Pedro Reis, ALD Automotive: Overcoming challenges in Brazil
Considering recent instabilities in politics and the ever-changing face of mobility, doing business in Brazil’s automotive industry certainly does not come without challenges. However, does the country’s ROTA 2030 automotive policy or the FX rate change the scenario?
These are just two of the questions we asked Pedro Reis, the new Brazil CEO for multinational fleet management company ALD Automotive, one of the largest vehicle leasing companies in the country as well as the world.
As the new chief of operations in Brazil, what is your main goal for the company and how will you achieve it?
PR: Our main objective is to consolidate our position in the fleet outsourcing market. To reach that, we will work with our clients by presenting tailor-made, innovative proposals and by following the latest mobility trends
What are the main challenges for ALD coming into the new year?
PR: The greatest challenge of ALD Automotive next year will be to maintain the growth we have accomplished in recent years and to remain one of Brazil’s three largest companies in the segment.
Considering that there is a greater demand for customized solutions nowadays which require tailored products with technological innovations, we need to make sure that we maintain our high level of customer satisfaction.
As customers are increasingly looking for well-rounded urban mobility solutions and not only fleet policy strategies, car sharing and other modes of transportation are key in large cities and this is something that can also be challenging.
As such, ALD Automotive needs to stay ahead of the game by offering innovative solutions such as corporate car and bike sharing initiatives, and others.
Finally, we have internal challenges which involve continuously investing in technologies to streamline our processes. Our employees need to optimize their time and focus more on their expertise which is creating new solutions.
I am familiar with your corporate bike sharing service. Is there any other new mobility ideas ALD is planning within the next year?
PR: From now until next year, we are focusing on three new solutions. They are E-Bike Sharing (electric bikes), Mobility Cards which gives users the freedom to choose the best mobility mode for their situation, and ALD EcoWash which is an onsite vehicle washing system which is environmentally friendly.
All of these solutions are focused on sustainability as well as mobility, and facilitating the day-to-day lives of our customers.
ALD Automotive agency in Brazil (Source: ALD Automotive)
The Brazilian currency has strengthened against the US dollar in the fourthe quarter of the year. Is this good for ALD Automotive?
PR: Due to political uncertainties earlier this year, the dollar was rising dramatically against the Brazilian real and this pressured some automakers to rise prices as they indirectly contained imported components which were paid in dollars.
However, with Brazil’s more defined political situation [2019-2023 president now chosen], the local currency has strengthened against the US dollar.
This benefits ALD as we can maintain prices. Remember that having a steady price increases confidence in our customers.
The ROTA 2030 national automotive policy was just signed by President Michel Temer at the Sao Paulo auto show. Do you think the policy is enough to really help the automotive industry?
PR: Well, the main objective of ROTA 2030 is to modernize the automotive industry by pushing for research and development as well as investments aimed at creating a more sustainable national fleet. This is usually accomplished through new technologies and the use of alternative energies.
However, we must keep in mind that this is only on paper for now. We must have concrete plans to really get an idea if these new regulations will actually be sufficient.
Whatever path that is taken, ALD Automotive is open to any rational solution which can be offered to our clients.
ALD Automotive Brazil CEO Pedro Reis, and Global Fleet editor Daniel Bland (Source: Global Fleet)