Friday, October 29, 2010

Armor all: Brazil is fast becoming the world's garage for armored cars.

By LUCIANO SOMENZARI

Levels of violent crime in big cities, above all in the developing world, can be frightening. Constant fear of terrorist attacks in the United States, Europe and in the Middle East worry business executives. In Brazil, companies make money by protecting people from those very real threats: It's now the largest producer of armored passenger automobiles. The know-how of turning a regular car into an armored vehicle has created yet another well received export.

According to according to market estimates, more than 3,800 armored vehicles were built in Brazil last year. During the first half of 2005, the industry reported a 15% increase from the same period a year earlier. Those figures show up on the bottom line: Armored passenger cars produced estimated revenue that year of US$100 million. In 1995, Brazilian factories produced 388 armored passenger vehicles; by 2002, the country's armor shops had built 4,136 passenger cars.

The number of armored vehicles roaming the streets of Brazil has reached 22,000, the third-largest fleet of private armored vehicles in the world after Colombia and Mexico. A good part of the production of components for high-security cars, such as bulletproof glass, is produced in Brazil and shipped abroad. "Brazil has become a respected supplier of armored vehicles because it offers good prices and high-quality technology," says Franco Giaffone, president of the Abrablin, the armored-car industry association. For Giaffone, the industry got to where it is today due to the Brazilian automotive sector, which was forced to become more competitive amid rising domestic demand.

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