Buenos Aires, Argentina. The founding partners were Rene Caceres Choque and his wife, Asunta de Caceres. VJ: What is the company’s mission and what is it committed to? Caceres: Our company is committed to convenience, safety and excellent service for our clients, with modern buses and a staff that is well-prepared to help our customers.
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VJ: How is the company positioned in the Bolivian market? Caceres: We are currently the top passenger transportation company going from Bolivia to Argentina, with a premium bus with executive seating. We are the only Bolivian company that operates internationally with the most modern Marcopolo buses in the world. Today, we have routes that leave from Buenos Aires to Santa Cruz de la Sierra, La Paz, Oruro, Potosí, Sucre and Villazón. We also offer routes from Santa Cruz de la Sierra to Córdoba and Mendoza. VJ: What values and benefits guarantee Quirquincho this prominent position in the market? Caceres: What makes us stand out is our customer service and appreciation for the clients that are constantly traveling with us, in addition to the food service we offer during the trip. For example, from Santa Cruz de la Sierra to Buenos Aires, six meals are served. VJ: What is the company’s structure? Caceres: We have over 250 employees throughout Bolivia and in part of Argentina. We also have 30 high level Marcopolo buses with excellent on-board equipment such as a bar, juicers, a refrigerator, bathroom, air conditioning, heating and an audiovisual system. They are fully equipped vehicles that offer premium services for passengers traveling the Bolivia -Argentina route. VJ: Why did Auto Buses Quirquincho choose Marcopolo? Caceres: We chose Marcopolo for the quality material it uses to manufacture its products, which guarantees the buses will last, and because of the modern G7 models. These buses get people’s attention and motivate them to travel and try out their amenities.
Acervo Marcopolo
VJ: The local Marcopolo representative has inaugurated a new location. What are your expectations for this new phase? Caceres: We expect that Orion will make bus maintenance services even better, and that they will continue to meet our needs. VJ: What are the main challenges and goals for this year? Caceres: Our goal is to become a model company for Bolivia and Mercosur as a whole, which includes Chile, Paraguay, Argentina and Brazil. We want to offer excellent service and a modern fleet equipped for all the needs and demands of passengers who travel long distance. VJ: What new development can we expect from Quirquincho in the next few months? Caceres: Right now we plan to bring the Paradiso 1800 DD bus to Bolivia for the first time.
This model is safer and more stable, and will let our customers enjoy an even more pleasant trip. We will be acquiring four of these models, which are set to arrive in May. They will be the first brand new buses with 8x2 frames in Bolivia, and will include unique features on the inside. By the end of the year, we hope to reward customers with six more units, which will bring us to a total of 40 Marcopolo buses. VJ: What is the company planning for the next few years? Caceres: We want to have operations all over Bolivia and South America with completely modern buses and amazing customer service, and an entire fleet of the latest generation of G7 buses. The new units we have ordered will allow us to continue competing against other companies, since we will be offering customers unique amenities.
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Visate, a public transportation company in Caxias do Sul, acquired 20 new Torino models, the most successful urban bus in the history of the Brazilian automotive industry.
