Mercedes-Benz factory in the metro area of São PauloJeep Renegade made in Brazil, in the metro area of RecifeFirst BMW 328i ActiveFlex manufactured in Brazil, at the Araquari plant, in the metro area of Joinville. The car was signed by all the workers on the production line.John Deere produces agricultural machinery in Brazil.
The first Brazilian automotive industry was the work of Henry Ford, who started the Brazilian subsidiary of Ford Motor Company in 1919. In 1921 Ford opened its own production facility and was followed by General Motors in 1926. In 1928, Ford established the Fordlândia, an industrial district in the Amazon rainforest. The district is no longer in use but saw a populational growth compared to the early 2000s, when roughly 90 people lived in the town.[2]
In 1956, the Romi-Isetta, an early Brazilian car, was initially produced, with license purchase of Italian Iso. In 1958, Toyota started to produce its famous Bandeirante. In 1959, the first Volkswagen factory was built, it started manufacturing the Type 2, which preceded the famous Beetle. At the same time, a Brazilian entrepreneur, Mr. Sebastiao William Cardoso, started producing an electrical small jeep called Tupi.[3]
In the late 1950s, Chevrolet and Ford started manufacturing pickup trucks, and in the 1960s, automobiles and commercial vehicles, GM also brought buses. In 1967, Puma began selling sports cars.[4][5] The Italian Fiat established its first factory in the 1970s, and Mercedes-Benz started to produce trucks and buses during the 1950s, and opened an automobile factory in 1998.[6][7] These companies dominated the Brazilian market until mid-1990s, when the Brazilian market was finally opened to imports. In the 1990s, more auto companies settled and opened factories in Brazil.[8]
The automotive industry in Brazil sells to all over Latin America and the world. In the last few years, the Brazilian auto industry has grown quickly, attracting investments from the main global automakers. In 2007, production grew 14% compared to 2006 figures, reaching more than 4 million vehicles.[9]
In October 2012, the Inovar-Auto Program was approved by decree with the theoretical goals of encouraging automakers to produce more fuel-efficient vehicles and investing in the national automotive industry, by managing taxation exceptions (IPI = Tax over Industrialized Product). However, the program has received criticism, especially of protectionism. The country has recently lost a WTO dispute against tax advantages and illegal practices of protectionism.[10] The Inovar-Auto program ended in December 2017 and was replaced by the Route 2030 Program.[11]
Timeline
1890s
1891 (1891): The Peugeot Type 3, the very first vehicle in Brazil, was bought by Alberto Santos Dumont, after a trip to France. Dumont would later found the Automóvel Clube do Brasil (ACDB).[12][13]
1908–1909: The first car trip from Rio de Janeiro to São Paulo occurred on 7 March, conducted by the Count of Lesdain, Jacques Bouly de Lesdain, his wife and two drivers; they travelled 700 km (430 miles) in 33 days, aboard a Brasier.[17][18] Bouly de Lesdain also climbed the Corcovado. Inspired by the idea, the brothers Paulo and Antônio Prado decided to go from São Paulo to Santos, the route was completed in 37 hours, on a Motobloc. The trip to Santos is considered the ground zero of road development in Brazil;[19] Independent importers start bringing the Ford Model T;[15] The vehicle used by Affonso Pena was damaged, it was eventually replaced by the Renault Tybe CB.[20] In 1909, back in Brazil, Jacques Bouly de Lesdain travelled 180 km (110 miles), from São Paulo to Campinas in 25 hours.[18]
1910s
1911: The first Brazilian automotive magazine, "Revista de Automóveis", was launched in Rio de Janeiro by the Automóvel Clube do Brasil, founded by Santos Dumont; the collection can be observed in the Automotive Press Museum (Miau), in São Paulo.[21]
1908-1913: The first trip by car from Rio de Janeiro to São Paulo was in 1908. The first trip by car from São Paulo to Curitiba was in 1913.[22]
1917: By now, the State of São Paulo had a fleet of 2,600 motor vehicles. In 1918, the first female driver in São Paulo, the wife of the commander of the Port of Santos, operated her automobile under protest from traditional families.[23]
1919: The first automotive industry of Brazil was implemented by Henry Ford. Ford's head office in the United States opens a statewide branch, with initial capital of US$25,000 (equivalent to $439,347 in 2023). Model T and TT trucks began to be assembled in São Paulo.[24]
1920s
1921: The Brazilian Ford branch moves into its own building in the Bom Retiro neighborhood, opening its own production facility, known as Solon Plant.[25] The São Paulo-Campinas highway was inaugurated by Washington Luís,[26] the first highway built specifically for car and truck traffic.
