Vehicle production in Brazil fell 20.5 percent in July before 2013, said Anfavea

The production of cars, trucks and buses in Brazil fell 20.5 percent in July this year compared with the same month of 2013, according to figures released by the National Association of Automotive vehicle manufacturers (Anfavea) on Wednesday (6).
252.6 thousand units were produced, the worst result for the month since 2006, when they were made 202.9 thousand. In July last year, the industry mounted 317.9 million vehicles.
Compared to June, which reached 215.9 million, the country produced 17% more units. Even with the resumption, the accumulated in the first 7 months of the year has fallen 17.4 percent, with 1.82 million units, compared with the same period last year, which amounted to 2.2 million vehicles.
The beginning of the second half showed an improvement for the automotive sector, according to the President of Anfavea, Luiz Moan. The average daily licenses in July grew 6.4% in comparison with the average for the first six months of the year, while exports increased by 20.7%.
Last month, the automakers have managed to reduce the stocks of 45 days to 39 days of sales, closing the month with 382.6 thousand units in the courtyards. "It's still an inadequate number for our industry," said Moan. Because of high inventory, production lagged in 3.2% ante follows the average for the first half of 2013.
There was an atmosphere of exaggerated pessimism, a breach of consumer confidence
Luiz Moan, President of Anfavea
Pessimism producing 1.82 million vehicles in Brazil between January to July is the smallest since 2009, when they were fitted to 1.69 million units. The numbers follow the fall of 8.6% in licensing, to 2.14 million in the same period from 2013 to 1.96 million this year. For the President of Anfavea, the thud in the sector stems from an "exaggerated pessimism" of the Brazilian consumer.
"What we had was a very large and unexpected fall of confidence indicators in the market, which caused almost a domino effect in other indicators, generating a very large uncertainty. In March this year, the expectation was of a tumultuous Cup. From that month there was a climate of pessimism over the top, a breach of consumer confidence, coupled with higher credit selectivity, "he explained.
Less exports to Argentina
The crisis in Argentina is still the main reason of decrease in exports of vehicles from Brazil, since the neighbouring country is the target of about 75% of the models that leave national plants mounted.
Between January and July, were exported 204 thousand units in total, compared with 316 million during the same period from 2013 (fall about 35 percent). Although the volume has grown 40% from June to July, from 24 k to 34 k, both the Anfavea as the Brazilian Government seek alternatives to leverage exports.
In June, the countries signed a new agreement in force until June 30, 2015 automotive. He states that, for every $ 1.5 million on cars and parts sold to Argentina, without tax, the Brazil will need to buy $ 1 million of the neighbouring country, also without the tribute. It's called flex scheme.
"We have a productive integration with Argentina. The Brazil exports and imports basically the same values. From January to June were $ 3.7 billion and exported $ 3.6 billion imported. Independent of this economic situation of Argentina, we are already working on the expansion of trade agreements. Economies with integrated production can negotiate together with new markets. Argentina and Brazil will seek other countries as customers, in a first moment inside of South America, then on the African continent, "said Moan.