Brazil gains room in strategy of multinationals
Valor Econômico
Last week, two international Presidents of major autoparts' manufacturers were in Brazil with similar purposes: see with their own eyes the performance of the businesses and strengthen the relationships with their clients in the market that achieved the leading role in the global strategy of the companies of the sector. The increasingly frequent visits of these executives, however, does not necessarily mean announcements of more investments. The export-unfavorable exchange rate and the manpower that is considered expensive, among other factors that weigh in the so-called "Brazil cost", are pointed by the companies as obstacles to more robust investments. The fact there is production surplus in the international market, which can be directed to the country, is also taken into account.
"Just like happened in other regions, Brazil will also have to become more competitive", said the President of Eaton, Alexander Cutler. "The exchange rate makes pressure on the exports, but the heated domestic market works as protection for now", he added. The Executive, who returned to the United States on Friday, does not hide the optimism with the Brazilian operation. "The purpose of visit is the potential for growth. We are excited", he said. The bet, however, shall not be translated in the increase of the national manufacturing park that is formed by seven plants, at least not in the short term.
According to Cutler, as it is happening with the makers, some lines are operating close to or at the limit of their capacity. In such cases, the American company may invest to improve the productivity and efficiency, with the purpose of keeping up with the growth projected for the Brazilian car industry. Today, practically everything Eaton produces here is sold in the domestic market and, according to Cutler, there is no perspective to resume the shipments abroad "There is nearly no exports and we see the importing of parts is growing fast", he said. "Still, Brazil is doing very well and we see good opportunities here over the next five years".
Besides Cutler, James Sweetnam, former international President of Dana, was in the country last week. Former Executive of Eaton, Sweetnam also stressed out the new role of Brazil for the global businesses of the company, as well as the challenges that must be faced by the country in order to remain attractive to the eyes of the multinationals.