Julio Soares/Objetiva
Representative
New offices reflect evolution Marcopolo representative in Bolivia, Orion Buses, invests in infrastructure and plans line of credit for customers Founded with the name Brasibol Bus in November 2007, Marcopolo’s representative company in Bolivia changed its name to Orion Buses e Implementos Rodoviarios in July 2013. The new identity was strengthened with the inauguration of the new office in January of this year, which aims to show the company’s evolution in the last seven years. “The name represents all the attributes we value: strength, size and visibility,” explain partners Carlos Valverde de los Rios, Edith Valverde Gonzales and Marcelo Valverde Gonzales. They have been in this industry for a number of decades. Carlos Valverde, the founder of the company, worked at Scania and then Volvo for a total of over 20 years. As a bus frame salesman, he added a great deal of knowledge on the Bolivian market to Marcopolo’s expertise, which is why he was invited to represent the Brazilian company in the country. Among his many accomplishments, Valver-
de remembers the first sales of brand new buses. “The Bolivian market was still very small. In fact, from 2000 to 2007, not a single new bus was sold. Through our efforts, companies began to change this behavior, and began to buy only new models.” In addition to expanding the market for traditional clients, Valverde presented the product to owners of small companies who began to do business with just one bus, and their sales grew exponentially. Success is based on the way you do business, which includes complete and customized assistance throughout the purchase and use of vehicles. “It’s not about just helping with the best configuration of the model. It is also about finding the best vehicle, financial alternatives, handling customs and bank management, and of course, post-sales,” explains Marcelo. As a distributor, Orion is also able to participate in larger bidding processes. This is why it is investing in physical and organizational improvements. In the short/long run, the company plans to open a line of credit for customers and branches in strategic locations in Bolivia, such as La Paz and Cochabamba. It also plans to sell the same number of buses it sold last year, as well as open up the country’s urban bus market. Fotografiía Lola Producciones SRL
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Article Acervo pesoal
Antonio Ferro
Editor of Autobus magazine
“BRT will improve people’s quality of life. It is an example of fast and efficient public transportation.”
BRT: Brazilian invention, chosen by the world It is widely known that urban public transportation with buses has become a true Achilles heel for many cities. In order to improve this type of public transportation and give citizens more dignity as they travel using a more affordable option, one type of service has been used a great deal. Bus Rapid Transit (BRT), a concept that promotes high performance for transportation systems on wheels, and can renew, modernize and minimize the cost of a poor model for urban mobility. According to the definition currently being used, BRT creates quick and efficient service through exclusive and prioritized infrastructure, providing a number of operational and environmental benefits. The essence of a welldesigned project uses neighborhood buses on completely separate roads, with more speed and priority for the buses, physical integration through feeder services; quick and easy access through early charges and modern stations, marketing and communication. It is no surprise that in this day in age, a good product will not survive without efficient marketing. Its main features must be emphasized through communication with the final consumer, who must also have a space for displaying their satisfaction or dissatisfaction with the acquired good, so they may receive appropriate responses. In public transportation, this tends to be the biggest reason for maintaining acceptable levels of quality for the entire network. The challenge for a new public transporta-
tion plan is enormous. What is missing is an urban and public planner who is not afraid to innovate to improve a situation which has become unbearable in certain places, such as São Paulo. Rapid bus systems contribute just as much as trains and subways, but with significantly lower costs. Another important aspect of this type of transportation is that it is ecofriendly, because the vehicles allow many for types of traction with low environmental impacts, as is the case with hybrid buses (diesel, electric), completely electric buses (trolley bus) buses powered by green fuels (ethanol, diesel and sugarcane) and natural gas. BRT will improve people’s quality of life, because it will give them more time to rest, sleep, spend time with their families, study and work in better conditions. Finally, this concept is an example of fast and efficient public transportation which has not only environmental advantages, but economic benefits as well. Urban bus transportation in Brazil will benefit a great deal from the construction of 250 kilometers of BRT in 2014. In 2016, another 1, 272 kilometers of exclusive bus lanes should be inaugurated. Nearly 9,000 new buses will begin to operate and close to 440 stations and 60 terminals will be built. 147 cities all over the world have something that works generally like the BRT system, with 3,750 kilometers of bus-only lanes. Another 21 locations are expanding their systems. In 84 other municipalities there are projects or construction for new lanes.
