Senior executives of several global automakers maintained their confidence in plans for Brazil at the Sao Paulo motor show though an auto industry trade group cautioned growth was slowing.
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General Motors regional president Jaime Ardila told Down Jones Newswqires the company would maintain its plans in Brazil over the next four years where it intends to invest US$1.5bn by 2012 and has asked its US parent for a further $1bn.
Ardila said the US and European-led credit crisis won’t lead to recession in Brazil.
But automakers’ association Anfavea said tightening credit was slowing sales with domestic vehicle volume in the first 24 days of October of 172,254 units down 12% from the 195,396 units sold in the first 24 days of September.
Ardila predicted between 2.9 and 3m units would be sold in the country this year though Peugeot and Renault have lowered their estimates to 2.7m.
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By GlobalDataFord is also maintaining a positive view of the Brazilian car market according to regional chief Marcos de Oliveira.
He forecast 3m vehicle sales for the year and said Ford was maintaining its investment plans – $1.5bn) in South America in the 2007-2011 period, of which 85% will be directed to Brazil.
Peugeot also will maintain its planned $87.6m investment for 2008, according to local president Laurent Taste.
