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The company created by João Gurgel tried to consolidate the independent Brazilian automotive industry, but encountered political and economic barriers that led to its end.
In the 1970s, while the Brazilian automotive market was dominated by multinationals, an engineer from São Paulo dared to follow a different path. João do Amaral Gurgel founded Gurgel Motores with the ambition of creating a 100% Brazilian car, made by Brazilians and for Brazilians. The company's trajectory, however, was marked by structural obstacles, lack of incentives and resistance from the public and private sectors. Gurgel, which symbolized the dream of industrial autonomy, ended up defeated by a system that was not prepared — or willing — to support its proposal.
João Gurgel: the idealist behind the initiative
Born in 1926, in Franca, in the interior of São Paulo, João Gurgel graduated as a mechanical-electrical engineer from Polytechnic School of the University of São Paulo (USP). He worked in companies in the automotive sector, including Willys Overland, but his goal was to go beyond the role of an employee: he wanted to transform Brazil into a country capable of manufacturing its own cars, without depending on foreign parts, designs or technologies.
In 1969, João Gurgel founded Gurgel Indústria e Comércio de Veículos SA, with the aim of manufacturing vehicles adapted to Brazilian conditions. The company began by producing small jeeps with fiberglass bodies, which were lighter, more resistant and more suitable for the national territory.
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The first model launched was the Gurgel Ipanema, also in 1969. This vehicle marked the beginning of the company's series production, with a project with its own identity.
In 1973, Gurgel introduced the Xavante XT, a more robust jeep that replaced the Ipanema. The Xavante introduced important innovations, such as the Plasteel chassis – a tubular structure covered in fiberglass and resin – and the Selectraction system, which improved traction on difficult terrain. These technical solutions helped to consolidate Gurgel's reputation as a national manufacturer of resistant and innovative utility vehicles.
The proposal for a 100% national car
Gurgel's main differentiator was its focus on vehicles adapted to the Brazilian reality: dirt roads, rough terrain and reduced maintenance costs. The engineer argued that Brazil needed a car with a “national soul”. Thus came the BR-800 project, launched in 1988 with the purpose of becoming the first genuinely Brazilian popular car.
The BR-800 had two doors, a two-cylinder engine, a lightweight structure and low fuel consumption. Its purpose was to serve low-income families and stimulate national industrial development. The project even received initial support from the government of José Sarney, who granted tax incentives — such as exemption from IPI — for the model, provided that the consumer purchased at least one share of the company.
The Brazilian Tesla? How Gurgel developed a 100% national electric car
Long before Elon Musk popularizing electric vehicles with Tesla, engineer João Gurgel already envisioned a future powered by electricity. In 1974, during the military regime and the oil crisis, Gurgel introduced the Itaipu E150, the first electric car developed in Latin America — and entirely made in Brazil.
Compact, with a bold design and designed for urban travel, Itaipu was powered by lead-acid batteries and had a range of around 60 km per charge. The maximum speed was around 60 km/h, modest numbers today, but impressive for the time and the technological limitations available.
João Gurgel believed that the future of mobility lay in electrification, and saw Itaipu as an economical and sustainable alternative for urban traffic. The model was exhibited at the São Paulo Motor Show and attracted great attention, but it never went into commercial production, mainly due to technological limitations and lack of government support.
Even so, the project remains one of the greatest symbols of Gurgel’s futuristic vision and technological boldness, anticipating trends by decades that have only now become a global reality. If it had had the necessary support, perhaps Gurgel’s history could have been rewritten — and Brazil could have had its own “Tesla” long before the rest of the world.
Growth and obstacles
During the 1980s, Gurgel employed more than 2.000 people in its factory located in Rio Claro, in the interior of São Paulo. It launched models such as the Xavant, Carajás and Motomachine, aimed at urban audiences.
Even without the technological and logistical facilities of multinationals, Gurgel demonstrated its capacity for innovation. One example was the Plasteel system, a structure made of plastic, fiberglass and reinforced with steel, used to replace metal sheets and reduce costs. It also invested in research to develop a 100% national engine, the Enertron, launched with the BR-800.
