Brazilian Car Capacity Down 15.3% in 2014

Anfavea released figures on January 9, indicating that Brazilian car capacity in 2014 decreased 15.3%, making the lowest figure since 2009.  According to Anfavea, in 2014 Brazil produced a total of 3.15 million units of passenger cars, light commercial vehicles, trucks, and buses combined. In 2013 Brazil produced 3.71 million units. Sales drop of 7.1% in the corresponding period is equivalent to the figure released on January 6 by Fenabrave. Accordingly, Brazilian car industry returns again to the level only slightly better than 2009 global economic crisis in which 3.07 million units were produced. In 2013 the capacity peaked at 3.71 million units.

Anfavea chairman Luiz Moan says capacity still set a new record despite lower 2013 sales over the previous year because the government's encouragement in loans stimulated consumers market. A big driving factor for low car production and sales in 2014 is the 40.9% drop in car export which landed at 334.501 thousand units. Automotive export volume to Argentina alone dropped 29.9%. In the last 12 months, Brazil's automotive industry downsized 7.9% of total employees. Currently major car makers there have around 144.6 thousand employees. Nonetheless, Anfavea do not acknowledge the emergence of layoffs.