They actually have some decent manufacturing and design capabilities. Just no where near enough for how fast they want to grow production/income. And they keep policies that strangle outside help.
I was down there in 2010 on a business trip. A buddy of mine and I were looking at buying a company down there until we realized their labor rates are higher than ours because of their cradle to grave Socialism. From what our host described their bureaucracy is worse than ours, too. Employers must match employee salaries 100%, paid to the gubmint to fund the employee’s social welfare. They lack infrastructure, too, primarily highways between their major cities. You see it when you fly in. You’ll see towns of say, 50,000- 100,000 with roads leading out of the city. About 8-10 miles out the roads just end. The only way to get around in Brazil is to fly. It’s a young, highly motivated society, though. Highly caffeinated, too. I think the lack of roads, the Socialism and the obstacles their government puts up to foreign investment are the three main culprits keeping Brazil in 3rd world territory. Otherwise, it’s a beautiful country and the people were very friendly. I was in Porto Allegre, down south, almost to Uruguay. That area was settled by Portuguese, German and Italian immigrants. Everywhere you looked were some of the most beautiful women I’ve ever seen. I mean real jaw-droppers. By contrast, the men were mostly short, fat and bald. Go figure!