`The Dream Factory': VW's Modular Production System in Resende,Brazil

Abstract

This paper draws upon on-going research into the changes taking place in the Brazilian vehicle assembly industry with particular reference to the state of Rio de Janeiro. It focuses upon a case study of Volkswagen's bus and truck assembly plant at Resende. The plant opened in 1996 on a green-field site and was presented as a major development in vehicle assembly. The unique feature of the plant's production system rests on the relationship between the assembler (VW) and its component suppliers. At Resende these were involved in a joint enterprise to establish a `modular system' of production. In this system, the component suppliers finance a part of the factory and organise the assembly of their components on site. As such few of the production workers are employed by the assembler whose main role in the process is to co-ordinate production and market the vehicle. The article outlines the nature of the Resende system and the negotiations and comment that accompanied its introduction. It considers the development in relation to literatures on the boundary and capacity of the firm and those relating to the role of labour in mature labour processes. In drawing upon wider changes in the Brazilian vehicle manufacturing sector it argues that the Resende experiment can be understood as an extreme case of a more general development in Brazil, involving changed relationships between assemblers and component suppliers and also with the manual workers. Some consideration is given to the idea of an emerging `Brazilian system' of production and its implication for more general developments within the sector.

Get full access to this article

View all access options for this article.

References

Abreu, A. , Gitahy, L. , Ramalho, J. R. and Ruas, R. (1999) `Industrial Restructuring and Inter-Firm Relations in the Auto-Parts Industry in Brazil', Occasional Papers 20. Institute of Latin American Studies, University of London.

ANFAVEA (1998) Anuário Estatístico - 1998. São Paulo.

ANFAVEA (1996) Anuário Estatístico - 1996. São Paulo.

Arbix, G. and Zilbovicius, M. (eds.) (1997) De JK a FHC - A Reinvenção dos Carros. São Paulo: Scritta.

Arbix, G. and Zilbovicius, M. (1997) `O Consórcio Modular da VW: um novo modelo de produção' in De JK a FHC - A Reinvenção dos Carros, G. Arbix and M. Zilbovicius (eds.).

Arbix, G. and Posthuma, A. (1996) `Lopez hits `plateau' at plant in Brazil', Automotive News, 26 February.

Assef, A. (1995) `Fila na Porta: O Brasil volta ao mapa das multinacionais', Exame, 5 July 1995.

Boletim 9 de Novembro (1996-1998) - do Sindicato dos Metalúrgicos do Sul Fluminense.

Buckley, P. J. and Michie, J. (eds.) (1996) Firms, Organisations and Contracts, Oxford: Oxford University Press.

10.

Beck, U. (1999) `O Ocidente Brasileiro' interview in Folha de São Paulo, 23 May.

11.

Beynon, H. and Ramalho, J. R. (1999) `The transformation of the automobile sector in Brazil - a new way of producing cars?'. Conference `Approaches to Varieties of Capitalism'. CRIC, ESRC, University of Manchester.

12.

Carvalho, R. Q. (1997) `Restructuring and globalisation in the Brazilian automobile industry', Gerpisa Conference, The Trajectories of Internationalisation of Firms in the Automobile Industry, Paris, June.

13.

Castro, N. (ed.) (1996) A Máquina e o Equilibrista - inovações na indústria automobilística brasileira, São Paulo: Paz e Terra.

14.

Froud J. , Haslam, C. , Johal, S. and Williams, K. (1998) `Breaking the Chains? A Sector Matrix for Motoring', Competition and Change, vol. 3, pp. 293-334.

15.

Gereffi, G. and Korzeniewicz, M. (eds.) (1994) Commodity Chains and Global Capitalism, New York: Praeger.

16.

Gitahy, L. and Bresciani, L. (1997) `Restruturação Produtiva e Trabalho na Indústria Automobilística Brasileira', Campinas, Unicamp, Mimeo.

17.

Humphrey, J. (1996) `Os impactos das técnicas “japonesas” de administração sobre o trabalho industrial no Brasil', in N. Castro (ed.), A Máquina e o Equilibrista - inovações na indústria automobilística brasileira.

18.

Humphrey, J. (1998) `Globalisation and supply chain networks in the auto industry: Brazil and India', Conference Paper, Geneva, 9-10 March.

19.

Jackson, T. (1999) `Reflections of a knowledge worker', The Financial Times, 27 March.

20.

Jácome Rodrigues, I. (1997) `Sindicalismo, emprego e relações de trabalho na indústria automobilística', in R. Antunes (ed.), Neoliberalismo, Trabalho e Sindicatos, São Paulo: Boitempo Editorial.

21.

Lapper, R. (1998) `Dancing to a slower beat', The Financial Times: Money, 1/2 August.

22.

Leite, M. (1996) `Inovação tecnológica e relações de trabalho: a experiência brasileira à luz do quadro internacional', in N. Castro (ed.), A Máquina e o Equilibrista - inovações na indústria automobilística brasileira.

23.

Luquet, M. and Grinbaum, R. (1996) `Resende dá o show', Veja, 23 October.

24.

Marglin, S. (1974) `What do bosses do? The origins and functions of hierarchy in capitalist production', Review of Radical Political Economy, 6 (2).

25.

Melman, S. (1957) Decision-Making and Productivity, Oxford: Blackwell.

26.

Miozzo, M. (1999) `Globalisation and policies for industrial development; the case of the Argentinian automobile industry', UMIST, School of Management, Manchester, UK, mimeo.

27.

Neto, F. P. (1996) `Fábrica da Volkswagen deixa fase de teste', Folha de São Paulo, 9 December.

28.

Parlack, Z. (1996) `The Car Workers of Bursa', in E. Kahveci , N. Sugar and T. Nichols (eds.), Work and Occupation in Modern Turkey, London: Mansell.

29.

Posthuma, A. C. (1997) `Autopeças na encruzilhada: modernização desarticulada e desnacionalização', in G. Arbix and M. Zilbovicius (eds.), Carros De JK a FHC - A Reinvenção dos.

30.

Ramalho, J. R. (1997) `Precarização do trabalho e impasses da organização coletiva no Brasil', in R. Antunes (ed.), Neoliberalismo, Trabalho e Sindicatos.

31.

Salerno, M. S. (1997) `A Indústria Automobilística na virada do século', in G. Arbix and M. Zilbovicius (eds.), De JK a FHC - A Reinvenção dos Carros.

32.

Seidman, G. W. (1994) Manufacturing militance: workers' movements in Brazil and South Africa - 1970-1985, California: California University Press.

33.

Shaiken, H. (1994) Automation and Global Production, University of California, San Diego: Monograph 26.

34.

SINDIPEÇAS (1997) O desempenho do setor de autopeças - 1996, São Paulo.