Ford & GM do Brasil: "Success Here Will Mean Little if U.S. Plans Fail"

[Ming]

August 21, 2007
Success will mean little if U.S. plans fail
Bryce G. Hoffman / The Detroit News



SÃO BERNARDO DO CAMPO, Brazil -- Silvio Illi would seem to have little to worry about as he walks the line at Ford Motor Co.'s São Bernardo plant outside São Paulo.

He manages a factory that -- even running at full capacity -- can barely keep up with demand for its cars and trucks. Better still, Ford is investing heavily in Illi's plant as it prepares to begin production of a new model.

But Illi cannot help but be concerned about what is going on half a world away in Dearborn. He knows Ford is struggling to save its North American automotive business. He knows the company has mortgaged everything to finance its turnaround plan. And while the success of a similar restructuring effort in Brazil gives him hope, Illi knows the efforts he and his team have made to revive Ford's South American business will not matter much if the plan fails in the United States.

"This is an American company, and it is cutting jobs in the U.S.A. and putting more here," Illi said. "People understand that is only because we are making money. It is a big responsibility. It makes people want to keep it up."

For employees of Ford and General Motors Corp. in South America, Detroit's problems hit close to home. Though both companies are booking record profits in the region, everyone from top executives to rank-and-file workers know that their ultimate success depends on the automakers' ability to fix their struggling North American operations.

"We are aware of the situation there," said Pedro Luiz Dias, vice president of communications for GM do Brasil. "People know what is going on."

People such as union leader José Lopez Feijóo. As head of Brazil's autoworkers union, he has traveled to the United States and seen firsthand the challenges facing the U.S. automakers on their home turf.

"The last time I was in Detroit, I was very depressed to see the Rouge Plant -- how empty it was," he said. "Detroit seemed to me to be a ghost city."

Feijóo says he feels strong solidarity with autoworkers in the United States, but adds that labor and management have to work to overcome the challenges the two companies face there, just as they have in Brazil.

"We need to find a solution," he said. "Anything that happens in the U.S. automatically impacts us here."

Source: http://www.detnews.com/apps/pbcs.dll...62/1148/AUTO01

PHOTO CAPTION: Like several other vehicles in GM Brazil's Chevrolet line up, the Montana Flexpower pickup automatically adjusts to run on any blend of fuel from 100 percent ethanol to 100 percent gasoline, letting owners select the best priced fuel option for them, while helping stabilize the alternatives fuel market in Brazil. - *

[nadepalma]

Just goes to prove that these "American" companies are truly global entities with profitable (and vulnerable) operations world-wide.

Just as someone else at Detroit News recently commented something to the tune of "who would have thought 5 years ago that over 50% of GM's volume would be sold overseas", this article demonstrates the need to expand into other markets and depend less on the American market.

This is exactly what Toyota and Honda and Nissan have done --- in that they sell significantly LESS product at home than they do in other world markets and it insulates them from exposure there. So if there is a hiccup in Japan, it wont' KILL the bottomline.

Compare this with GM where a disaster at home means trouble overseas and you almost hope that they start to expand more and more in other markets as to soften the blow in the domestic market.

Good find Ming.

Originally Posted by Ming

PHOTO CAPTION: Like several other vehicles in GM Brazil's Chevrolet line up, the Montana Flexpower pickup automatically adjusts to run on any blend of fuel from 100 percent ethanol to 100 percent gasoline, letting owners select the best priced fuel option for them, while helping stabilize the alternatives fuel market in Brazil. - *

I always thought that GM should bring over a "sedan" based "pickup" like this as an entry-level fun car and sell it in Chevy stores. These vehicles are really popular in Brazil and are cheap to build since they are based on the Celta (old Astra).

Fiat does it as well with the Strada pick-up (itself based on the Palio/Sienna family of vehicles) and they are equally popular



I wonder if GM would consider it as a fun-car?

[Frankster177]

The problem is you Americans only like your homegrown tacky over styled cars.

[Smaart Aas Saabr]

Originally Posted by nadepalma

Just goes to prove that these "American" companies are truly global entities with profitable (and vulnerable) operations world-wide.

Just as someone else at Detroit News recently commented something to the tune of "who would have thought 5 years ago that over 50% of GM's volume would be sold overseas", this article demonstrates the need to expand into other markets and depend less on the American market.

