GM Brazil exports increase as production stallsGM Brazil exports increase as production stalls

General Motors do Brasil is finding success in an intensive campaign to seek new markets, increasing its exports 33.7% in the year's first half, while slowing production to meet falling local demand.

Brazil's economy this year has been severely impacted by an ongoing energy crisis, increased inflation, a currency devaluation and fallout from neighboring Argentina's economic crisis.

Jose Carlos Pinheiro Neto, vice president of GM do Brasil, says exports rose to $419.9 million in the first six months from $314 million in like period 2000. GM's imports, however, declined 0.3% in the period, from $294.9 million last year to $293.9 million.

The Brazilian subsidiary recently signed a 10-year $1 billion contract with China and now plans to tackle the Indian market. The bulk of the automaker's exports is in the complete-knocked-down segment, representing 80% of its trade abroad.

Another growing segment is the export of automotive engineering services, from $110 million in 2000 to $140 million estimated for this year.