Resumed production of trucks on scene reverses

Exhausted the stock of old line, known as the Euro 3, the improvement in sales of trucks began to pull a reaction in the activity of the factories. Production stoppages and labor cuts that marked the sector last year, begin to make room for extended journeys and greater use of installed capacity in both the automakers and the supply chain.
After reintegrate about 1.5 thousand workers who were stopped since June, the Mercedes-Benz resumed earlier this month, the second work shift in truck factory in Sao Bernardo do Campo, in the greater ABC, which already makes extra time: the line kept the production last weekend.
The reaction of the market began in October and in January, the production reached the highest level in 10 months (see table beside). For this year, the industry, represented by Anfavea-the entity that represents automakers in Brazil-foresees a growth in excess of 7% in sales of trucks.
More optimistic, the car dealerships, according to the Fenabrave, forecasts project an increase of 16% in this market. Although distant from the record 2011-when almost 173 million units have been sold, the estimates point towards an approximation of 2010 volumes, when 157.7 thousand trucks were licensed in the country.
Since the last quarter of 2012, suppliers notice an improvement in orders from automakers. MWM says that last month had the best January in its history, with almost 11 thousand engines produced. Already the Cummins, who also makes diesel engines, reports that its production is evolving at a pace of 18% in this year.
Last year, both the MWM as Cummins released hand short weeks-with only four working days of production-to adapt the production to the lower demand of automakers of trucks. This year, the two companies say they are working overtime to meet the demands of manufacturers.
Yesterday, the Anfir, the entity that houses the roadway equipment manufacturers, reported that, after the fall of 16% last year, provides for 2013 a 6.5% growth in sales of trailers used in trucks for the transport of cargo. "We have operating companies with the second and third work shift, in some cases. The stock of orders already reaches three months. For us, 90 days is a good run, "said Alcides Braga, President of Anfir, which also invests in a resumption of investment and hiring in the sector.
For the Association, production support measures-as the burden on the payroll in the industry-and the stability in funding rules to open the prospect of business reaction this year.
In 2012, the production of trucks marked fall of 40.5%, while sales fell 19.5%. In addition to the slowdown in industrial activity, the performance reflected the transition in engine technology of the trucks, which have become less polluting vehicles, but 15% more expensive. The changes were made to suit the trucks to the new legislation of vehicular emissions, popularly known as Euro 5.
In anticipation of the price increase, the carriers anticipated purchases, which led to a record plates issued in 2011, but, as a result, a strong contraction in the following year. "It was as if we had 15 months of sale in 2011 and just eight or nine months last year," says Thomas Püschel, sales manager at MWM.
The only upset came after cuts in interest on financing of capital goods, which have been kept below inflation this year. In addition, purchases of trucks made by the Government to equip the armed forces gave strength to the sector.
For Luis Alfonso Pasquotto, President of Cummins in South America, distrust of carriers in relation to the supply of Euro 5 engine trucks has decreased due to the increase in the network of stations that sell diesel fuel used by these vehicles. This has helped to reduce the resistance to technology.
"The factors that stalled the market have been resolved," said Pasquotto, which provides for this year a growth of 30% in the production of Cummins engines for trucks.