Strongly indicating its displeasure with government policy that allows a continuing strengthening of Brazil’s currency against the US dollar, General Motors do Brasil has announced that it has lost export contracts for CKD vehicle assembly kits to GM’s Korean unit.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
GM Brazil lost a contract to ship 25,000 units CKD kits to Venezuela and Colombia in 2006 because the price was too high due to the strength of the Brazilian real. The kits will now come from Korea.
The Brazilian unit has also lost out on a deal to ship 10,000 kits to India next year.
General Motors do Brasil told just-auto it would end the year with kit exports down 30%.
As a result, it is calling for voluntary redundancies in its factories.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe real is trading at its strongest levels since mid-2002.
Rogério Louro
