**IBAP’S FOUNDING**
In the early 1960s, young businessman Nélson Fernandes, owner of a country club (Acre Clube) and a hospital (Presidente) in São Paulo, had something ambitious in mind: to manufacture, in a domestically-owned industry, modern automobiles with a Brazilian design. The domestic models at the time were generally outdated models brought from their parent companies or licensed by foreign companies.
In October 1963, he founded the Brazilian Automobile Industry Presidente (IBAP), with facilities built on a 1,014,719 m² plot of land in São Bernardo do Campo, in Greater São Paulo, with 1,500 m of frontage on kilometer 32 of Via Anchieta and 800 m of backing on Estrada Velha de Santos. The factory’s plans included a built area of 300,000 m².
The factory in São Bernardo do Campo: https://www.vemquetemautos.com.br/portal/painel/thumbs.php?src=uploads/NOTICIAS/29/1479126804991061157.jpg&Q=90&W=500&H=375
At the entrance to the factory, a sign with the patriotic emblem of IBAP and a message from Fernandes, who talks about “convincing even the most skeptical spirits”: https://www.vemquetemautos.com.br/portal/painel/thumbs.php?src=uploads/NOTICIAS/29/1479126807628187422.jpg&Q=90&W=500&H=375
The intention was to produce three vehicles: a popular car with a 300 to 500 cc engine, a utility vehicle and the luxury model, the Democrata, a three-volume model in two-door coupe and four-door sedan versions, with a 2.5-liter six-cylinder rear engine. The name Presidente Democrata would sound ironic six months later, in April 1964, when a dictatorial regime was established following the deposition of President João Goulart.
The popular model was supposed to be the first model manufactured, but a change in direction led to the Democrata taking the lead. Its fiberglass-reinforced plastic body allowed production to begin immediately, without the need for the time-consuming and expensive development of tools to press the metal sheets, which the popular car would require. It was an important advantage to have some vehicles ready even before the company began capitalizing.
Fernandes, with a strong sense of patriotism, placed an outline of the map of Brazil on the brand’s logo, inside a stylized gear: https://www.vemquetemautos.com.br/portal/painel/thumbs.php?src=uploads/NOTICIAS/29/1479126841799012978.jpg&Q=90&W=500&H=375
To raise the capital needed for the investments, IBAP would use the same financial scheme as Fernandes’ club and hospital, which two decades later would allow Gurgel to produce the BR-800: the sale of shares. Through this method, it would obtain 87 thousand shareholders, who would be entitled to dividends and priority in the purchase of a car every 15 months, with a 20% discount and paid in 30 monthly installments. The number was not long in being reached, showing that, in the case of both IBAP and Gurgel, there is a flame of hope (that still burns bright to this day) that, one day, Brazil will have its own car brands, which South Korea and Malaysia have already achieved.
**THE DEMOCRATA**
With a modern design the Democrata was a typical mid-size sedan of the time, measuring 4.68 m (184.25 in) long and weighing 1,150 kg (2,535.32 lbs), the same as a Simca Chambord (the Brazilian version of the French Simca Vedette).
Its style was modern, clearly inspired by the American and European trends of the time; there is a special similarity to the Chevrolet Corvair, but also, in the case of the coupe, to the Camaro and the Ford Mustang, which had not yet been launched in 1963. The similarity to the Corvair may be related to what would be said in the automotive world years later: that the Democrat prototypes had been built on the chassis of this American Chevrolet, including using its engine with opposed cylinders.
The four-door version, similar to the Corvair in design, did not survive: it only appears in photos from the time, such as this one from its advertising: https://www.vemquetemautos.com.br/portal/painel/thumbs.php?src=uploads/NOTICIAS/29/1479126810443679167.jpg&Q=90&W=500&H=375
The rectangular headlights, low waistline and wide windows highlighted the modernity of the design, which had its own profile for the coupe (without a central pillar) and sedan versions. The front grille was merely an adornment, since the engine was in the rear. Its hood had an interesting curved profile at the rear end, which accentuated the air intake.
