In crisis, Marcopolo back to prioritize foreign market

There were already signs of this change in 2015, primarily as a result of falling domestic sales, and the movement accelerated this year, with a jump in international operations – between January and September, exports from Brazil 43.8% compared the same advanced period of 2015.
In addition to the devaluation of the Brazilian real and the relative loss of Chinese competitiveness, assembled by the company strategy boosted sales out. In October 2015, a team of 30 employees set a world map on the wall and began to mark the countries where Marcopolo had lost market in the last ten years and that could be taken, in addition to possible new achievements. "Knowing the history of exports from Marcopolo, created a task force," the company''s Chairman, Francisco Gomes Neto.
In the 12 months following, teams traveled 60 countries in trying to sell their goods and alleviate the effects of the economic crisis, which devastated the brazilian automotive sector. Since the heyday of the company, in 2013, until 2015, Marcopolo saw its net income fall back 25% and the number of units manufactured fall 46 percent. "Increase exports was the only way out. We have learned that we cannot neglect the external market, even when the Exchange is unfavorable (as in the early 2010), because the recovery is not easy. "
The carelessness with international sales was a result of the good moment lived by the sector in Brazil until 2013. The interest at 2.5% per annum for transport companies and the federal Way school program (which facilitated the purchase of vehicles by prefectures) resulted in the explosion of the domestic bus sales in the period.
For Antônio Jorge Martins, professor at the Getulio Vargas Foundation (FGV), industry specialist, Marcopolo managed to recover its exports by having high level of internationalization – are 12 plants outside the country. Malik States that multinational companies installed in Brazil could not expand its exports from the Brazilian territory in the same rhythm, because they have to negotiate with the arrays to not compromise production units of other countries.
No miracle. Although losses amenizarem, international sales are not enough to save the Marcopolo. In 2016, the year for which predicted a relief, there were 10% drop in revenue from January to September.
The company ended up closing a factory in the interior of Rio de Janeiro, acquired at the end of last year, when he bought the competitor Company. Also needed to dispose of 7.5% of the capital of the New Canadian Flyer, with 10.8 percent of the business. There''s still intended to use the New Flyer to enter the American market, where it could exploit the road segments and mini-buses. The vehicles would be sent to the U.S. from Brazil or Mexico.
Gathii admits it will not be possible to maintain the momentum of international growth in 2017. "This year, we accept the return of markets where Marcopolo was strong, which will not be repeated." The focus, however, will remain out there, since there are no signs of recovery.