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Technical Paper

A Case of Regional Automotive Complementation in South America: The Development of a “High Tech” Plant for E.W. Transmissions

1991-09-01
911740
A multinational automotive company operating simultaneously in two bordering countries - Argentina and Brazil - interested both governments in a future common market based on interchange of parts and vehicles. To attain this objective, a project for the installation of a “High Tech” manufacturing plant was developed and is being executed. This plant will source both countries with a modern and versatile E.W. transaxle, with the majority of components made at either one, plus some minor imports from Germany. Final assembly and delivery of finished product will be done in Argentina. The Company will benefit from per unit cost reduction derived from large scale production methods and reduction of import duty payments, and the possibility of having an entry in markets demanding high quality products, such as Europe.
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