Gurgel

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A Gurgel SUV

Gurgel was the brand name of Gurgel Veículos, a Brazilian automobile manufacturer, named after 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) chassis and machinery. Gurgel introduced Brazil's first domestically designed car, the BR-800, but went out of business in the 1990s.

Gurgel BR-800

The real cause of Gurgel's bankruptcy was bad decisions with new policies by the Brazilian 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 granted very big loan (without guarantees) to Gurgel, from a Brazilian state bank. Sarney was so generous with Gurgel, that, while the IPI (a Brazilian value tax) was 37% and 42% for other cars, Gurgel BR-800 had the same IPI (a Brazilian value tax) of just 5% to Gurgel 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. 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 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.

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.

In December 1992, Gurgel didn't pay the salaries of any of its workers. On first months of 1993, Gurgel halted the entire production.

In 1995, Gurgel's final bankruptcy was decreed. The Gurgel's debt only with banks was about R$210,000,000 or US$100,000,000. 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 then Fiat's Uno Mille, far less spacious, powerful and more uncomfortable.

The trade mark "Gurgel" is now used by a small Brazilian factory of tricycles. This new "Gurgel" has nothing in common with original "Gurgel" company, except the name. Gurgel vehicles are rare on Brazilians roads nowadays. A Brazilian site (in Portuguese) with almost all Gurgel's vehicles is http://www.gurgelbrasil.com/GURGEL-Jornal-do-Carro_PAG4.htm .

Gurgel's founder and owner João do Amaral Gurgel was born in 1926. A few years after Gurgel's bankruptcy, João do Amaral Gurgel developed Alzheimer's disease. He died on January 30 2009, in São Paulo, due to complications from the disease. ^[1]

Important models

• Gurgel Moplast > A very small vehicle, with fiberglass chassis.
• Gurgel Ipanema > A dune buggy, bigger than Moplast.
• Gurgel Xavante X10 > With a new chassis made of fiberglass over a steel framework and VW Beetle engine and transmission, this small off-road car showed its dune buggy roots but with a more Jeep-like styling and intended usage. Some thousands produced in 1970 decade. Early models had more rounded, dune buggy-like lines, while later ones are more square and Jeep-like.
• Gurgel Xavante X11 > Similar to Xavante X10, but from late 1970 decade. Some thousands produced.
• Gurgel Xavante X12 > Also similar to Xavante X10. Some thousands produced in the 1980s.
• Gurgel Tocantins > An evolution of Xavante X12. Bigger motor, 4 X 2 and also with fiberglass chassis. Produced under total state protectionism in 1980's. Some models had a black roof, making it very hot in Brazil's climate. It was a commercial success, exported for 40 countries. Throughout all the years when it was produced, importing cars was illegal in Brazil.
• Gurgel Carajás > A large SUV powered by a 1.8 water-cooled engine from the Volkswagen Santana. The engine was mounted at the front. Better in many aspects, than Gurgel Tocantins. In first years of its production, it had commercial success due to Brazil's total protectionism and closed economy, until 1990 when then president Fernando Collor opened the market to imported cars. In last half of 1990, Lada Niva arrived and in a few months, the Russian SUV became the leader of its class in sales. As a result, the Carajás lost all of its market. Such as Gurgel Tocantins, the Carajás had a black roof, making the interior to get very hot on sunny days; Totally inappropriate given Brazil's hot climate. The last Gurgel Carajás was produced in January 1991. After the Carajás, no more Gurgel SUVs were made.
• Gurgel X15 > A pick-up with a number of different body types. Few units produced.
• Gurgel X20 > Another pick-up. Few units produced.
• Gurgel E500 > An electric-powered pickup/delivery van. Few units produced.
• Gurgel G800 > An internal combustion engine version of the E500. Few units produced.
• Gurgel XEF > City car shaped like a saloon. Powered by Volkswagen's air-cooled 1.6 engine from the original Beetle. Only one hundred Gurgel XEF were made. It had an unusual three-occupant configuration - each occupant sitting side-by-side.
• Gurgel BR-800 > City car built from 1988 to 1991. In order to buy one, the customer had to acquire shares from the Gurgel brand. It sold reasonably well in 1989, but sales dwindled in 1990 after the Fiat Uno Mille was introduced.
• Gurgel Supermini > The BR-800 replacement built from 1991 to 1994. More improved over the BR-800 but still faced strong competition from Fiat Uno Mille. Sales were no better from the BR-800.
• Gurgel Motomachine > A smaller two-seat roadster version of the Supermini. Only 177 were produced in 1991.

External links

• Gurgel Brasil
• Gurgel 800
• Os Carros de Rio Claro (in Portuguese)
• Gurgel X15 & family]
• [1] > A Brazilian site (in Portuguese) with all Gurgel's vehicles. Photos are all black & white.
• [2] > Brazilian site, in Portuguese, with useful information and photos, about Gurgel.

References