It was the time of the charm of the rear engine, sparked by the resounding success of the Beetle all over the world, including here. This was the right recipe, the strategists of the automobile industry believed, so much so that with this configuration the Corvair was born in 1959, designed to compete with the Volkswagen. Thus, the Democrat would have a rear engine too. Why not?
CORVAIR ENGINE?: In mid-1966, already amid the turmoil that led to the company’s closure, IBAP decided to present the Democrata at the Auto Show, which was still held at the Ibirapuera Motor Show in São Paulo. There was the sedan with modern lines, shiny and conveying the hope of a truly national factory, not those transplanted from other countries. But surprise: those who paid close attention noticed that the engine was a six-cylinder horizontally opposed engine taken directly from a Chevrolet Corvair, not a V6, as had been rumored. The fact went unnoticed by the press and most people, but some saw it as a repeat of the Tucker’s history: planned to have a revolutionary engine and hydraulic wheel drive, it ended up with a simple helicopter propeller coupled to a pre-World War II Cord L-29 transaxle…
The interior, well-finished and refined, featured five seats, individual reclining front seats, a central console with a gear lever (four-speed manual), carpeted floor and AM radio. The three-spoke steering wheel matched the sober dashboard, covered in genuine rosewood.
The plastic body, used until then only in the Willys Interlagos (Brazilian version of the Renault Alpine A108, but with similar lines to the A110), and the off-road models such as the Puma and many others, which would only appear years later, was more suitable for small-scale production, not in the large volumes that IBAP announced. But it had the advantage of allowing immediate production and minor benefits, such as the absence of rain gutters (which are actually joints in the metal panels), easy attachment of the roof lining and, of course, immunity to corrosion, a problem that suffered from national cars at that time. Naturally, there were those who doubted its resistance, especially at a time when, for most people, a quality car was the one that was least damaged in a collision, even if this implied a more severe impact to the occupants, as we know today. To demonstrate its robustness, IBAP proposed that interested parties beat a Democrata body with heavy iron pipes during its presentations throughout the country.
**CONTEST OF PRESIDENTS**
The bodywork and mechanics were designed in Brazil by IBAP itself, with the exception of the engine: a 2.5-liter 60° V6 with an aluminum block and head (a luxury for the time) and a valve train on each head. Manufactured in Italy by Procosautom (Proggetazione Costruzione Auto Motori, automotive design and construction company) from Milan, owner of the famous Retífica São Paulo in the capital of São Paulo, it was similar to Alfa Romeo engines of the time.
Some sources claim that IBAP intended to produce it in Brazil soon. Company representatives claim, however, that “the campaign developed by the enemies”, as we will see later, “could result in sabotage in the development of the project”. This is why the late Francisco Landi, a former racing driver and then technical consultant for IBAP, is said to have suggested that the risks would be much lower if the entire mechanical assembly were manufactured outside Brazil.
A curious feature of this V6 was the arrangement of the intake and exhaust, which resulted in an inverted transverse flow. While in traditional “V” engines the intake ducts face the center of the “V” and the exhaust ducts face the outside of the engine, in the Democrata it was the other way around. The exhaust pipe came out of the middle of the “V” and there was a Solex C40 carburetor on each side, “hanging on the outside” of the engine. This did not represent any advantage or disadvantage, it was just different.
Another peculiarity was the engine block and the transmission housing forming an inseparable set, as in almost all motorcycles. The 120 hp (net) power at 4,500 rpm, an unjustifiable low revving, considering the overhead camshaft, allowed it to reach 170 km/h (105.63 mph) and accelerate from 0 to 100 km/h (0 to 62 mph) in just 10 seconds, according to the company, thanks to the good weight-to-power ratio of 9.6 kg/hp (21.16 lb/hp).
If these numbers were confirmed, the Democrata would surpass by a good margin the fastest Brazilian car at the time, the FNM 2000 JK (Brazilian version of the Alfa Romeo 2000), which with 95 hp (net) reached 155 km/h (96.31 mph). If it reached the market, it would be a great “contest of presidents” (JK was a tribute to former president Juscelino Kubitschek) for the performance leadership among national cars. According to IBAP, the average fuel consumption was 7.5 km/l (17.65 mpg). The electrical system was already 12 volts, with an alternator.
