Mazda, already building a new plant in Mexico, could start assembling vehicles in Brazil to sidestep import restrictions due from 2015.
"We are in talks with several Brazilian automakers on possible local knockdown production [kit assembly]," Takashi Yamanouchi, Mazda chairman, told reporters at the Los Angeles show this week.
Mazda had originally planned to use the 140,000-capacity Mexico plant, due on stream in 2014, to export to both North and Latin America. Mexico has a free trade agreement with Brazil. The plant will also build a small car based on the Mazda2 for Toyota which will be sold in North America.
The Brazilian government’s decision to restrict imports of finished vehicles is designed to protect the domestic industry. Car sales in Brazil are forecast to reach some 4m units this year.
Elsewhere in South America, Mazdas are assembled in Colombia.
More read-it-and-weep news for struggling European rivals from Volkswagen group this week as it chalked up another little milestone - selling over 3m vehicles in the first four months of a year....
Vehicle assembly in Colombia began in 1956 when the government signed an agreement to build Austin trucks locally. Colombian entrepreneurs soon saw the opportunity to invest in technology to be part o...
Though diesels account for the biggest share of the UK premium executive car market, Toyota's Lexus brand is plugging for hybrid instead....
The Malaysian automotive industry is expecting competition in the local market to intensify as the government reduces excise duties further to lower new car prices....
- What does 'Brexit' mean for the auto sector?
- Ford's future models and platforms
- The self-driving Volvo is getting closer
- And so Brexit begins - The Week That Was
- THE WEEK THAT WAS - Brexit fallout and recovery
- "No trade barriers" says FKG amid Brexit fallout
- Volkswagen scandal - Porsche plunges into the red
- Aston Martin lost GBP127.9m in 2015
- VDA warns against post-Brexit customs barriers
- Shocked CLEPA to discuss Brexit in Madrid