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The New Geography of the Automobile Industry: Trends and Challenges in Brazil

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New Frontiers of the Automobile Industry

Abstract

Brazil has become one of the core locations of the automobile industry. In 2015, Brazil was among the world’s ten largest producers of automobiles and among the largest automobile markets, despite its decline in the last two years due to an internal economic crisis. This discussion paper intends to present an overview of the Brazilian automotive industry, emphasizing national public policies.

The Brazilian automotive industry evolved over the past 60 years through four clearly defined steps, from importer to local producer with a limited degree of autonomy in local projects. In fact, undergoing these steps has been related to market importance and attractiveness, government influence through regulations and the development of the “global” strategy of the main manufacturers.

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Notes

  1. 1.

    The period of the history of Brazil between 1969 and 1973 was marked by strong growth of the economy. At this time, Brazil was a military dictatorship. The term “miracle” is related to a rapid and exceptional economic growth that it has gone through in this period. This period was marked by a growth in GDP between 7% and 13% per annum; significant improvements in the country’s infrastructure; increased employment levels provided mainly by investments in infrastructure and industrial sectors and significant industrial development. On the other hand, as the economic development was funded mainly with foreign loans, this debt hindered the development of Brazil creating a dependence on the creditors and the International Monetary Fund. Although the economy has grown considerably, there was no distribution of income and thus further increased social inequalities in the country with increasing concentration of income in the hands of the wealthiest.

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Correspondence to Adriana Marotti de Mello .

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Marx, R., de Mello, A.M., de Lara, F.F. (2020). The New Geography of the Automobile Industry: Trends and Challenges in Brazil. In: Covarrubias V., A., Ramírez Perez, S.M. (eds) New Frontiers of the Automobile Industry. Palgrave Studies of Internationalization in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18881-8_14

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