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13 AutoData | September 2018 today, something very expensive. Here (in Brazil) it is not a very attractive market for ZF, you don’t see automatic entry- -models and also the medium vehicles that use this type of transmission most likely tend to be imported in the future. When you make an investment for an automatic transmission factoryyou need a volume close to one million units. With 600 thousand you can begin to justify it, but we are talking about very high invest- ments. Brazil has no conditions for this. Regarding Rota 2030, wouldn’t the new policy for ex-tariffs help generate volu- me to nationalize (a Brazilian produc- tion)? I think it’s the only way. We have lost businesses because we cannot import anymore, we have very strong barriers to import that prevent even the indus- trialization. For example: aluminum gear housing from a certain size. There is no one producing it in Brazil, but nowwe are discussing about the ex-tariff for this. We end up importing a whole part because we cannot import some of its compo- nents or it does not get competitive. I think we should eliminate the import tariff and bureaucracy to import items that are not manufactured in Brazil, now, and let themarket adjust. Themarket will start producing in Brazilwhen it becomes competitive. Rota has bonus-goals of two IPI (tax on industrialized products) points discount on energy efficiency and one point on safety items, but this benefit cannot be cumulative, reaching amaximumof two points. Doesn’t this lead the companies to concentrate the efforts in efficiency? It will depend on cost-benefit, on che- cking the achieving cost for the two- -point bonus on efficiency versus the one point on safety. Maybe you have a lower cost and a higher return in the second item. But we have to think about what Brazil needs, what society needs: is it just efficiency or just safety? I believe it’s both. that can achieve a much greater pro- ductivity if powered by electric energy. Brazil has everything to complete not only the electrification but also the auto- nomous driving for tractors, the harvest has already been controlled by satellite for a long time. Is ZF foreseeing an increase in the sup- ply of automatic transmission systems in Brazil? No. We have already analyzed it, and the Brazilian market wants a simpler auto- matic transmission, which for us would be to downgrade the products we have