Changing competitive conditions in Brazilian industry are leading comp
anies to seek Japanese management techniques as a means of rapidly rai
sing productivity and quality. Macroeconomic instability, low levels o
f educational achievement and poor labour relations would seem to pres
ent barriers to the use of these techniques. Case studies of firms in
the motor components industry show that firms in Brazil can make radic
al changes to their production systems, overcome educational deficienc
ies and also secure reverse past employment relations practices in ord
er to obtain some degree of acceptance of change by labour. However, t
here are reasons for supposing that these successes may be difficult t
o sustain in a difficult and turbulent macroeconomic environment.