1. Establishment of NIPPONDENSO REFRIGERACOES LTDA. (NDB)

[6] Dissolving NDB

After seeing its trade balance fall into deficit territory due to the first oil shock, Brazil was subsequently hit by a major drought in 1978 and the second oil shock in 1979.
As Brazil implemented staged import customs duty hikes to restore its trade balance, the product price gap between NDB and its competition, which benefited from the Manaus Zone’s incentive system, broadened by 2.5 times. In addition, NDB suffered a further blow when at the end of that year the Brazilian government announced a major shift in its economic policy, which would include import restrictions.
As a result, NDB determined that it could no longer continue its aftermarket business, and shut down operations in March 1981, thereby becoming a dormant company. Meanwhile, however, DENSO had put a new Brazil Project into motion. The know-how accumulated by NDB would be leveraged there.