CHAPTER EIGHT
IT’S LOVE!
“It’s love, it’s love that makes the world go round”
Unknow Author
May, 1994. On a weekend visit to Jaguariuna, Tony’s Uncle Frederico invited him out for dinner at a local restaurant. And there she was, the most beautiful girl he had ever seen! That was not love a first sight…it was instant love! During the evening he learned her identity and Don Juan went into action again. She fit his profile to a T and he just had to date her.
Sharon Lozada, a Brazilian, was 23, of Spanish descent, blond haired, blue eyed, very beautiful.
A typical inland Brazilian girl, Sharon had few dreams beyond marriage. She was the only daughter of four children, and in her early twenties. At this age in Brazil there is a lot pressure from family and society to get married. She had recently broken up with an old boyfriend, who had promised to marry her, and she was very disappointed with that.
So here comes Tony, at the right place and right time. A week after they began dating she asked him to marry her!
Tony was in love with Sharon, but didn’t want to make the same mistake again, so he agreed to marry her in one year, although he was a bit uncomfortable with the obligation part of it. Once he had agreed, Sharon kept the pressure on twenty-four hours a day. Not a day went by when there wasn’t some reference to the obligated marriage.
With the exception of the marriage pressure, Tony was happy and loved Sharon.
They enjoyed each other’s company and had a lot of fun together; he couldn’t wait for their weekend time together, since he was spending more and more time in Brazil.
Christmas, 1994. Tony invited Blacker and his wife to spend Christmas together in the USA, and also brought along Sharon and his family. By now Tony’s sister, Sandra, was also living in the USA.
Interesting fact: Around this time while Tony was in the USA, the Customs services in Sao Paulo went on strike. This was not uncommon in Brazil, so the only way to clear goods out of the country was through the Department of Personal Goods. This was not the conventional way, but was the only way to do it. When the Exbrus van arrived at the Sao Paulo office, some people identified themselves as a Federal Police (similar to FBI in the USA). Even with the proper clearance paperwork, the police claim was not in the name of the company. One needs to understand the level of corruption in Brazil: the idea is to make you guilty enough to negotiate your way out of it. So when Tony was called and notified about it (he was in L.A.), he called Michael Santini to negotiate.
Michael soon learned that they were asking for thirty thousand dollars, ten times the value of the merchandise. Michael was about to negotiate it down to half of that amount when Blacker arrived and authorized payment or the original price.
Tony did not understand this decision, but later Blacker explained that he did not want to mess with these people, and of course Tony had to pay all of it. Later Tony learned that Blacker had set up the whole thing! What are friends for?
Most of the time Tony was in the US Blacker had helped him on a part time basis, but he was not a full time yet.
Anyway, even Tony was so mad with this situation in Brazil that he kept on his planned travel arrangements. Blacker and his wife arrived: they had lots of fun traveling through Los Angeles, Portland, Seattle, Victoria and Vancouver.
Around this time Tony hired Bernard Silva as an office boy; later this person became a key factor in Tony’s life.
Bernard Silva: Used to work as doorman at a night-club in Sao Paulo. He had little other experience. From the northeast of Brazil, he was initially very loyal to Tony. He was a good learner and later became a Logistics Manager.
Business was good as usual, and Exbrus was always growing. I have no idea how to relate Tony’s attitudes; would the people sometimes take advantage of the situation. If he was transparent and shared his ingenuity would he regret it?
This time Francisco, the new sales manager of Sao Paulo, got together with clients to open a similar business. Tony thought, I am in the wrong business, I must be teaching future new entrepreneurs!
Not only did he get a surprise this time, Tony also got his first economics changes in Brazil. You see, Brazil is famous for changing the rules in the middle of the game, and to protect the local automobile industries, which were losing sales every day (this time Brazil’s General Motors was the one behind it) they increased the import duties from 20% to 70%, overnight. This would impact an increase of over 100% at the final price when you add all the other taxes involved.
It was taxes on top of taxes! I have no idea how the Brazilian people accept that.
The government does whatever they wish; it looked like England thousands of years ago.
Tony could not believe all the things that were happening. He saw his world fall apart overnight. Sales dropped 50% in the first month, and another 50% the following month. Exbrus had cars ordered from several dealers in the USA, and he had to cancel it all. It was shit on top of shit.
By now he had already set a date to get married. To cancel it now would impossible.
So he decided to go on, and believed the crisis would not be long so he started to use his lines of credits in Brazil, to keep the business going. He kept his costs steady to minimize the costs of operations; still hoping things would get better. Needless to say, he crashed.
May, 1995. So the wedding date arrived. It seemed that Tony had forgotten all his problems and dedicated himself to this coming event. What is amazing about Tony is that he has the magic touch when it comes to events. So he organized the event very professionally. It was a big wedding and hosted five hundred family and friends. The ceremony was held in a private club. Among the guests were Uncle Frederico and Michael Santini. His uncle was like the reverend and Michael the intellectual. At the last minute Tony decided to speak and got everyone emotionally involved...
Well, Sharon, it finally happened!
