4/3/2009 | Coordenação de Comunicação

According to estimates of the Automotive Maintenance Group, if demand remains stable through the year, the auto parts sector could register growth of R$ 1 billion in 2009

São Paulo, February 2009 – With the participation of large auto parts companies, equipment and services, AUTOMEC 2009 (International Auto Parts, Equipment and Services Trade Fair), organised and promoted by  Reed Exhibitions Alcantara Machado is confirmed for the period of  14th to 18th April, at the Exhibition Pavilion of Anhembi, in São Paulo.

The biggest event of the sector in Latin America, AUTOMEC is supported by the principal entities of the sector: SINDIPEÇAS (National Syndicate for the Industry of Components  for Auto Vehicles) and the co-support of ABRIVE (Brazilian Association for Independent Vehicle Repairers), ANDAP (National Association of Auto Parts Distributers), SICAP (São Paulo Syndicate for Wholesale Commerce of Vehicle Parts and Accessories), SINCOPEÇAS (São Paulo State Syndicate for Retail Commerce of Vehicle Parts and Accessories) and SINDIREPA-SP (São Paulo Syndicate for Industry for Vehicle Repairs and Accessories).

For the president of SINDIREPA-SP, Antonio Fiola, who gave an exclusive interview to the event’s press officer, "the fair has everything to be a great success, as it has been through the years, and even had to be split into two segments – lightweight and heavyweight – due to the dizzying growth of this important event of the Brazilian sector of automotive replacement".

Confirm below the opinion of Fiola with regard to the auto parts market, the international crisis, and among other items, the perspective for growth:

AUTOMEC press officer – What is your vision on the auto parts’ market in Brazil and the world?
Antonio Fiola – The world sector for auto parts has evolved a lot through the years. Industry is always modernising to apply high technology to vehicles. Today, automobiles possess a number of technical aids which make possible a number of commands capable of making miracles, such as cruise control and sensors on bumpers. The rapid technical evolutions are the fruit of heavy investments by the industry in cutting edge engineering. It is part of the process of manufacturing automobiles. With the advent of globalisation, there was a unification of technology which benefitted Brazilian industry. Today, a model is launched in Europe and shortly afterwards arrives in Brazil. Obviously the auto industry has to have to adapt to the moment that the world is living and the tendency is for more compact models for cities, which pollute less. Here in Brazil the situation is slightly different: we have passed the number of 3 million vehicles in 2008, and this year, even with the crisis, the results of January indicate that it will be a good year even if not at the same levels of the last few years. But it will be a good if not excellent performance, if we compare it with the sudden drop of sales in the United States and Europe. In the city of São Paulo, with the increase of environmental inspections for vehicles, garages will see an even greater increase, which only needs the business men to orientate car drivers to have a check-up on their vehicles before passing on to the official inspection.
PRESS OFFICER – How is the sector reacting to the international crisis? Has there been a drop in sales or has the sector remained stable?
Fiola – The sector for replacement vehicles is intense. Retail business has registered an average growth of 5% since October. January had a turnover above the expected, without mentioning that there was an increase in the average billing. This shows that the automobile owners are not changing their vehicles for new ones but carrying out maintenance on the used one. Workshops registered an increase in the volume of business, principally in November and December before the holiday period. January, which should be a slower month, also has activity. Historically, the replacement sector presents good performance in times of crisis and has been registering average growth in the last few years.
PRESS OFFICER – Following this line, what is the role of the segment of replacement in the recuperation of the sector?
Fiola – The role of replacement is of great importance to the industry which is suffering from a fall in the sale of new vehicles. According to GMA (Automotive Maintenance Group), which brings together the entities for  replacement (SINDIPEÇAS, ANDAP, SINCOPEÇAS-SP and SINDIREPA-SP), if  demand maintains itself stable through the year, the auto parts sector could register growth of R$ 1 billion in 2009, and it only needs for the whole chain to be active for this to happen. GMA has already launched an unprecedented campaign to make drivers aware of the importance of preventive maintenance of the vehicle to guarantee safety, economy and a reduction in pollution. The programme “Carro 100%” / “Caminhão 100%” (Truck 100%) is already a label respected by public bodies and by society and which has revolutionised the concept of maintenance in Brazil. We recognised that often the owner does not take his vehicle for periodic servicing due to lack of knowledge. It is up to the replacement sector to change this habit in a responsible way, showing the benefits of the good practice of maintenance. We have already gone far, but need to continue making public this important institutional campaign which, in 2009, enters a new phase which emphasises the skill of professional repairers by way of courses and also management courses for business men of the sector. Everyone should be involved in this action which is here to stay.
PRESS OFFICER – Estimates for growth are at 10%, tracking the performance of the sector in the last few years. What is the scenario for the replacement sector? Will vehicle inspections bring positive perspectives? How do you evaluate this development?
Fiola – The scenario for the reposition sector is very positive. Without doubt environmental inspections in the city of São Paulo will bring an extra plus, and it is important that the business men work and take advantage of the opportunities. The repairer needs to become a consultant to the car owner and explain the importance of periodic maintenance to guarantee the good working of the vehicle, which with time and use, suffers natural wear.

