07/14/2008 13h40

GPS giant TomTom lands in the country

Valor Econômico - 07/14/2008

Benoit Simeray had never imagined, during the three times he traveled on leisure to Rio that one day he would come to São Paulo to work. Neither had the executive imagined the company that hired him in the beginning of 2003 would grow 321 times in five years - between 2002 and 2007 - becoming what he calls the fastest growing company in Holland's history. TomTom Sales Vice-President for Europe and Latin America, the largest manufacturer of GPS devices for automobiles in the world, Simeray opened the offices of the group in countries like Italy, Spain, and Portugal. Now his goal is to do the same in Latin America, starting by Brazil. TomTom's address will be in São Paulo and it should be defined until the end of the year. In the beginning of 2009, the plan is to open offices in Argentina and Chile. Founded in 1991, in Amsterdam, TomTom had meteoric growth in recent years. In 2002, the sales of the company were US$ 7.4 million, with US$ 1.28 million in profits. In 2007, the figures were quite different: sales reached US$ 2.4 billion and profits amounted to US$ 434 million. In five years, the staff of 75 went to 1,078. The company was born as a map software developer for handhelds. However, 13 years were necessary for it to discover its true call: the portable devices with GPS navigation system for cars and bikes. This year alone TomTom expects to sell 15 million navigation devices. The equipment has no buttons. Everything is done through touching the screen with a finger. Besides, the device has voice command. Another feature is the possibility of updating the maps - the device is connected to the computer and, through the Internet, the user makes part of a community in which it is possible to check traffic tips or changes in the direction of streets. Even new restaurants can be entered in the maps. In Brazil, the product shall cost between R$ 1 thousand (US$ 625) and R$ 2 thousand (US$ 1.25 thousand). The country is considered the main market in the Bric block.