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Management and Leadership
Competitiveness requires quality management One of the best automotive specialists in the country, Leticia Costa, defends raising the profitability of Brazilian companies who depend on improved productivity. Leticia Costa, Director of Prada Assessoria located in São Paulo, is known as one of the most qualified specialists in the Brazilian automotive industry. She speaks at industry forums and meetings, working as a specialized consultant for companies all over the country. As she projects the year’s scenarios and challenges, the production engineer with an MBA from Cornell University (USA) believes that companies need to focus on improving management and leadership in order to achieve better results. In order to be more competitive, managers of public and private organizations must contribute to improving productivity, quality and conditions for doing business. Competition as a challenge Competition is a challenge because today, the average Brazilian manufacturer does not produce at high quality levels. In the short run, it is not a central issue, since the industry will be protected by the InovarAuto program, in which the government has included 30 percentage points of tax protection. However, if no changes are made, when Inovar-Auto ends, competition levels will not have improved. Improvements must be made through additional government actions, because part of the problem is that it is very difficult to do business in Brazil, due to the large bureaucracy and high tax rates. It is also related to the low levels of productivity and quality in the country. I think that sometimes, companies in Brazil lower their standards because they have the government’s protection, and consequently don’t do their
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due diligence. That is why at certain times, they face competition that they cannot overcome. Inovar-Auto contributes, but it is not the solution Inovar-Auto is necessary, but it is not sufficient. It is necessary because it provides market protection until 2017, which is how much time companies have to become competitive. I believe, however, that the program does not solve the problem. It incentivizes innovation, but the incentive is small compared to the need for innovation in Brazil. One example is the energy efficiency goals. These motors exist outside of Brazil; they simply must be adapted for the tropical climate. Inovar-Auto does not confront productivity and quality issues head on, except for a certain amount of investment in processes and training. But these amounts are low compared to the size of the Brazilian gap. Thus, it is important, but certainly not the solution for the lack of competition. It doesn’t address the issues that prevent companies from reaching higher levels of productivity. The government must deal with taxes, government investment, bureaucracy and financing costs in the long term. Companies must stop coasting in the protectionist market, and start working more intensely on productivity and quality issues than they have in the last few years. How to be more competitive It is hard to generalize, because companies have very different characteristics, but we must recognize that Brazil has changed a great deal. Not long ago, Brazilian manual labor was
Julio Soares/Objetiva
cheap. Therefore, it did not make sense to use automation, because it would be far more expensive. I believe that in the current scenario, where manual labor is generally expensive and workers are not highly qualified, implementing more automated processes makes sense. The other issue is quality practices. We must work on a plan for improving quality and reducing defects and simply continue the largely prevailing policy of quality control. We must also adopt management techniques that will help increase productivity, whether it be through incentives or planning mechanisms. There is a wide range of tools to aid productivity, which includes training and other issues. The barriers to qualification Business owners must invest in qualification. They do not have much of an alternative, as the skill level for manual labor is generally low, and there is no expectation that our educational system will solve this problem in the short run. Without investments from business owners, it will be difficult to overcome this barrier. The role of managers and leaders is crucial, because when we discuss competition, we are basically talking about management, from the decision to invest to training. We know that leadership is vital to making management effective. Leadership has the capacity to mobilize organizations to reach their goals in any context (when used appropriately). This mobilization, this understanding that we must improve productivity and quality, is linked to a leader’s ability to make others realize this as well. It is also their responsibility to make resources available that can help people perform their duties.
“Inovar-Auto is necessary, but it is not enough. It is necessary because it will protect the market until 2017. It incentivizes innovation, but the incentive is small compared to the need for innovation in Brazil.�
Perspectives for the year of the World Cup Here we need to focus on the automotive industry. In terms of passenger vehicles, the World Cup will negatively impact sales. I say this because some game days will be made holidays, which will mean a reduced number of business days and bus circulation. I believe there will be a lesser impact on trucks.
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Management and Leadership For medium and heavy duty trucks, the most important sales factor will be the harvest. It seems like it will be a good harvest, so truck performance should not suffer. For buses, I believe the first semester will show better results. Since we do not have solid infrastructure for public transportation, buses are used instead. However, I do not expect much growth for the year as a whole. The investments in infrastructure are not occurring at the speed we had hoped for, and investments in urban logistics are lower than what was expected, and a number of projects planned for the World Cup have been discarded. These construction projects were meant to be finished for the inauguration of the event, and they will not be. Infrastructure and mobility The World Cup was meant to leave behind a legacy of investments in mobility, most of which were not made. Of those that were approved, most are behind schedule. Thus, in reality, this legacy will be very small. There is a silver lining, which can become negative, depending on the context. The World Cup will clearly bring a large influx of tourists, which will increase economic activity. A second point is that though many of the projects planned did not take place, we cannot say that there was no construction at all. Certain locations have gained improvements due to the World Cup. The third aspect, which can be positive or negative, is that Brazil has the attention of global investors. Therefore, there can be positive impacts, but the impact of increased tourism is temporary. Unfortunately, the larger impact that would have been made by infrastructure improvements will not happen. Panorama for 2014 In the global scenario there is the recovery of the American market, which is a very positive factor. China is still growing and Europe is slow. The situation in Brazil is a little more complicated because, as seen in 2013, the trend is a slight decline in sales to the domestic market. I believe that business in the Brazilian market will be even more difficult than it was in 2013.