PRESS OFFICER – How can the replacement be divided? Or better, what are the proportions of the small and medium? – How many people does the sector actually employ? Does a demand exist for contracting new employees?
Fiola – In Brazil the replacement structure is divided as follows:

Abbreviated Chart of the potential of the auto parts distribution chain
Link in the chain		2004	2005	2006	2007
Auto parts industry	Turnover in R$ (billions)	7,3	7,6	7,8	8,8
	Number of companies	304	286	280	294
	Employees (thousands)	25,1	24,2	23,9	27,1
Distribution	Turnover in R$ (billions)	8,2	9,0	9,2	10,5
	Number of companies	198	217	240	264
	Employees (thousands)	33,1	33,3	37,0	38,9
Retail	Turnover in R$ (billions)	14,8	12,9	12,9	10,8
	Number of companies	40.000	38.000	35.000	33.250
	Employees (thousands)	210,0	187,0	175,0	179,4
Repair workshops	Turnover in R$ (billions)	17,2	17,9	19,7	21,0
	Number of companies	119.643	102.035	92.448	94.759
	Employees (thousands)	777,0	625,0	653,0	666,0
General Total	Turnover in R$ (billions)	47,5	47,4	49,6	51,1
	Number of companies	160.145	140.538	127.968	128.567
	Employees (thousands)	1.045,2	869,5	888,9	911,4
Observations:
Does not include the distribution net of auto manufacturers (concessionaires).
The number of employees in the auto parts industry was estimated according to their participation in the turnover of the sector.

PRESS OFFICER – What are the principal actions/reclamations of the sector taken up with the government?
Fiola – All action with the government was taken by a commission of SINDIPEÇAS which related the difficulties and made possible the opening of credit for companies who were suffering from the agitation of the international crisis because they were multinationals, and their head offices were in the eye of the hurricane. The sector is articulate and seeks dialogue with the government in order to deal with these questions. Among the reclamations, we intend to send a letter to congress and the senate to request voting on the Technical Inspection of Vehicles, as in the project of law number 5.979 which has been stayed for years. We believe that this would be a propitious moment, as only Brazil and Russia, which are among the 15 countries with the largest vehicle fleets, have not yet adopted the safety inspection. It is unacceptable, as every year traffic in Brazil kills more than 40 thousand people and leaves thousands more with permanent consequences. The badly maintained vehicle becomes a potential weapon. The sector cannot stand by with crossed arms watching this happen.
PRESS OFFICER – What is the importance of AUTOMEC for the sector? 
Fiola - AUTOMEC is the biggest event of the sector in Latin America and conquered this position due to its importance for the sector. We hope to make an important contribution and spread the concept of preventative maintenance and the campaign Carro 100% / Caminhão 100%. The idea is that entities like ANDAP, SINCOPEÇAS-SP and SINDIREPA-SP unite in the same place, creating a large stage to present the programme Carro 100% / Caminhão 100%. SINDIREPA-SP will also present the 4th Congress of the Repair of Vehicles in the State of São Paulo which will address themes of today, and among the principal items I would highlight the concept of preventive maintenance, as it is by stimulating the consumer in a responsible way that we will be able to activate the whole automotive chain. The fair has everything to be a great success, as it has been through the years, and even had to be split into two segments – lightweight and heavyweight – due to the dizzying growth of this important event of the Brazilian sector of automotive replacement.

PRESS OFFICER – What are the perspectives of the entity in relation to the event? 
Fiola – The perspectives are the best possible and we will do everything that we can to make AUTOMEC be a success. We are working for this and also for the 4th Congress for the Repair of Vehicles in the State of São Paulo in order to attract the largest possible number of repairers.

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