The automotive parts industry plans to open 5,000 to 6,000 vacancies in order to meet the demand in automobile factories in 2006. According to the projection, each percent point of growth in the production of cars will represent thousands of new workplaces at component suppliers. Car manufactures are supposed to make approximately 2.58 million vehicles, from 5% to 6% above this year's volume, which will reach 2.44 million units, 10% more than 2004. The automotive industry has opened 10,000 workplaces this year and have 197,000 workers today, the largest number of employees in ten years. “We are close to surpassing 200,000 employees again, which does not happen since 1995", states the president of the Brazilian Association of Automotive Parts Manuctacturers (Sindipeças), Mr. Paulo Butori. In that year, the sector employed 214.2 thousand people. Companies in the sector have invested about US$ 800 million this year and a similar amount is forecast for 2006. Honeywell Turbo Technologies, manufacturer of turbocharges with the Garret brand, will invest US$ 2 million in the Guarulhos factory, value that exceeds in more than 60% this year's expenses. Most part of the investment is for acquiring machines, equipment and tooling for the production of new systems for electronic engines. Next year, when the Euro III environmental legislation comes into force, which establishes the limits for the emission of pollutants from large-sized vehicles, the company, leader in the turbocharger market, will develop new systems to meet the car manufacturer's demands. "The plan is to hire more employees, as of April or May, but we are still going to evaluate the market's behavior to define numbers", asserts Mr. José Rubens Vicari, general director at Honeywell. The factory currently has 220 employees and had a net income of US$ 50 million this year. The projection is to grow 14% in 2006. Exports accounted for 35% of income, share that must be kept next year, despite the understatement of the rate of exchange. The company's major direct client is England. In February, Valeo will open a new line at the Guarulhos unit, gathering, in a single plant, the production of security systems (door locks, security locks, keys, steering column lock and diverse components), which is currently divided between the Diadema and Catareira branches, in São Paulo. The operations were forecast to begin in the second semester of this year, but there was a delay in the works. Valeo's investments in 2006 must amount to US$ 50 million, out of which US$ 15 million in the new unit. REPLACEMENT The automotive parts sector's total income went from US$ 16 billion in 2004 to US$ 22 billion. “The result was good, but if you discount the exchange loss, the actual growth is 8%, not 30%”, informs Mr. Butori. Exports rose from US$ 4.5 billion to US$ 7.2 billion, number that also includes the Real valorization, says the executive. Next year, according to Mr. Butori, the sector expects to recover its share in the sales to the replacement market. "This year, many customers decided not to fix the car and we lost space to purchases of cell phone and plasma TV." Five years ago, 18% of the sector's income came from the replacement market, a share that falls to 13% this year, says the president at Sindipeças. One of the companies that will invest in the replacement market is NSK, manufacturer of automotive and industrial bearings. The company will open a new unit, in February, next to the current one, in Suzano, in the Great São Paulo. The investment is R$ 10 million. The bearings to be produced at the new unit are currently imported from Japan, where NSK's headquarters are located. "The hearquarters' capacity is compromised and so they decided on the production in Brazil for supplying the local market and clients in South America", informs Mr. Oswaldo Almeida, manager at the Brazilian company. There will be the need for hiring, but he does not detail numbers. The company has 800 employees today.

Source: O Estado de São Paulo
Date: (26/12/2005)