This is exactly what Toyota and Honda and Nissan have done --- in that they sell significantly LESS product at home than they do in other world markets and it insulates them from exposure there. So if there is a hiccup in Japan, it wont' KILL the bottomline.

Compare this with GM where a disaster at home means trouble overseas and you almost hope that they start to expand more and more in other markets as to soften the blow in the domestic market.

Good find Ming.

I always thought that GM should bring over a "sedan" based "pickup" like this as an entry-level fun car and sell it in Chevy stores. These vehicles are really popular in Brazil and are cheap to build since they are based on the Celta (old Astra).

Fiat does it as well with the Strada pick-up (itself based on the Palio/Sienna family of vehicles) and they are equally popular



I wonder if GM would consider it as a fun-car?

It worked for GM as an El Camino...

IMO the idea of a car on the same lines as the El Camino is a bit too big (eg Holden Ute). Something like the Montana would be a very neat vehicle here and might be a success with delivery fleets too.

[Ming]

Originally Posted by nadepalma

I always thought that GM should bring over a "sedan" based "pickup" like this as an entry-level fun car and sell it in Chevy stores. These vehicles are really popular in Brazil and are cheap to build since they are based on the Celta (old Astra).

I wonder if GM would consider it as a fun-car?

Well GM do Brasil is supposed to be GM's new source of small truck technology as Isuzu fades from the scene, so you never know!

Perhaps they are working on a replacement for the Brazilian S-10. It would be interesting to see GM's next small truck actually have its roots more in the S-10 than Colorado/Canyon, even if only vaguely and with much improvement of the platform.

Chevrolet Mexico has the Tornado right across the border, though. Does anyone know if it is built locally? http://www.chevrolet.com.mx/content_...do/diseno.html

[ChevroletRevived]

Originally Posted by Ming

Chevrolet Mexico has the Tornado right across the border, though.

Hey, you could import it. LOL

[asim]

Originally Posted by ChevroletRevived

Hey, you could import it. LOL

Hahaha. How about no? Maybe in the next rendition of this Tornado.

[nadepalma]

Originally Posted by Ming

Well GM do Brasil is supposed to be GM's new source of small truck technology as Isuzu fades from the scene, so you never know!

Perhaps they are working on a replacement for the Brazilian S-10. It would be interesting to see GM's next small truck actually have its roots more in the S-10 than Colorado/Canyon, even if only vaguely and with much improvement of the platform.

Chevrolet Mexico has the Tornado right across the border, though. Does anyone know if it is built locally? http://www.chevrolet.com.mx/content_...do/diseno.html

Perhaps you're right and now that Isuzu is out of the picture we'll see more from Brazil in this regard.

According to Wikipedia, they are made in Brazil only and then assembled in South Africa and Mexico from Complete Knock Down Kits.

Take a look:
http://en.wikipedia.org/wiki/Chevrolet_Montana

[Bravada]

One correction - the base for the Montana is the Brazilian version of the Opel Corsa C.



The Celta, however, was cobbled together from bits from Corsa B and C and some other stuff...

[al_gy]

globalisation recession lol !

General Motors To Invest $36M To Expand Brazil Facilities 10/27 09:19 AM

[t-rex]

The Corsa Ute/Montana is one of GM's unsung global heroes. It's a huge seller in Brazil, and in South Africa slaughters its competitors, taking nearly half of segment sales. In fact, it's GMSA's best-selling vehicle.

MERCOSUR is now a major sales region, and GM and Ford are quick to cater to local requirements, developing cars such as the Chevy Celta and Ford EcoSport, tailored for the needs of regional customers. Fiat and VW round out Brazil's "Big Four" and lead design and development of those companies' products destined for emerging markets.

The Japanese are jumping on board too. The Honda Fit and Toyota Corolla are now built in Brazil, and are selling well, and Argentina is one of Toyota's global production bases for its "IMV" family of pickups, MPVs and SUVs. Mitsubishi recently announced it's developing and building an "emerging market" subcompact in Brazil within the next few years.

With virtually all the world's automotive growth occurring in developing markets, Brazilian-designed vehicles could become commonplace around the world.

[Citation84]

Didn't MG/Roewe just have their introduction down in Brazil as well ? China is coming....