In the accumulated result for the year, the total reached 1,407,211 cars, 30% more than in the same period last year. The figures were disclosed on Friday, July 4, by the National Association of Vehicle Manufacturers (Anfavea). According to the organization, this is the best semester in the historic series in terms of sales.

The Anfavea monthly balance sheet shows that vehicle production also broke records, having risen from 289,000 units in May to 303,000 units in June (4.8%).

With regard to June last year, when 246,000 units were produced, the increase was 23%. In the accumulated result for the first six months of the year, production totaled 1,680,976 units, against 1,385,488 (21.3%) last year.

Exports reached 66,000 units in June, expansion of 20.3% over May. When compared with June last year, the increase was 3.7%. In the accumulated result for the year, exports reached 366,000 units.

According to Anfavea president, Jackson Schneider, the sector growth should continue in the second half, although at slower rates, due to the level of production and consumption that the domestic market has reached.

"We have now reached production and consumption over 200,000 units, which shows that growth should remain, but at a lower rhythm than what has been taking place in recent years."

Schneider stated that this accommodation is extremely positive as it allows for more structured planning and long-term growth without leaps and bounds. "It is a natural accommodation of the productive chain, which is complex and broad, so it is better to grow in the long run at a slower rhythm than in the short run and with great leaps," he said.

Renault Growth

Renault Brazil announced that it sold 58,616 vehicles to the Brazilian public in the first half of this year, growth of 92% over the same period last year. It is the best six-month result since the company began manufacturing automobiles in Brazil, 10 years ago.

The result achieved by Renault was three times greater than that of the national auto industry, which grew 30% in the first half. The company, according to its press office, has a 4.4% share of the Brazilian auto market, which means that it occupies the 5th position in the country's sales volume ranking.

To the president at the Brazilian branch of the company, Jérôme Stoll, the result surpasses annual sales in previous years and indicates that the brand is going to sell 120,000 units in 2008.

Contributing factors to the performance include the launch of new models, such as Sandero and Logan. According to the company, the Sandero is currently the 14th most sold automobile in the country, and the Logan is the 18th.

In June alone, the company sold 10,665 vehicles, growth of 132% in comparison with the same month of last year. A total of 10,161 passenger cars and 504 utilitarian vehicles were sold.

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The sales volume includes trucks, buses, light commercial vehicles, and passenger cars.

With regard to automobiles, the sixth month this year was also record-breaking, compared with previous years: 188,631 units were sold, 33.94% more than in June 2006. Compared with May 2007, though, there was a 5.75% decrease. In the first half this year, vehicles sales saw a 19.03% increase over the same period last year.

Upon disclosing the bulletin, the president at Fenabrave, Sérgio Rezi, was optimistic regarding future businesses, and informed that the organization has reset its sales growth projection for this year, from 12% to 17%.

According to Rezi, ease of purchase, an extended period for repayment, and low interest rates were the reasons for the heating of the market. Nevertheless, he highlighted, that is not all. "The economy has been stable, and four years ago, president Lula decided not to introduce any novelties in the economic field."

In the opinion of the president at Fenabrave, the country's economic behavior leads consumers to assume the commitment of purchasing a vehicle, even if they have to pay instalments that may last up to 72 months.

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However December's production of 185.330 units was 16.5% below November but 10% above December 2005 which had an overall negative impact over the original 4% estimate growth for 2006.

Brazilian automobile exports reached US$ 12.1 billion in 2006, 8.4% above 2005. The number includes passenger vehicles, farm equipment, engines and components, which was also a record for the sector.

But taking into consideration the number of vehicles, 884.700 units, this represents a 5.8% drop compared to 2005.

Anfavea claims that among the motives limiting overseas sales the strengthening of the Brazilian currency, Real, must be taken into account.

Domestic sales totaled 1.928 million units in 2006, up 12.5% over 2005.

Anfavea estimates that automobile sales in Brazil this year could increase 7.7%, with total production advancing 3.8%. Export volume is forecasted to remain stable.

Mercopress

According to the organization, exports, responsible for US$ 740.1 million in revenues, 16.8% more than in January, 2005, also established a new mark for the month of January.

