Fiat Chrysler resumes vehicle export from Brazil to Mexico

Article by Christian A., on December 18, 2014

Fiat Chrysler Automobiles is now back in the business of exporting vehicles from Brazil to Mexico as a weaker Brazilian currency hikes value of exported products and as the carmaker tries to offset slumping demand in the country. According to Cledorvino Belini, Fiat Chrysler’s chief executive officer for Latin America, the last time the carmaker made a substantial export to Mexico from Brazil was in 2010 with around 15,000 shipped.

He expects the Brazilian real to further weaken against the dollar next year from the current BRL2.68 per dollar to BRL2.80 per dollar – a situation that could further shift the dynamics of bilateral auto trade between the two countries.

In 2012, Brazil pressed Mexico to limit its vehicle exports since a strong real and an over-surging Brazilian economy has resulted to a large inflow of cheaper vehicles from its northern neighbor.

But as demand for vehicles weaken in Brazil, carmakers are trying to avoid excessive capacity in the country by looking to sell their products in neighboring countries, hoping that they would open their borders for exports.

Despite a foreseen 8-percent fall in sales this year in Brazil, Belini remains convicted of his forecast of flat sales in the country in 2015.

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