#Brazil

GM do Brasil has been having many problems. Though dearly beloved by many Latin Americans, in Brazil its image has been severely tarnished. When GM promised a slew of new products that would substitute its ageing line, many doubted it. In fact, many doubted GM had it in them anymore. Like a phoenix, GM is being reborn. The new product onslaught is in full swing. First off the bat was the Cruze. Now, Chevrolet is really starting to put on offer its mission-critical small car, the Cobalt. Will it be enough?

First a little background. After a very prosperous and promising 90s, it seemed GM had called it quits in the 00s. Extreme penny pinching eliminated but the most basic forms of engineering and development. The interiors were the most hideous on this side of a Trabant. You get the picture.

The Brazilian government must have borrowed several chapters from Vladimir Putin’s playbook on industrial policy. Reuters has it that the Brazilians are using the same strong-arm tactic as Russia: Invest heavily in-country and steep taxes on imported cars will go away. Don’t invest in Brazil and kiss your bunda adeus.

Chrysler-Fiat’s Sergio Marchionne is joining the chorus of doomsday CEOs. “2012 will not be a great year for the European market,” Marchionne told Reuters. He is looking to the U.S. and to Brazil for salvation – despite GM’s Akerson having made equally dire forecasts for America.

Fiat is doing so badly at home in Europe that the U.S. and Brazilian markets are now the biggest contributors to the combined group’s profit.

Again and again, Japanese automakers had been warning that they cannot stomach the strong yen, and that it will eventually cost jobs. Today, the yen stood at 76.6 to the dollar, and Japanese carmakers are packing.

Whenever our man in Brazil, Marcello DeVasconcellos reports on new model introductions in his home country, TTAC’s American audience is consistently blown away by the prices commanded by new cars there. Once, when asked why a new VW Amarok costs the equivalent of about $66,000 US dollars in Brazil, Marcello replied

Besides the very high taxes, there are the very, very healthy margins car makers practice down here.

Perhaps too healthy.

In a press conference that is about to begin in a few minutes in Curitiba, Brazil, (see picture above), Nissan’s CEO Carlos Ghosn is expected to announce the expansion of an existing Renault plant, and the building of a new Nissan factory. And possibly even bigger news.

Brazil is touted to soon eclipse Japan as the world’s third largest auto market, and there is at least one Japanese company that wants to make hay of this: Nissan. The Nikkei [sub] heard that Nissan plans a Brazilian factory which “will have an annual production capacity of roughly 200,000 units and will begin churning out strategic small cars in 2014.”

China, U.S.A., Brazil. This is how Roland Berger Strategy Consultants see the ranking of the world’s largest car markets by 2015.

Within four years, the consultancy expects Brazil to kick Japan off the podium and become the word’s third largest car market. Car sales in Brazil could double between 2010 and 2020 to 6.6 million vehicles; production may rise by 3.6 million cars in 2010 to 5.5 million.

Around two thirds of the oil used in the United States is imported. Now, something is done to offset this energy trade imbalance ever so slightly: Ethanol, the stuff that is supposed to save the U.S. from foreign oil dependency is shipped out of the country.

Who buys it? Brazil, the land where cars drink alcohol to drive.

I find it impossible not to get obsessed with the idea of a 1960s Chrysler product with factory-installed Ardun-hemi-headed Ford V8-60, and now TTAC reader Paolo has sent us some photos of his extremely clean Esplanada.

I love stories of American cars that take a weird journey to production in South America, preferably with a dash of European influence added during the journey’s many twists and turns. The Argentinean Renault Torino, a Rambler American with Jeep Tornado engine and Pininfarina rebody is a great example, as is the Willys Itamaraty, a limo-ized Willys Aero sold in Brazil by Ford. The list goes on, but perhaps the greatest, most convoluted tale of them all is that of the Simca Esplanada. How about a late-60s Chrysler product, based on a Dearborn-designed French Ford, with an Ardun-ized hemi Ford Flathead V8 under the hood?

During the recent annual shareholder meeting in Munich, BMW’s prez Norbert Reithofer confirmed the Bavarians are seriously considering starting production in Brazil. “We are studying new places for production, such as an assembly line in Brazil and in another BRICT country”, he said. This comes on the back of another of BMW’s top honcho’s declaration. Back in March, BMW’s head of production Frank-Peter Arndt commented: “We believe Brazil has a great future ahead. The country’s development over the last ten years has been impressive”.

As you’ve read here many times, the drums against imports have been beating in Brasília for a long time. Now, the government is acting. It has opened up its little tragic bag of dirty tricks and is pulling the first, as it were, rabbit out. It also promises to dip into that bag again if this first rodent fails to bite. Moneyed (and not so moneyed Brazilian import buyers of Chinese cars) Brazilian consumers should run to the dealerships to get ’em while they can. They should also put some money aside as the measure will also affect parts makers and consequently prices.

The Brazilian autoblogosphere is up in arms because of an alleged censoring attempt by Toyota do Brasil. A month after the Brazilian blog Notícias Automotivas had run a piece on the upcoming Toyota Corolla S, they received a letter from Toyota do Brasil’s Legal Department. The Corolla S looks like not much more than a customized Corolla with red stitching on faux racing seats. The letter, dated April 29, 2011, looks scary.

We have received what we believe is a faithful translation of the letter from Brazilian Portuguese Legalese to English. The letter demands, within 24 hours of receipt, the takedown of the whole story, plus something unheard of:

It seems that my recent article on Citroën’s anti-retro retro-inspired car, the DS3, provoked two kinds of reactions: admiration and understanding, but also rejection and some even thought Citroën was simply being cynical in its use of the much storied DS moniker. What was hinted at with the DS3 becomes much more evident in the DS4’s case. With it Citroën may well have stumbled on a modern classic, not to mention a way forward for retro-inspired cars.