Domestic sales, which amounted to 132.8 thousand units, registered the second largest volume on record for the month of January. Last year, domestic sales in January amounted to 106.6 thousand units.

According to ANFAVEA president Rogélio Golfarb, the sector has been experiencing "a process of acceleration" since the final quarter of 2005, reflecting the overall "improvement" in the economy, "which makes workers feel more secure about buying vehicles on the installment plan."

The data released by the organization also indicate the rising level of purchases of vehicles with flex-fuel engines, which can operate on both alcohol and gasoline. 73% of the units sold in January were vehicles of this type.

"We expect to continue growing, because domestic consumers were quick to adhere to this technology, which is characteristically Brazilian," Golfarb observed.

"Other countries are beginning to take a look at what we are doing here and see it as a green fuel alternative," he added.

According to the automobile executive, the industry hopes to maintain a rising level of exports this year, even if the pace is slower in consequence of the unfavorable exchange rate.

"The goal is to reach around US$ 11.5 billion, a 2.7% increase," he commented.

ANFAVEA foresees a 7.1% increase this year in domestic sales, totaling 1.8 million units. Overall production is expected to grow 4.5%, to a total of 2.6 million vehicles.

Agência Brasil

The numbers were compiled by the Brazilian Institute of Geography and Statistics (IBGE). Automobiles (13.1%), cell phones (43.9%) and TV sets (23.1%) had the best production performances.

The segment of semidurable and non-durable consumer goods (clothes, shoes, food, beverages, and medication) went up 4.7%, surpassing the industry average, which, according to the IBGE, had not happened since 1999. The segment of capital goods (machinery and equipment) also grew above the industrial average (3.6%).

"This result means that it is occurring an investment expansion, especially in areas other than industrial, such as in the production of equipments for electric energy, transportation, and construction, which reflects the confidence of the entrepreneur for making new investments", evaluated Sí­lvio Salles, head of IBGE’s Industry Coordination.

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In all there were 2.45 million vehicles manufactured last year, 10.7% more than in 2004 and a record in the sector’s history. The registration of new vehicles in the internal market reached 1.71 million units, an increase in 8.6% in relation to 2004.

Exports in turn yielded US$ 11.2 billion, value 33.5% greater than that registered in 2004 and also a record for the sector. The total includes the shipment of vehicles, automatic agricultural machinery (tractors and harvesters), motors and components, where the vehicles segment responded for 81.9% and that of agricultural machineries for 18.1%.

The production of agricultural machinery, however, decreased in 23.8% in comparison to 2004 and stayed in 69,400 units. Internal sales of these products also dropped, some 23,200 units were traded, 38.5% less than in 2004.

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When compared to October of last year, there was a 39.6% production decrease, according to the sector’s monthly balance, announced Friday, November 4, by the National Association of Automobile Manufactures (ANFAVEA).

According to the entity’s president, Rogélio Golfarb, production reduction was already expected.

"These are what we call negative tendencies. On the other hand, we do have some tendencies that may be positive for next year. One of them is the interest rate reduction. Depending on how fast it gets to the consumer, we may offset this problem," said Golfarb.

All series of lightweight vehicles presented similar lows varying from 7.4 to 7.7%. Truck production was the most affected, with a decrease of 11.8% (10,138 units produced in October versus 11,492 in September).

In comparison to October of last year, this reduction was of 8.9%. The production of buses also dropped in October; there were 2,662 units against 2,846 in September. Nevertheless, according to Golfarb, Anfavea evaluates that the market is doing well.

Exports of commercial and passenger vehicles dropped 16.6% from September to October; however, the sector accumulates a 29.3% increase in exports this year, in comparison to the same period last year.

In October, Brazil exported 61,792 vehicles of different types, against 74,057 in September. When compared to October of 2004, the reduction was of 18.1%.

Agência Brasil

Brazilian cars may start cruising with an engine powered by four different fuels until the end of this year. The technology was developed by the Brazilian subsidiary of the Italian company Magneti Marelli, in the city of Hortolândia, in the state of São Paulo.

The system allows vehicles to be fueled with alcohol, gasoline, natural gas and naphtha (pure gasoline), used in some countries in South America.

