By Alzira Rodrigues | 4/6/23 | Translated by Jorge Meditsch

The idea of the return of entry cars simpler and more affordable then the currently available in the Brazilian market gained strength last week after declarations from Stellantis’ president, Antônio Filosa, and Fenabrave’s president, José Maurício Andreta Júnior, who admitted debates with the government about the theme.

This possibility is a central subject in the sector, but in Anfavea there is no consensus about the convenience of the return yet. Ciro Possobom, Volkswagen do Brasil’s CEO, questions among other points possible changes in vehicle safety, remembering Brazilian cars became more expensive due to investments in onboard technology.

He says there is no sense in removing safety items to make vehicles cheaper. Besides and maybe more important, the creation of incentives to launch cheaper entry cars – involving tax reductions and differentiated financing conditions and manufacturers and dealers margin reduction – would not benefit all brands equally.

It can be seen in the portfolio offered in the country. While Fiat and Renault have entry models, the Mobi and the Kwid, priced bout R$ 70 thousand, other brands’ cars start at least from R$ 80 thousand, 15% more expensive.

That’s the case of the Polo Track, just launched by Volkswagen and the brand’s most affordable model, costing over R$ 81.4 thousand.

Considering this scenario, Possobom says there is nothing already defined. He thinks the idea must be matured so all brands – and not only a few – could benefit.

Regarding the automotive market, VW’s CEO foresees a brand’s growth, despite three of its plants being on collective vacations. He said there are signs that the problem with lack of chips will reduce from now on and assures the assembly lanes halt are due to the company’s yearly planning.

Possobom bets VW will grow over the market average and says the company projects to expand production by two digits this year.

About information about possible temporary lay-offs in São José dos Pinhais, PR, Volkswagen issued a note informing the collective agreement between the manufacturer and the workers’ union includes various flexibility tools, among them the temporary lay-off. “Nonetheless, temporary lay-offs were not confirmed for the São José dos Pinhais plant,” says the note.

 

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