BRASILIA: Brazil’s government is preparing measures to increase vehicle exports, part of a plan to bolster its faltering automobile industry, the country’s most important manufacturer, the head of the country’s automakers association said on the other day.
The measures are expected to include financing for autoparts makers from state-owned banks and the reduction of import tariffs in some bi-lateral trade accords, said Luis Moan, head of the association known as Anfavea.
The government and Anfavea plan to discuss the measures further in 15 days.
Brazil is one of the world’s five biggest auto markets and a major base of operations for Fiat Chrysler Automobiles NV , Volkswagen AG, General Motors Co and Ford Motor Co.
“Some of the measures have not been deeply analyzed and there was a request for a group of exports to study the issues further,” Moan told reporters after a meeting with government, industry and state-owned banking officials at Brazil’s presidential palace.
During the meeting Anfavea also pressured the government to speed up automotive-trade talks with Colombia, Peru and Uruguay.
The government wants to move rapidly to increase exports in order to make up for a plunge in automobile production. Brazil’s auto industry production shrank 14.8 percent in June from a year earlier and sales fell 19.4 percent.
To this end, the government has been increasing the amount of money available to finance exports through the import-export arm of state-owned development bank BNDES.
It is also hoping that a 18 percent decline in the value of Brazil’s real against the U.S. dollar will boost exports.
