Blog: Dave LeggettBrazilian realignment

Dave Leggett | 30 June 2005

Brazil's auto industry is beginning to recover from the capacity overhang of the 1990s as growing exports take up some of the slack. Production is up. Much of the uptick of the last few years derives from the cheap currency which has made Brazil a sensible base from which to export vehicles (and especially if you are sitting on recently installed and under-utilised production capacity). But Brazil still faces some serious challenges ahead and the ANFAVEA president is right to point out that competing with other low-cost regions won't be easy. And if Brazil's currency advantage is lost, taking capacity out may well be back on the agenda in a few years' time.

BRAZIL: ANFAVEA warns that Brazil losing in battle for global auto industry investment


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