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Though this will not be an exceptionally good year, it will not be totally negative, either. I believe that profitability for both manufacturers and distributors will be increasingly linked to the capacity and quality of management. I also believe that companies need to increase their focus on management and leadership. Priority structural changes The Brazilian educational system must be strengthened. There is currently a good rate of people in school, which was not the case in the past. This aspect has improved. However, the average Brazilian is in school for 7.2 to 7.4 years, which is still low. We need to extend this educational period and improve the quality of the education students are receiving. This improvement must include professor training (because professors are crucial to improving quality) and strict control over educational organizations that are not up to the necessary standards.
“The World Cup was meant to leave behind a legacy of investments in mobility, most of which were not made. Of those that were approved, most are behind schedule. Thus, the legacy will be small.� Qualification and quality in companies They key to qualification is in the recruitment process, in addition to significant investment in training. In terms of quality, the final product in the bus market is not in a bad situation. Our problem is that the process for creating a good product includes rework and waste in the production chain, which generates high costs. The focus for improving quality should be reducing waste. Marcopolo is in the minority of Brazilian companies that have fewer issues with this, due to their highly verticalized factory in Caxias do Sul. They manufacture a number of components themselves, but if they become dependent on many suppliers, things will become challenging.
Award
Viale BRT wins design ‘Oscar’ Achievements in design are one of the main features of Marcopolo buses, which are famous all over the world for their bold and modern lines. This quality was recently recognized by the most important certification in the world for developing innovative products, the Industrie Forum Design (iF) in Germany. In February, the company received the iF Product Design Award (which is the equivalent of winning an Oscar for a film) in the Transportation category, for the development of the Viale BRT bus. Created through global design trends for public transportation, the vehicle excelled in categories like degree of innovation, design quality, materials used, environmental impacts, safety and accessibility, among others. Petras Amaral, Corporate Design Manager at Marcopolo, cele-
brates the achievement and says that the award reflects not only the company’s global leadership in the bus market, but the dedication of the Marcopolo Design Center employees for developing this project as well. “We are very happy about this new accomplishment. The Viale BRT is the most advanced model manufactured in Brazil, and presents both innovation and solutions for urban mobility,” explains the executive. The Marcopolo Viale BRT meets all of the requirements of boarding platforms in different countries. It can be changed to accommodate specific numbers of passengers and accessibility needs. The iF Design Award received 4,600 entries from 55 countries. It annually honors close to 100 projects in 17 categories.
Memory
Fotos Acervo Marcopolo
Visit from then Brazilian President Itamar Franco to Caxias do Sul for opening of National Grape Festival in 1994. After the ceremony, the chief of state was welcomed to the Marcopolo stand by the company’s directors. In the photograph: Itamar (center) with (left to right) Paulo Bellini, ex-Governor Alceu Collares, exMayor Mário Vanin and Valter Gomes Pinto.
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Marcopolo World
Marcopolo debuts in Gabon Marcopolo broadens its worldwide presence with a sale of the 149 Torin to Gabon, Africa. The first 59 units were delivered to Sogatra (Société Gabonaise de Transport), one of the main passenger transportation companies in the coun try, in November at Marcopolo Rio. The company has a strong presence in Africa, but it had never sold a bus to a company in Gabon. “Africa has enormous growth potential for bus use, and Gabon is an important and s trategic market for expanding our operations on the continent,” says Commercial Operations Director Paulo Corso. Ideal for urban passenger transportation, the Torino is the most successful urban bus in Marcopolo’s history, due to its robust, versatile features, low costs and high resale value. The first units sent to Sogatra are equipped to transport 75 passengers with a Mercedes-Benz frame. Marcopolo Rio exclusively produces urban buses, with a production capacity of over 7,500 units per year. The factory has approximately 2,600 employees. Divulgação Transpais
Transpais inaugurates terminal Modern facilities with areas for meals, bathrooms, free parking, and a large, comfortable waiting room with Wi-Fi are all part of Transpais’ new Terminal Sul (South Terminal), which was inaugurated in Monterrey, Mexico in December. The space will be used by passengers traveling to Tampico, Mante, Valles, Victoria, Tamazunchale and Linares.
