Brazil's automotive recovery awaits new incentives

Subject Outlook for the automotive sector. Significance The Brazilian automotive industry, one of the worst-affected sectors during the prolonged economic crisis, has been showing signs of recovery. Production and sales have experienced some improvement recently, although they remain below pre-recession levels. Production levels have been higher than domestic sales, as some output has been exported. The sector may play a key role in jump-starting the Brazilian economy. Impacts Domestic auto sales still depend on improvements in income, credit and employment conditions. New investments may be postponed by automakers if a decision is not taken on “Route 2030”. EU-Mercosur trade discussions may directly affect the Brazilian auto industry.

2011 ◽  
Vol 1 (4) ◽  
pp. 1-30 ◽  
Author(s):  
Michael Roberto ◽  
Grace Chun Guo ◽  
Crystal X. Jiang

TitleChang'an Automobile and the Chinese automotive industry.Subject areaInternational businessStudy level/applicabilityUndergraduate/graduate/executive education.Case overviewChina has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.Like many Chinese automakers, Chang'an partnered with well‐known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self‐branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in‐depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.Expected learning outcomesEnables students to examine how and why an industry's structure can differ substantially across geographic markets. Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry. Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China. Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high‐growth emerging market.Supplementary materialsTeaching notes.


Significance Spain’s increasingly protectionist regulatory environment, and proposed tax and labour reforms, threaten to discourage investment. The foreign-owned automotive sector, which accounts for roughly 10% of GDP, is a source of particular concern. Impacts The ability to continue attracting FDI will be crucial for Spain’s economic recovery. The magnitude of the economic crisis may force the left-wing coalition to water down its changes to the 2012 labour reforms. Tourism and property will be among those sectors disproportionately affected by the ongoing uncertainty.


2009 ◽  
Vol 138 (3) ◽  
pp. 3-13
Author(s):  
Jerzy MERKISZ

The paper presents the role that the automotive sector plays in national economies. The origins of the automotive market crisis have been described as well as its impact on the world and European automotive markets. A condition of the Polish automotive industry and related markets has been discussed indicating relatively moderate consequences of the crisis (as opposed to other countries). The influence of the crisis on the change of buyer preferences has been presented, indicting the shift of the demand towards smaller, cheaper and more energy efficient vehicles. New trends have been shown resulting from the crisis forcing the manufacturers to launch hybrid and electric vehicles as well as alternative fuel vehicles. In the conclusions negative and positive consequences of the crisis have been listed and a production forecast has been made for the coming years.


Subject The Brazilian auto sector. Significance Automotive production and sales have experienced a significant decline since 2014, although they have recently shown incipient signs of recovery, led by exports. Ongoing official discussions may change Brazil’s current automotive regime -- “Inovar-Auto” -- following defeat in a WTO dispute last year, replacing it with new guidelines under the plan named “Route 2030” until the end of the next decade. Impacts Developments in trade agreements with Argentina, Mexico and other main partners will directly affect the auto industry. Improved income, credit and employment conditions will be necessary to recover pre-2014 domestic auto sales levels. Increasing exports is a key short-term goal to offset negative domestic sales results.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiara Pollio ◽  
Lauretta Rubini

Purpose The purpose of this paper is to critically analyze the case of selective industrial policies for the automotive industry in Thailand. Design/methodology/approach Founding on previous literature and official government documents, the authors describe the implemented policies, dividing them into four phases according to the main trend they followed. The authors suggest results the policies have or have not reached by analyzing the current state of the sector. Findings The main point is that selective policies implemented in the country were successful in helping the development of the sector as a whole, contributing to the role of Thailand as main actor in the international market. However, such policy initiatives were not able to solve some of the main issues of the automotive sector in the country related to local development, such as the technology dependence on foreign (mainly Japanese) firms and the weakness of local suppliers. Originality/value The authors frame the development of the automotive sector in a twofold perspective: on one hand, the international/exogenous factors and, on the other hand, the role of policy. The authors interpret the effects of selective industrial policy under the lens on both evolution and growth of the sector per se and on the enhancement of local capabilities. The work shows that the results do not go in the same direction.


2014 ◽  
Vol 18 (1) ◽  
pp. 152-176 ◽  
Author(s):  
Rodrigo Valio Dominguez Gonzalez ◽  
Manoel Fernando Martins

Purpose – The latest models on knowledge management (KM) recognize four phases for its practice: acquisition, storage, distribution, and knowledge utilization. The KM is characterized as a multidisciplinary discipline, involving both technical and social aspects. Therefore, the purpose of this research is both social and of coordination, aiming to identify contextual factors, internally developed in the organizations, which support the KM process in the Brazilian companies in the automotive sector. Design/methodology/approach – To achieve the research purpose, a quantitative research method was employed, based on a survey research in the automotive sector. Findings – The results point to the existence of eight contextual factors that support the KM process in the organizations. These factors are mainly related to the human being, responsible for the retention and transformation of primary knowledge, and the development of an organizational context that encourages the learning process through the culture and structure designed for this purpose. Research limitations/implications – One of the limitations is that the study is based on constructs derived from a theoretical background, however it does not offer an empirical test to validate the selected constructs. Future studies could create a metric to evaluate the constructs' consistency and use regression analysis to validate them. The second limitation relates to empirical research. The survey achieved a return of 78 companies and a larger sample could provide more robust data. Practical implications – Practitioners need to take cognizance of the fact that KM process must not be confused nor focused on IT deployment. The development of an organizational context is much more complex and important to the success of KM. By characteristics of mapped factors, it is possible to conclude that KM process is focused on the development of individuals. It is from their employees that the organization promotes the knowledge exploitation in problem solving activities and incremental improvements, and knowledge exploration, rebuilding the competences to innovate the processes. Originality/value – The main contribution of this paper is to identify the factors that companies in the Brazilian automotive industry must develop in order to promote KM. Furthermore, the research shows the relationship between these factors and KM process.


