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October car sales in Brazil drop 10% surprising dealers and the auto industry

Friday, November 4th 2011 - 08:14 UTC
Full article 7 comments

Car sales in Brazil dropped 10% in October compared to the previous month according to the country’s dealers association, Fenabrave turning warning lights on for the global auto industry. This follows September’s decline that affected all of Brazilian industrial production. Read full article

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  • GeoffWard2

    This news will hit Argentina badly, also (car-parts/cars - export to Brasil). A bad time for a downturn.

    Nov 04th, 2011 - 01:26 pm - Link - Report abuse 0
  • Yuleno

    This news will hit brazil badly,Geoff.a decline in cars sales in Argentina will be a decline in brazil.but how does this square with a growth rate that makes brazil the 6th economy globally.something is amiss unless it's posturing for a recession to concur with the needs of global capital.this would beg the question,why is capitalism so great for the working class when the capitalist are the ones who lack discipline.the working class just do the paying

    Nov 04th, 2011 - 04:54 pm - Link - Report abuse 0
  • briton

    Why are you surprised, did i not say in oct, it was better to go by bicycle.
    Just a wheelie thought

    Nov 04th, 2011 - 07:55 pm - Link - Report abuse 0
  • GeoffWard2

    I think Brasil has been trying to take some of the heat out of the economy and to restrict the high levels of speculative capital. I may be wrong, but it seems to me that this will have some spin-off into the domestic economy, especially the buying of 'luxury goods' like cars.

    Perhaps 6th place in world on GDP has a lot to do with the high price and demand over the period in question of raw materials and other commodities traded abroad.

    [Gross Domestic Product: The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.]

    Brasil is a huge country exporting huge tonnages of material; this must place it well in terms of GDP c.f. smaller countries trading smaller tonnages. It has a huge and growing consumer-base but its imports of finished goods is also very high.

    What is unclear is if this is the Constant Price GDP - i.e. inflation compensated. This is important because Brasil is flying above its inflation ceiling.

    Another worrying variable is the extent that GNP contributes to Brasil's GDP - specifically the amount of cash foreign firms generate within the country which may then 'go back home'.

    Nov 04th, 2011 - 08:51 pm - Link - Report abuse 0
  • Yuleno

    Geoff do you not think that consumer confidence has an impact here and that companies are not buying motors.the problems in the'advanced ' economies will create drops in demand for goods in general.a drop in motors and a rise in investment in infrastructure can be expected in most countries the significance of being 6th or 7th has little relevance it's how the wealth is distributed and who controls capital,foreign or national capitalists

    Nov 05th, 2011 - 11:18 am - Link - Report abuse 0
  • GeoffWard2

    They say you can buy your way out of a recession, you can consume your way out of a recession, but when confidence goes - and I guess this normally accompanies rapidly rising inflation - governments can create 'New Deals' to re-build slumped employment and build 'things', building their way out of recession. Sometimes it works, but it does seem to need a highly-controlled 'command economy' of the type not really seen in South America.
    Bringing more wealth into the country from export sales than leaves it through import purchases is a big part of the equation - otherwise all you really have is stimulating the nation's people to spend, spend, spend. And in many countries the amount owing on credit from over-spending cripples families and cripples nations.

    There really is no such thing as a free lunch.

    Nov 05th, 2011 - 12:29 pm - Link - Report abuse 0
  • Yuleno

    There are free lunch's but they are called business lunch's.in New York there'll be quite a few as in London and Cannes France this week et.you'd think they didn't have money to buy their own lunch.there would be no need to spend spend if wages took more of what labor create and capital growth less,but then capital gets moved if that was done.brazil certainly will not attempt that,the car plants will get moved if there is any hint of labor demands being listened to.

    Nov 05th, 2011 - 06:56 pm - Link - Report abuse 0

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