1925: General Motors opened its first branch, in Ipiranga, São Paulo.[27]
1926 (1926): International Harvester do Brasil, a truck manufacturer, was founded. It was the first automaker in the commercial vehicle segment to establish itself in the country.[28][29]
1927: The rapid expansion of production and sales led General Motors do Brasil to acquire a vast area in São Caetano do Sul, São Paulo. On 24 September 1927, bricks began to be laid on site. Two years later, in October 1929, the factory was operational.[27]
1928: The Ford Model A, successor to the Model T, arrives in Brazil. Henry Ford created Fordlândia, a typical American village with 10,000 km2 (3,900 sq mi) in the middle of the Amazon rainforest in Pará.[25]
1930s
1930: Ford was followed by concurrent General Motors with the assembly of the first Chevrolet cars in São Caetano do Sul, São Paulo, there until today, at Avenida Goiás.[2]
1934: With the end of Fordlândia, Ford exchanged part of the land for another area, called Belterra where 3.2 million rubber trees were planted, followed by US$8 million in investments;[30] GM produced the first bus body made in Brazil, made of wood.[27]
1939 (1939): Massey-Harris opened a branch in Porto Alegre. Its agricultural machinery carried out the first mechanized rice harvest in Brazil; The São Paulo-Santos highway was named Via Anchieta.[31]
1940s
1940 (1940): The Interlagos Circuit was inaugurated. The first trip from São Paulo to Fortaleza by car was completed in a Chevrolet in 25 days.[31]
1941 (1941): The General Motors and Ford plants, as well as those of other manufacturers, were submitted to the military command and started to assemble war vehicles with some companies producing components by their headquarters and supplied to Brazil under loan. Foundation of the Companhia Siderúrgica Nacional (CSN), in Volta Redonda, Rio de Janeiro, foundry and iron works serving local steel to own country industry, not depending in imported goods, suffered by WWII; The Fábrica Nacional de Motores (FNM) is, officially, the first Brazilian company in the automotive sector. Created by Getúlio Vargas, the state-owned company had its headquarters in Xerém, Duque de Caxias, operations began only a few years later, due to the difficulties caused by the Second World War.[32]
1945 (1945): Studebaker Automobile Distributor founded, which gave rise to Vemag. [31]
1948 (1948): General Motors produced the first all-metal bus body with domestic raw material from CSN.[27]
1950s
Jeep Renegade assembly line in the metro area of Recife
1950 (1950): FNM signed an agreement to produce trucks with Alfa Romeo.[31]
1951 (1951): The Associação da Indústria de Peças para Automóveis e Similares was founded, the embryo of the Sindicato Nacional de Componentes para Veículos Automotores (Sindipeças).[31]
1952 (1952): The Subcommittee for Jeeps, Tractors, Trucks, and Automobiles was established for the purpose of facilitating investments in the automotive industry. Willys Overland was founded.[31]
1953 (1953): Volkswagen do Brasil was founded and assembly began in the Ipiranga neighborhood; Mercedes-Benz was founded in Via Anchieta; The importation of completely built units (CBU) became prohibited, to protect the local market; Petrobras, main local fuel supplier and producer was founded and implemented, during Juscelino Kubitscheck President Campaign; Ford inaugurated a manufacturing plant in Ipiranga.[31]
1954 (1954): Caterpillar established in Santo Amaro, São Paulo, with a warehouse for marketing, manufacturing and stocking components and parts.[31]
1955 (1955): The Associação Profissional dos Fabricantes de Tratores, Caminhões, Automóveis e Veículos Similares was founded; First engine blockcast in Brazil and Latin America, ordered by Mercedes-Benz.[31]Marcopolo bus, made in Brazil, in the city of Belo Horizonte.
