Foton negotiates purchase of International operation in Rio Grande do Sul

The Foton Aumark is reorganizing to meet the timetable laid down for its operations in Brazil. The decision to outsource the production while the factory is not ready, the company negotiates the purchase of International plant in the country.
"We are negotiating with the International to use its production line or even to buy it," he said in an interview with DCI the CEO of Foton, Bernardo Hamacek.
The International may terminate its operations in Brazil. Sought, the company didn't pick up the story. The fact occurs amidst the Foton negotiations to outsource its production while the factory is not ready.
According to Chinese brand, a delay in the release of the funding of the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) for the construction of factory delayed the start of operations, which was scheduled for January next year.
With this, the company decided to outsource production to not lose the incentive to innovate-Auto, which the company said is a mechanism provided for by the scheme.
"We are negotiating with the Agrale and with International", confirms the President of Foton, Luiz Carlos Mendonca de Barros. It ensures that production will start in mid-May of 2016 and, in December, the factory in Guaíba (RS) should begin to operate.
Mendonca de Barros noted that since the decision to bring the brand to Brazil in mid-2010, a lot has changed, including the exchange rate until the new automotive system rules. "I spoke to Foton executives that they needed to get used to the changes in the rules of the game in Brazil," adds Mendonça de Barros.
Currently, with 30 dealers in the country, the Foton wants 10% of market share of light (including 2.8 tons trucks), which concentrates most of the sales in the country.
"In times of crisis, some suffer more than others. But we are confident that the market will grow back, "says the Executive.
For Hamacek, the light segment suffers less, supported by trade and services. "In major urban centres, the legislation requires the VUC type trucks [Urban cargo Vehicle], which prevented an even bigger fall of light", points out the CEO of Foton.
He reveals that the 10-tonne model will start production with 65% of nationalization. "The vehicle will be born ' finamizado '", says the Executive, referring to the minimum local content requirement for use of BNDES financing for the purchase of capital goods, the Finame.
Hamacek stresses that, despite not being sold with Finame, 3.5-tonne model will also feature local content of 60%. "Part of our strategy to to rely less from the weather of the exchange rate," he explains.
Foton factory will have an installed capacity of 28 thousand units annually in a production shift, but second Hamacek, can still be expanded. "Due to the huge terrain and the conditions under which the plant was planned, we can expand it according to demand" reveals Hamacek.
Mendonca de Barros points out, however, that for now the Foton operates at a loss. "The bulk of our investments, besides the nationalization, has gone to the network of dealers and also for suppliers", he ponders.
Fall in trucks
According to figures released on Friday (06) by the National Association of Automotive vehicle manufacturers (Anfavea), the market of trucks accumulates above the fall industry as a whole.
"The thread goes through a dramatic situation," said the head of Anfavea for trucks, Luiz Carlos Moraes.
The entity informs that the reduction of the volume of resources available to the Finame and the deadline to join the financing, as announced a few days ago, took the industry by surprise. "We were negatively surprised by the announcement," said the President of Anfavea, Luiz Moan.
With that, the cut was provided only for November ended early. "It takes all the predictability of customers", says Vice President Secretary of Anfavea, Marco Antonio Saltini.
According to him, before the current scenario, companies planned to invest are retracing the planning. "Companies are putting the foot on the brake," he adds. Saltini believes that the sudden change in Finame will impact even more. "We are really talking about a dramatic situation," he says.
Today begins the largest fair of Latin America, the transport, which had membership of Fenatran only two automakers, the DAF and Volvo. According to the companies, historically the event proved to be very important to boost sales of the year.
However, the brands have decided to cut the heavy investment at the fair. In the case of Mercedes-Benz, which held an internal event and claims to have invested less than half of what would I put in the Fenatran.
According to Anfavea, until October the trucking industry sales fell to 44.9%, the worst performance since 1999. "We're still in a very complicated situation," said Moan.
The performance of cars and light commercial was also bad. On the same basis of comparison, sales were not only less than 2007. "The scenario for the industry is increasingly contaminated by political crisis", believes Moan.
According to him, the daily average of current sales, a little over 9 thousand units, should remain for the coming quarters. "We expect at least a stability for 2016".
According to the Anfavea, exports have only presented breath. Year to date, sales abroad grew by 16.9%.