2018 ◽  
Vol 19 (11) ◽  
pp. 30-35
Author(s):  
Marta Wójcik

The automotive sector is one of the fastest growing sectors of economy. The increasing amount of cars both in Polish and world roads results in the immeasurable benefits associated with the goods and human transport. On the other hand, this phenomenon caused the contamination of the environment. During the fuel combustion in petrol or diesel engines, the harmful gases, for example CO2, NOx and SOx are emitted. Apart from the negative impact on the environment, the emission of the aforementioned gases results in the deterioration of human conditions, as well as, the development of civilization diseases. In order to minimalize the harmful influence of an automotive industry on the environment, new technologies which can reduce the consumption of fuel or limit the fumes emission are developed. The first part of paper presents new solutions in an automotive sector which influence on the decline of the negative impact of automobiles on the environment. Additionally, proposed solutions affect the development of a car industry, taking into consideration environmental aspects.


2017 ◽  
Vol 32 (4) ◽  
pp. 535-540 ◽  
Author(s):  
Alain Lempereur ◽  
Michele Pekar

Purpose This article aims to explore the fundamental negotiation structure as a demand/response dynamic. It tests it in a complex business system, where a manager as a negotiator is confronted with multiple demands or pressures at different levels from a variety of stakeholders, both external and internal. Design/methodology/approach Based on concrete examples from the automotive industry, it presents an analytical framework to tackle all negotiation interactions. Findings This article suggests that it is possible to describe all negotiation interactions, whether they are simple or complex, through a demand/response framework. Originality/value This contribution examines a fundamental structure for negotiation responsibility – the demand/response dynamic – defining the mission of any negotiator in deal-making or dispute resolution as to try to supply a response to the expressed crossed demands. Second, the proposed theoretical model of demand/response is transposed and tested in a managerial system where a sales negotiator is confronted with demands from more sources, both external and internal, with the responsibility to satisfy as best as possible the various stakeholders and the capacity to address each of them with different moves.


2017 ◽  
Vol 8 (4) ◽  
pp. 474-483 ◽  
Author(s):  
Innocent Otache

Purpose The purpose of this paper is to explore agripreneurship development as a strategy for economic growth and development. Design/methodology/approach Though a few related literature were reviewed, this paper relies heavily on the author’s viewpoint regarding how Nigeria can grow and develop its economy through agripreneurship development. Findings The present economic challenges that Nigeria is facing are blamed on overdependence on the oil sector, bad governance, corruption, leadership failure, policy inconsistency, overdependence on imported goods and ostensible neglect of the agricultural sector. Also, policymakers, economic analysts and the government have advocated strongly for diversification of the economy. Besides, there is a consensus among scholars, economic analysts and policymakers that “agriculture is the answer.” Research limitations/implications This paper addresses specifically one sector of the economy – the agricultural sector. On the other hand, economic crisis needs to be addressed holistically by resolving specific issues that confront different sectors of the economy. Practical implications This paper has some insightful policy and practical implications for the Nigerian Government and Nigerians. The government and Nigerians need to take practical steps to grow and develop the economy. On the part of the government, apart from the need to transform the agricultural sector by allocating enough funds to it, the government should establish well-equipped agripreneurship development centers and organize periodically agripreneurship development programmes for the main purpose of training and developing both current and potential agripreneurs who will be able to apply today’s agricultural techniques and practices which involve a great deal of creativity and innovation for a successful agribusiness. The federal government should integrate agripreneurship education into Nigeria’s education system. Similarly, the Nigerian people, particularly the youths or graduates should be encouraged to choose agribusiness as a career. Originality/value While previous papers have offered different solutions to the current economic crisis that Nigeria is experiencing, ranging from economic to structural reforms, this paper differs significantly from others by recommending specifically agripreneurship development as a strategy for revamping Nigeria’s economy from its current recession. Moreover, there is a dearth of literature on agripreneurship and agripreneurship development. This paper therefore fills the literature gap.


Author(s):  
Robert Bogue

Purpose – This paper aims to provide a European perspective on the collaborative robot business and to consider the factors governing future market development. Design/methodology/approach – Following an introduction, this first describes the collaborative robots launched recently by European manufacturers and their applications. It then discusses major European research activities and finally considers the factors stimulating the market. Findings – This article shows that collaborative robots are being commercialised by the major European robot manufacturers as well as by several smaller specialists. Although most have low payload capacities they are inexpensive and offer a number of operational benefits, making them well suited to a range of existing and emerging applications. Europe has a strong research base and several EU-funded programmes aim to stimulate collaborative robot development and use. Rapid market development is anticipated, driven in the main by applications in electronic product manufacture and assembly; new applications in the automotive industry; uses by small to medium-sized manufacturers; and companies seeking robots to support agile production methods. Originality/value – This paper provides a timely review of the rapidly developing European collaborative robot industry.


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