Popular car: Lula asked industrialists for more time because the package was not ready; read backstage

BRASÍLIA – The expectation for a package for the automotive sector was big among businessmen and workers, after the signs that the president Luiz Inacio Lula da Silva planned to relaunch the call popular car – and thereby encourage industry.

Fourteen production units stopped their activities in the country, according to information from anfavea, and sales are down. To remedy the situation, the president’s assistants began to talk, in recent weeks, about lowering taxes and leveraging the credit to boost this market, but without details or scope.

When Lula invited around 40 industry businessmen and trade unionists to a meeting this Thursday morning, the 25th, at the Planalto Palace, the expectation was that the mystery would be undone and the measures announced. But, upon arrival, the president warned listeners in a way that sounded informal and frank: “Look, there is no way to have an announcement now, no. We’re going to have to get more right”, according to one of the listeners.

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The climate of disappointment that arose among those present was eased over the course of the meeting, which lasted about two hours and also featured speeches by Geraldo Alckmin it’s from Fernando Haddad. The presence of the head of the economy was important for the industrialists, as he indicated that, despite the fiscal urgency (to collect more), the Farm had accepted the government’s plan to waive taxes to help industry.

Since there would be no announcement, the president of the Stellantis group (Fiat, Citröen, Jeep and Peugeot), Antonio Filosa, suggested that the government inform the public at least the cut-off line of the market that would be affected. It was up to Alckmin to announce to those present that the government envisages benefits for cars of up to R$ 120,000 – the value is considered that of cars currently entering the market, in addition to the discount range on the value of vehicles, from 1.5% to 10.96% – this ceiling had to be corrected by the Ministry of Development, Industry, Commerce and Services (MDIC) in the afternoon, since, in the press conference, Alckmin had said 10.79%.

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The fiscal impact of the program, the period of duration, since it is temporary, nor the reduction by IPI and PIS/Cofins rate were informed.

departed from Planalto Palace, more precisely from Lula, the commissioning of a plan focused on the automotive sector. The mission was the responsibility of the MDIC, which in turn was working on longer-term agendas, such as the so-called “neo-industrialization” and the next generation of Rota 2030, a program aimed at the automotive sector to encourage decarbonization.

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There was nothing popular car on the ministry’s agenda, nor tax incentives, but the mission was accepted. In 15 days, according to Alckmin, the fiscal impact measures delivered for the Treasury’s calculations will be announced.

Waiting for the government’s plan had an adverse effect, reported to Lula by Filosa. Just like the industrialists, the consumers had created expectations – and, with that, the market, which was already weak, froze. Those who were about to buy a car decided to wait to see what would come from the government, under penalty of losing the discount. And this affected sales of even more expensive cars. For this reason, it was suggested to Lula that the government inform at least the cutoff line for the market that would be affected.

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Industrialists are aware of and say they are resigned to the warning, reaffirmed at the meeting, that they will be charged for counterparts, such as the manufacture of most cars in Brazil (local content), and less polluting vehicles. “We want jobs and the nationalization of parts manufacturing”, said Miguel Torres, president of Union Forceto the Estadão.

Those present did not disagree with the government when they heard more optimistic forecasts for the business environment with the conclusion of the vote on the new fiscal framework and the tax reform. And after a tough speech by Robson Andrade, president of the CNI (National Confederation of Industry), about the high interest rate practiced by the BC, all those present agreed.

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But even if they didn’t leave with anything concrete in their hands, the industrialists say they were more prestigious in the Lula government than under Jair Bolsonaro (PL), when there was no MDIC, nor industrial policy.

Alckmin is mentioned as an important interlocutor in this relationship. It was the vice president who called and personally invited some of those present. And the meeting, which initially would be exclusive to representatives of the automotive sector, was expanded to include guests from other industrial sectors.

Lula noted at the meeting that it was the first time he had held a broad meeting with the productive sector at the Planalto Palace – the launch of the Council took place at the Itamaraty and in a ceremony without deliberations. If five months of waiting may seem like a long time for critics, for the executives who were with the president, the meeting signaled that the government is willing to work on proposals together after “organizing the house”.