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Energy, Ford and etc ...

Energy, Ford and etc ...

The announcement of the closure of the FORD plants in Brazil was the big news yesterday, sounding like a yellow light was flashing on our radars.

Unfortunately, this trend of selling in Brazil but producing outside Brazil has intensified for years.

Selected large industrial clients, for whom I consulted, decided the same as FORD. Some have moved their plants to Paraguay. Others for Eastern Europe and even for Mexico.

The reasons varied a little between them but fundamentally they focused on the high cost of Brazil, the high taxes, the complexity of the laws, the regulatory instability, the institutional fragility and the lack of sense of urgency to face the challenges.

In the energy arena, compared to the other plants of these companies, Brazil, according to them, stopped being competitive a long time ago.

When will we wake up to the challenge?

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Rafael Herzberg's picture

Thank Rafael for the Post!

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