According to Silvério Bonfiglioli, Marelli president in the country, the four-fuel engine is an evolution in the bi-fuel system, which has been on the market for two years and allows users to fuel up their vehicles with alcohol and petrol.

The company was the pioneer in the development of this technology and is responsible for about 60% of the vehicles – also known as flex fuel – that circulate in the Brazilian roads.

The four-fuel technology – in the same way as the bi-fuel system – is part of a program the company has since 1998 to develop a unique vehicle for the whole of the Mercosur, the Common Market of the South, which includes Brazil, Argentina, Uruguay, and Paraguay.

“The aim is that the driver may go from Venezuela to Tierra del Fuego (south of Argentina) without worrying about how to fuel the car. Driving through Brazil, the driver may use alcohol. In Bolivia, gas. In Argentinean territory, naphtha,” states Bonfiglioli.

No buttons

In the four-fuel system, the fuel switch occurs without the driver noticing it. “An electronic central commands the distribution of the four kinds of fuel. And the user doesn’t have to press any buttons or turn a key (as is currently the case in vehicles that go through an engine transformation from gasoline to natural gas). Everything is automatic,” explains Bonfiglioli.

Another of the company’s concerns was to minimize power loss in the car at the moment of switching from liquid to gaseous fuel. According to the executive at Marelli, in the transformed engines, the car loses between 20% and 30% power in this operation. For this reason, the system becomes unpractical for small motors, like the 1.0 liter engines.

In the four-fuel system developed by the company, these power losses were reduced to between 5% and 8%, depending on the model of the car.

“This means more safety for the driver. When overtaking, for example, the vehicle loses a minimum in performance,” explains Bonfiglioli.

Costs

A study prepared by Marelli shows that between 25,000 and 30,000 cars powered by gasoline are adapted every month in Brazil for natural gas.

The conversion charges vary according to the car model and may cost between US$ 910.00 and US$ 1,460.00.

The adaptation is always outsourced. “The manufactured product would cost, in average, 30% less than the transformation,” states Bonfiglioli.

The manufacture of four-fuel engine cars should take place yet in the first half of this year. Marelli has already negotiated the sales of the system to a great carmaker in Brazil. The name of the company, however, is kept secret.

Outside Brazil, the company is talking to Arab nations, mainly to Saudi Arabia. There are also contacts with Iran and China. “In the Middle East there is gas abundantly and they are interested in our technology. They are potential buyers, but there is nothing settled yet,” stated Bonfiglioli.

In China, the negotiations are more advanced. Brazilian technicians have already been to the country to advise the Marelli subsidiary in the development of bi-fuel technology.

China is currently the fastest growing automobile market in the world. Over there, alcohol is produced from rice and mixed with gasoline. In some regions, the percentage of alcohol in the fuel is of 30%, but the Chinese aim to increase this quantity.

To develop the four-fuel system, the Marelli factory in Hortolândia received investments of US$ 40 million in the last ten years. The value was invested in the purchase of equipment and hiring capacitated personnel. Currently, 90 development engineers work in the company that occupies about 3,000 square meters.

Translated by Silvia Lindsey

ANBA – Brazil-Arab News Agency
www.anba.com.br

Brazil’s vhicle production rose 5.8% in November, when 201,340 units rolled off the assembly lines, as against 190,301 in October. The total so far this year stands at 2.020 million units.

This number suggests that the automobile industry should exceed its projected goal and hit a total of approximately 2.2 million by the end of the year, an historical record for the sector.

The good performance is mainly attributed to exports, even though they dropped 6.6% in November.

On the domestic market, sales of domestic and imported vehicles increased 1.4%.

To meet demand, manufacturers have hired new workers over the course of the year. Nearly ten thousand new jobs have been created.

The number of cars manufactured in Brazil had reached 202,800 units in September, according to information disclosed by the Brazilian National Association of Vehicle Manufacturers (Anfavea).

The volume was 2.4% greater than what was registered in August. In relation to September last year, the increase was of 25.3%.

Employment levels in the automotive industry rested in 98,602 people in September, an increase by 0.8% in relation to August. In comparison with September 2003 the increase was of 6.5%.

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