Brazilian duel between Fiat and Volkswagen. The Turin-based company, for now, maintains its leadership in the South American state, which has long held the car market in its hands, but sees its share declining. While the German group, strengthened by a record year, takes hold and narrows the gap.
In fact, Fiat has seen its market share drop from almost 22% in August to the current 20,6% (while in August 2010 it was close to 23%). In second place is Volkswagen, whose sales in the last year have been almost stable (around 20-21%). General Motors also on the podium with 18,28%.
In detail, Lingotto sold 60.477 cars and commercial vehicles (67.330 in August; 66,810 in September 2010). But there has already been an overtaking: in the top ten of the best-selling models the Vw Golf maintains the first position with 24.591 units sold in September for a final balance in the 9 months of 222.936 units, followed by the Fiat Uno with 24.169 units for a final balance of 205.439.
All this just as Brazil has decided to raise some taxes on auto makers in an attempt to discourage imports and boost local production. The Finance Minister, Guido Mantega, said that the IPI tax on industrial products will be increased by 30 percentage points for producers who do not carry out at least 65% of their production locally and who do not invest in research and development in the country.
Manufacturers operating in the country, including Volkswagen AG and General Motors Co, will have 60 days to comply with the legislation or face new taxes. Fiat, like Volkswagen, has one of its main outlet markets in the South American state and produces directly in the country.
However, this measure has not discouraged the German group, leader of the European market, ready more than ever to launch an assault on the Turin factory. Volkswagen has indeed announced a investment of 3,4 billion euros in Brazil. “This allows us to pave the way for sustainable development in Brazil, one of the most important future markets for the company,” explained the president Martin Winterkorn. Volkswagen's four production plants in Brazil produce 3.500 vehicles per day and employ around 23.000 people, making it one of the largest employers in the sector in South America.