But the difficulties were mounting. High production costs, low scale and unfair competition from foreign assemblers made it difficult for the company to consolidate. Dependence on external suppliers and the absence of a more robust industrial policy to support independent manufacturers worsened the situation.
The market opening scam
The late 1980s and early 1990s brought decisive changes to the Brazilian economy. With the arrival of the Fernando Collor de Mello government in 1990, the country began a process of commercial liberalization, drastically reducing import tariffs and facilitating access to foreign vehicles.
The measure, which aimed to modernize the national industry and increase competitiveness, had a devastating effect on smaller companies, such as Gurgel. Popular imported cars, such as the Fiat Uno Mille and the Ford Escort, began to compete with more attractive prices, better performance and greater brand appeal.
Without the same resources to reduce costs and increase production scale, Gurgel saw its market share decline rapidly. Orders fell, inventories increased and debt worsened.
The attempt to resist
João Gurgel did not give up easily. He tried to make a new model viable, the Delta, with advanced technology for the company's standards. He also sought support from BNDES and the federal government, in an attempt to obtain financing to maintain the operation.
Despite the efforts, requests for help were ignored. Without public or private support, Gurgel collapsed. In 1994, the Rio Claro factory closed its doors. The following year, the company filed for bankruptcy.
The end was bitter for someone who dedicated his life to the idea of a national automotive industry. João Gurgel died in 2009, without seeing the rebirth of the dream he had nurtured for decades.
Legacy and late recognition
Despite its premature end, Gurgel continues to be remembered as a symbol of technological independence and entrepreneurial boldness. Its vehicles are now objects of collectors and enthusiasts of Brazilian engineering.
The BR-800 model, although it faced criticism for its technical limitations, was the first concrete step in a national industrial project. The solutions adopted by the company, such as the use of fiberglass and the attempt to develop its own engine, anticipated trends that would only be adopted years later by global automakers.
In 2013, a bill proposed making João Gurgel a patron of the national automobile industry. The measure, although symbolic, shows recognition of the efforts of an entrepreneur who tried to break with external dependence in one of the most strategic sectors of the economy.
Comparisons with the current scenario
Three decades after the end of Gurgel, Brazil continues to be a major consumer market for automobiles, but the industry remains highly concentrated in the hands of foreign automakers. Local production still depends on technologies, patents and components from abroad.
The Gurgel case exposed the structural difficulty that Brazil faces in consolidating independent industrial initiatives. The lack of a state policy focused on innovation, combined with bureaucracy and economic instability, discourages long-term investments.
Today, with the transition to electric mobility and the digitalization of the automotive sector, the country faces the risk of repeating the mistake of importing solutions instead of developing its own technologies. Gurgel's trajectory serves as a warning and an inspiration.
What's left of Gurgel
Although officially extinct, the Gurgel brand remains alive in the memories of many Brazilians. Several forums, websites and social media groups preserve the company's history. Restored models still circulate in Brazilian cities, bearing the symbol of a project that attempted to change the course of national industry.
The old factory building in Rio Claro has been decommissioned, but the memory of what was produced there continues to mobilize enthusiasts of vehicles with genuinely Brazilian DNA. Some entrepreneurs have shown interest in acquiring the rights to the brand, but no attempt to revive it has succeeded to date.
He declared "we fought with the giants,,,,and we lost the battle, it was the end of his factory and his dream, he got sick and died!?
João Gurgel was betrayed by the government of Ceará at the time, as one of his factories was being installed in the state and the promised support was denied at the most crucial moment.
True, and if I'm not mistaken by this **** Ciro Gomes
Himself. Always running away from his patriotic commitments
It was technologically unfeasible for electric cars at the time and the problem of battery durability and fast charging stations has not been resolved to this day.
I remember that!
This is the same old Brazil, which we have no pride in, and which for these and other reasons will never stop being an exploitation colony and “third world!!!!!”
Unfortunately, that's exactly what it is. China is booming, Türkiye is booming, India is booming and Brazil is in a perpetual standstill...
20.000 likes for your statement
We even forgot who invented the airplane. What a shame.