#brazil

Who said Brazilians are wary of imports? According to Brazilian car site bestcars.com.br, sales of imported cars rose a whopping 190 percent in April compared to the same month last year. The Brazilian Association of Importing Cars Companies – Abeiva – reports that in the first four moths of the year, a record 26,708 imported cars were registered in Brazil. 17.9 percent of cars sold in April were imported.

Is good old machismo dying in Brazil? On the eve of Women’s International Day (May 8), women are now held responsible for buying up to 40 percent of brand new cars in Brazil, and are said to influence over 80 percent of purchases. According to well-known Brazilian news site Globo, those are the numbers. But what motivates a woman to buy a car in Brazil?

Together with record breaking sales, April brings another surprise to Brazil. VW über alles! Bring out the warm beer and fried sausages, let’s party like it’s the 90s and 80s and 70s and 60s again! VeeDub on top! Not so fast. It depends how you look at it …

Showing how really big and important the new Fiat Uno is in the burgeoning Brazilian market, car makers responded with a massive wave of re-releases. Ford jumped into the fire and unveiled their new old Fiesta. Ford joins VW, which unveiled the new old Gol G4 Ecomotion. GM launched the new old Chevy Classic, and Renault released the new old Logan. All trying to take the spotlight and press away from the new Uno, the only real new car. Talk about stage envy!

In the world of automobiles, it appears that China isn’t the only fruit ripe for the plucking. Brazil is buzzing. They’re weathering the current economic fragility very well, and companies are looking to invest in there. Down in Brazil, economically speaking, it’s car-naval time!

While Toyota has recall troubles in one of their largest markets, elsewhere in the world, another carmaker has serious recall troubles in one of their biggest markets. We usually don’t comment on each and every recall everywhere, but this one warrants mention: Brazil’s Justice Ministry has fined Fiat’s Brazilian subsidiary 3 million Reais (about $1.7 million) for failing to comply with four recall orders. Fiat had been asked to recall Stilo models to fix a wheel problem that may (note the key word “may”) have caused 8 deaths since 2004, says Business Week. No recall followed.

TTAC Commentator Robstar writes:

Hello Mr. Mehta, I am currently in Brazil visiting my in-laws. I am more and more falling in love with the 1974 1.5L Fusca (what the Beetle is called here) my brother-in-law owns. I can’t imagine they go for much in the US, and I thought it might be another fun car to stick in the garage. I’m not much of a do-it-yourself’er, so I have the following questions…

1) Is it going to be impossible to find a vintage “Fusca” that is not rusted out? (I’m in the Chicagoland area)

2) How hard is it to find parts for these? Considering the production run, I’d imagine it should be pretty easy.

3) What should I be cautious of when purchasing? (Also, I only want the 4MT. Not sure if they were made in an AT form)

4) Any idea what price range these go for? How about insurance for a married male in his mid 30s.

I’d be appreciative of any discussion & insight TTAC readers can give. I’m including (scaled down) pictures of the Fusca, the car that brought about this question…thanks!

A report about the automotive industry in the BRIC countries, released by the Boston Consulting Group, throws cold water on the low cost production story:

“In manufacturing, companies are generally paying a premium of 5 to 15 percent to manufacture in the BRIC countries, mainly because of diseconomies of scale and higher quality-assurance costs than they incur in the more developed markets; only in Brazil do they actually save money on manufacturing.”

Ooops.

Apart from this astounding revelation, the rest of the report is full of platitudes and comes 20 years too late:

Business Week reports that Toyota are planning to capture 10% of the Indian market. “India will play a pivotal role in Toyota’s global expansion plans,” Vice Chairman Kazuo Okamoto said today at the Delhi Auto Show. “The time has come for us to strategically accelerate our growth here.” Toyota is using the Delhi Auto show to showcase the cars which will lead the assault for 10% of the Indian market, the most important of which is Toyota Etios (which will also be produced in Brazil). Autocar.co.uk reports that Etios is 90% production ready and that it will go on sale in India at the end of 2010 (with first-year sales projected at 70k units). Because of the price (around $10000) it’ll go head to head with the Maruti Swift, the very boys who hold a huge chunk of the Indian car market. To help combat Maruti, a larger and better quality interior is key to the Etios. Autocar also reports that in order to keep costs under control, Toyota went on a cost cutting exercise. Measures taken include, limited sound proofing, a hard, but durable, interior and one windscreen wiper. But before you cry “Toyota are turning into GM”, don’t be fooled. Toyota tried the same thing with the Aygo in Europe and the end result was a good car which sells very well.

Rumors of a VW-Suzuki tie-up were first floated on these pages by Bertel Schmitt, who reported that VW might be after a ten percent stake in the Japanese firm last summer. And with news last week that GM was buying out Suzuki’s stake in CAMI, the momentum seemed to be building. Well, Reuters reports that Volkswagen could announce that it’s taking a 20 percent stake in Suzuki, a deal valued at $2.8b, as soon as this week. Another source tells Reuters that the VW stake could become a 33 percent plus controlling interest in the future.

The Brazilian-American Chamber of Commerce reports that Volkswagen AG has announced it plans to build (cue “Dr Evil” voice) 1 million vehicles in Brazil by 2014. To help this grand notion become a reality Volkswagen will invest €2.3 billion (about $3.5b) into the endeavour benefiting its two assembly plants in Anchieta & Taubate and its engine plant in Sao Carlos. Volkswagen aren’t far off this target; this year Volkswagen expects to manufacture 800,000 vehicles in Brazil. Brazil is also Volkswagen’s third largest market after China and Germany, respectively, so there’s plenty of demand for the Wolfsburg Warriors’ offerings, with deliveries to customers up 70% since 2005. If Volkswagen cars are suffering from alleged reliability issues, it doesn’t seem to be bothering our Brazilian friends.