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:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016