Market forecasts, making vehicle tax more prominent on showroom stickers and the return of Alfa Romeo to Brazil were some of the keypoints to arise during the 20th congress of of Fenabrave, the influential umbrella federation under which dealers and importers of motorcycles, road machinery, tractors, trucks and cars gather.
It is rare for the industry, dealers and government to meet in public and discuss mutual ‘messages’.
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The body’s political influence has been growing because it represents over 5,000 companies and has branches in most Brazilian cities and towns. The speeches seemed to cover everything that might concern an auto dealer or importer.
Anfavea president Cledorvino Belini said the domestic market may exceed 3.4m units this year and climb to 6m in the medium term. Government development, industry and foreign trade minister Miguel Jorge went farther, forecasting 6.8m vehicle sales in 2025. He even acknowledged that the tax burden on cars impairs expansion. That was music to the ears not only for those who produce and sell, but especially for buyers that pay the sticker price.
Fenabrave president Sérgio Reze suggested taxes should be shown separately on showroom stickers and price lists for all to see. And he added there was currently an excess of offers and promotions, disastrous for dealer profitability, and suggested this should end.
Too late. Vehicle buyers are used to sharp deals and want to keep seeing them – more competition equals lower prices.
Fiat-Chrysler CEO Sergio Marchionne’s keynote address confirmed a new financial injection into Brazil soon and the return of Alfa Romeo in 2012.
“We will continue to invest in product range expansion and in the next few years it will leverage the benefits of our collaboration with Chrysler”.
On a previous trip here he had hinted the American brand could be produced in Brazil or Argentina but did not comment on that this time.
