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Brazil: too many cars and Fiat goes on vacation

Dealers and distributors of all brands have stockpiled over a month of sales. In order not to exceed the physiological warehouse limit of 35 days, Fiat has decided to close its Argentine plant for a week.

Brazil: too many cars and Fiat goes on vacation

At the end of June, there were 342 cars of all brands in the parking lots of Brazilian dealers, equivalent to 33 days of sales. To avoid exceeding the limit considered critical for the sector, 35 days, some companies will have to reduce the pace of production.
The first house that made a decision in this regard was Fiat which will grant a week of collective holidays in the Argentine factory where the Siena models sold in Brazil are produced. If the need to curb output persists, it may even close the Betim plant in Brazil for a week this month or in August.
Brazil's auto industry ended the past six months with production growth of 4,1% and record sales of 1,73 million vehicles. However, the high number of cars that accumulate in factory and dealer warehouses is starting to worry.
"After 35 days of stock, the costs of companies begin to be significantly affected" said the president of the National Association of Car Vehicle Manufacturers (Anfavea), Cledorvino Belini. According to Belini, the large number of brands competing in the market partly explains the high stock.
But the other groups on the market, including Ford, General Motors and Volkswagen have not yet planned measures of this type.

Estadao.com.bras

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