Brazil’s Car Industry Sells 41% More in January and Hits Record

Avenida 23 de Maio in São Paulo, Brazil Brazilian carmakers are starting the year promisingly both in deals closed on the domestic and foreign market and in the rhythm of production. They ended January posting the best result ever in the first month of the year, selling 40.6% more new national and imported vehicles than in the same period last year, the equivalent to 214,959 units. Production was 24.2% greater.

In comparison with December, there was an 11.3% reduction in sales. "This is normal. It takes place each year due to seasonal matters, school holidays and other factors connected to the end of year celebrations," explained Jackson Schneider, chairman at the National Association of Vehicle Manufacturers (Anfavea).

The executive stated that the organization has maintained forecasts for growth of sales at 17.5% this year, totaling 2.8 million units. Excluding imports from this calculation, the increase would be 14.4%.

There was also not a change in the target of expanding production by 8.9%. Regarding last December, there has been growth of 15.5%. Among the sectors presenting growth is the vehicle and agricultural machinery sector, up 42% over December 2007 and 85% over January this year.

According to Schneider's estimates, there may even be a record performance. "We believe that there are possibilities to overcome the 2004 figures, which were very good," he said, referring to agricultural machinery. The reason is the advance of agribusiness.

Pernambuco Industry Grows

The number of employees in the industrial sector in the northeastern Brazilian state of Pernambuco grew 12.9% in the accumulated result for 2007 as against 2006. The variable stands out as the most expressive analyzed in the whole series of the research of Industrial Indices, published Monday, January 11, by the Technological Research Unit at the Federation of Industries of the State of Pernambuco (Fiepe).

According to the report, the number of people employed in December 2007 registered behavior close to stability, with positive oscillation of 0.7%. "Industry in the state of Pernambuco has been maintaining a regular tendency of growth in the level of employment, with good expectations for 2008," said Fiepe economist Osângela Sena.

Real sales presented a slight drop in 2007 as against 2006. However, the average level of use of installed capacity reached 84.4% in December, the largest registered in the year.

ABr

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