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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (67272)8/12/2005 2:53:40 AM
From: elmatador  Read Replies (2) of 74559
 
TJ wrotes: "brazil is behind s.africa in auto industry in many ways. Lets see in how many ways" Lets count them:

"Despite the boom, South Africa's car industry however is small compared to giants such as the United States, Japan, Germany, China, France, South Korea and Brazil.

Last year, 455 052 cars were manufactured in South Africa compared to 11,9 -million in the United States and 10-million in Japan, according to the International Organisation of Motor Vehicle Manufacturers (OICA).

Anfavea (Brazil's association of auto-makers) "predicts that 1.650 million vehicles will be produced this year, 5% more than in 2004. That with no cheap credit, Brazil's interest rates are 19.5% interest rate!!!

If S.A is producing 455.053 today, Brazil was producing 708,000 cars by 1974.

Brazil's production of 771.4 thousand units in the first four months of the year (2005) is also considered a record for this period of the year. This year's mark is 14.7% greater than during the same period in 2004.

Exports by the sector totaled US$ 3.18 billion between January and April, 35.9% more than in the same period last year. I need to add that the Brazilian Real is at a 40-month high against the USD.

Brazil is a platform to export to other parts of the world:

Brazil's Auto Parts Sector Expecting to Export US$ 6.7 Billion, an 11% Growth
Written by Alexandre Rocha
Saturday, 16 July 2005
Exports of Brazilian auto parts to the Arab countries totalled US$ 23.4 million between January and May this year, against US$ 14.4 million in the same period in 2004, a growth of 62%.

South Africa is a local car industry. Most likely importing auto parts and CKD from Brazil. I believe that much of those 455.053 cars made in South Africa are assmbled with components from Brazil.

Message 21000346


<<Brazil has a long-established competence in automotive manufacturing, aided in no small part by a relatively large consumer class, a culture that reveres Formula I racing, and decades of protectionist policies that continue to favor domestic production. GM, Daimler-Chrysler, and Ford all have large manufacturing installations in Brazil and compete vigorously in the small car market against Fiat, Peugeot, Renault-Citroen, VW, Toyota, and Honda. In addition, a variety of small trucks, large rigs, and busses are manufactured in Brazil by most of the world's leading automotive companies.

Finally, a complex tax structure that encourages innovative fuel use and energy independence has led Brazilian companies to become innovators in natural gas and sugar cane-derived fuels for internal combustion engines. Brazil is one of the top ten automotive manufacturers in the world by volume, with over 2.2 million units produced in 2004. Of the top ten countries manufacturing cars, Brazil's per capita income is by far the lowest. However, cars are relatively easy for Brazilian consumers to purchase, with generous financing packages offered due to clear laws governing car ownership as collateral.

Car manufacturers are among the most sophisticated television and print advertisers, and car sales have in recent years proven to be sensitive to slight changes in the prime rate set by the Central Bank of Brazil. Brazil is increasingly seen by automotive manufacturers as an export platform for smaller models, typically with less than 2­liter displacement engines. In just one example, Ford recently opened a US$ 1.2 billion plant in Bahia, in NE Brazil, which together with OEM suppliers employs over 5,000 people. It is manufacturing a small sport-utility, the Amazon, for export worldwide. Given the scale of the Brazilian automotive production market, most suppliers tend to maintain operations in Brazil as well. The automotive parts market in Brazil is expected to reach US$ 17.2 billion in 2005, a growth of 12% compared with 2004.>>



Does S. Africa jas anything that compares to Ethanol auto-motive production?

How many times have you been to Brazil, Jay? My house will get ready next year You're already invited to go there and see it with your own eyes.
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