I told you when I first met you that I would make you the happiest woman on earth.
I told you that that I would make you my princess! Well! You are my queen today!
I am not here only to sign a document. The document I have in mind it’s much more you and me!
I want to be very happy by your side; I want always to be at your side at all moments. Be it sad or happy moments.
I will always love you! You will be the mother of my kids! You will be everything I ever dreamed in my life.
All this is a dream come true to me, and it’s the most beautiful dream of my life (Sharon gets very emotional and tears drop)
Thanks for always being at my side! I love you so much!
Sharon replies:
I am very touched and don’t know what to say, but without a doubt, today I am a very happy woman!
I love you! (Everyone claps)
The whole event was poignant and so touching that few emotions were left out; the place overflowed with love, and was shared by everyone. Love was in the air! Though prejudiced, I thought it was the best wedding I had ever seen. Everyone happy! Everything perfect!
Needless to say it was considered the best wedding ever held in Jaguariuna.
On their European honeymoon, Tony, as usual took some time for the business. He stopped in Madrid to open a new office for Exbrus. About this time the demand for European auto parts was growing, because of all the Fords imported from Spain.
Interesting fact: Among other things Blacker initiated Michael’s wife’s factoring business (anticipating accounts receivables financing) into the operation. Just before Tony’s wedding, during the crisis of President Collor’s impeachment, Blacker had a lot of business with government companies, and claimed that he could not pay his debt of over one million dollars because with the crisis his accounts receivables were stagnant. Tony never took part in these transactions. It was done exclusively between Blacker and Michael’s wife. Tony always believed in Blacker telling the truth, especially after he was able to recoup the money in other businesses with Michael.
Around this time Tony was spending most of his time in Brazil, trying to get business going, when Sharon became pregnant. Tony decided to close the Miami office and would stop paying the local taxes in Brazil.
Every time Tony’s had a challenge on his hands, he needed to get away to solve it; that’s the way he managed his life, so he decided to make one of his dreams come true. He would drive from Los Angeles to Sao Paulo; he would not do it by motorcycle, but would do it by light truck. In this way he hoped to regain his energy.
So that’s how the “Great Voyage” was done. But it would take another book to describe this challenging 10,000 miles in 19 days odyssey through America, Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Colombia, Ecuador, Peru, Bolivia and finally Brazil.
Tony was to meet his destiny as he went on with his life. On the trip driving through Bolivia he met a few Brazilian immigrants who told him all the current advantages of doing business in Bolivia...
After the trip he shared this idea with Uncle Frederico and his uncle related that he also was looking for some new opportunities in Bolivia, he also had talked to few people about it. So they made a pact: They would start a business together. Tony would open an office in Santa Cruz for Exbrus and his son Bryan would buy and run a farm property. Tony also decided to bring along one of his employees, Ernest. He was presently working in the Goiania office of Exbrus.
However before he could go, and needed to settle the late company’s local taxes, that were now five months in arrears. Since he started his business in Brazil, he calculated that to date he had paid about one million dollars.
So he went to the local office to try to get a payment plans to repay the late taxes, only to be told:
“If you want to make a 3 months installments, I would do it here, now if you want to make 6 months you would have to talk to my boss at the office across from here, or if you talk to the supervisor above, you could make it 12 months and finally if you go to the governor’s secretary’s office they can make it in 18 months. Which option would like?”
Looking shocked Tony opted for a talk with the governor’s secretary.
At the secretary’s office he is greeted with a smile and the statement, “I know things are difficult nowadays, so I approve it!”
Tony was astonished. The message was so clear: in this country only those who do not pay any taxes, or defer it as much as possible, move forward. He thought what an idiot I am. If I had not paid I would be in a much better position.
Life is an eternal learning process and as much as you learn, you find that you know nothing!
July of 1996: Harrison Lima is born! He is Tony and Sharon’s first son. Tony was extremely happy!
Everything was set and he was off to do business in Bolivia! Tony took the opportunity to return the Ford Explorer from the “Great Voyage”, because Brazil would not accept importation of used automobiles and Bolivia does. So Tony, Bryan and Ernest drove to Bolivia.
Bryan Lima: Tony’s cousin and son of Uncle Frederico. Bryan was very close to Tony’s dad and his family. He had helped Tony on several occasions.
Ernest Justus: Tony had met him while he was a kid, back when he was in Goiania. He was the son of the couple that had helped him at the start in Goiania. Ernest was an incredibly honest person. He would change his life after a bad transaction, when he sold his car to a crook in Goiania, who never paid him. The car was everything he had owned at the time. His life went on hold after that.
They arrived on the Brazil Bolivia border right before sunset, and when Tony’s asked the local customs agent for a driving permit for Bolivia, the officer told him that he had to go to the train station, nearby, but they would close in about 15 minutes. Tony drove fast on a single lane highway to get to the office before it closed. Ahead of him was a driving circle where you had the option of driving ahead or making a right turn. The officer sitting in the passenger seat said nothing, and Tony kept driving past the circle. As he passed the circle this old beat-up car and crossed the road right in front of Tony’s truck and he hit the car right dead center. Tony could not believe what just happened, because he had the right of way. How could this car not see him? So he got very mad and some police officer comes by and tells Tony’s that he has to pay for the damages for the car. That was it! Tony looked into the officer’s eyes and addressed him in a shrill tone.