1956 (1956): The Executive Group of the Automobile Industry, or GEIA, which created the legislation that allowed the automotive industrialization in Brazil, was established; Inauguration of the Mercedes-Benz plant in São Bernardo do Campo; Romi Industries launches the Romi-Isetta; The National Association of Motor Vehicle Manufacturers, (ANFAVEA) was founded.[31]
1957 (1957): Volkswagen opened its biggest plant in country in São Bernardo do Campo-SP; Ford nationalized truck manufacturing; Simca was founded.[31]
1958 (1958): Arrival of Toyota, in one of the most important chapters in the history of the manufacturer, the company installed the brand's first operation outside Japan;[33] Willys and Ford opened their first casting plants. Scania began producing trucks; General Motors inaugurated another manufacturing plant in São Caetano do Sul.[31]
1959 (1959): Volkswagen officially opens its São Bernardo do Campo plant; Scania opens a factory in Ipiranga; Karmann-Ghia was founded; The National Plan for the Agricultural Tractor Industry was created to stimulate the production of agricultural vehicles.[31] At the same time, a Brazilian entrepreneur started producing an electrical small jeep called Tupi.[34]
1960s
1960 (1960): ANFAVEA launches the first edition of its statistical yearbook; Valmet do Brasil is founded with the inauguration of a tractor factory in Mogi das Cruzes, São Paulo; The Companhia Brasileira de Tratores (CBT) was established; Ford starts producing tractors at the Ipiranga plant; The Quatro Rodas magazine was launched, it has since established itself as the most important reference for the Brazilian automotive industry; The 1st São Paulo International Motor Show was held in Ibirapuera Park, São Paulo.[31]
1961 (1961): The first Brazilian commercial vehicles were exported, the Mercedes-Benz O-321 was exported to Argentina and Venezuela; Massey Ferguson inaugurated a tractor plant.[31]
1962 (1962): Scania and Toyota inaugurated their factories, in São Bernardo do Campo; The Agrisa, Industria Gaúcha de Implementos Agrícolas, was formed.[31]
1964 (1964): The Autoesporte, one of the most important car magazines in Brazil, was released.[31]
1965 (1965): The first wave of affordable vehicles, with lower price and taxes was released by DKW-Vemag, Willys and Volkswagen models; Agrisa was acquired and renamed to Agrale; The São Paulo Vehicle Dealers’ Association came to be national in scope, becoming the Brazilian Association for Authorized Vehicle Resale (Abrave) afterwards known as Fenabrave.[31]
1966 (1966): Willys inaugurated its Jaboatão dos Guararapes plant in Pernambuco, the first manufacturing plant in the Northeast Region; Chrysler was established after Simca's purchase.[31]
1967 (1967) – 1969: Volkswagen purchased Vemag; Tratores Fiat was founded, Alfa Romeo acquired FNM and Puma began selling sports cars.[35] Chrysler started the production in Brazil; Gurgel Motores was founded.[31]
1970s
1970 (1970): The 7th annual São Paulo International Motor Show was held at the Anhembi Convention Center, in São Paulo.[31]
1972 (1972): The Ford 'Engine and Foundry Factory' was inaugurated, Ford's President, Joseph W. O'Neill, announced more than US$400 million (equivalent to $2.4 billion in 2020) in investments for the expansion of the company's activities in Brazil.[36]
1975 (1975): Anfavea opened its headquarters in São Paulo. Komatsu established itself with a tractor manufacturing plant, in Suzano, São Paulo. New Holland opened a plant in Curitiba, Paraná.[31] The National Alcohol Program (Proálcool) was created, the main objective of the program was to become less dependent on petroleum.[37][38]Mercedes-Benz bus, made in Brazil, in the city of Belém
1976 (1976): Fiat established its first factory, in Betim, Minas Gerais. Fiat acquired the remaining shares of Alfa Romeo and unveiled new trucks, manufactured in the old FNM branches in Xerém. Caterpillar inaugurated plant in Piracicaba, São Paulo. Volkswagen opened a manufacturing plant in Taubaté. A Ford tractor factory was inaugurated.[31][36]
1978 (1978): The Brazilian automotive industry reached the historic mark of a million units manufactured in a single year. Labor movements were responsible for the first strikes in the metal works industry in São Paulo.[31]
