First sales and engineering office in Brazil

First sales and engineering office in Brazil

With its Swedish business unit Gnotec, Frauenthal Automotive recently opened a sales and engineering office in Curitiba in the south of Brazil. Start of production is planned in 2016.

With this move to Brazil Frauenthal Automotive is following its growth strategy. “Many of our customers are located in Brazil and our office here will strengthen our cooperation with them”, says Peter Gustafsson, Sales Manager for Gnotec in Brazil. “We want to grow with our customers and thus we need to be active wherever they are present.” In parallel and based on customs regulations, manufacturers are forced to increase the local value creation. This means that for European components high customs and charges up to 60% of the component price arise. The plan is to start production in Brazil in 2016 and to deliver customers locally then.

 

Growth market

In the past two years, the Brazil vehicle volume increased significantly. More than 3,7 million vehicles – trucks and passenger cars – are produced in Brazil. Thereby Brazil is ranked fifth with regards to global vehicle production.