“What is wrong with you? This car crosses in front of me; he is the one wrong, not me!”
At this time the officer tells Tony he is going to prison! After a lot of discussion they drove to the local police station and Tony was locked up. By this time Tony had learned that the road that he was driving on would go to the airport, and although he had the right of way, no one ever drove in that direction, because the airport was not operational; all cars automatically turned right and the car that he had hit, had that in mind. So to make a long story short, after a lot of negations between Bryan, Ernest and the police, Tony had to pay for the local’s car, and later had to pay off the local authorities in order to be released. And that’s how things work in Bolivia!
Learning Fact: Unless you are an attorney, don’t ever disagree with anyone with the badge of authority. You will always lose!
Challenge resolved, they drove to Santa Cruz and Tony looked for office space, a local accountant, and whatever is necessary to establish a new corporation, and Bryan looked for farm properties for sale. In one of the visit to farms, on the way back, Tony got the flu, and a high fever, so he asked if Bryan could drive back to the city, some 10 miles away. To make matters worse Bryan hit and killed a cow on the way back. Fortunately they did not call the police this time, as later on they learned that if in Bolivia you killed an animal, you got to jail until they find the owner of the animal, so you can pay up.
Nothing else needed to happen on this trip! Bryan wanted to return immediately.
And he swore he would never set foot in Bolivia. But Tony was persistent and as usual stayed, rented a house as an office and opened the corporation. Ernest would manage the new office for Exbrus in Santa Cruz da la Sierra.
Tony returned to Brazil, changed the office location to reduce operation costs, hired a new sales manager, this time a guy name Sebastian Ruskus, an ex manager for Michael Santini Corporation, and started everything from scratch. Then he identified a new opportunity in Korean auto parts, got new suppliers in Korea, and he was off again.
Bill Fisher – Friend of Tony’s whom he originally met in Los Angeles, when he worked for the Ford dealer. Bill came to the dealership one day to get information about a Ford he had purchased in Florida, and from that time on, they had become good friends.
It was Bill Fisher who helped Tony to get back the Exbrus Corporation around this time, and giving him the first opportunity to diversify his business to different areas. Bill had started a new business for soft drink vending machines in Brazil, and hired Exbrus to do all the logistics.
Little by little things started moving. Tony sought new opportunities in different areas. As expected, the Bolivia office was closed down in about a year. The only good thing to come out of it was that it provided Tony a place to relax and get his energy back. Ernest returned to the Sao Paulo office.
In one of his last trip to Santa Cruz, Bolivia by coincidence, Tony discovered that Sebastian Ruskus (the new sales manager) had formed a new corporation in Brazil and was acquiring auto parts from a Bolivian supplier, originally contacted by Tony, without the knowledge of Tony, of course.
This was the last straw! Tony wasn’t angry. He was furious! His hatred knew no bounds. “What is it? Everyone wants to rob me? Why? What do I do it wrong?” he grumbled.
In Sao Paulo he set a meeting with all employees, and made Sebastian confess. If you could measure Tony’s anger that day on a scale of one to ten, it was eleven.
He promoted Ernest to the manager position and decided not to bring anyone new into the company again. He was tired of these bad experiences and corrupt employees.
These people were amazing. They could try to pull a fast one but it never worked. Anything built on a shaky foundation will fall very soon. All those people that did this to Tony did not last more than six months in business. They believed they knew everything, but when it got down to business they knew nothing. And the interesting thing was, that if you worked with a guy like Tony he would want to establish a business for you; he would help you, even if was in the same field. Moreover, I believe that is true for any genuine entrepreneur, as they are not afraid of competition. They welcome it because they know their own capabilities, and nobody steals what is yours, and somehow even if they take from you, it will come back to you some day. And the crook has to live with his misdeed for the rest of his life, and some day he would have to deal with that. And that is the truth.
Meanwhile, Tony discovered that his brother Richard was not well in Los Angeles.
Now Tony learned that Richard was on drugs, cocaine, and his sister, Sandra, could no longer handle him. Tony immediately flies to Los Angeles to bring Richard back to Brazil. He found Richard in a very bad situation and it was depressing. That really hurt Tony. And at the same time would ask him, how could he have not seen it before? Why was he so blind?
Tony packed up Richard’s stuff and brought him back to Brazil. He tried to get him into a rehabilitation clinic, but Richard would not accept it. Forget it! Ever since he was a kid, Richard’s no was firm. He never looks at himself as a drug addict. But he agreed to stay with his parents. And Tony felt relieved; at least he would stay close to his parents.
The connection that Tony originally had with Los Angeles and Sao Paulo started to go down now. Several airlines cancelled the flights from Los Angeles to Sao Paulo; the suppliers would not have good prices anymore and Exbrus did not have the same credit rating as it had it before. New actions needed to be taken – and soon!