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Perureceives45Paradiso 1800 DD buses Peru is the destination for the 45 new Paradiso 1800 DD buses. 17 units will go to Cruz Del Sur, 10 will go to Ave Fênix and 18 to Movil Tours. They are part of the country’s fleet renovation process and will be used for international and domestic routes. The Peruvian market has grown more each year. Companies generally purchase double decker buses, which provide more comfort, safety and convenience for passengers. Marcopolo has a solid partnership with these Peruvian companies, and is continuously contributing to their renewal program with the latest models. The new negotiation shows the Brazilian manufacturer’s strong presence in Latin America. “It proves how well the high quality of our products is received,” asserts Director of Commercial Operations, Paulo Corso.
Polomex Collection
Clube América, from Mexico, chooses the Paradiso 1200 Marcopolo’s strong relationship with football teams has continued to cross borders. This time, the company will be doing business with Club de Fútbol América, which plays in the division one football league in Mexico. They will begin to use the Paradiso 1200 to transport the players and the delegation. The model was chosen through the partnership between the club and Polomex, a joint venture between Marcopolo and Mercedes-Benz for producing buses for the Mexican market. The Marcopolo Paradiso 1200 is the ideal method of transportation for short, medium and long distances. The model can carry 47 passengers, has executive seats, air conditioning, 4 15-inch monitors, a bathroom, an additional camera for maneuvering and a seat for someone to ride with the driver.
New Paradiso in Mexico
New Argentina fleet
100 Paradiso 1200 models will be sent to the Grupo Estrella Blanca companies in Mexico. Polomex closed the sale and is delivering 20 units per month to Transportes Chihuahenses and Futura. The vehicles will be used for tourism transportation, charters and intermunicipal and interstate lines. The best feature of the Paradiso 1200 is the comfort it provides passengers. The seats have head and neck rests made of special foam (viscoelastic) and leg and foot rests that can be raised.
One of the most popular bus exporters in Rio Grande do Sul and Brazil as a whole, Marcopolo was chosen by 13 of the main transportation companies in Argentina to renew their bus fleets. 69 Paradiso 1800 DD models in different configurations will be purchased. They will be used for tourism and international routes. The vehicles will be provided to the following companies: Colcar Merbus, Crucero Del Norte, Diesel San Miguel, El Pulqui, El Quiaqueno, Empresa Rio Uruguai, Ersa Urbano, Expreso Singer, Jovi Bus SRL, La Union SRL, M. Horianski SRL, Rapido Del Norte and Turismo Arteaga.
Viale BRT in El Salvador
Acervo Marco
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Public transportation in San Salvador, the capital of El Salvador, is going to be improved by the addition of the 190 Viale BRT. This deal makes Marcopolo the largest bus supplier to the main BRT systems in Latin America. In January, the first 27 units were delivered. This model has been heralded as the best public transportation solution in the world. The manufacturer already actively participates in systems in cities such as Goiânia and Manaus in Brazil, Cali and Bogotá in Colombia, Panama City, Santiago do Chile, Mexico City, Guatemala, South Africa and now, El Salvador.
