Monday, December 12, 2016

Trucking industry must maintain high idle in 2017

Sao Paulo-the high level of idleness of the trucking industry must keep in 2017, as the market estimates a growth year shy. To survive, the automakers expect the economy''s stability and best BNDES financing conditions.
In an interview with the DCI, executives of automakers reported cautious regarding predictions for 2017, since the political and economic scenario still inspires caution. "A recovery should start happening only in the second half. The growth should be small, "says the Director-General of Scania of Brazil, Roberto Barral.
The Vice President of sales and marketing for Mercedes-Benz in the country, Roberto Leoncini, points out that the current fleet of trucks is very idle. "Even with the recovery of the economy, the market will still take a while to start moving," he points out.
Iveco''s marketing director for Latin America, Ricardo Barion, estimates that sales can grow between 10% and 20% in 2017. "However, this volume is far below the capacity of the industry."
According to market estimates, the installed capacity of heavy vehicles in the country, revolves around 400,000 units. In 2016, Brazil sales must not pass of 50000 vehicles, approximately 30% on fall 2015. "We are living almost a depression," said Barral.
The Director of Iveco attentive to the fact that not only the automakers are undergoing difficulties. "In the short term, the scenario is very disturbing. The network of dealers need to survive this period. "
Automakers believe that interest subsidized financing from BNDES to capital goods, Finame, should not come back. However, there is the expectation of improvement of conditions, like for example, Fund 100% of the well, which is not the case today.
"Currently, the client has no capital or for the entry of Finame", ponders Barral. However, Barion assesses that, faced with the crisis, hardly the BNDES would fund 100% of the truck. "This type of operation is very expensive."
Executives at MAN Latin America (manufacturer of Volkswagen commercial vehicles) advocate the return of the full funding of the well as a way to stimulate sales.
"Traditionally BNDES has financed 100% of the truck, except in times of crisis," said earlier this month the Vice President of sales, marketing and after sales of the MAN, Ricardo Alouche, on the occasion of the announcement of the new investment cycle of R$ 1.5 billion for the next five years in the country.
Leoncini, Mercedes, points out that, for this year, the available volume of Finame for trucks and buses must be left. "The funding should not be used in its entirety as a result of the recession." This is also the opinion of Alouche. "The volume of plates issued is extremely low."
To go through the difficult period that must still persist, automakers are betting on after sales. "Today, you can''t survive with only the sale of new vehicles," says Barion.
The Iveco bet on fixed-price servicing packages, among other services, to ensure any profitability. "We need to attract the client to the network" examines the Executive.
The strategy also is shared by Scania. However, the automaker has the advantage of a differentiated production model. "We don''t work with stocks," said Barral. The Swedish array manages requests and redirects the export contracts in accordance with the use of capacity to its subsidiaries.
"We are currently operating with 30% of production for Brazil and 70% for exports. But our priority is always the domestic market. "
With strong performance in heavy and semi-pesados (the country''s best selling models), Scania believes it can grow 10% to 15% next year, depending on the evolution of the economy. In addition, the brand has just opened a dealership in the South of the country with an estimated 50 million contribution in R$.
"As the market is depressed, our growth must take market share from other automakers," estimates.
But the biggest dispute must be between Mercedes and man. The manufacturer Volkswagen led the market for 13 years, but for 2016 sales numbers show a good advantage of the star brand.
Executives of MAN shows that this should not be another year in the lead. Mercedes already prefers not to celebrate. "We are getting closer to the customers. Every detail makes the difference in this scenario. We want to be in every business we can, "says Leoncini.
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