Brazil New-Vehicle Sales Drop 32.5% in September
02 October 2015 - 8:47PM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--New-vehicle sales in Brazil fell drastically in
September for the ninth consecutive month as the country's sluggish
economy put a damper on consumer confidence.
Sales of cars, light vehicles, trucks and buses plunged 32.5% in
September from a year earlier to 200,095 units, the national auto
dealers association, known as Fenabrave, said Friday. In the first
nine months of the year, sales fell 22.66% to 1.95 million
units.
The country's poor economic activity, as well as high inflation
and interest rates, is discouraging buyers from making big-ticket
purchases, according to economists.
Brazil's economy is expected to contract 2.8% this year,
according to economists surveyed by the central bank.
Meanwhile, with official inflation at 9.57%--well above the 6.5%
ceiling of the central bank's target range--the monetary authority
has increased interest rates aggressively in recent months. The
benchmark rate, known as the Selic, is currently at 14.25%.
Falling sales have pushed some auto makers in Brazil to lay off
employees, implement voluntary severance programs and force
mandatory vacations.
The largest auto makers in Brazil by sales are Fiat Chrysler
Automobiles NV (FCAU), Volkswagen AG (VOW.XE), General Motors Co.
(GM) and Ford Motor Co. (F).
Complete figures for vehicle sales, production and exports for
September and for the first nine months of the year will be
released in the next few days by auto-maker association
Anfavea.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
October 02, 2015 06:32 ET (10:32 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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