Brazil’s car production roars to record in 2007

06 December 2007 22:36  [Source: ICIS news]

HOUSTON (ICIS news)--Brazil’s automobile industry will end the year with record production, officials said on Thursday.

Production of nearly 3m units this year will be almost 14% greater than the previous year, according to automobile manufacturer’s association Anfavea president Jackson Schneider.

“The industry, which has the capacity to produce 3.5m units/year, is showing extremely positive results and should continue to do so in 2008,” he said according to official government news service Agencia Brasil.

Cars are an important end market for chemicals such as plastics, paints and other components.

Brazil is one of the largest car manufacturing countries in the Americas, and the eighth largest in the world. According to Anfavea, Brazil could advance to the seventh largest producer in 2008.

Carmakers and auto parts manufacturers plan to invest some $15bn (€10.7bn) in Brazil over the next three years, Trade Minister Miguel Jorge said in October.

However, industry analysts at the Brazilian Chemical Industry Association, Abiquim, have pointed out that for those plans to go forward Brazil will need to bolster its electricity supply against the risk of a shortfall.

($1.00 = €0.68)

By: John Waggoner
+1 713 525 2653

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