Vehicle production in Brazil rose 5.9% month on month and sales rose 6.9% in August from July, the national automakers' association said.

Output was over 325,000 new cars and trucks (+3.9%) and sales rose 0.6% to 327,000 vehicles, industry group Anfavea told Reuters.

But, adjusting for seasonal and calendar effects, analysts at Brazil's Banco Fator said auto production slipped in August.

Several vehicle factories in Brazil were also scaling back production this month due to high inventories and signs of cooling demand in Latin America's biggest economy after a red-hot first half of the year.

Volkswagen sales rose 10% in August to 54,995 cars and trucks while market leader Fiat's sales slipped 0.6% last month to 52,644 vehicles.

GM sales were up 6% to 45,723 vehicles while Ford sales rose 7.2% to 21,722 units.