GM's Brazil Car Sales Break Record In June
01 Juli 2009 - 7:07PM
Dow Jones News
General Motors Corp. (GMGMQ) car sales broke a record in June
thanks to continued government tax breaks for auto makers, the
company said Wednesday.
General Motors do Brasil Ltda sold 55,629 vehicles last month,
the highest monthly sales volume in the company's 84-year history
in Brazil.
While GM in the U.S. is in bankruptcy proceedings, its Brazil
subsidiary is doing better than ever.
Part of the gains come from the fact that consumers expected the
beneficial tax break to end in June and rushed to buy before prices
of new cars rose by as much as 7%.
Car makers like GM have been exempted from an industrial
production tax. Those tax savings were transferred onto consumers,
who saw sticker prices on new cars drop since November.
The tax break was extended to Oct. 31 this week.
"June car sales for the Chevrolet brand have given us a vote of
confidence for the future of this company in Brazil," said Jaime
Ardila, GM's local chief executive.
-By Kenneth Rapoza and Rogerio Jelmayer, Dow Jones Newswires;
5511-2847-4541; kenneth.rapoza@dowjones.com