Analysis

u-blox expands production capacity to South America

14th July 2010
ES Admin
0
u-blox, a leading supplier of embedded wireless and global positioning semiconductors and modules, has expanded contract manufacturing capacity for its’ LEON GSM/GPRS module to Brazil. The new production line is intended to meet the rapidly growing demand for wireless modems used for Automatic Vehicle Location (AVL) amongst other applications. Utilizing a combination of GPS positioning with mobile communications, AVL is a powerful tool for tracking, managing and recovering vehicles and other goods.
“The Brazilian government has mandated that new automobiles sold in Brazil must have an AVL tracking device built-in”, said Nikolaos Papadopoulos, President of u-blox America. “As LEON is a critical component for AVL systems, we have commissioned a large-scale production line in Brazil to accelerate our response to our AVL customers, lower costs and simplify logistics.”

In 2007 there were over 3 million new vehicles sold in Brazil. In the same year, there were over 380,000 stolen cars with only an estimated 50% recovery rate (source: GPD consulting). In addition to AVL installed in new cars, there is also an after-market sector of over 18.5 million existing vehicles in Brazil. AVL is intended to deter vehicle theft, prevent road-tax fraud, and lower insurance costs.

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