Ford expects record sales in Brazil this year despite the slow start

Article by Christian Andrei, on June 18, 2012

Ford Motor Co. has had a slow start in Brazil this year but still believes that it will set a record for the entire 2012 as it believes that sales will surge due to record-low interest rates and newly implemented tax breaks. Rogerio Golfarb, the head of Ford’s corporate affairs in South America, said that because of government measures, there would be a “really strong pickup” in the second half of the year.

Because of a recent economic boom in Brazil, its sales had more than doubled since 2005. But now, Brazil’s auto industry is struggling. In the last few months, the government of Brazil has attempted to drive up demand by cutting taxes on certain products, such as cars, and urging the central bank to lower interest rates to historic low figures.

Golfarb was interviewed this week at Ford's plant outside Sao Paulo. He said that he doesn’t believe that a 5% sales decline through May would persist until the end of the year. He said that he is confident that there would be growth in 2012. Nevertheless, analysts doubt the 4-5% growth estimated by the industry, saying that the market in Brazil may drop for the first time in almost a decade.

In response to the downturn, Brazil’s automakers have cut production by 10% in the first five months of 2012 in order to cut the size of inventories, which are nearing four-year highs.

Automakers had started to implement short-term furloughs and to offer workers with voluntary buyouts. Last month, the government imposed a significant industry tax cut. Golfarb said that the slowdown was a “passing bump” as Brazil's enormous new middle class learns to manage the previously unheard of access to credit. The lending sector is reeling with the sudden increase in delinquent auto loans.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries