Fiat Chrysler Automobiles (FCA) has extended its aftermarket contract with Ceva Logistics in Brazil for a further four and a half years. The logistics provider moves service parts to 500 Fiat dealers across the country, providing both warehousing and transport services, and has been working with Fiat in Brazil for more than 20 years.
In addition to its established services the new contract includes outbound transport to southern Brazil.
“We have created a compelling solution for FCA and its dealer network. It is a great honour to continue expanding our partnership with such a strategic customer. The outcome of these negotiations is the result of our commitment to consistently deliver operational excellence and continuous improvement to FCA. It also reinforces our presence in aftermarket solutions related to the automotive sector,” explains Daniel Cortazzo, senior manager of business development for the automotive and industrial sectors at Ceva in Brazil.
Ceva is based at FCA’s facility at Betim, a 98,000 sq.m facility with a production capacity of 180,000 outbound lines per month.
The renewal and extension of the contract will increase Ceva’s team to more than 450 people.
Following an economic decline in which Brazil dropped from making 3.6m vehicles in 2013 to 2.1m in 2016, the economy appears to be showing signs of recovery and assembly is now increasing again. The country produced around 2.8m units last year.
The aftermarket was propping up the car industry in Brazil through the downturn. Figures from Sindipeças, Brazil’s association of auto parts manufacturers, show that at the depths of the crisis in 2015, revenues were up almost 19% and worth $13.4m. Aftermarket sales supporting the 43m vehicles on the road became more important in the downturn, and revenues from the sector were worth 17m reais in 2018.