Brazilians buy 8,500 cars per day, according to O Estado de S.Paulo

Brazilians buy 8,500 cars per day, according to O Estado de S.Paulo

São Bernardo do Campo, December 18, 2009 – Yesterday, Brazil’s vehicle sales in the year surpassed the mark of 3 million units. This means that this year Brazilians bought more than 8,500 cars each day, including Saturdays and Sundays, which represents an all-time high since the first auto assemblers were installed in Brazil in the 1950’s. The figures were published by newspaper O Estado de S.Paulo.

The auto industry expects to close the year with approximately 3.1 million vehicles licensed, for an increase of 10.3% over 2008. This level establishes Brazil as the world’s fifth largest vehicle market.

As of Wednesday, licensed vehicles totaled 2,996,000, of which 2,872,000 were passenger vehicles and light commercial vehicles, and 124,000 were trucks and buses. Including yesterday’s figures, which have not yet been calculated by the National Traffic Department (Denatran), the balance already surpasses the 3-million mark. In the whole of 2008, 2.848 million vehicles were sold.

By the 16th of this month, 148,000 cars had been sold, of which 139,800 were passenger and light commercial vehicles, which is 3% higher than in the same period of November, which ended the month with total sales of 251,700 units.

Auto assemblers are preparing for sales of 3.4 million units next year. To meet demand, automakers are announcing new job openings. Yesterday, the CEO of Mercedes-Benz, Jürgen Ziegler, informed the Metalworkers Union of the ABC region that the group’s plant in São Bernardo do Campo will hire 300 employees in January.

Three months ago, Mercedes had already hired 1,300 workers. At the peak of the international financial crisis, the truck and bus maker did not renew approximately 500 temporary contracts and initiated a voluntary retirement program. Today, the company employs 11,500 people and produces 260 vehicles per day. Since July, Brazil’s auto industry has created 4,400 jobs. Nevertheless, it should close the year with fewer employees than in 2008, when it employed 126,800 people. As of November this year it had 123,900 employees.

END OF INVENTORIES

The record sales already achieved has not caused unease for dealerships, which must clear their inventories of 2009 models to begin the year with empty lots to receive the 2010 models.

Fiat will hold its last sales fair of the year this weekend at the Sambódromo stadium in Anhembi, São Paulo. Other brands will also hold sales fairs through their distribution networks.

“Nobody wants to enter the new year holding 2009/2010 models,” says Daniel Queiroga, manager of the Fiat Amazonas dealership in São Paulo’s Ipiranga District.

In addition to Fiat’s sales event, the seven Amazonas dealerships organized their own sales activities, such as offering 60-month loans with the down payment (equivalent to 30% of the good’s value) paid only with the last installment.

Queiroga said the Strada four-door pickup is the only model with a waiting list of up to 60 days. According to him, semi-new models (as of 2003) are also in short supply, which has led dealers to increase the prices paid for trade-ins.

At the Volkswagen Amazon dealership, the waiting list is for the Voyage model. Orders made now will only be delivered in January, said Manager Marcos Leite. But other models are in stock, such as the previous version of the Fox model, with a 10% discount and free vehicle tax (IPVA) and licensing fees.

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