João do Amaral Gurgel - AbsoluteAstronomy.com

João Augusto Conrado do Amaral Gurgel (1926-2009) was a Brazil

Brazil

Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

ian businessman. In 1969, he decided to start a very small factory, producing small cars. Early models were fiberglass bodies installed on Volkswagen Beetle (fusca) chassis and machinery. Gurgel introduced Brazil's first domestically designed car, the BR-800, but went out of business in the 1990s.João do Amaral Gurgel was known as João Gurgel. He was the founder of Gurgel

Gurgel

Gurgel was the brand name of Gurgel Motores , a Brazilian automobile manufacturer, named after its founder João do Amaral Gurgel. The company was founded in 1969 and first specialized in buggies and off-road vehicles...

.His complete name was João Augusto Conrado do Amaral Gurgel(3).

The real cause of João Gurgel's bankruptcy was very bad commercial decisions, with new policies by the Brazilian government from March 1990. While under total protectionism (1969-1989), Gurgel had prosperity, having as much an important part of Brazilian jeep's market. In the late 1980s, then Brazilian president José Sarney granted very big loan (without guarantees) to Gurgel, from a Brazilian state bank. He also got a special and very low level of value tax to his small car, the Gurgel BR-800

Gurgel BR-800

Gurgel BR-800 was a small Brazilian car produced between 1988 and early 1992. The project started under the acronym CENA, meaning "National Economical Car" , designed to be essentially a small car for urban daily use. It received great attention and good reviews from critics, regarding the mechanic...

.(1)

The end for Gurgel began when president Fernando Collor went to office in March, 1990. Collor opened the Brazilian car market to foreign cars. Even though the import tax was 85%, the Gurgel Carajás was more expensive than Lada Niva, an SUV from then Soviet Union. The Gurgel's SUV's went out of the market. The last Gurgel Carajás

Gurgel Carajás

Gurgel Carajás was a Brazilian car, a SUV, produced by Gurgel between late 1984 and January, 1991. All Carajás were 4 x 2 drive, but they were produced with motors in three options: gasoline and ethanol with 1800cc, and diesel with 1600cc. It had a front engine and a rear transmission, conecting...

was produced in January, 1991. In 1990, Fernando Collor also reduced the IPI (a Brazilian value tax) of Uno Mille to 20% and sent the same level of tax to Gurgel BR-800.(1)

By any measure, Fiat's Uno Mille, a 1000cc car, was more powerful and spacious than Gurgel BR-800. The price of both models was then similar. BR-800's sales dropped to almost nothing in 1990. In 1992, Gurgel launched a car based on Gurgel BR-800, the Gurgel Supermini. Like its similar model, the Supermini's sales were very low. Fernando Collor refused to grant a loan (without guarantees) of about US$80,000,000 from BNDES to Gurgel. Even so, Gurgel got two loans; both of them from state's governments. One from BEC (then bank of Brazilian state of Ceará) and other loan from Banespa - then bank of Brazilian state of São Paulo. Again, both loans didn't have any guarantee. Even with these generous loans, the Gurgel's sales remained very small. In fact they fell unstoptable between 1990 and 1993. Just about 1,500 Supermini Gurgel's cars were produced, in 1992 and 1993.(1)

In 1995, Gurgel's final bankruptcy was decreed. Gurgel's assets were less than 3% of its debt. In fact, Gurgel's assets were not even enough to pay its former workers. The Brazilian site http://www.gurgelbrasil.com/GURGEL-Jornal-do-Carro_PAG1.htm claims that Gurgel's debt was about US$1,200,000,000. Between 1969 and 1993, Gurgel launched about 12 new vehicles. One of them was the first Brazilian electric car in commercial production, a complete commercial failure. With the sole exception of "Xavante X" and series produced mainly in 1970 decade, no Gurgel product had any commercial success. The "Tocantins" was transformed into "Gurgel Carajás". This vehicle was the leader in sales among off-road vehicles in Brazil, until 1990. Carajás "SUV" was so bad and expensive that when the importation of Lada Niva was authorized in 1990, by Fernando Collor, the Gurgel Carajás went out of production within a few months. Lada Niva got almost all Gurgel Carajás' market even though Lada Niva had to pay an import tax of 85% in 1990. Lada Niva was better and cheaper than Gurgel Carajás. Lada Niva also was a real 4 x 4 drive, while all Gurgel's SUV's were 4 x 2. The Gurgel BR-800 and Gurgel Supermini were both worse than Fiat's Uno Mille, far less spacious, powerful and more uncomfortable.(1)

