Title: The new Brazilian automotive policy and its impact on the competitiveness of multinational automobile and auto parts manufacturers

Authors: Erik Telles Pascoal; Maurício César Delamaro; Ugo Ibusuki; Osamu Tsukada; Henrique Martins Rocha

Addresses: Sao Paulo State University (UNESP), Av. Ariberto Pereira da Cunha, 333, Pedregulho, Guaratinguetá, SP-CEP: 12516-410, Brazil ' Sao Paulo State University (UNESP), Av. Ariberto Pereira da Cunha, 333, Pedregulho, Guaratinguetá, SP-CEP: 12516-410, Brazil ' Waseda University, Bldg 120-1-4F Room 403-A, 513 Tsurumakicho, Shinjuku-ku, 162-0041 Tokyo, Japan ' Kagawa University, 760-0004 Kagawa Prefecture, Takamatsu City, 1-14 6-204 Saiho-cho, Japan ' Rio de Janeiro State University (UERJ), Rodovia Presidente Dutra, Km 298, s/n – Pólo Industrial, Resende, RJ-CEP: 27537-000, Brazil

Abstract: To enhance the competitiveness of the Brazilian automotive industry, the government approved a new automotive policy in October 2012. It is called the Inovar-Auto program and will be implemented over the course of five years from 2013 to 2017. This program encourages automakers and their suppliers to produce more efficient, technologically advanced vehicles and auto parts by investing in R&D and engineering. The objective of this paper is to determine whether the Inovar-Auto program will effectively improve the competitiveness of the Brazilian automotive industry. In this sense, the impact of each Inovar-Auto requirement in relation to the Porter's diamond model and flowchart approach model was investigated. Although the Inovar-Auto program represents an advance over previous industrial policies, particularly in relation to aspects concerning improvement in energy efficiency, encouraging innovation, increased local content, the traceability of auto-parts and supplier development policy, the result of this research indicates that its implementation has not been stimulating a substantial evolution on the competitiveness of the Brazilian automotive industry.

Keywords: new Brazilian automotive policy; Porter's diamond model; flowchart approach model; competitiveness; Brazil.

DOI: 10.1504/IJATM.2017.086405

International Journal of Automotive Technology and Management, 2017 Vol.17 No.3, pp.225 - 247

Available online: 30 Aug 2017 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article