About Gurgel
Gurgel was the brand of Gurgel VeÃculos, a Brazilian automobile manufacturer, named for its founder, João do Amaral Gurgel. The company was founded in 1969 and specialized in off-road vehicles, many of which were named after Brazil's native tribes. Early models were fiberglass bodies installed on Volkswagen Beetle (fusca) chasses and machinery. Gurgel introduced Brazil's first domestically designed car, the BR-800, but went out of business in the 1990s.
The real cause of Gurgel's bankruptcy was bad decisions with new politic, from Brazil government. While under total protectionism (1969-1989), Gurgel had prosperity, having as much as 1% of Brazilian car's market. In the late 1980s, then Brazilian president José Sarney gave a very great loan (without guarantees) to Gurgel, from Brazilian state bank. Sarney was so generous with Gurgel, that he had IPI (a Brazilian value tax) to others cars between 37% and 42%, while Gurgel BR-800 had the same IPI (a Brazilian value tax) of just 5% to BR-800. Along with BR-800 Gurgel also had the production of Gurgel Carajás, a "SUV" 4 x 2 wheel drive.In fact all Gurgel's vehicles, even the prototypes, were 4 X 2 wheel drive.
The end for Gurgel began when president Fernando Collor went to office in March, 1990.Fernando Collor opened Brazilian car market to foreign cars.Even then having a tax to foreign cars of 85%, the Gurgel Carajás were more expensive than Lada Niva, a SUV from then Soviet Union. The Gurgel's SUV's went out of the market. The last Gurgel Carajás was produced in 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 BR-800.
Beyond any doubt, Uno mille was more powerful and spacious than Gurgel BR-800. The price of both models was then similar.BR-800's sells droped to almost nothing in 1990.In 1992, Gurgel launched a car based on BR-800, the Supermini. Such as its similar model, the Supermini's sells were very small.Fernando Collor refused to give 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 hadn't any guarantee.Even with these generous loans, the Gurgel's sells remained very small. Just about 1,500 Supermini Gurgel's cars were produced, in 1992 and 1993.
