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Last year, bademblers installed in Brazil received nearly 15 billion US dollars (54 billion rand) from their headquarters, in support of local operations. It consisted largely of loans to repay in the future and another payment in the form of a capital injection, the lowest
The record of rescue is a thermometer of the financial situation of the sector, which claims to be operating with losses since the start of the crisis when vehicle sales fell. General Motors, one of the country's largest automakers, threatens to suspend local investments if it does not resume profitability later this year.
The entry of this money "is proof that builders need a matrix support for their local operations". says Letícia Costa, partner at Prada Assessoria. At the same time, this shows that global companies remain interested in Brazil and believe that subsidiaries will regain their profitability, said Antonio Megale, president of the National Association of Automobile Manufacturers (Anfavea)
. subsidiaries that send money to headquarters. This was the case, for example, in 2010. More than 3.5 million vehicles were sold during this period and 5.7 billion USD ($ 20.5 billion R) left Brazil for safety reasons. to install at the international headquarters. In 2018, the year of the resumption of sales but the decline in exports, profit transfers amounted to 516 million USD (1.85 billion R $). It was more than the previous three years, but well below the record recorded from 2010 to 2013.
Destination. Of the total amount received in 2018, $ 9.98 billion (R $ 36 billion) was intercompany loans, generally long-term loans with lower interest rates than Brazil. Another $ 4.5 billion ($ 16.2 billion) investment was invested in direct investment. The money has been used not only for investments, but also for paying suppliers and employees.
"That means parent companies have to send oxygen to drowning affiliates," said Ford's vice president for South America Rogelio Goldfarb. "Businesses can not self-finance".
According to Megale, most businesses face this challenge. GM says he is losing money in the country three years ago. In 2018 alone, the damage would have been one billion rand ($ 277 million), according to sources. The majority of automakers do not publish a balance sheet in Brazil
GM is negotiating a cost reduction plan with its employees, suppliers, resellers and governments. Globally, GM is in the process of restructuring and will close five plants in the United States and Canada. It has already closed in South Africa, Australia, Russia, Venezuela and sold Europe
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