Small and medium-sized auto parts go through a turning point in the country

The moment of technological transformation of the global automotive industry and the biggest commercial opening of Brazil makes the investment in upgrading plant must for auto parts companies, not only to avoid a significant increase in imports, but to ensure your survival. "We live in a time of profound changes in the industry and in Brazil. The industry always will be small and medium-sized companies in your supply chain. The question is whether the future will be the same that exist today, "said on Monday (22) the Director-General of the Freudenberg Group of Brazil, George Rugitsky, at an event in Sao Paulo between these transformations, he cites the free trade agreement of the automotive sector with Mexico, which came into force this year. "It's better than industry is prepared for this new reality than be taken by surprise," says. The Executive believes that if vendors don't qualify for new practices and technologies, can be replaced by imports. "The agreement with Mexico was the first step in that direction. The Government signals the intention to enlarge treaties of this kind, "he adds. The President of Toyota of Brazil, Rafael Chang, said that the country needs to stimulate the introduction of new technologies in this environment of increased openness. "Otherwise, there is a risk of what happened in Australia, I saw your automotive industry disappear after signing a free trade agreement with Thailand." He says that the decision to produce the Corolla hybrid flex in Brazil generated a challenge in relation to suppliers. "We are working with a specific platform with 10 to 12 companies. The scale is still small, "reports. A survey of 61 companies associated with the National Union of the automotive vehicle components industry (Sindipeças)-21 big, medium and small – 21 19 shows that 90% of them do not have scanned processes and do not use the Internet of things (IoT) to control production processes and 81% do not have budget forecast to implement these technologies. Of the 470 Sindipeças related, approximately 360 are small and medium-sized enterprises (SMEs). "The cost of capital is high and volatile in Brazil and the tax burden is heavy. Proportionally, it is more difficult for SMEs, "says the Director of the consulting firm A.T. Kearney, David Wong. He explains that in the light of the difficulties, SMEs need business partners. "Another alternative would be to form clusters, associations of smaller companies to generate higher added value." Rugitsky believes in a more open economy, it is important that suppliers diversify and reposition their portfolios. "A country will never be competitive to produce everything. You need to analyze and find niches of expertise. " He cites the example of his own Freudenberg. "In case of engine combustion cease to exist, we would lose 50 percent of our revenues. That is why we are investing in alternative electrification product lines. We bought a manufacturer of batteries for heavy vehicles, because we want to have a relevant position in the future. " The President of Bosch Management Latin America, Bezalel Botelho, says that the company had to help suppliers to be able to keep your local chain. "We have developed a program that became international suppliers. We had some success, but it's always a challenge depending on the fickle management of these companies. " He points out that not always the Manager of SMEs has the mentality to work with innovation. "Happens to accomplish a partnership and, at the time we give back, the company can't walk alone. Often, the Exchange Manager and you lose the whole essence of what was developed. " The Executive enforces it is necessary to invest to survive. "Smes have to find a way to get next, in programs or partnerships. But sometimes lack the will. "