Valor Economico reports that raw material shortages – such as steel – may hinder the production of cars in Brazil. Sifco, one of the main companies active in the Brazilian metal forged parts manufacturing market, has experienced a shortage of steel in some production lines in the Jundiai and Campinas facilities (Sao Paulo state).

According to the chairman of the domestic division of Ford, Mr. Antonio Maciel Neto, Ford will not have enough capacity to supply extra orders for its most popular models such as the Fiesta, Ecosport and Cargo.

The German multinational Elring Klinger, supplier of cylinder-head gaskets, already imports steel from Europe in order to avoid delay on deliveries in the Brazilian market.

According to the national association of the component industry Sindipecas, the steel sector may increase prices by 11.11% next August, when car assemblers may produce 185,000 units.

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