'Lean' Automakers Escape Crisis

04/14/2015 - 14h29

In a period marked by production disruptions and fall in sales, a group of automakers remains less sensitive to crisis. They have one thing in common: they focused investments in leaner operations with local production and higher value goods.

Japanese Toyota and Honda, for example, not only resisted the shrinking market, but they have also managed to grow in the first quarter of 2015.

Toyota operates at maximum capacity, but without facing overproduction. At the Indaiatuba factory, located 98 km from São Paulo, 77 thousand Corolla sedans were produced in 2014.

Honda avoids talking about goals, but it follows a similar strategy. The company uses the revenue generated by its national operations in new investments, avoiding loans or dependence on the head office. "We prefer to keep a measured pace. We do not sell as much as we could, but we do not have to cut overproduction", says a source linked to the company.

Such trade strategies are only possible due to the reputation built by Japanese brands in Brazil. Their products are known for being durable, allowing above-average price positioning in its segments of activity.

Making greater profit per unit sold allows the companies to keep their businesses without relying on large sales volumes.

This logic is also applied, in smaller scale, to premium brands. "The premium segment grows more than the others. I believe Brazil will be a big market, so we are investing in it", said Luca di Meo, a member of Audi's Administrative Council.

Translated by JULIANA CALDERARI

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	Nigel Roddis/Reuters
	They focused investments in leaner operations with local production and higher value goods.