Public policies and sectorial targets The effects of the new industrial policy on the Brazilian automobile sector
Abstract
This article examines the new conditions created by the Brazilian Automotive
Regime since the second semester of 1995. First, it discusses the main controversies surrounding
the implementation of a new modality of industrial policy on the part of the federal
government and the incentives granted by the state governments to the companies of
the automobile sector in Brazil. Second, this article sketches a picture of the situation of
this industrial sector, with emphasis on the changes that are happening in the relationships
between assembling industry and auto parts industry. ln the context of the new climate of
competition created by the tendencies towards globalization of markets and by the new
guidelines of the industrial politics in place, this article shows that new modes of governance
in the relations between the local “montadoras” and their providers are replacing the old
competitive strategies.
JEL Classification: L62; L52.
Keywords: Industrial policy Brazilian automotive regime automotive sector