April was the second-best April in Brazil's automotive history, with vehicle production totaling 168,000 units, up 24.1% over the same month last year. Compared with March, however, production dropped 8.3%.
Brazil's automakers group, Anfavea, says the record for production was set in April 1997, with 194,000 units. Brazil's automakers in April sold 135,519 cars, buses and trucks, for a four-month total of 499,332 units, or 28.4% over the same period last year. Although April sales fell 7.2% compared to March, they were up 30.5% from the same month last year.
But trouble is brewing. Increasing inflation and energy rationing due to a drought in the hydroelectric power plant regions may affect projections of 1.9 million vehicles produced this year.
Herbert Demel, president ofin Brazil, recently told the Brazilian government that as a last resort his company would transfer its operations to other countries if the government could not guarantee electric energy. But parent VW AG says it plans to stay in Brazil.