Monday, August 4th 2014 - 07:16 UTC

Brazilian auto industry drops 36% in June and drags industrial output

Brazil's industrial output fell 6.9% in June compared to the same month last year, mostly due to a contraction of the automobile industry, reported the official stats office last Friday.

The official excuse is that June/July were the months of the World Cup when many industries gave additional holidays

The figure marks the worst year-to-year drop since September 2009, when the industrial output tumbled 7.4%, according to the Brazilian Institute of Geography and Statistics (IBGE).

The institute noted that the drop in production was linked to the 2014 Brazil World Cup, which ran from June 12 to July 13 in 12 Brazilian cities, where additional holidays were declared and factories were temporarily closed.

Compared to May, industrial production fell 1.4% in June, closing the first six months of the year with an overall drop of 2.6% compared to the first half of 2013.

Only six of the 24 industrial sectors studied by the IBGE registered an increase in output, including petroleum byproducts, bio-fuels, and food and beverages, while the one that contracted the most from the month before was the auto industry, with 12.1%.

Compared to June 2013, output in the automobile sector dropped 36.3%.

Brazil, Latin America's largest economy, is a major market for global automakers, such as Italy's Fiat SpA, Germany's Volkswagen and U.S.-based General Motors and Ford Motor.
 

10 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Comments should refer to article. Thank you.

1 ChrisR (#) Aug 04th, 2014 - 06:29 pm Report abuse
“Brazil, Latin America's largest economy, is a major market for global automakers, such as Italy's Fiat SpA, Germany's Volkswagen and U.S.-based General Motors and Ford Motor.”

And I bet they are regretting that big-time.

Just wait for the effect the Olympics has on everything: if they are lucky it might finish the auto business once and for all.

Just a 'ray of sunshine' aren't I?
2 ilsen (#) Aug 04th, 2014 - 08:51 pm Report abuse
Vene-Brazo-Cuba anyone?
Is the cancer spreading?

I raise your 'ray' to the 'merest glimmer'............
3 Brasileiro (#) Aug 04th, 2014 - 09:21 pm Report abuse
All car companies installed in Brazil are multinational.
4 ChrisR (#) Aug 04th, 2014 - 10:13 pm Report abuse
@ 3 Brasso

There's the risk! Do you really think any of these companies will stay once the decide they are looking at long term losses?

No chance, they will just move even more output to Mexico, they are having a job keeping up with prodution for the US anyway.

Never mind, you can thank Dilma and The Liar Mantega for fucking around with Mr. Market over the last two years.

He doesn't like it, especially when they look like Dilma. :o)
5 Brasileiro (#) Aug 05th, 2014 - 12:36 am Report abuse
The Brazilian car market is the fifth largest in the world. Perhaps Brazil need to put more competitors in the market. Maybe we place a Brazilian competitor.
6 ilsen (#) Aug 05th, 2014 - 10:33 pm Report abuse
Maybe?
Who will invest in a 'maybe'?
7 ChrisR (#) Aug 06th, 2014 - 11:59 am Report abuse
@ 5 Brasso
“Maybe we place a Brazilian competitor.”

Name ONE.
8 Jack Bauer (#) Aug 06th, 2014 - 05:20 pm Report abuse
ChrisR@7
Seems the Brazzo once again is revelling in his own stupidity....but to answer your question, I can name one......the “donkey”....you know, the four-legged beast that inhabits the northeast of Brazil (not the “burros” that live in Brasilia), and has been very effective in carting people and their stuff around, for centuries. And the way the economy is going, might be advisable to get myself a donkey before the price goes up.
9 ChrisR (#) Aug 06th, 2014 - 06:44 pm Report abuse
@ 8 Jack Bauer

Brilliant, but why stop at one.

Buy three, a Jack and two Jenny's and start your own “auto factory”. :o)
10 ilsen (#) Aug 06th, 2014 - 09:40 pm Report abuse
:-)

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!

Advertisement

Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!

Advertisement