Vehicle production in Brazil increased just 0.4% year on year in January after a 10-day strike at Volkswagen lowered output at a key plant and sales plunged after holiday promotions ended.
Citing data from automakers association Anfavea, Reuters reported vehicle sales dropped 31.4% last month.
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Promotions and incentives boosted sales in December but tighter credit and weak consumer confidence have also dragged on the market in recent months.
As just-auto reported recently, the outlook for 2015 is mixed.
A 10-day strike at Volkswagen ended after the automaker agreed to reverse the layoff of 800 workers, Reuters said.
Unsold stock at dealers and factories fell to about 318,500 vehicles in January from 351,000 in December.
Fiat was Brazil’s top car and light truck seller in January, with over 49,650 new registrations, while GM was second (46,900) followed by VW (39,462 cars) and Ford (24,900).
Anfavea data showed about 204,800 new cars, trucks and buses were built in Brazil last month while the sales tally was around 253,800.
