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Transportation

High steel and IPI should make cars more expensive

This article was translated by an automatic translation system, and was therefore not reviewed by people.



PAULO DE ARAUJO

 

If the competition between automakers could hinder the full pass-IPI - which comes back from October - the final price of the cars, the adjustment in the amount of steel will eventually having an impact on the consumer's pocket.

Report Link Investment brokerage citing market sources indicated that the increased Usiminas, as of this month, prices of flat steel from 10% to 12%. CSN also would have announced to its customers an adjustment of 13%.

The flat steel is one of the inputs used in manufacturing most of the vehicles. "The adjustment is a complicating factor at this time. Automakers are making deals and subsidized interest rates. The banks are not loose to absorb an increase in the costs," said Andre Beer, former president of Anfavea (National Association of Automobile Manufacturers) and consultant to the automotive sector.

Sought, the steel did not confirm the increase. In a statement, Usiminas said only that "maintains its policy to maintain price competitiveness in the steel with the flexibility to negotiate, given the demands and characteristics of each client."

A source in the automotive sector, however, the adjustment of the input has been placed at auto parts companies and is bound to be charged for automakers soon.

On average, a car carries about 600 pounds of steel, which represents 58% of their weight. The automotive industry is the second largest purchaser of the product, behind the building, and accounts for 20% of national consumption.

With the recovery in demand, boosted by the return of credit - have nearly the pre-crisis levels - the manufacturers will now have more chance to pass the increased costs to the car's value, says the managing partner of PricewaterhouseCoopers Marcelo Cioffi . An additional factor that can put pressure on house prices is the fall in exports.

"With the downturn in the international market, automakers will struggle to raise prices out there. So, they have to make here," says Cioffi. According to him, it is not possible to estimate the pass on the price of cars, because competition in the automotive industry is "very intense."

Starting next month, the IPI begins to rise - the rate will recover one-third of what was cut, in November there will be another high, and the last will be in December. "The IPI alone will not bring down sales. Now, with the increase in steel costs soar," says Beer.



Source: Folha de S. Paulo

This article was translated by an automatic translation system, and was therefore not reviewed by people.

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