1979 (1979): Volvo began producing buses and engines. Caoa, a Ford distributor, was founded. Mercedes-Benz opened a bus manufacturing plant in Campinas.[31] The "Lei Ferrari" (Ferrari Law), which regulates vehicle commercial concession and distribution, came into effect. The law establishes equality in sale price of vehicles and parts to dealers.[39] In 2012, government representatives highlighted that the so-called "Ferrari Law", was one of the main obstacles to reducing car prices and prevents increased competition in the automotive market.[40]
1990 (1990): Fiat, Ford, General Motors and Volkswagen dominated the car market until the mid-1990s, and Mercedes-Benz, Scania and Volvo, the truck market in same period, when the Brazilian market was closed to imports;[citation needed] More auto companies settled and opened factories in Brazil, including Nissan, Renault, Peugeot, Citroën, Honda, Hyundai, Mitsubishi, Chrysler, BMW, Mercedes-Benz and Audi;[41] Fiat acquired Ford's tractor operations; Agrale opened a further factory in Caxias do Sul, Rio Grande do Sul; AGCO emerged with the acquisition of Deutz Allis, which belonged to the German group KHD.[31]
1991 (1991): Mitsubishi began operations, designating a representative that began importing pickup trucks. Land Rover began operating with imported vehicles.Citroën provided accreditation to an importer.[31]
1992 (1992): Honda began further automotive activity in Brazil, importing vehicles and aggregating the motorcycles production in its factory, in Manaus, Amazonas; Peugeot became associated with a importation representative; Renault designated a representative and began importing some models; The 1st Automotive Sectoral Agreement was created.[31]
1993 (1993): Nissan began activities with the importation of some models; Audi designated a representative to import its vehicles; The 2nd Automotive Sectoral Agreement was created; The "Carro Popular" program was started.[31]
1994 (1994): Anfavea inaugurated the Documentation Center for Brazilian Automotive Industry (Cedoc); The 1st Agriculture Fair (Agrishow) was held in Ribeirão Preto; Hyundai designated a representative to Brazil.[31]
1995 (1995): Creation of the 3rd Automotive Sector Agreement; BMW took over the operation of imported vehicles, as BMW do Brasil.[31]
1996 (1996): AGCO acquired Iochpe-Maxion and Massey Ferguson in Brazil; Volkswagen inaugurated an engine manufacturing plant in São Carlos, São Paulo. Volkswagen Caminhões e Ônibus opened another factory in Resende, producing the local engineered Constellation truck segment;[31]
1997 (1997): Honda opened a factory in Sumaré and introduced the local-made Civic; Case Tractors inaugurated a manufacturing plant in Piracicaba; Peugeot Citroën do Brasil was formed; Komatsu inaugurated its second plant, in Arujá, São Paulo.[31]
1998 (1998): Renault opened a plant in São José dos Pinhais, Paraná; Mitsubishi inaugurates a manufacturing plant in Catalão, Goiás; Toyota opened a plant in Sumaré and introduced the locally-manufactured Corolla; Chrysler inaugurated a factory plant in Campo Largo, Paraná; Land Rover signed an agreement with Karmann-Ghia and to begin operating in São Bernardo do Campo; Caoa took over the representation of Subaru.[31]
1999 (1999): Volkswagen and Audi opened factories in São José dos Pinhais, Paraná; Mercedes-Benz opened a factory in Juiz de Fora, Minas Gerais; Fiat Industrial acquired the CNH Global, creating the CNH Industrial; Caoa began representing Hyundai.[31]
2000 (2000): General Motors opened a manufacturing plant in Gravataí; Iveco inaugurated a factory in Minas Gerais.[31]
2001 (2001): Ford opened a factory in Camaçari, Bahia; PSA Group opened Peugeot Citroën plant in Porto Real, Rio de Janeiro; Nissan began production in Brazil at the Renault factory in São José dos Pinhais.[31]
2003 (2003): Ford unveiled the EcoSport, introducing the compact SUV market segment in Brazil; AGCO purchased Valtr, formerly Valmet.[31]
2005 (2005): For the first time flex-fuel vehicles sold more than gasoline vehicles, with a total of 753,000 units against 647,000 units, respectively; Audi took control over the importation operations.[31]
2007 (2007): Caoa opened factory in Anápolis; Domestic production grew 14% compared to 2006 figures, reaching more than 4 million vehicles.[42]