In 1991, João Gurgel had one of his last bad ideas. The decided to start the Gurgel Delta

Gurgel Delta

Gurgel Delta was a Brazilian car designed by Gurgel, never sold in commercial market.The project was described by Gurgel himself as the true popular car, citing Supermini as "a small car, economic and easy to park, for who do not set comfort aside" ....

a small car, for only two persons(4). Ever looking for Government's money, he got some millions of US Dollars from governors in Brazil(4). Then Brazil

Brazil

ian President Fernando Collor refused to give loans of about US$80,000,000 from BNDES and US$25,000,000 from SUDENE, another public institution to João Gurgel. The terrible situation of Gurgel and terrible decisions of his owner sent the Gurgel to the bankruptcy in 1994 and 1995.

Even today, João Gurgel remains with followers, claiming that he was sent to bankruptcy by politicians. In fact, between 1970 and 1990, all Brazil

Brazil

ian Presidents gave public money to Gurgel. And the amount of money was ever bigger, with the time. In 1990, Fernando Collor refused to give any new loan to Gurgel, but this came after more than 20 years of Brazilian Federal Governments favors. Between 1976 and 1990 was out of law to import jeeps or in fact, any kind of vehicle in Brazil. Even, so in 1990, the tax to import a jeep in Brazil was about 85%. Until Gurgel's bankruptcy, Brazilian press gave all possible support to João Gurgel. In fact, he was flattered by Brazilian press and for more than twenty years. His vehicles had bad quality and were expensive, even for the weak standards of Brazil, but Brazilian press ever was telling that João Gurgel would be the Brazilian Henry Ford

Henry Ford

Henry Ford was an American industrialist, the founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production. His introduction of the Model T automobile revolutionized transportation and American industry...

of the future. Another fact is that 1990 decade (at least until 1997), was a very good time to cars' factories in Brazil. Brazilian car's production climbed fast between 1990 and 1994, while João Gurgel went to the bankruptcy. João Gurgel was also a popular figure. In 1987-1988 he launched a crusade to get money from partners. Thousands gave their money in a few months. All these "partners" became fools, because they never got any money from the investment that they did in Gurgel's company, in good faith. In simple terms, Gurgel bankruptcy didn't come from lack of Government's money, lack of protection, press' criticism, lack of public support or lack of growing in auto industry. João Gurgel got all of these things, in more amount and time than he deserved.

João Gurgel skills as a manager were terrible. He was ever looking for support from Brazilian politicians and Brazilian press. João Gurgel ever hated any engineer with skills); he was ever with "yes-men" and looking for flattery. Being called "The Proud of Brazil" and "Brazilian Henry Ford

Henry Ford

" by Brazilian press, the "nationalist" João Gurgel in fact, put far more money in the United States than in Brazil. The site Default claims that João Gurgel default was about US$1,200,000,000, in 1994. The Brazilian banks, never got a cent for their "loans" given to João Gurgel, from 1985 onwards. The Brazilian partners were deceived and paid many money to the bad Gurgel BR-800

Gurgel BR-800

and useless shares. João Gurgel also gave defaults to suppliers of parts of his small vehicles. His workers weren't also paid after December, 1992. Many years before the bankruptcy, the "nationalist" João Gurgel, using weakness of Brazil

Brazil

ian laws, sent fortunes to the United States, where his family is mainly living since decades ago, with height levels of living. João Gurgel went to bankruptcy mainly from his failures. The real person responsible for João Gurgel's bankruptcy was himself.

In bankruptcy, João Gurgel became sick with Alzheimer's disease

Alzheimer's disease

Alzheimer's disease also known in medical literature as Alzheimer disease is the most common form of dementia. There is no cure for the disease, which worsens as it progresses, and eventually leads to death...

. He died with this disease in 2009. João Gurgel's family is now living very rich in the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. Another Brazil

Brazil

ian, Paulo Emílio Lemos that never knew João Gurgel started a small factory of small agriculture's vehicles some years ago, also called Gurgel(2). Except the name, the new "Gurgel" has nothing with the old Gurgel founded by this Brazilian businessman.

Sources

Gurgel in English >Excellent site in English. It agrees 100% with this article.
Photo >Site in Portuguese.
Autocar >Another site in Portuguese.

(1) Gurgel
Gurgel
Gurgel was the brand name of Gurgel Motores , a Brazilian automobile manufacturer, named after its founder João do Amaral Gurgel. The company was founded in 1969 and first specialized in buggies and off-road vehicles...

(2) New Gurgel

(3) TV Manchete >Interview in Portuguese.

(4) Delta >Site in Portuguese.

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