Following a new trend in the Brazilian automotive industry, the local BorgWarner unit plans to import raw material to take advantage of the strong Brazilian currency, the real.

The company is negotiating imports of aluminium from Argentina and cast iron from India.

"Nowadays, between 25% and 30% of the parts of our turbocharger are imported. If the Brazilian currency continues its strength against the dollar imported parts may hit 35% or 40%", said BorgWarner Brazil general manager Sergio Castione Veinert.

Despite this growing use of imported parts, the company expects to increase turbo production in its Campinas plant from 250,000 units in 2005 to 300,000 units this year.

Rogério Louro