The suspension, independent on all four wheels, used coil springs, the front with overlapping triangular arms and the rear with the menacing oscillating half-axles, like the Beetle and… the Corvair (in 1965, however, the latter switched to semi-trailing arms, greatly improving stability). This was mounted on a subframe, fixed to the body by four bolts, so that the mechanical assembly (engine, transmission and suspension) could be easily removed.
There are no reliable records on the stability of the Democrat, but the only positive point was the lightness inherent in the extensive use of aluminum in the powertrain, as Porsche has always done, for example. The rear suspension certainly would not last long without undergoing a reformulation.
The brakes consisted of large drums (disc brakes were yet to become popular, having appeared in Brazil in 1966 on the DKW Fissore) and the steering box was located behind the front axle, a safety precaution due to the reduced possibility of the steering wheel invading the passenger compartment in the event of a head-on collision.
**TURBULENCE IN SIGHT**
By building five units of the Democrata and launching a promotional campaign that took them to various points in the country, in order to win over shareholders for the company, Fernandes also began a process that would lead to the end of his project. The proposal of a car designed and built by Brazilians, especially with modern technology, may have triggered adverse reactions motivated by the interests of the already established manufacturers.
Going against the interests of large groups usually results in pressure to ensure that a given project is not successful. There is no proof of this type of action, but certain facts are conclusive.
When Preston Tucker was trying to get his car factory off the ground in the United States in the late 1940s, the story goes that suppliers of components and materials refused to do business with the company. One of these suppliers, it is said, supplied modeling clay to the entire industry, but not to Tucker. Clay is still essential in the process of building prototypes today, as it will constitute the first three-dimensional image of the new model. The most powerful factories have virtual reality centers, where projects are viewed in three dimensions with the help of special polarized glasses from a projection on a screen. But they are still not a perfect substitute for a 1:1 scale model made of clay when it comes to studying it with attentive eyes. Interestingly, when Gurgel tried to develop the BR-Van, a five-seater minivan derived from the BR-800, in late 1988, the company from Rio Claro, SP, could not find clay on the market. Was it pressure from the established car industry or was the supplier’s fear of delivering and not receiving? No one knows.
IBAP was not taken seriously by most of the media and was even criticized by some, without anyone coming to its defense. There were skeptics about the company’s integrity, which announced in its advertising its intention to produce 350 cars per day in 1968, the same as Volkswagen, the absolute market leader at the time. The announced price at which the car would be offered to shareholders, too low for its characteristics, also raised doubts.
IBAP’s difficulties began to increase when a cargo ship carrying Italian mechanical components was intercepted and the cargo, considered contraband. Although its origin was known and its documentation was in order, according to the company’s reports, it was seized.
Later, when the federal government put the state-owned FNM (Fábrica Nacional de Motores) up for sale, IBAP was prevented from acquiring it. Interested in the purchase, Fernandes agreed with his shareholders to contribute a certain amount and formalized the proposal to the government, providing the land in São Bernardo do Campo as collateral. Although FNM’s own board of directors was in favor of the deal, the Ministry of Industry and Commerce reportedly rejected the proposal without explanation.
The businessman also sought an alternative bid from the Registry of Titles and Documents, but was refused again, claiming that “the bidder has neither the financial capacity nor the technical suitability”.
During the purchase negotiations, the Central Bank and the Federal Police carried out an inspection of the IBAP offices on Avenida Ipiranga and the residences of the company’s directors. Accounting books, bank account statements, projects and documents, including those from Hospital Presidente, were seized. Although, according to the company, no irregularities were found, FNM ended up being sold to the Italian company Alfa Romeo in 1968.
