Brazilian Autoparts Are Diversifying.(Brief Article)

Autoparts manufacturers who set up shop in Brazil in order to supply Peugeot Citroen and Renault are beginning to make contracts with other car companies in order to diversify their production and cease their dependence on one manufacturer or model, according to a report out of Brazil. Such dependence is seen as a risk, as has been illustrated by the recent Daimler Chrysler decision to stop producing the Dakota pickup truck in Parana.

Eurostamp, which makes stamped steel plates for Peugeot in Porto Real (Rio de Janeiro) is now doing more business selling van body parts to Iveco than it sells to Peugeot.

Another parts company that is diversifying is Faurecia, which produces parts for Ranault and Picasso Citroen. The company estimates that it will do between $111 million and $147 million in 2002, of which only 5 percent will be to Citroen, its controlling company. Faurecia also supplies parts to Volkswagen, Audi and Fiat. It will begin supplying GM next year.

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