Following Fiat, which has acquired Chrysler’s Tritec facilities in Paraná state, and GM’s announcement of a new engine plant in the neighbouring state of Santa Catarina, it is Ford’s turn to expand output.
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Engine supply is currently one of the biggest bottlenecks in the auto industry here. Ford has earmarked US$350m to update facilities and nearly double annual output from 280,000 engines to 500,000 in less than two years. It’s expected to export some of that expanded production.
Volkswagen kicked off the new wave of engine output expansions. At the end of last year, it said its São Paulo state São Carlos plant would raise capacity from 1,800 to 2,300 engines daily this month and to 2,700 next September.
Like VW, Ford opted for the speedier option of enlarging an existing plant, this one in Taubaté, also in São Paulo state. It acquired this facility in 1967 and, since 1987, has also made gearboxes and other parts there.
The investment includes development of a new engine family to be added to the current Zetec Rocam line. The new engines will be flexible-fuel units from the start.
One version will be a 1.4-litre motor, a displacement that has been the most viable alternative in a market where half of all sedans and wagons are powered by one-litre engines due to favourable taxation.
Ford of Brazil CEO Marcos Oliveira said: “The new Sigma family will more fuel-efficient and less polluting and will position us in an engine displacement category from which we are currently absent”.
With the recovery of buying power and generous loan terms, there is now a clear tendency for buyers to migrate to engines with higher torque and more power, better suited to Brazilian driving conditions.
One-litre engines nonetheless account for over 70% of local sales. They are outstanding in specific power output, well above the world average.
Fernando Calmon
