MercoPress. South Atlantic News Agency
Brazil's auto production rose in March but is down 21,4% compared to 2013
Exports totaled 111.900 vehicles in the first four month which is 31.9% less than a year ago Brazilian vehicle production rose 1.6% last month compared with March, but was down 21.4% from the level of April 2013, the Anfavea auto industry association said Friday. Last month saw 277,100 cars, trucks, SUVs and buses roll off assembly lines in Brazil, significantly short of the 352,400 vehicles produced by Latin America's largest economy in April 2013.
The country's automakers continue to furlough and even lay off workers in the face of reduced demand, Anfavea said. Besides weak domestic sales, the Brazilian auto sector is suffering from a drop in exports to neighboring Argentina, its main foreign market.
The number of vehicles sold last month in Brazil - 293,240 - represents a gain of 21% over March, but a decline of 12.1% compared with a year ago.
Measured year-on-year, exports tumbled 30.4% to 36,700 units, according to the Anfavea bulletin.
Output for the first four months of 2014 totaled 1.07 million units, a 12% drop from the same period last year, while vehicle sales were off 5% to 1.1 million units.
Brazil exported 111,900 vehicles in the January-April period, plunging 31.9% from the first four months of 2013, due mainly to a steep fall in sales to Argentina.
Despite the negative indicators, Anfavea forecasts that the Brazilian auto industry will produce 3.71 million vehicles in 2014, an increase of 1.4% over last year's record, and calls for sales to edge up 1.1% to 3.81 million units.
Anfavea's optimism is based on government plans to make auto loans more accessible and to reach an accord with Argentina aimed at restoring the volume of vehicle exports.
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Read all comments“Anfavea's optimism is based on government plans”
May 10th, 2014 - 12:42 pm 0Ah well, that’s them fucked then!
Especially the:
“reach an accord with Argentina aimed at restoring the volume of vehicle exports.”
Not with TMBOA as president.
Better to find other markets, easier said than done though. A 30% drop in sales means the whole supply chain is in the red.
If Argentinian-made parts are being held up at the border because of CFK's micro-management of its import-export flux it's not surprising that Brasil's roll-off production is significantly down.
May 10th, 2014 - 12:47 pm 0When people aren't making money, they don't buy new vehicles. As long as government strangles prosperity with tax, regulation and favoritism toward their friends and political supporters, why should anything improve?
May 11th, 2014 - 02:09 am 0Commenting for this story is now closed.
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