Blog: Dave LeggettSuzuki to exit Brazil

Dave Leggett | 1 April 2003

I've just heard that Suzuki is pulling out of Brazil. It's not altogether surprising - Brazil wasn't an important market for Suzuki - but it does raise the question of whether anyone else will quit. Suzuki cites high costs, competition and currency depreciation as factors behind the decision. Brazil's market held up well last year and Brazil didn't go the way of Argentina, but there's still massive overcapacity down there. As VW's then regional boss, Herbet Demel, put it last June: "We have a zoo with more beasts than meat to feed them." He estimated 50% overcapacity and said that two major automakers would leave the region within two years.


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