**THE DECLINE**
Criticism and skepticism surrounded IBAP. In June 1965, the National Congress created a CPI, a Parliamentary Commission of Inquiry, to question Nélson Fernandes and hear experts. A year later, according to a contemporary edition of Quatro Rodas magazine, 64 pages were published in the Congressional Gazette, which stated that the company had no accounting records, books or balance sheets.
Also according to the magazine, until mid-1966 there had been no contact between the company and auto parts or even machinery manufacturers. “IBAP says it surveyed all the parts, down to the screws, and the manufacturers, who are the most interested parties, were not consulted,” the publication reported.
The repercussions of the cases led to the cancellation of 37,000 of the 87,000 share certificates issued by the company, leaving 50,000 shareholders. Of these, 20,000 had already paid their installments (to be paid in 20 months) by mid-1968. That year, IBAP was transformed from a corporation into a condominium in order to increase the resources for the venture. Fernandes also managed to get an audience with the President of the Republic, Artur da Costa e Silva, to try to convince him of his proposals. Meanwhile, prototypes of the Democrata were exhibited at the Hotel Nacional in Brasília. But there were other difficulties along the troubled path of IBAP.
After a quick inspection of the company, the Central Bank of Brazil prepared a report attesting to the “non-existence of production or assembly of any of the components of the motor vehicle”, the “non-existence of contracts with any of the vehicle or auto parts factories, whether in the country or abroad” and “the company’s organization does not include technicians in any of the numerous specialties essential to the manufacture of automobiles, or to the preparation of the respective projects”. The report led the Central Bank to file two lawsuits against IBAP in the Federal Court. The complaint ended up triggering a new criminal proceeding in the State Court against the directors of IBAP, Nélson Fernandes, Paulo Walter Saldanha and Wladimir Bellagente, accused of “illegal collection of public savings under the false pretense of building an automobile factory”, for which they were convicted. A lawsuit for judicial dissolution was also filed against the company in the Federal Court. Fernandes was forced to close down his business, which happened at the end of 1968. The company’s assets were seized by the courts, and the São Bernardo factory has been closed ever since. Only five prototypes were completed and no partner was able to realize their dream of acquiring, at an attractive price, the first car designed in Brazil.
In 1988, the magazine Oficina Mecânica managed to access what was left of the factory: a few complete cars, dozens of bodies (one of them still in the mold), some engines on the bench, the plastic and wood mold car used to mold the bodies and, of course, a lot of dust. A four-door Democrata, perhaps the only complete one, and some bodies had simply been buried after a warehouse collapsed.
**RESTORATION**
The brothers José Luís and José Carlos Finardi, who now own a mechanical service center in São Bernardo do Campo, SP, are responsible for what remains of the solid history of IBAP. In 1990, they purchased 30 Democratas for US$30,000, most of which were just bodywork, remaining from the factory and then released by the courts. Another vehicle was later purchased from a collector. Restored in a record time of 40 days, with the help of specialist Donizete Costa Longa, the beautiful red Democrata coupe was an attraction at the Carro do Brasil event, held in 2001 in Brasília, DF, and at the antique car gathering in Águas de Lindóia, SP, last year. The brothers intend to restore two other units in the future, in a commendable effort to preserve this piece of history.
**TECHNICAL DATA**
ENGINE: longitudinal rear mounted; 6 cylinders in V; liquid cooling; overhead camshaft, 2 valves per cylinder
·Bore and stroke: 84 x 76 mm
·Displacement: 2,527 cc
·Compression ratio: 8.2:1
·Maximum power: 120 hp at 4,500 rpm
·Double-barrel carburetor
GEARBOX: manual, 4 gears and rear wheel drive
SUSPENSION
·Front: independent, overlapping arms
·Rear: independent, oscillating half-axles
BRAKES: front and rear drums
STEERING: no power assistance
WHEELS – 5 x 15 in
TIRES: 7.35 – 15
DIMENSIONS
·Length: 4.68 m (184.25 in)
·Weight: 1,150 kg (2,535.32 lbs)
PERFORMANCE
·Top speed, 170 km/h (105.63 mph)
·Acceleration from 0 to 100 km/h (0 to 62 mph): 10 s.
