For the first time, General Motors’ Latin America, Africa and Middle East (LAAM) operations have passed the one million annual vehicle sales mark.

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The 2006 results for the three regions show 1,035,200 units sold, accounting for 11.4% of the automaker’s sales world-wide. Volume grew 17.4% compared with 2005 and market share hit a new peak of 17%.


Last year saw GM brands (almost 100% Chevrolet) take the lead in this group of countries for the ninth consecutive year, and record sales in nine of the 11 largest LAAM markets.


In Brazil, GM’s sales were a record 410,000 units but the automaker’s #3 rank in the automobile and light commercials segments remained unchanged.


Despite small falls in market share and the number of units exported, the local company made a profit for the first time in many years and appears likely to sustain that in the next few years.

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However, if the Brazilian market keeps growing, it is unlikely that GM do Brasil will be able to keep up from 2008.


Director of sales & marketing, Marcos Munhoz, considers it very hard to convince his Detroit head office to provide additional investment to increase plant capacities.


Munhoz said: “We still have some flexibility regarding shifts and export-diverting to supply the local market. As of 2008, if sales keep this pace, a new investment in capacity would be necessary. We have just done it in the near-duplication of the Gravataí plant in Rio Grande do Sul state to 210,000 units a year. But it will be difficult to convince Detroit about a new increase of capital because, in the past, the market slumped and remained well short of forecasts.”


Fernando Calmon