By Rogerio Jelmayer
SAO PAULO--Brazil's sales of new vehicles, along with production
and exports, dropped in the first half of this year, as the
country's economy fails to regain traction, hurting consumer
confidence.
Sales of cars, light vehicles, trucks and buses totaled 1.32
million units in the first half of the year, down 21% from a year
earlier, auto industry association Anfavea said Monday. Vehicle
sales fell 19% in June from a year earlier to 212,524 units.
Production fell to 1.28 million vehicles in the first half of
the year, a decline of 18.5% from the year-ago period. June output
fell 15% to 184,015 units.
Exports by value fell 7.4% in the first half of 2015 to $5.5
billion. Exports for June, however, were up 20% from a year earlier
at $1.01 billion.
Economists say a toxic combination of weak economic growth, high
inflation and rising interest rates are hurting consumer
confidence, especially toward big-ticket items.
Brazil's economy expanded 0.1% in 2014 and is expected to
contract by 1.5% this year, according to economists surveyed by the
country's central bank.
Falling consumer demand has forced many auto makers in Brazil to
lay off employees, and implement voluntary severance programs and
mandatory vacations.
The largest auto makers in Brazil by sales are Fiat Chrysler
Automobiles NV (FCAU, FCA.MI), General Motors Co. (GM), Volkswagen
AG (VOW.XE, VLKAY), and Ford Motor Co. (F).
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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