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10 FROM THE TOP » DIETER BECKER, KPMG May 2018 | AutoData cognize in Brazil? What is the strategy? It is a little bit uncertain to be honest at the moment because people see that growth and they are really happy but they don’t see what is coming next. We have Rota 2030 but it has been postponed too many times. Would an eventual approval of Rota 2030 be fundamental to the future of our in- dustry, then? We are looking much more into the ecosystems. The connection between automotive industry, logistics, insurance, banking financing, and even infrastructu- re. If you look at Europe, China, the US, they are starting to build that ecosystem. It is not only about mobility. In all of the talks I have this week here in Brazil I was just wondering that it would be good if there is an initiative which is cross sec- tor showing that we are seeing those topics which are not only depending on the automotive industry. The topics you can read already in Rota 2030 because you are mentioning mobility but where is steel, logistics?Where is infrastructure and the public transport? That is what we seek globally. Aglobal study by KPMG has shown that new propulsion technologies will be a major industry focus in the next five ye- ars. Do you see a risk of Brazil being iso- lated, globally speaking, for not having a plan to produce these technologies in this period? There is not only one answer. This is the global mixture. So we have to be really careful: the discussion here is if we have that combustion engine mix in the future and if we have the fuel cells and all of that. What is the role that Brazil will take? What is the segment you are going to serve in this country, the cost you are aiming for and what is the combustion engine that fits into it? If people tell you that in 10 year ‘you will have 70% total electric vehicles’ you would say ‘come on, that can’t be true’ because the cost of an electric vehicle is not what you should aim for. What does the real market need in Argentina, in Mercosur, in parts of Afri- ca?What kind of technology do you re- ally need? You are far advanced in the biofuels, which is really good. So, you do not believe in the production of these new technologies here in any future scenario? Certainly the segment most needed here be the mid-sized to the small segment because it has to be linked to the dis- posable income of people. Do you re- member Tata Nano? The pricewas about 3,8 thousand euros and it failed because the personal disposable income average is 1,3 thousand euros in India. So it was really expensive for that market. You have to understand: are electric vehicles and fuel cells the right strategy here? Why don’t you work on combustion engi- nes for markets and combine them to hybrids on a technology that is not far away? The right direction here is not for the electrics. You have ethanol which is a biofuel and the idea of using it as an ecologic footprint is great. So why don’t you say to the market ‘hey, we could go for a bioecological footprint using it as a biofuel’. Why not promoting that instead of following an electric strategywhich is really dependent on the infrastructure? But the automotive industry alwayswork from a global point of view... Let’s see it in another way: you need to have an attractive product for your ma- rket. And when I say this I do not mean just the user experience, you need to “The right direction here is not for the electrics. You have ethanol and the idea of using it is great.”

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