Mahle plans resuming shopping in 2010
Valor Econômico
Mahle Metal Leve, a publicly held company in Brazil that is part of one the five biggest groups of auto-part makers in the world will once again start looking for possible acquisitions in 2010. After the worst moment of the economic crisis, which put the survival of makers like General Motors and Chrysler at stake, passed, the strategy of the company for the next year is to maintain the conservatism in the management of cash, without letting good opportunities of acquisition that arise in Latin America escape, though.
Besides increasing the pace of investments in 2010, Mahle may also take a series of steps to circumvent the Chinese competition and the loss of competitiveness of the Brazilian components in view of the appreciation of the value of the Brazilian Real compared to the US Dollar. One of the alternatives would be the importation of products from other units of the same group around the world, with the purpose of preserving the market share in Brazil in view of the growing competition with imported products. "Our challenge for 2010 is to participate in the projected growth of the Brazilian market of cars, 4%, and in the market share", said Claus Hoppen, CEO of Mahle, in a meeting with analysts at the company's Technology Center in Jundiaí.
The possible acquisition of companies is in line with the strategy of keeping up with the growth of the car market. In the segments in which it operates, said Hoppen, Mahle already holds a significant share and diversification is the means to accomplish the expansion plans. The funds for a possible acquisition, however, will not be included in the budget for next year, which will be submitted for the examination of the Board of Mahle in two weeks. According to the Investor Relations Officer of the company, Axel Brod, the investments scheduled for next year should exceed the R$ 30 million (US$ 17.4 million) foreseen for this year. The company will also keep the foot on the brake pedal in relation to expenditures.