"The Brazilian production of vehicles in 2005 has reached 2.44 millions of units..."

The Brazilian production of vehicles in 2005 has reached 2.44 millions of units, which is the equivalent to a growth in the order of 10.7% against the prior year, according to data from Anfavea – National Association of Automotive Vehicles Manufacturers. (see chart)

	Year	Units	Variation
Production	2005	2.44 million	10.7%
Sales (Domestic market)	2005	1.6 million	7.2%
Sales (Foreign trade)	2005	817 thousands	25.9%
1st bimestre	2006	397.3 thousands	10.7%

Source: Anfavea

The automobiles production keeps its growth trajectory due to the continuous expansion of the use of its productive capacity (assembler + sistemistas + car parts). In 2003, were produced 138 thousand vehicles and less over 54 thousand units, the equivalent to US$ 402.4 million – FOB. With the adoption of a third shift during the second semester of 2004 the production jumped to over 195 thousand vehicles in the same year out of which 80 thousand were exported being equivalent to US$ 601.6 million – FOB.

2006 ESTIMATIONS	2005	2006	2006/2005 Variation
Domestic Market Automobiles (million) Agicultural machinery (mi)	1.72 23.2	1.84 27.0	+7.1% +16.4
Export (US$ bi) Automobiles and Agicultural machinery	11.2	11.5	+2,7%
Production Automobiles (millions of units) Agicultural machinery (millions of units)	2.45 52.9	2.56 55.8	+4.5% +5.5%

Source: Anfavea

In Bahia, the automotive sector is getting prominence since the implantation of the Northeast Ford Complex in Camaçari (out/2001), turning into one of the most promising sectors of Bahian economy. The enterprise that was originated with the purpose of to generate 5 thousand direct jobs and 55 thousand indirect ones in 2005 has surpassed that expectation by registering 8,500 direct job positions and 85,000 indirect ones.

Nowadays, Bahia produces about 10% out of all vehicles produced in Brazil occupying the third position in the National ranking. Bahian automotive sector lead by Ford was in 2005 the third segment with the largest contribution for the increment (14.6%) of Bahian GDP. It is important to highlight that Bahia had a 4.8% overall increase on the GDP, the double of the national performance, according to The Superintendency of Economic and Social Studies of Bahia (SEI)/Secretariat of Planning and IBGE.

The Northeast Ford Complex brought an innovative way to produce automobiles with the presence of supplying companies inside the manufacturing car site. Nowadays, Bahia counts on 33 sistemistas companies installed in Ford’s plant where the new models of Novo Fiesta and EcoSport were produced. The factory operates under a regimen of three shifts, 21 hours per day, six days per week. The vehicles produced at Bahian Ford are 95% national, 76% genuinely Bahian and 80% of Brazilian machinery and equipments. Since August/2005, one year in advance, Ford has reached a production rhythm enough to produce 250 thousand vehicles per year. Other 13 thousand are produced due to the fabrication of car parts shipped to Venezuela.

Considering the export, the automotive sector was also the third in the Bahian ranking with revenues in the order of US$ 872 million registering a growth of 36% when compared to 2004 – data from Promo – International Business Center of Bahia.

Out of the total of 912 vehicles produced in the factory of Camaçari, 40% is destined to the international market mostly countries such as Mexico, Argentina, Chile and Venezuela amongst other in the Latin America, that volume represents about 15% of the total of the US$ 6 billion exported by Bahia in 2005 (an amount 47.38% bigger than 2004). Until February/2006, Ford has accounted the export of 15,400 vehicles produced in Bahia, which is equivalent to US$ 124.5 million.

Due to such demand, Ford Brasil has opened a port terminal in Aratu bay. Built by the Government of the state of Bahia through its Industrial and Commercial Development Superintendency lent to Ford through a concession of use agreement. The Private Port Terminal Miguel de Oliveira, located at Candeias, is fundamental to the logistics of the drainage of the production of the Northeast Ford Industrial Complex even supplying the import of vehicles of the company in the Brazilian market.

The port terminal is equipped with a 193 m pier, which allows the docking of big ships. The access to the terminal is done through the Cotegipe Channel at Aratu Bay, a protected sea area with depth of 22 to 25 meters. The embarking and disembarking operation is done through 10 bays with ramps that allow the operation of 10 stork trucks simultaneously. Besides that 6.024 parking spots are demarcated with a modern radio-frequency system, which allows the tracking and precise location of any vehicle within seconds. The new port was built meeting the security and surveillance international standards.  Fix and movable TV cameras, watch towers, and strict visitors access control are part of the security equipments adopted in order to meet the demands of the International Code for Ships Protection (ISPS Code).

FORD BAHIA 2002 – 2005 EXPORT
YEAR	Number VEHÍCLES (Foreign Trade)	PRODUCTION VARIABLE
2002	16,320	-
2003	54,145	231%
2004	79,698	47%
2005*	77,382	40%
TOTAL	227,545 unidades	US $ 1.7 billion in exchange values
Source: Revista Bahia Invest n. 6 - março/2006

P.S..: Besides the mentioned sources:  Fieb, Diário Oficial da Bahia, Revista Bahia Invest.
Besides FORD, are installed in Camaçari and the Metropolitan region automotive suppliers that take part into the assembly line and final module:

FABRIC PRINTING:
BSB/FORD – large printed fabrics
Sodecia – small printed fabrics
Ferrolene – foil scraps

PAINTING:
Renner Du Pont – Raw material of the Painting
Colauto – Painting of small components
DDOC/FORD – Painting of the truck

FINAL ASSEMBLY:
Mapri – Fixation module
Valeo – Front module
Benteler - Suspension
Pelzer – Internal finishing
Faurecia – Trim panel
SAS – Doors assembly
Intertrim - Roof
Lear – Bucket and rear seats
Arvin – exhaust system
Cooper – Connection pipes and cables
Pirelli (Feira de Santana) – Mounting of tires and wheels

MANUFACTURING:
DOW – Plastic parts
Pilkington - Glasses
Autometal - Plastic parts
Saargummi - Rubber parts
Kautex – Fuel tank

SERVICES:
ABB - Maintenance
MSX – Product development
Lean - Logistics
Premier - Lights/Condominium

LOCATED OUTSIDE THE SITE:
Pirelli (Feira de Santana)
Siemens (Feira de Santana) – Electrical whips
TWE (Camaçari) – Seats foam
SIAN (Camaçari) - Illumination
Krupp (Camaçari) – Printed parts
Pelzer (Dias D'Ávila) - Isolators