UPDATE: Brazil Feb Vehicle Sales Rise 1% Vs Jan - Anfavea
09 März 2009 - 8:02PM
Dow Jones News
Brazil's motor vehicle sales rose slightly in February thanks to
a temporary government tax break that reduces car prices, the
National Motor Vehicle Manufacturers Association, or Anfavea, said
Monday.
Brazil's motor vehicle sales for February rose 1% to 199,366
units, but fell 0.7% from a year earlier when abundant credit had
consumers in hot pursuit for new vehicles.
Production rose 9.2% to 201,685 units in February from January,
but fell 20.6% from a year earlier.
Brazil's auto market, while a better performer than in the U.S.
and Europe, is suffering from the same credit constraints and a
rapidly ailing economy. The big three auto makers in Brazil cut
back production in November and December, but output revved back up
in late January and February after steep price discounts attracted
consumers back to car lots. Stocks of unsold vehicles have dwindled
down to manageable levels, according to company executives at
General Motors (GM) and Fiat (FIATY).
Exports of Brazilian-made vehicles rose 27.1% to $528.8 million,
following sharp declines since November. Export revenue is down
49.2% compared to February 2008 figures, Anfavea said.
Anfavea President Jackson Schneider said the industry didn't yet
have sales estimates for 2009.
"There is still a lot of uncertainty in the market and so we
prefer to make an internal forecast on the domestic and export
markets in April," he said, adding that by then, Anfavea will have
sales figures for the first quarter fully confirmed.
So far this year, Brazil produced 386,450 cars and light trucks,
down 24.1% on the year. Sales over the two-month period are down
4.6% to 396,820 units and exports are down 53.8% to $962.7
million.
Most of the February car sales were do to sales increases
registered by popular cars made by Volkswagen (VLKAY). The German
auto maker's sales far surpassed rival Fiat, up 12.2% to close the
month at 42,531 units. The auto maker sold 80,452 cars in January
and February combined, relatively flat from the same two-month
period last year.
Fiat sales rose 1% in February to 37,196 units, and 74,029
vehicles in January and February, down 12.4%.
General Motors sold 28,406 units in February, down 13.5%. So far
this year, the ailing U.S. auto maker's sales are down 21.1% to
61,246 units.
Ford (F) sold 17,201 vehicles in February, down 0.9%, but sold
48.8% more in the first two months of the year from the first two
months in 2008. Ford has sold 34,564 units.
Sales of low-cost cars, especially the VW Gol, have been helped
by steep cuts in sticker prices thanks to the temporary cut in the
IPI industrial tax. That tax will return in April, though industry
executives have expressed interest in keeping the tax break in
place until the economy shows signs of rebounding.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-8812-5961,
kenneth.rapoza@dowjones.com
(Rogerio Jelmayer contributed to this story.)