Fall of 13.3% in the production of cars in 2014 makes automakers quit 4.7 thousand

Although it has presented little reaction in may, with high of 1.9% compared to April, production of vehicles fell 13.3% year to date, adding 1.351 million units. With this slowdown and stocks still high, the manufacturers quit, this year alone, 4.7 million workers, of whom 1.9 million last month.
In recent weeks, all major automakers announced production cut measures such as layoffs, temporary suspension of contracts of employment (lay-off) and voluntary redundancy programmes (PDV).
The poor performance of the production is a result of 5.5% drop in sales this year compared to 2013, 1, 399 million vehicles, and from 31.6% in exports, to 145.7 million units.
The sector counts with a recovery in foreign sales, due to the automotive agreement that will be signed with Argentina next week, but does not see improvements in the internal market.
On the contrary, if the rates of the tax on industrialized products (IPI) rise in full in July, the expected impact is 8% drop in sales of 1.0 models, according to calculations of the National Association of Automotive vehicle manufacturers (Anfavea).
The President of Anfavea, Luiz Moan, said that, for every point of IPI elevated, high of 1.9% in price. The Finance Minister, Guido Mantega, signalled on Wednesday that the recovery of IPC planned for next month may not be total.
Moan, however, works with the prospect of full back of fees, as set out at the beginning of the year. If rates back to levels of 2012, before the reduction in the IPI, the car tax will rise 1.0 to 3% to 7%, for example.
For the President of Fiat, Cledorvino Belini, Brazil's Government should reduce rather than raise the IPI, albeit partially. According to him, the sector has the highest tax burden in the world. "To move forward, we must revise the tax burden."
Moan also doesn't count more with a plan to encourage the financing of cars, which was being examined by the Ministry of finance for several weeks. There was no arrangement with the banks.
Stocks
Factories and dealerships closed may with nearly 400 thousand vehicles in stock, the equivalent of 41 days of sales, compared with 40 days in April. Even though the market is bearish bias ", as defined, Moan he will wait until July to review forecasts for the year.
For the time being, are maintained the projections made in January growth of 1.4% in production (to 3.76 million vehicles), from 1.1% in sales (3.81 million) and 1.6% in exports (575 thousand).
Moan also stated that layoffs in the industry basically were for Buyouts, "most seeking retirees or retire." The industry has been cutting jobs for seven months in a row. Since November, wiped out 7.3 million jobs.
Currently, voluntary dismissal programs are Mercedes-Benz, which wants to close 2 thousand jobs in São Bernardo do Campo (SP) and General Motors (for the factories of São Caetano do Sul and São José dos Campos), also in São Paulo).
Ford ended a program on Wednesday at the branch of Taubaté, but gained few accessions. GM and Ford failed to disclose layoffs goals.