Friday, May 30, 2014

Vehicle sales fell 11 percent in may

Promotional campaigns and ads on television still failed to revive market of vehicles, which follows in free fall this month. Preliminary survey on the basis of licenses held by Wednesday, shows that sales fall 11.3% in comparison with may of last year and 6.4 percent in April.
The accumulated loss for the auto industry this year, which until April was in 5%, now arrives to 6.3%, putting on account of plates issued passenger cars, SUVs, light trucks and buses.
Automakers complain the selectivity of banks in credit release situation which is tailor a solution with the Government and the financial system. There is also the impact of the price increase after the withdrawal of rebates in the tax on industrialized products (IPI) and the compulsory introduction of airbags and antilock brakes in automobiles.
But analysts also speak to a lesser propensity to consumption, reflecting, among other factors, the impairment of surrender after debts taken on in recent years-and less confidence in the economy.
In may, the market for trucks, in the wake of better conditions of capital goods financing, still rehearses some recovery, scoring high of 12.6% in comparison with April-although still 2.3% below the volume in the same period last year. Sales of passenger cars and light utility vehicles, however, are almost 12% below the plates issued a year ago. Compared to April, the indentation in this segment is 7.2% so far.
In the midst of the accommodation demand, aggravated by the drop in exports to Argentina and advancement of stockpiles, the automakers are adjusting production with measures such as anticipation of layoffs, occasional stops to factories and temporary departure of workers with the suspension of employment contracts. To reduce excess manpower, many of them also opened voluntary redundancy programmes. Waiver of Anfavea, the entity that houses the automakers in Brazil, shows 12% fall in vehicle production until April.
In the fight between brands, General Motors (GM) will lose this month the second place for Volkswagen, despite the automaker's President in Brazil, Santiago Chamorro, have gone on television to offer "employee discount" to the common consumer. Until last Wednesday, GM had 17.5% of sales, down from 18.3% of VW, according to data compiled by the consultancy Oikonomia.
The lead follows with Fiat, which has 20.6% of the market this month. The consolidated results of the may sales, as well as the participation of brands, will be released early next week by Fenabrave, entity of car dealerships.
Valor Econômico - 30/05/2014
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