Tuesday, September 15, 2015

' There's no room to increase tax ', says President of Whirlpool

João Carlos Brega, President of Whirlpool for Latin America, owner of the brand Brastemp and Consul and the largest manufacturer of home appliances in the country, says that Brazil lives a crisis of credibility. In an interview with the newspaper o Estado de s. Paulo, he criticized the way out of the crisis via tax increases. "Like any business, the adjustment has to be for the expense. There's no miracle, the equation of taxes has reached the limit. "
Asked what would be the scenario of him to the Country, the businessman said he never talked so much with so many colleagues and so many people to try to have a correct reading of what is happening. "There was an adjustment that needed to be done, but the problem of Brazil was not fit. What happened was a political crisis that has contaminated the economy and, by the time it is taking, turned crisis of credibility and trust. Today, the problem is confidence. "
João Carlos Brega pointed out that the problem is the confidence in the future. "Why the businessman decides to open a business or increase capacity? Because he has the confidence that will sell more. He goes to the Bank and get a loan. The Bank lends in the confidence that he's going to pay. The consumer, with employment horizon, has the confidence to do a financing. Then the bike wheel. It was broken because the consumer is or has someone very close to him who is unemployed. "
According to him, the first thing to solve the crisis of confidence is to face the reality. "We want surplus. Only that there is a tax of almost 40% of GDP, there's no room to increase. Gotta move on spending and let the private sector to invest, "he said. "In December, the Government gave 3% of Returned (refund of tax to exporters). But in January, reduced to 1%, claiming deficit problem. Then decided to end the exemption from payroll and created the PIS/Cofins on interest income. Then, overnight, comes the CPMF. There's no miracle, the equation of taxes has reached the limit. Tax is going up and falling revenue because the pizza will be smaller. Instead of the provisional tax, we should launch the campaign by the provisional expenditure reduction, "suggested.
Asked if he is in favor of an impeachment process of President Dilma Rousseff, said businessman answered no and reminded that there is a Constitution that, whoever is elected, "rules for four years and that". "If you don't like it, next election vote right. Learn how to vote. Start now with Alderman, Mayor. This scenario of impeachment does not exist for me, "she said.
About the Finance Minister, Joaquim Levy, the President of Whirlpool said that his experience is fantastic, whether in corporate life, whether on the part of Government in the Office of Rio de Janeiro in particular. "Academic training who needs no comment. But we have to understand what we require and charge him. There's a phrase that says: there's no point in killing the Messenger. We're shooting in the Levy as a Messenger, "he said. "There are 38 or 39 ministries, a President. This time you have to articulate and make a much more comprehensive proposal. If not, we will stay with this short-sightedness, "he charged.
According to João Carlos Brega, nearsightedness is focusing only on the taxes. "I think it had to be the other way around. I think we had to focus on spending and understand some measurements and do not have this addiction to just talk on taxes, which is the easiest, but it won't help. Why will not increase. The same thing: in the budget for next year the premise is a growth of GDP. It's not our premise. "
About the predictions on the economy, the entrepreneur said she will "walk sideways or have a little fall". "That's why generates uncertainty. The Government does not set the tone. Missing someone talking about let's walk here. That's what we need, and not to be criticizing. "
He stressed, however, that "Brazil is not over". "I've learned that there's good news in this crisis. She's going to end. Has a small little thing that is when, "he said.
For corny, are two necessary discussions: rush that end of the crisis and make the other positive is robust and sustainable phase. "Until 2017, will be a scenario of no economic growth. Has election for mayor and Councillor in the next year. The basis of mayors provides a good basis for the presidential election. The result of the election of mayors will immediately raise the presidential campaign "evaluated. "The great resumption will be post election 2018. Until 2016, 2017, given the scenario of today, we don't expect anything spectacular ", considered.
The crisis brought down 15% in sales of Whirlpool, the nation's largest manufacturer of electrical appliances, and made the company back its production of refrigerators, stoves and washing machines to 2007 levels. To dry the stocks, the company-with factories installed in Rio Claro (SP), Joinville (SC) and Manaus-stepped on the brake of the production and gave collective vacations in February.
In July, the parade took place in the administration of the company. The factories are running at less than 70% of production capacity. ? The problem is that the pizza, it was family size, now is small?, compares, making mention of the reduction in the market.
The cut in production came accompanied by a paring down of frames. The company no longer reset 4 thousand vacancies and are not hiring employees. Corny says new adjustment measures are not in the plans. Not even the high dollar is seen by the Executive as an immediate boost to exports of Embraco's compressors, which is part of the group.
The company does not disclose specific data from Brazil, which represents the largest share of the group in Latin America. Last year, Whirlpool made in region R $ 9 billion and employed 13 thousand workers.
Asked if the behavior of the dollar could do anything, the Manager replied that the American currency is equal to the debt. "When you have possibility to pay, you worry, stop sleeping. In this case, there's no way, I can't control. What we know is that it's a moment of total upward surge. Now, is to have patience and wait to see where it will stop. "
In relation to the dollar effect on exports, cursi said that it wasn't just the Brazil that moved over. "China, Colombia, Europe and Mexico lifted a hand. Only Argentina didn't. They messed in the Exchange, only that they did not have the sheet burdened, PIS/Cofins and won't have do not know what lies ahead, "he recalled. "They don't have the tax burden we have. The Exchange will improve exports, but it's not going to be the new driver. "
According to Cheesy, to export manufactured product, it takes technology and adding value. "To export commodity, that was what we'd come having until then, is China. Will not be the driver because it has no port, "he lamented. "Embraco, for example, the Group's company which exports compressors, must send the product to the port in day 5, if the vessel is passing the 30 day", he added, remembering all the process which involves filling out forms, audits, stores and queues.
As for investments, cursi said that the company is not cutting investment in product. "We will launch the same 200 products this year in South America and we will launch more in 2016. But we're not increasing the capacity and we don't see any horizon for that until 2018, "he noted.
About the loss of investment grade, he replied that the decision leaves the money more expensive. "Blows away, or not allows long-term investor to put money into the Country. We need to understand that fund investors have rules. "
For Kitsch, the country will continue being the seventh or eighth economy in the world. "There's no discussion. What is boring and unpleasant is going through it, when, in theory, this could have been avoided ", assessed. The information is from the newspaper O Estado de s. Paulo.
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