Brazil plays a fundamental role in the automotive industry, as the country’s strong economy is driving new vehicle purchases and all the associated industries. The country is now the seventh largest vehicle manufacturer in the world and is home to about 500 local and multinational automotive companies, with a robust components and parts sector.

As a result, Spanish companies have carved out a spot for themselves in the Brazilian market with two objectives: to expand the components business in an emerging country inhabited by 189 million people, and to offset weak demand in Europe, where the components sector is seen as having reached its limit.

“Brazil is an attractive market, as well as one of the areas where the automotive sector is performing the best,” says David Antolín, international promotion manager at the Spanish Automotive Equipment and Components Manufacturers’ Association, known as Sernauto. The members include companies that manufacturing a wide range of vehicle parts, including accessories, windshields, headlights, and many others.

Companies such as Cie Automotive, Gestamp, Grupo Antolín, Trimplast, and Corporación Mondragón have all invested in Brazil, as they believe there is a growth in an as yet unmet demand.

Today, Spanish companies account for 8% of the components distribution industry in Brazil, with a business volume higher than countries such as France or Japan. Exports of Spanish automotive parts to Brazil have risen dramatically in recent years, and Spanish firms now sell more than 230 million units per year.

A strong economy

Internationalization is the key to CIE Automotive's business, one of the largest Spanish component manufacturers for the automotive industry. Its domestic market now accounts for barely 5% of its production – and more than 50% of its business is in North and South America, primarily from its plants in Brazil.

CIE Automotive has ten factories in Brazil, where it manufactures a variety of components for vehicles, with processes from press forming through to forging, machining or casting.
Among the more recent transactions by CIE Automotive in Brazil is the acquisition of Maier, integrated into MCC, the Brazilian subsidiary acquired in 2004 for €5.5 million (nearly $8 million). One year earlier, CIE Automotive also acquired Promoauto Brasil, with a factory in the town of Taubé, from MCC and Corporación IBV for €8.5 million.

Maier do Brasil, which employs 150 people with sales of €3.5 million ($5.3 million), has a factory in San Bernardo, close to Sao Paulo. This is home to the principal factory of CIE Autometal, the Brazilian subsidiary of CIE Automotive. The subsidiary manufactures injected plastic and paint components and includes among its customers companies such as Volkswagen and General Motors.

At a time when the majority of companies are worried about the world economic crisis and falling profits, the CIE Automotive group declared record earnings in 2010 of nearly €35 million (just over $50 million).

Roof system by CIE Automotive. Photo: CIE Automotive

Brazil plays a fundamental role in the automotive industry, as the country’s strong economy is driving new vehicle purchases and all the associated industries. The country is now the seventh largest vehicle manufacturer in the world and is home to about 500 local and multinational automotive companies, with a robust components and parts sector.

As a result, Spanish companies have carved out a spot for themselves in the Brazilian market with two objectives: to expand the components business in an emerging country inhabited by 189 million people, and to offset weak demand in Europe, where the components sector is seen as having reached its limit.

“Brazil is an attractive market, as well as one of the areas where the automotive sector is performing the best,” says David Antolín, international promotion manager at the Spanish Automotive Equipment and Components Manufacturers’ Association, known as Sernauto. The members include companies that manufacturing a wide range of vehicle parts, including accessories, windshields, headlights, and many others.

Companies such as Cie Automotive, Gestamp, Grupo Antolín, Trimplast, and Corporación Mondragón have all invested in Brazil, as they believe there is a growth in an as yet unmet demand.

Today, Spanish companies account for 8% of the components distribution industry in Brazil, with a business volume higher than countries such as France or Japan. Exports of Spanish automotive parts to Brazil have risen dramatically in recent years, and Spanish firms now sell more than 230 million units per year.

A strong economy

Internationalization is the key to CIE Automotive's business, one of the largest Spanish component manufacturers for the automotive industry. Its domestic market now accounts for barely 5% of its production – and more than 50% of its business is in North and South America, primarily from its plants in Brazil.

CIE Automotive has ten factories in Brazil, where it manufactures a variety of components for vehicles, with processes from press forming through to forging, machining or casting.
Among the more recent transactions by CIE Automotive in Brazil is the acquisition of Maier, integrated into MCC, the Brazilian subsidiary acquired in 2004 for €5.5 million (nearly $8 million). One year earlier, CIE Automotive also acquired Promoauto Brasil, with a factory in the town of Taubé, from MCC and Corporación IBV for €8.5 million.

Maier do Brasil, which employs 150 people with sales of €3.5 million ($5.3 million), has a factory in San Bernardo, close to Sao Paulo. This is home to the principal factory of CIE Autometal, the Brazilian subsidiary of CIE Automotive. The subsidiary manufactures injected plastic and paint components and includes among its customers companies such as Volkswagen and General Motors.

At a time when the majority of companies are worried about the world economic crisis and falling profits, the CIE Automotive group declared record earnings in 2010 of nearly €35 million (just over $50 million).

Roof system by CIE Automotive. Photo: CIE Automotive