The FINANCIAL — New-vehicle sales in Brazil dropped in November for the eleventh consecutive month as the country’s economic recession deepened, hurting consumer confidence, according to Nasdaq.
Sales of cars, light vehicles, trucks and buses plunged 33.74% in November from a year earlier to 195,212 units, the national auto dealers’ association, known as Fenabrave, said late on December 2. In the first 11 months of the year, sales fell 25.15% to 2.34 million units.
The combination of the country’s poor economic activity and high inflation and interest rates is discouraging buyers from making big-ticket purchases.
Brazil’s economy shrank 4.5% in the third quarter from a year earlier, the biggest contraction since Brazil started measuring GDP under the current system in 1996, Brazil’s statistics agency reported earlier this week.
The figures came in below expectations, leading economists to cut further their forecasts for this year and also for 2016. The overall Brazilian economy is expected to post a contraction of more than 3% this year and a drop of more than 2% in the next year.
Falling sales have pushed some auto makers in Brazil to lay off employees, implement voluntary severance programs and force mandatory vacations.
The largest auto makers in Brazil by sales are Fiat Chrysler Automobiles NV, Volkswagen AG (VOW.XE), General Motors Co. and Ford Motor Co..
Complete figures for vehicle sales, production and exports for November and for the first 11 months of the year will be released in the next several days by auto-maker association Anfavea.
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