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02 Sep 2012
Sales and production record of Fiat Automóveis in Brazil in August
Fiat Automóveis broke its production and sales record in 36 years of presence in Brazil, upon commercializing over 100,000 automobiles and light commercial vehicles in the month of August. Fiat led the market, with 24.2% share in total sales in the month, according to preliminary figures for the month end closing. The Brazilian market absorbed over 400,000 automobiles and light commercial vehicles in August, a historical record for the Brazilian automobile industry. Fiat took advantage of the good market condition and was able to expand its market share index.
Fiat’s production in August also represented its best performance in 36 years. 82,000 units were produced at the Betim plant in Minas Gerais. The difference between the total produced and marketed in the retail to this month corresponds to stocks, imports of the Fiat plant in Argentina and the Freemont and 500 models produced in Mexico, aside from the Ducato models that are produced at the Iveco plant, in Sete Lagoas, Minas Gerais.
The demand was a record in the month of August as result of government measures to stimulate the ongoing economy. The Brazilian government has been adopting a vigorous policy to combat against the effects of international recession on its economy. The climate of low global demand reduced inflationary pressures and allowed the adoption of a consistent reduction of basic interest rates in the course of recent months. The rate drew back from 12.25% in June 2011 to 7.5% per year in August 2012.
The drop of money cost to the consumer, summed up to greater financing offering, stimulated strongly the consumption of the families. Another important factor was the reduction of imputation of federal taxes on strategic industrialized products for the Brazilian productive matrix. The imputation of the Tax on Industrialized Products (IPI, acronym in Brazilian Portuguese) was reduced for vehicles between the months of May and August. Last week, economic authorities announced the extension of this incentive for two more months, until October 31.
white line (stoves, refrigerators and washing machines), furniture, construction materials and capital goods also have reduced tax burden, whereby the latter ones are incentive measures which are extended until December 2013. For capital goods – machines, equipment and trucks – the government opened financing lines with term of ten years, whereby one is grace period.
This set of measures conveyed optimism to the Brazilian consumer, who reacted positively, as Fiat/Chrysler president for Latin America, Cledorvino Belini, highlighted.