Audi will leave Brazil? Manufacturer threatens government for millionaire debt

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To invest in the São José dos Pinhais (PR) plant and continue producing in the country, the brand requires the receipt of the concessions promised by InovarAuto

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Audi returned to producing cars in Brazil in 2015, when it invested R $ 500 million in the São José dos Pinhais (PR) plant. At the time, the automotive regime provided for the return of part of the investment – which has not been paid until today. To pressure the government to pay off the millionaire debt, the brand threatens to leave the country.

“We signed a commitment to pay to get it back. And, so far, we don’t have a decision ”, said the president of Audi do Brasil, Johannes Roscheck. “It is difficult to convince the matrix to invest again in a market that has no commitment.”

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Audi, Mercedes, BMW and Jaguar Land Rover decided to return to producing vehicles in Brazil due to the tax determinations imposed by the InovarAuto program, which provided that companies that imported cars would pay an extra 30 percentage points of Industrialized Products Tax (IPI).

Together, the four manufacturers invested R $ 1.6 billion in the country.

According to Antonio Calcagnotto, director of institutional relations for the manufacturer, the expected return for the 3 German brands (BMW and Mercedes-Benz, in addition to Audi itself) is R $ 289 million. The amount due specifically to Audi has not been revealed to the press.

The executive also said that maintaining production depends on a government response. “If we have a signal that this money will return, even if it is in 10 years, it would be a vision to give to the headquarters and would serve as a factor for deciding continuity”, he argued.

For Audi to continue production in Brazil, it will be necessary to make more investments in the São José dos Pinhais plant. This is because the A3, which was produced in Paraná, will no longer be manufactured and the other models in the line use a more modern platform.

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