Brazilian Suppliers Not Interested in Raising Investments

A recently-conducted survey revealed that Brazilian auto suppliers are not willing to increase the value of their initial investments scheduled for 2009, especially due to the instability shown by the automotive industry in the last few months. According to Just-auto, 48 percent of the suppliers would follow their original plans while only 6 percent reckoned they're currently considering increasing the investments.

However, Paulo Butori, president of the national group of autoparts companies, Sindipecas, explained that these results are pretty obvious in the context of the global recession, as most suppliers usually refer to the actual situation, without analyzing the market evolution.

"You must remember this survey was amidst the scenario of the moment. Some decisions have been changing daily and the situation is likely to worsen. All surveyed companies now plan compulsory holidays for at least 16 days in December," Butori said according to the aforementioned source.

Despite the financial crisis which reduces sales all around the world, figures show that 2008 may represent the best year when it comes to sales recorded by the Brazilian automotive industry, with a 14 percent growth and 2.82 million delivered units. 2008 also brought a production record, Just-auto noted quoting the same statistics.

Beside all these figures, market analysts reckon that the actual situation is quite difficult and supplier should not ignore events taking place in other markets. “It is necessary to keep very cool and focused and not rush decisions," Paulo Butori added, explaining that suppliers should keep their financial resources untouched and closely analyze the evolution of the market in the first months of 2009.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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