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News Julio Soares/ Objetiva
New Torino is already on the streets of Caxias do Sul With 30 years of history and over 100,000 units produced, the new Torino (the most successful urban bus in Brazilian automotive history) is already on the streets of Caxias do Sul. Twenty units of the model were bought by Visate, which runs the city’s public transportation with 339 buses, a modern fleet with vehicles that average five years of use, one of the lowest rates in Rio Grande do Sul. Paulo Corso, Director of Marcopolo’s Commercial Operations, emphasizes the long time partnership with the company and the benefits it provides. This is a close, long-lasting partnership which has provided operational gains and better quality for clients. The new model acquired, for example, presents a number of technological innovations that will make passengers who use public transportation more comfortable. Created to offer more comfort and safety at lower operational costs and with less maintenance, the new Torino also provides more ergonomic and
practical seating for the driver and fare collector. A modern look, functional technology, a redesigned multiplex system, a dashboard with an LCD color 3.5 inch monitor and optional air conditioning are some of the other benefits. Front and rear lighting which includes day lighting, make urban transit safer. This model is equipped to transport 47 passengers and has a Mercedes-Benz OF- 1721 frame. The internal width was expanded for more space. The City seats were made even more ergonomic with new headrests that allow passengers to move more comfortably. They were given new decorations as well. The modern seats also have a high back option. Another novelty is the button activated system for requesting a stop (wireless). This model also has five seats reserved for senior citizens, pregnant women and/or people with disabilities, an automatic elevator and a space for wheelchair users.
Official invitation Marcopolo directors and managers welcomed the Grape Festival committee that visited the company in early February to extend the traditional invitations to representatives and employees. Deputy mayor Antonio Feldmann and First Lady and Communications Coordinator for City Hall, Alexandra Baldisserotto accompanied the group which included the festival queens and the President of the event, Edson Nespolo, among others. Julio Soares/Objetiva
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16 new buses in Pelotas Expresso Embaixador from Pelotas (RS) is renewing its fleet with 16 new Marcopolo buses. These will include six Paradiso 1800 Double Decker buses to be used for lines going between Porto Alegre and Pelotas and 10 Viaggio 900 models, which are ideal for charter purposes. Developed to offer the highest standards of comfort and sophistication available on the national and international markets. Comparable to first class seating on international flights, the Paradiso 1800 has an important feature: two entrances. There is an entrance at the front of the bus next to the driver’s seat, and another in the middle of the bus (between the axes), which facilitates boarding and getting off and saves time during the process. With cutting edge technology, the Viaggio 900 provides users comfort and safety, and operates with minimal maintenance. It is also the most affordable bus in its category.
Brasilia receives 364 new urban buses 364 new Marcopolo urban buses began to run on the streets and satellite cities of the Federal District this past February. The vehicles are a part of the Auto Viação Marechal fleet in Brasilia, which won the public bidding process for the New Public Transportation System (STPC) in the nation’s capital. The models include 252 Torino models, 79 Senior Midi models and 33 Viale Articulados models, which will be provided by Marcopolo Rio and used for passenger transportation in the Ceilândia, Guará, Águas Claras regions and parts of Taguatinga and Park Way. The new buses meet various criteria and requirements in terms of safety, accessibility and comfort. Brasilia’s goal is to elevate the quality standards for urban public transportation, which are vital to the community’s wellbeing. Ideal for urban passenger transportation, the Torino is the most successful urban bus in the history of Brazil and the world, due to its robust, versatile features, low costs and high resale value.
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New buses improve transportation in Bahia Elevating the quality of the Transportation System of Itabuna in Bahia was the reason Rota Transportes Rodoviários invested in 27 Marcopolo models. The Brazilian manufacturer delivered the 6 Viale BRT urban buses, (which will be used in intermunicipal routes and link to the city of Ilhéus), 7 units of the Paradiso 1200, 4 of the Senior Turismo and 10 Viaggio 1050. The highlight of the purchase was the BRT model, which runs on a system which should
serve as an example due to the important benefits it provides citizens, the environment and especially urban mobility, even in cities who do not have BRT systems in place. The Viale BRT is the most advanced bus manufactured in Brazil. It holds 42 seated passengers, it has three doors, an exclusive elevator for wheelchair users, an air conditioning system, internal cameras and wireless Internet access.
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Visits Fotos Acervo Marcopolo
Delegation from Peru
Visit from the Minera Collahuasi company from Pullman Santa Rosa in Chile
Aragua FĂştbol Club delegation from Venezuela
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Visit from Quirquincho from Bolivia
Delegation from Turkey
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