2006 (2006) – 2009: ANFAVEA celebrates 50 years;[31] Caoa opened a factory in Anápolis; Domestic production grew 14% compared to 2006 figures, reaching more than 4 million vehicles;[43] Fiat and Chrysler signed a global agreement creating the FCA.[31]
Former Brazilian president Michel Temer during a visit to the Jeep industrial plant in the metro area of Recife
2010s
2010 (2010) – 2011: CNH Industrial opened factory in Sorocaba, São Paulo; Caterpillar inaugurated a plant in Campo Largo, Paraná; The Brazilian automotive industry reached the mark of 10 million flex-fuel vehicles produced; DAF Trucks (DAF Caminhões) was established in Brazil.[31]
2012 (2012): General Motors opened a manufacturing plant in Joinville, Santa Catarina; Hyundai inaugurated a manufacturing plant in Piracicaba; Toyota opened a factory in Sorocaba; On October, the Inovar-Auto program was approved by decree with the theoretical goals of encouraging automakers to produce more fuel efficient vehicles and investing in the national automotive industry, by managing taxation exceptions (IPI = tax over industrialized product). However, the program has received criticism, especially of protectionism; Recently, Brazil lost a WTO dispute against tax advantages and illegal practices of protectionism.[44][31]
2013 (2013) – 2015: DAF Caminhões inaugurated a manufacturing plant in Ponta Grossa, Paraná; CNH Industrial was created after a merger between Fiat Industrial and CNH Global; BMW opened a manufacturing plant in Araquari, Santa Catarina; Nissan opened a factory in Resende; Agrale inaugurated chassis manufacturing plant in São Mateus, São Paulo. FCA inaugurated Jeep assembly plant in Goiana, Pernambuco.[31]
2016 (2016) – 2018: Jaguar Land Rover opened a manufacturing plant in Itatiaia, Rio de Janeiro; Mercedes-Benz opened a plant in Campinas and Iracemápolis; The annual São Paulo International Motor Show took place at the São Paulo Expo for the first time; ANFAVEA elected to participate in the board of the International Organization of Vehicle Manufacturers, the OICA; Toyota inaugurated an engine manufacturing plant in Porto Feliz, São Paulo; The 21st edition of Fenatran was held at the São Paulo Expo; Caoa Group and Chery signed an agreement forming Caoa Chery; Decree of the Route 2030 Program signed with the then-president Michel Temer.[31]
2019 (2019): Honda opened a manufacturing plant in Itirapina, São Paulo; Toyota introduced the Corolla, the world's first hybrid flex-fuel vehicle;[31] Between 1957 and 2019 more than 84.4 million motor vehicles and 2.77 million trucks were produced in Brazil.[45]
2020s
2020 (2020): Vehicle production drops to 1957 levels due to the COVID-19 pandemic.[31]
2021 (2021): Great Wall Motors (GWM) bought the Mercedes-Benz factory in Iracemápolis;[46] Troller was closed by Ford; Creation of the Stellantis Group, merger of PSA and FCA.[31]
2022 (2022): Great Wall Motor (GWM) officially opened the factory in January 2022, promoting electric SUVs and pickup trucks, production schedule to start in 2023;[47] Toyota announces the transfer of its industrial operation from São Bernardo do Campo to Indaiatuba and Porto Feliz, with completion scheduled for November 2023. The company said that 100% of its 550 employees will keep their jobs, the plant produces parts for Brazil, Argentina and the United States. The São Bernardo do Campo plant was opened in 1962.[48][49][50]
2022 (2022): The Brazilian automotive sector plans the car of the future hybrid ethanol, because the local production of the biofuel is wide and accessible, being a clean energy.[51][52] More than 92% of the cars in Brazil are moved by ethanol.[53]
Companhia Distribuidora Geral Brasmotor (Former manufacturer for Chrysler, Plymouth, Fargo and Volkswagen. Ccurrently owned by Whirlpool, produces since only refrigerators)[72]
CBP Indústria, Comércio e Exportação (Closed due to trademark infringement; bought Coyote Indústria e Comércio, a former autocross vehicle manufacturer, in the late 80s)[73][74][75]
Kasinski (Currently under Magneti Marelli brand, a Fiat subsidiary),[88] Cofap – Companhia Fabricadora de Peças, Cofave – Sociedade Amazonense Fabricadora de Veículos
^"Bem vindo ao Portal Fenabrave". Federação Nacional da Distribuição de Veículos Automotores – FENABRAVE. Archived from the original on 23 September 2021. Retrieved 9 January 2022.
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